Finding Text
2022-004 Federal Agency: U.S. Department of Agriculture Federal Program Name: Beginning Farmer and Rancher Development Program Assistance Listing Number: 10.311 Federal Award Identification Number and Year: 2021: 2021-70033-35709 Award Period: September 1, 2021 to August 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: 2 CFR 200.303(a) states that a nonfederal entity must "Establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award." In addition, 2 CFR 200.329(c)(1) states that the nonfederal entity must submit performance reports at the interval required by the awarding agency to best inform improvements in program outcomes and productivity. Condition: The FY2022 annual performance report lacked evidence of review and approval prior to submission and was submitted more than 90 days after the required reporting date. Questioned costs: None Context: One annual performance report was submitted approximately six weeks after its required due date. The report does not have evidence of review incorporated into the report file, and no external documentation was maintained to evidence appropriate review prior to report submission. Cause: Internal controls were not adequately documented and did not ensure timely review, approval, and submission of required reports. Effect: Delayed reporting may adversely affect program oversight, compliance monitoring, and future funding opportunities. Repeating finding: No. Recommendation: We recommend management implement a procedure that documents the executive director's review and approval of the annual Reports, such as retaining evidence of approval through a signed report or email correspondence. In addition, management should establish controls and provide training to help ensure reports are reviewed, approved, and submitted timely in accordance with applicable requirements. View of responsible officials: Management agrees with the finding and has provided its corrective action plan