FAC Explorer

Finding 20746 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-26
Audit: 20488
Organization: Freshfarm Markets, Inc. (DC)
Auditor: Wegner CPAS

AI Summary

  • Core Issue: Internal controls for reviewing Form 425 were ineffective, leading to errors in reporting.
  • Impacted Requirements: Compliance with 2 CFR 200.303(c) regarding monitoring federal award terms was not met.
  • Recommended Follow-Up: Implement stronger controls to ensure compliance with federal reporting requirements.

Finding Text

Criteria or Specific Requirement: 2 CFR 200.303(c) requires the non-Federal entity to evaluate and monitor the non-Federal entity's compliance with statutes, regulations, and the terms and conditions of Federal awards. Condition: Effective internal controls over reporting requirements were not established for review of Form 425. Cause: The lack of effective internal controls over reporting caused errors in the initial preparation of Form 425. Effect or Potential Effect: Improper reporting could result in the federal agency exercising additional scrutiny over activities and possible loss of funding. Repeat Finding: Yes. Recommendation: The Organization should implement controls to monitor compliance with the reporting requirements of federal awards.

Corrective Action Plan

Views from Responsible Officials: Management agrees with the finding. Management will implement controls to monitor compliance with the reporting requirements of federal awards. Contact Person: Carrie Hildebrandt, Grants and Finance Senior Manager. Anticipated Date of Completion: September 2023.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20744 2022-001
    Significant Deficiency
  • 20745 2022-001
    Significant Deficiency
  • 597186 2022-001
    Significant Deficiency
  • 597187 2022-001
    Significant Deficiency
  • 597188 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.331 Food Insecurity Nutrition Incentive Grants Program $492,644
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $252,000
10.175 Farmers Market and Local Food Promotion Program (b) $207,215
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $101,321
10.170 Specialty Crop Block Grant Program - Farm Bill $66,269
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $41,000
10.168 Farmers' Market and Local Food Promotion Program $23,774