Finding Text
2023-002—SF 425 Reporting Timeline Type of Finding: Significant Deficiency in Internal Control Over Compliance of Federal Awards (F) Instances of Noncompliance related to Federal Awards (G) Federal Agency: United States Department of Agriculture Federal Program Name: Food Insecurity Nutrition Incentive Grants Program Assistance Listing Number: 10.331 Federal Award Identification Number and Year: 2022-70423-38069, 2020-70030-33124, 2021-70030-35719 Award Period: Project period: multiple; Budget period: multiple Questioned Costs: None Criteria In accordance with 24 CFR Part 85.41, the Federal Financial Report (SF-425) is required to be submitted for the Food Insecurity Nutrition Incentive Grants program. Recipients use the SF-425 as a standardized format to report expenditures under Federal awards, as well as, when applicable, cash status. The due dates are 30 days after the end of the reporting period for quarterly reports, and 90 days after the end of the reporting period for the annual reports. Condition The NMFMA did not have adequate controls over the SF-425 reporting timeline. For three out of the three SF-425 Federal Financial Reports tested, the annual reports were submitted after the due date (90 days for annual reports). Cause Deadlines were missed because of the ripple effect of having so many staff changes in the administrative bookkeeping department during 2023. This meant that the processes on invoicing and general bookkeeping that the ED participates in were thrown off schedule, and the ED fell behind on grant reporting. While reporting fell behind, all records were kept in compliance with the grants. Effect Weaknesses in internal controls and the identified noncompliance with reporting requirements could result in sanctions by the United States Department of Agriculture. Questioned costs are not applicable to this finding. Recommendation The NMFMA staff should improve internal controls by implementing reminders with the due dates of the reports. View of Responsible Official The Executive Director will take action to make sure USDA reports are filed on time. The ED will work with the Finance Director to ensure deadlines are met. Timeline This will be implemented as of 9/27/2024 Staff Responsible Executive Director