Finding Text
Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal
control over federal awards.
Condition: During the year ended June 30, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
and special tests and provisions. We have determined this to be a material weakness in internal control over
compliance.
Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30,
2023. Further, as described in finding 2023-001, there were no written procedures in place to assign specific
tasks to separate individuals.
Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to
the Organization, which may ultimately result in decreased funding for the Organization.
Repeat Finding: Yes, finding number 2022-004.
Recommendation: We recommend that management develops and implements internal controls over
compliance with federal awards in accordance with the requirements of the Uniform Guidance.
Views of Responsible Officials: There is no disagreement with the finding.