Finding 1235978 (2025-006)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-09-22

AI Summary

  • Core Issue: A duplicate employee reimbursement of $527.95 was charged to the federal award due to inadequate review controls.
  • Impacted Requirements: Compliance with 2 CFR 200.403, which mandates that costs must be necessary and reasonable.
  • Recommended Follow-Up: Management should assess and improve reimbursement review procedures to prevent future duplicate submissions.

Finding Text

Allowable Activities Federal Agency: Department of Agriculture Federal Program: Technical Assistance and Training Grant Assistance Listing Number: 10.761 Award Period: March 1, 2023 – September 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: 2 CFR 200.403 requires a cost be necessary and reasonable for performance of the award. Condition: One (1) of fifteen (15) disbursement transactions tested revealed a duplicate employee reimbursement charged to the federal award. The same supporting invoice was submitted and reimbursed through two separate expense reports in different months, resulting in duplicate reimbursement of $527.95. Questioned costs: None. Context: During testing of 15 disbursement transactions charged to the major program, we identified one instance in which an employee reimbursement was processed twice. The same invoice was included with two separately approved expense reports submitted in different months. Cause: The Organization's reimbursement review controls did not detect that the same expense had previously been submitted and reimbursed. Both expense reports were approved in accordance with established procedures, and the duplicate charge was not identified during the review process. Effect: As a result, expenditures charged to the federal award were overstated due to a duplicate reimbursement. Repeat finding: No. Recommendation: We recommend management evaluate the circumstances surrounding the duplicate reimbursement and assess whether enhancements to existing reimbursement review procedures are necessary to identify and prevent duplicate reimbursement requests from being processed and charged to federal awards. View of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

DEPARTMENT OF AGRICULTURE 2025-006 Technical Assistance and Training Grant – Assistance Listing No. 10.761 Recommendation: We recommend management evaluate the circumstances surrounding the duplicate reimbursement and assess whether enhancements to existing reimbursement review procedures are necessary to identify and prevent duplicate reimbursement requests from being processed and charged to federal awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Existing reimbursement review procedures have been reinforced, and additional verification steps will be incorporated into the approval process to help prevent duplicate reimbursements from being charged to federal awards in the future. Name(s) of the contact person(s) responsible for corrective action: Jeff Fournier, Finance Director Planned completion date for corrective action plan: June 30, 2026 If the Department of Housing and Urban Development or Department of Agriculture have questions regarding this plan, please call Jeff Fournier at (413) 665-1271.

Categories

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Other Findings in this Audit

  • 1235979 2025-003
    Material Weakness Repeat
  • 1235980 2025-003
    Material Weakness Repeat
  • 1235981 2025-003
    Material Weakness Repeat
  • 1235982 2025-004
    Material Weakness Repeat
  • 1235983 2025-004
    Material Weakness Repeat
  • 1235984 2025-004
    Material Weakness Repeat
  • 1235985 2025-005
    Material Weakness Repeat
  • 1235986 2025-005
    Material Weakness Repeat
  • 1235987 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.761 WATER AND WASTE TECHNICAL ASSISTANCE AND TRAINING GRANTS $322,562
10.771 RURAL COOPERATIVE DEVELOPMENT GRANTS $204,000
10.443 OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS $184,037
10.871 SOCIALLY-DISADVANTAGED GROUPS GRANT $162,605
10.872 HEALTHY FOOD FINANCING INITIATIVE $117,344
10.446 RURAL COMMUNITY DEVELOPMENT INITIATIVE $105,061
14.024 COMMUNITY DEVELOPMENT BLOCK GRANT- PRICE COMPETITION $48,309
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $45,640
10.164 WHOLESALE FARMERS AND ALTERNATIVE MARKET DEVELOPMENT $14,463
10.351 RURAL BUSINESS DEVELOPMENT GRANT $12,665
66.202 CONGRESSIONALLY MANDATED PROJECTS $433