Finding Text
2023-002
Federal Agency: U.S. Department of Agriculture
Federal Program Name: Food Insecurity Nutrition Incentive Grants Program
Assistance Listing Number: 10.331
Pass-through Agency: National Institute of Food and Agriculture
Pass-through Number: 2020-70030-33186; 2021-70034-34987; 2021-70034-35361
Award Period: September 1, 2020 - August 31, 2023; June 15, 2021 - June 14, 2024;
August 1, 2021 - July 31, 2024
Compliance Requirement Affected: Allowable Costs
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria:
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures in place to ensure adequate controls designed to ensure personnel costs are documented with time and effort certifications.
Condition:
During our testing, we noted the organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications.
Questioned Costs:
None
Context:
During our testing, it was noted the organization did not have an approval by a supervisor on time and effort certification for the actual time spent working on the program for seven employees.
Cause:
The organization did not have policies and procedures in place during the fiscal year to adequately document and certify employee's time and effort charged to the grant.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential noncompliance with regulatory requirements.
Repeat Finding: Yes - see finding 2022-004.
Recommendation:
We recommend The Food Trust establish and implement controls that require employees to document their time and effort spent on various activities. Time and effort certifications should be regularly reviewed and approved by appropriate personnel to ensure accuracy and completeness of personnel cost documentation.
Viewed of Responsible Officials and Planned Corrective Actions:
Please refer to The Food Trust’s Corrective Action Plan.