Finding Text
2022-005 Federal Agency: U.S. Department of Agriculture Federal Program Names: Farmers Market and Local Food Promotion Program; Beginning Farmer and Rancher Development Program Assistance Listing Number: 10.175; 10.311 Federal Award Identification Number and Year: 2020: AM200100XXXXG176; 2021: 2021-70033-35709 Award Period: September 30, 2020 to September 29, 2023; September 1, 2021 to August 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Per 2 CFR part 200, 200.305(b)(3), when the reimbursement method is used, the Federal agency or pass-through entity must make payment within 30 calendar days after receipt of the payment request unless the federal agency or pass-through entity reasonably believes the request to be improper. Condition: During testing, it was found that two of the three subrecipient payments tested for ALN 10.175, and one of two subrecipient payments tested for ALN 10.311, were not paid within the 30-day requirement. Questioned costs: None. Context: For ALN 10.175, two of the three subrecipient payments tested were not submitted timely. Similarly, for ALN 10.311, one of two subrecipient payments were not submitted timely. Delayed payments ranged from 19 days to 132 days beyond the 30-day requirement. CLA noted no reasonable extenuating circumstances that would cause a delay in repayment. Cause: Management's understanding of compliance requirements related to subrecipient reimbursements was insufficient, and controls were not established to ensure timely processing of payments. Effect: Delayed payments may adversely affect subrecipients' ability to manage cash flow and carry out program activities. Repeating finding: No. Recommendation: We recommend management implement policies, procedures, and trainings to ensure all subrecipient payment requests are reviewed and approved timely. View of responsible officials: Management agrees with the finding and has provided its corrective action plan