Finding Text
2022-003 Federal Agency: U.S. Department of Agriculture Federal Program Name: Farmers Market and Local Food Promotion Program Assistance Listing Number: 10.175 Federal Award Identification Number and Year: 2020: AM200100XXXXG176 Award Period: September 30, 2020 to September 29, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance 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. Condition: All eight transactions selected for testing of matching requirements lacked evidence of review and approval controls to ensure the transactions were allowable and appropriately applied to matching requirements. Questioned costs: None. Context: There are no documented controls surrounding transaction-level matching contributions to ensure they are allowable and properly coded to the federal program. However, a running total of matching is included on the form SF-270 that is reviewed and approved, as evidenced by the executive director's signature. Cause: Existing policies and procedures governing matching transactions do not require documented review and approval. Effect: A lack of documented controls over matching transactions could result in inaccurate, unsupported, or inappropriate reporting of matching contributions. Repeating finding: No. Recommendation: We recommend management implement a documented review and approval for matching transactions. View of responsible officials: Management agrees with the finding and has provided its corrective action plan.