Finding Text
Finding 2022-001: Significant deficiencies in internal controls over compliance. Federal Agency: United States Department of Agriculture. Program Title: Agricultural Conservation Easement Program. CFDA Number: 10.931. Award Number: N5619ALE0010116. Award/Project Period: September 25, 2019 - August 31, 2022. Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards section 200.303 states ?the non-federal entity must:? and continues in subsection a. and c. ?Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award? and ?Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards? Condition: The project lead read the cooperative grant agreement, and the cooperative grant agreement was signed by the board chair. The cooperative agreement was also used as a reference during the conservation easement purchase process. Notwithstanding, the entity did not identify and/or monitor certain compliance requirements found in the cooperative grant agreement. Cause: The processes for identifying all compliance requirements and for monitoring those compliance requirements are incomplete and based on informal processes and procedures. Effect or Possible Effect: Varying compliance requirements could exist in the cooperative grant agreements, but not be identified and/or monitored. This could lead to compliance requirements which are not known and/or not understood. This is especially applicable to compliance requirements to be followed after the expenditure of the federal award such as submittal of reports and corresponding due dates, and other subsequent required communication with the awarding federal agency. Questioned Costs: Not applicable. Perspective/Context: The federal program expenditures consisted of one conservation easement purchase. The sampling was a non-statistically valid sample as the entire one transaction population was tested. The finding is the same as occurred on the prior year September 30, 2021 Schedule of Findings and Questioned Costs. The Findings and Questioned Costs for the September 30, 2021 year were provided to the Auditee in the weeks and months prior to the report date of May 13, 2022. The sampled conservation easement transaction relating to the September 30, 2022 fiscal year occurred in November 2021, prior to the auditee receiving the Schedule of Findings and Questioned Costs for the September 30, 2021 year end; and accordingly the auditee had not had the opportunity to implement the recommendations from the September 30, 2021 Schedule of Findings and Questioned Costs at the time the sampled conservation easement occurred in November 2021. Repeat Finding: The finding is the same as reported on the September 30, 2021 Schedule of Findings and Questioned Costs due to timing matters. The auditee did not have the opportunity to implement recommendations before the September 30, 2022 conservation easement occurred in November 2021. See the prior section "Perspective/Context" for additional information. Recommendation: As a result of the September 30, 2021 Schedule of Findings and Questioned Costs, subsequent to the month of May 2022, the auditee developed a checklist of processes and procedures to guide the auditee through future conservation easement purchases made with federal funds. The auditee assigned an employee to review federal contracts and extract and summarize applicable compliance requirements. The auditee should continue to develop and hone these new procedures and tools. Views of Responsible Officials of Auditee: The Jackson Hole Land Trust agrees with the recommendation, will continue to implement and improve its checklist of processes and procedures, and utilize staff to review and ensure compliance with federal contracts and grant agreements. The Land Trust also currently has an additional, new employee to assist in this process. Auditor Evaluation of Auditee comments: The Land Trust's responses and plans are appropriate.