Finding 6840 (2023-002)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2023-12-28
Audit: 8763
Organization: Minnesota Land Trust (MN)

AI Summary

  • Core Issue: Minnesota Land Trust lacks documented procedures for advance payments, violating compliance requirements under 2 CFR section 200.305.
  • Impacted Requirements: The absence of written procedures means they are not minimizing the time between fund transfer and disbursement as required by federal regulations.
  • Recommended Follow-Up: Minnesota Land Trust should create and implement a written advance payment policy that aligns with 2 CFR section 200.305.

Finding Text

Internal Controls over Compliance and Other Matters C. Cash Management – Lack of Documented Procedures Related to Advance Payments U.S. ENVIRONMENTAL PROTECTION AGENCY Geographic Programs - Great Lakes Restoration Initiative – Assistance Listing No. 66.469 Criteria: The federal sub-award grant agreement number 208171 for the EPA Perch Lake Habitat Restoration Project from the State of Minnesota requires Minnesota Land Trust to comply with all federal requirements imposed on the awarded funds, which includes Title 2 U.S. Code of Federal Regulation (CFR) section 200.305. In accordance with 2 CFR section 200.305, a non-federal entity must maintain written procedures that minimize the time elapsing between the transfer of funds and disbursement. Condition: Minnesota Land Trust does not have documented procedures over advance payments that incorporate all the requirements of 2 CFR section 200.305. Cause: Internal controls were not in place to ensure Minnesota Land Trust was aware of the compliance requirements per 2 CFR 200.305 for advance payments. Questioned Costs: None. Effect: Minnesota Land Trust is not in compliance with 2 CFR section 200.305. Context: The federal sub-award grant agreement number 208171 allows for Minnesota Land Trust to request advance payments. Minnesota Land Trust requested and received advance payments related to this project during fiscal year 2023. Recommendation: We recommend that Minnesota Land Trust adopt a written advance payment policy which includes all requirements of 2 CFR section 200.305. Views of Responsible Officials: Minnesota Land Trust agrees with the finding and will adopt a documented advance payment policy consistent with the standards of 2 CFR section 200.305 to use for advance payment requests under federal awards or sub-awards.

Categories

Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 6827 2023-001
    Material Weakness
  • 6828 2023-001
    Material Weakness
  • 6829 2023-001
    Material Weakness
  • 6830 2023-001
    Material Weakness
  • 6831 2023-001
    Material Weakness
  • 6832 2023-001
    Material Weakness
  • 6833 2023-001
    Material Weakness
  • 6834 2023-001
    Material Weakness
  • 6835 2023-001
    Material Weakness
  • 6836 2023-001
    Material Weakness
  • 6837 2023-001
    Material Weakness
  • 6838 2023-002
    Significant Deficiency
  • 6839 2023-002
    Significant Deficiency
  • 6841 2023-002
    Significant Deficiency
  • 583269 2023-001
    Material Weakness
  • 583270 2023-001
    Material Weakness
  • 583271 2023-001
    Material Weakness
  • 583272 2023-001
    Material Weakness
  • 583273 2023-001
    Material Weakness
  • 583274 2023-001
    Material Weakness
  • 583275 2023-001
    Material Weakness
  • 583276 2023-001
    Material Weakness
  • 583277 2023-001
    Material Weakness
  • 583278 2023-001
    Material Weakness
  • 583279 2023-001
    Material Weakness
  • 583280 2023-002
    Significant Deficiency
  • 583281 2023-002
    Significant Deficiency
  • 583282 2023-002
    Significant Deficiency
  • 583283 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.664 Cooperative Forestry Assistance $115,108
15.658 Natural Resource Damage Assessment and Restoration $88,682
15.630 Coastal $64,183
66.469 Geographic Programs - Great Lakes Restoration Initiative $15,440
15.608 Fish and Wildlife Management Assistance $14,137
11.419 Coastal Zone Management Administration Awards $4,871
15.662 Great Lakes Restoration $1,216