Finding 504918 (2023-001)

Findings and Questioned Costs relating to Federal Awards Finding: 2023-001 Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Programs Federal Award Number: 10.553, 10.555, 10.559 Federal Award Year: September 1, 2022, through August 31, 2023 Compliance Requirement: Reporting (L) – Special Reporting Criteria or Requirement: Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, (Subpart D, Section 200.303), the nonfederal entity must 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. Additionally, per Title 2, U.S. Code of Federal Regulations Part 200 (2 CRF 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, Subpart F, Section 200.507 (c)(1) The audit must be completed and the reporting required by paragraph (c)(2) or (c)(3) of this section submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide. Condition: The organization did not comply with the requirement to submit an audit to the FAC no later than nine months after their year-end. Cause and Effect: The organizational staff turnover and lack of communication with audit team caused a delay in the process. The effect of this condition was that the organization did not comply with the reporting requirement. Recommendations: A system should be implemented that designates multiple points of contact for the auditor, ensuring continuity in the event of key employee transitions and facilitating timely completion of future audits. Repeat Finding: No View of Responsible Officials: The administrator and staff of the organization are establishing a board sub-committee to ensure that future audits are completed in a timely manner, and staff are properly trained on how to prepare for the audit.