Finding 502117 (2023-002)

Segregation of Duties Information on the Federal Program: U.S. Department of the Agriculture, Plains Regional Transition to Organic Partnership Program Assistance Listing No. 10.163, Grant Agreement No. 23-NOPXX-NE-0004. Criteria: SAS 115 requires communication, in writing, to management and those charged with governance, of material weaknesses identified in an audit. Condition and context: The Association does not have appropriate segregation of duties. Cause: The Association does not have enough available accounting staff to fully segregate incompatible duties in a cost-effective manner. Effect or Potential Effect: The significant deficiency adversely affects the Association’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Association’s financial statements that is more than inconsequential will not be prevented or detected by the Association’s internal control. Identification of a Repeat Finding: New finding. Recommendation: The Association’s management and Board of Directors must rely on its review and oversight authority to mitigate this inherent weakness in its internal control system. Responsible Official’s Response: The Association will continue to rely on its system of oversight provided by the board of directors in reviewing the financial statements of the Association. The Association will also be mindful of identifying a qualified volunteer or potential board member who could review the financial statements.