Finding Text
Finding No. 2022-005: Significant Deficiency - Administrative financial $20,228 review Condition: During the Texas Department of Agriculture (TDA) audit in January 2022, TDA noted Anita Moreau received a PPP loan in 2020, paid an employee more than was authorized in the budget and did not get approval for a vendor in their budget. Criteria: In compliance with USDA FNS Instruction 796-2, Rev 4., Section VIII, Part D; Section 7400 "Nonprofit food Service" of CCC/ADC/At-Risk Handbooks; 2 CFR 200.404 & 405, the sponsor must seek approval for all vendors and pay vendors what has been approved per budget. Cause: During the review, TDA sampled expenses to ensure they were necessary, reasonable and allowable. Effect: For expenses tested, TDA noted for 2020 Anita Moreau received a PPP Loan for payroll expenses, in 2021 Anita Moreau overpaid an employee $500 and a vendor was not included in budget. Recommendation: TDA recommends Anita Moreau to provide a detailed explanation of the circumstances around the funds used for program purposes; develop and implement processes and procedures to ensure all costs are properly categorized and disclosed and approvals are appropriately requested; and reimburse the Organization for the amount of questioned costs above.