Finding 526987 (2024-001)

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Requirement
C
Questioned Costs
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Year
2024
Accepted
2025-03-13
Audit: 346075
Organization: U.s. Apple Export Council (CA)
Auditor: Rood & Dinis LLP

AI Summary

  • Core Issue: USAEC failed to claim $45,684.28 of a $150,000 advance within the required 90 days.
  • Impacted Requirements: Noncompliance with the Market Access Program and Uniform Guidance due to untimely claims and unreturned funds.
  • Recommended Follow-Up: Implement a reminder system for timely claims and fund returns to ensure compliance with deadlines.

Finding Text

Finding 2024-001 FEDERAL FINDING NONCOMPLIANCE Identification of federal program: ALN Name of Federal Program Identification # Year Agency 10.601 Market Access Program MAP-2024-USAEC 2024 USDA Cash Management Criteria: According to the Market Access Program, specifically section 1485.19(d), a participant shall fully expend all advances on promotion activities within 90 calendar days after date of advance disbursement by CCC. By the end of the 90 calendar days, the participant must submit reimbursement claims to offset the advance and submit a check made payable to CCC for any unexpended balance. Condition: Of the $150,000 advanced to USAEC on 9/20/23, $45,684.28 was unclaimed by the 90-day window. Effect: USAEC was not in compliance with Uniform Guidance and the Market Access Program. Cause: USAEC was unable to produce sufficient claim forms in a timely manner, nor did USAEC return unexpended funds within the allowed timeframe. Recommendation: USAEC adopts a policy to set reminders to either file a claim to utilize the advanced funds or return the unused portion by the 90-day deadline. We do not believe accrued interest should be returned to CCC as the estimated total is well below the $500 administrative threshold. Repeat finding: No.

Corrective Action Plan

Planned Corrective Action USAEC management acknowledges finding 2024-001 made by Rood & Dinis, LLP during its financial statement audit for the fiscal year ended June 30, 2024. USAEC has already implemented an advance tracking system to ensure that all advances are closed out within the 90-day window going forward. Responsible Party Shelby Sackett, Executive Director Completion Date July 19, 2024

Categories

Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.601 Market Access Program $867,713
10.604 Technical Assistance for Specialty Crops Program $43,747