Finding Text
Inadequate Internal Controls over Compliance
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
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, 2022, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, eligibility, 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, 2022. Further, as described in finding 2022-001, 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.
Repeat Finding: Yes, finding number 2021-003.
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.