Finding Text
United States Department of Agriculture
Federal Financial Assistance Listing #10.766
Community Facilities Loans and Grants Cluster
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Material Weakness in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: During review of expenditure listings, three expenditures were claimed under the USDA Grant Program after the Center received an advancement of USDA loan funds for those same three expenditures.
Cause: The Center did not have a formal review process in place over the USDA Grant expenditure listing and USDA loan advancement to ensure double dipping was not occurring.
Effect: The Center received funding from two federal programs for the same expenditures.
Questioned Costs: $43,354.
Context/Sampling: Sampling was not used.
Repeat Finding from Prior Years: No
Recommendation: We recommend management implement internal control procedures to include a preparer and reviewer over federal expenditure listings to ensure no double dipping occurs with federal programs.
Views of Responsible Officials: Management agrees with the finding.