Finding Text
2022-002 Federal Financial Reporting Food Insecurity Nutrition Incentive Grants Program ? Assistance Listing Number 10.331 ? Award Period: September 1, 2020 through August 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition: The Organization failed to submit the required annual SF-425 Federal Financial Report in 2022. Criteria: Per provisions of the award, Grantee must report cost-sharing annually on Form SF-425. Additionally, 2 CFR Part 200.303(a) states, a non-Federal 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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Cause: Procedures and controls were insufficient to ensure the annual Form SF-425 was submitted timely. Effect: Failure to report cost-sharing could result in allowable costs being disallowed and required to be paid back to the Federal awarding agency. Recommendation: The Organization should implement policies and procedures to ensure that all financial and special reports are filed timely and accurately and that reports are reviewed and approved by management prior to submission to ensure accurate support for reported amounts. Views of Responsible Officials and Planned Corrective Actions: Management agrees. See separately issued Corrective Action Plan.