Finding Text
Agency: U.S. department of Agriculture Federal Program: Senior Farmers' Market Nutrition Programs 10.576 Grant Number: 201919Y831341 Grant Period October 1, 2018- September 30, 2019 Compliance Requirement: Reporting Category: Internal Control Weakness and Noncompliance Criteria: CFR Parts 249.23 Records and report. (a) Recordkeeping requirements. Each State agency shall maintain full and complete records concering SFMNP operations. Such records sahll comply with 2 CFR Part 200, Subpart D and USDA implementing regulations 2 CFR Part Part 415 and the following requirements: (1) Records shall include, but not limited to, information pertaining to financial operations, SFMNP coupon issuance and redemption, equipment purchases and inventory, nutrition education, and civil rights procedures, (b) Financial and recipient records, State agencies shall submit financial and SFMNP performance data on a yearly basis as specified by FNS and required by section 17(m)(8) of the CAN. Such information shall include but shall not be limited to: (1) Number and type of recipients (Federal and non-Federal). (2) Value of coupons issued, (3) Value of coupons redeemed.(c) Source documentation. To be acceptable for audit purposes, all financial and SFMNP performance reports shall be traceable to source documentation. Condition As part of our audit procedures over financial reporting requirement, we requested the SFMNP closeout report, for the program year ended September 30, 2019, (Form FNS-683) We found the following exceptions: the administrative expenses were not reconciled to the general ledger accounts. Wages expenses reported were not allocated between WIC Farmers' Market Nutrition Program (WIC-FMNP) and Senior Farmers' Market Nutrition Program (SFMNP) in accordance with the percentages established in 2020 SFMNP and FMNP Consolidated State Plan of Operations. They were allocated on a 88% to 12% respectively, instead of 62% for WIC and 38% for SFMNP. Effect AEDA's noncompliance may result in an administrative sactions by the grantor agency and in costs disallowances, if applicable. The lack of reconciliation does not allow for a proper distribution of State and Federal resources, accurate reporting and detection of possible irregularities on a timely basis. Also, inaccurate reporting exposes AEDA to federal sanctions and prevents the Federal awarding agency and AEDA's management from proper monitoring of federal program financial activities, assessing the achievements of activities, and evaluating the grant award for subsequent years. Cause AEDA has not established proper internal control procedures to reconcile the amounts reported on the closeout reports to the amounts reported in its accounting system. Context: As part of our audit procedures over reporting requirement, we evaluated the SFMNP closeout reports (Form FNS-683A), for the program year ended September 30, 2019. Prior Year audit finfing 2019-002 Recommendation Management should take appropriate actions to reconcile on a timely manner SFMNP related reports and supporting documentation with the accounting records in order to generate accurate, current, reliable, and complete reports. This may require to either maintain or strengthen effective control to ascertain full and complete records concerning SFMNP operations. Questioned costs None Management's Response Refer to Grantee's Corrective Action Plan.