FAC Explorer

Finding 30188 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-29
Audit: 35974
Organization: Michael Fields Agricultural Institute, Inc. (WI)
Auditor: Wegner CPAS

AI Summary

  • Core Issue: Grant revenue was not recorded in the correct period, leading to misstatements in financial reports.
  • Impacted Requirements: Compliance with 2 CFR 200.508 and generally accepted accounting principles for federal grant tracking.
  • Recommended Follow-Up: Establish a financial close process to accrue grant revenue based on actual expenditures and ensure accurate presentation of federal awards.

Finding Text

Finding 2022-001 Criteria or Specific Requirement: Management is responsible for establishing policies and procedures for creating an appropriate financial management system to track federal grants in accordance with 2 CFR 200.508, including the preparation and presentation of the schedule of expenditures of federal awards. Condition: Grant revenue in the prior year was not accrued to present reimbursement grants in accordance with generally accepted accounting principles. Cause: Management records grant revenue at the time of the drawdown request without regard to the period the expenditures were incurred. Effect or Potential Effect: Grant revenue was presented in the incorrect period causing a misstatement in the schedule of expenditures of federal awards. Recommendation: We recommend the Organization implement a process to perform a financial close, including accruing expected grant revenue based on expenditures incurred during the reporting period. We also recommend the Organization implement a process to ensure the schedule of federal expenditures of federal awards is presented fairly. Views of responsible officials: Management agrees with the finding and will implement a process to review its financial closing procedures.

Corrective Action Plan

Michael Fields Agricultural Institute will work with O'Leary & Anick for implementing correct process and record proper cost reports, financial closing procedures, and the SEFA. Contact Person: Shannah Schmitt, MFAI and Kevin O'Leary, O'Leary & Anick. Anticipated date of Completion: December 2023

Categories

Cash Management Reporting

Other Findings in this Audit

  • 30189 2022-002
    -
  • 30190 2022-003
    Significant Deficiency
  • 30191 2022-004
    Significant Deficiency
  • 30192 2022-005
    Significant Deficiency
  • 30193 2022-001
    Material Weakness
  • 30194 2022-002
    -
  • 30195 2022-003
    Significant Deficiency
  • 30196 2022-004
    Significant Deficiency
  • 30197 2022-005
    Significant Deficiency
  • 30198 2022-001
    Material Weakness
  • 30199 2022-002
    -
  • 30200 2022-003
    Significant Deficiency
  • 30201 2022-004
    Significant Deficiency
  • 30202 2022-005
    Significant Deficiency
  • 30203 2022-001
    Material Weakness
  • 30204 2022-002
    -
  • 30205 2022-003
    Significant Deficiency
  • 30206 2022-004
    Significant Deficiency
  • 30207 2022-005
    Significant Deficiency
  • 30208 2022-001
    Material Weakness
  • 30209 2022-002
    -
  • 30210 2022-003
    Significant Deficiency
  • 30211 2022-004
    Significant Deficiency
  • 30212 2022-005
    Significant Deficiency
  • 30213 2022-001
    Material Weakness
  • 30214 2022-002
    -
  • 30215 2022-003
    Significant Deficiency
  • 30216 2022-004
    Significant Deficiency
  • 30217 2022-005
    Significant Deficiency
  • 606630 2022-001
    Material Weakness
  • 606631 2022-002
    -
  • 606632 2022-003
    Significant Deficiency
  • 606633 2022-004
    Significant Deficiency
  • 606634 2022-005
    Significant Deficiency
  • 606635 2022-001
    Material Weakness
  • 606636 2022-002
    -
  • 606637 2022-003
    Significant Deficiency
  • 606638 2022-004
    Significant Deficiency
  • 606639 2022-005
    Significant Deficiency
  • 606640 2022-001
    Material Weakness
  • 606641 2022-002
    -
  • 606642 2022-003
    Significant Deficiency
  • 606643 2022-004
    Significant Deficiency
  • 606644 2022-005
    Significant Deficiency
  • 606645 2022-001
    Material Weakness
  • 606646 2022-002
    -
  • 606647 2022-003
    Significant Deficiency
  • 606648 2022-004
    Significant Deficiency
  • 606649 2022-005
    Significant Deficiency
  • 606650 2022-001
    Material Weakness
  • 606651 2022-002
    -
  • 606652 2022-003
    Significant Deficiency
  • 606653 2022-004
    Significant Deficiency
  • 606654 2022-005
    Significant Deficiency
  • 606655 2022-001
    Material Weakness
  • 606656 2022-002
    -
  • 606657 2022-003
    Significant Deficiency
  • 606658 2022-004
    Significant Deficiency
  • 606659 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.001 Agricultural Research_basic and Applied Research $430,664
10.902 Soil and Water Conservation $160,335
10.310 Agriculture and Food Research Initiative (afri) $158,598
10.311 Beginning Farmer and Rancher Development Program $147,024
10.215 Sustainable Agriculture Research and Education $35,425
10.912 Environmental Quality Incentives Program $9,370