Finding 587733 (2022-004)

Material Weakness
Requirement
H
Questioned Costs
$1
Year
2022
Accepted
2024-02-01
Audit: 15127
Organization: Practical Farmers of Iowa (IA)

AI Summary

  • Core Issue: Expenses totaling $29,670 were submitted for reimbursement after the grant period ended.
  • Impacted Requirements: This violates 2 CFR, Part 200, §200.303, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Implement a process to ensure expenses are evaluated for eligibility within the grant period.

Finding Text

Criteria: 2 CFR, Part 200, §200.303, requires an auditee to 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. Condition: For one out of eight items selected for period of performance testing, we noted the expenses submitted for reimbursement were incurred outside of the grant period. Questioned costs: $29,670 Context: One out of eight items tested related to expenses incurred after the grant period ended. Cause: The Organization did not have an adequate system to evaluate when expenses were incurred compared to the grant period. Effect: Requesting grant funds for activities outside of the grant period. Repeat Finding: No Recommendation: We recommend the Organization implement a process to evaluate if expenses are eligible for reimbursement during the grant period. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Cash Management Period of Performance Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 11290 2022-003
    Significant Deficiency
  • 11291 2022-004
    Material Weakness
  • 11292 2022-005
    Significant Deficiency
  • 11293 2022-006
    Material Weakness
  • 587732 2022-003
    Significant Deficiency
  • 587734 2022-005
    Significant Deficiency
  • 587735 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.475 Gulf of Mexico Program $540,809
10.912 Environmental Quality Incentives Program $397,774
10.311 Beginning Farmer and Rancher Development Program $191,482
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $179,064
10.175 Farmers Market and Local Food Promotion Program (b) $79,782
10.310 Agriculture and Food Research Initiative (afri) $57,443
10.902 Soil and Water Conservation $38,214
10.215 Sustainable Agriculture Research and Education $26,478
10.170 Specialty Crop Block Grant Program - Farm Bill $24,000
10.932 Regional Conservation Partnership Program $10,306
10.182 Local Food Purchase Assistance $7,042