Finding 588371 (2021-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-02-06
Audit: 15891
Organization: Coastal Harvest (WA)

AI Summary

  • Core Issue: Coastal Harvest lacks effective internal controls over federal awards, leading to a material weakness in compliance.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303(a) regarding internal control over federal awards could jeopardize funding.
  • Recommended Follow-up: Management should create and implement robust internal controls to ensure compliance with federal award requirements.

Finding Text

Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 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, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, 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, 2021. Further, as described in finding 2021-001, 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. 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.

Categories

Special Tests & Provisions Subrecipient Monitoring Cash Management Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 11925 2021-003
    Material Weakness
  • 11926 2021-003
    Material Weakness
  • 11927 2021-003
    Material Weakness
  • 11928 2021-003
    Material Weakness
  • 11929 2021-003
    Material Weakness
  • 11930 2021-003
    Material Weakness
  • 11931 2021-003
    Material Weakness
  • 11932 2021-004
    Material Weakness
  • 11933 2021-004
    Material Weakness
  • 11934 2021-004
    Material Weakness
  • 11935 2021-004
    Material Weakness
  • 588367 2021-003
    Material Weakness
  • 588368 2021-003
    Material Weakness
  • 588369 2021-003
    Material Weakness
  • 588370 2021-003
    Material Weakness
  • 588372 2021-003
    Material Weakness
  • 588373 2021-003
    Material Weakness
  • 588374 2021-004
    Material Weakness
  • 588375 2021-004
    Material Weakness
  • 588376 2021-004
    Material Weakness
  • 588377 2021-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $1.01M
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds - Trade Mitigation Program $449,590
10.565 Commodity Supplemental Food Program $164,401
21.019 Coronavirus Relief Fund $66,047
10.568 Emergency Food Assistance Program (administrative Costs) $58,922