WISCONSIN CRANBERRY RESEARCH AND EDUCATION FOUNDATION INC.Non-Profit

2019-003 CFDA No. 10.001 Agricultural Research_Basic and Applied Research-Extramural Research (Allowable Costs/Cost Principles) Criteria - The Foundation is responsible to establish and maintain effective internal control over federal awards to provide reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal awards. Condition ? In September of 2020, the Foundation identified $35,201 of expenses that they had been reimbursed for were reimbursed with other funding or were not allowable for reimbursement under the grant. Cause ? The internal controls in place were insufficient to allow management to determine that the expenses should not have been claimed for reimbursement. Effect ? Internal controls over federal awards were insufficient and the Foundation determined that a repayment of $35,201 to the United States Department of Agriculture was needed. Questioned costs ? There were no questioned costs with respect to the amounts shown on the schedule of expenditures of federal awards as the schedule was prepared after the issue was found and the amount was appropriately excluded from the schedule by the Foundation. Repeat - No Auditor?s recommendation ? We recommend the Foundation review current internal controls and determine what changes need to be made to ensure this situation does not occur in the future. View of Responsible Official - Management agrees with the assessment and has committed to a corrective action plan.

2019-004 CFDA No. 10.001 Agricultural Research_Basic and Applied Research-Extramural Research (Procurement and Suspension and Debarment) Criteria ? Uniform Guidance requires that the Foundation have a written policy for procurement and contracts establishing contract files that document significant procurement history, methods of procurement authorized, including selection of contract type, contractor selection or rejection, and the basis of contract price, verification that procurements provide full and open competition, requirements for cost or price analysis, including contract modifications, and obtaining and reacting to suspension and debarment certifications. Condition ? During our testing of the Foundation?s compliance with procurement and suspension and debarment standards, it was noted that the Foundation did not have an official written policy. Cause ? The procurements had board approval, but the Foundation was unaware that an official written policy was required. Effect ? As a result of the lack of an official written policy, the Foundation was out of compliance with procurement and suspension and debarment requirements. Questioned costs ? None Repeat - No Auditor?s recommendation ? We suggest that Foundation management review the procurement and suspension and debarment regulations and develop an official written policy. View of Responsible Official ? Management agrees with the assessment and has committed to a corrective action plan.

2019-005 CFDA No. 10.001 Agricultural Research_Basic and Applied Research-Extramural Research (Allowable Costs/Cost Principles) Criteria ? Uniform Guidance requires that the Foundation have a written policy in place for determining whether a cost is allowable in accordance with 2 CFR Subpart E. Condition ? During our testing of the Foundation?s compliance with allowable costs/cost principles, we noted that the Foundation did not have a written policy in place for determining whether costs are allowable in accordance with 2 CFR Subpart E. Cause ? The Foundation was unaware that they needed a separate policy to address allowable costs/cost principles. Effect ? As a result of the lack of a written policy, the Foundation was out of compliance with the allowable costs/cost principles requirements. Questioned costs ? None Repeat - No Auditor?s Recommendation ? We suggest that Foundation management develop a written policy regarding allowable costs/cost principles. View of Responsible Official ? Management agrees with the assessment and has committed to a corrective action plan.

2019-006 CFDA No. 10.001 Agricultural Research Basic and Applied Research-Extramural Research (Reporting) Criteria ? Uniform Guidance 2 CFR 200.512(a)(1) requires that, for non-federal entities, ?The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period.? The reporting package described in 2 CFR 200.512(c) includes the following documents: ? The financial statements and schedule of expenditures of federal awards ? A summary schedule of prior audit findings ? Auditor?s reports ? Corrective action plan Condition ? The Foundation did not submit a timely reporting package to the Federal Audit Clearinghouse. Cause ? This was the first year the Foundation was required to have an audit in accordance with the Uniform Guidance which required a significant amount of additional time to reconcile grant revenues and expenditures with the claims submitted for reimbursement. In addition, COVID-19 caused delays and therefore the financial statements were not completed in time for the Foundation to submit the reporting package timely. Effect ? Without accurate and timely reporting, the funding agencies are unable to properly oversee the organization. Questioned costs ? None Repeat - No Auditor?s recommendation ? We suggest that Foundation staff print out the general ledger detail and reference the expenses claimed on individual reimbursement requests in an effort to reduce the amount of time required to reconcile grant revenues and expenditures. We also suggest that Foundation staff review reimbursement requests submitted after the Foundation?s year-end to determine the amount (if any) of the grant receivable that should be recorded at year-end. View of Responsible Official ? Management agrees with the assessment and has committed to a corrective action plan.