The Conservation Fund, A Nonprofit Organization & AffiliatesNon-Profit

Finding 2023-001: Subrecipient Monitoring Identification of federal program: Program Title: Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies Assistance Listing Number: 12.610 Award Identification: W9124J2120002 Federal Agency: U.S. Department of Defense, Office of Local Defense Community Cooperation Criteria or Specific Requirement: Title 2 CFR § 200.303(a) requires pass-through entities to 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. All pass-through entities are required to have subrecipient monitoring policies and procedures in place, which conform to the requirements of Title 2 CFR § 200.332 to identify subawards, evaluate risk of noncompliance, and perform monitoring procedures based upon identified risks. Condition: In testing compliance over subrecipient monitoring, we noted the Fund does not have a subrecipient monitoring policy in place that fully conforms with requirements of Title 2 CFR § 200.332. Cause: Historically the Fund has had few subawards and therefore has not developed full written subrecipient monitoring policies and procedures. Effect: The Fund should implement policies and procedures for monitoring subrecipients in accordance with Title 2 CFR § 200.332. Questioned Costs: None Context: While management’s existing process includes certain elements of subrecipient monitoring, a formal adopted policy is not in place that that fully conforms with requirements of Title 2 CFR § 200.332. Repeat finding: No Recommendation: Implement policies and procedures for monitoring subrecipients, including adequate documentation that conforms to the requirements of Title 2 CFR § 200.332. Views of responsible individuals: Management concurs with and will implement the recommendation. See corrective action plan.

Finding 2023-002: Procurement and Suspension and Debarment Identification of federal program: Program Titles: Agriculture Research Basic and Applied Research & Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies Assistance Listing Numbers: 10.001 & 12.610 Award Identification: CA 59-8082-0-001 & W9124J2120002 Federal Agencies: U.S. Department of Agriculture, Agriculture Research Service & U.S. Department of Defense, Office of Local Defense Community Cooperation Criteria or Specific Requirement: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: While the Fund adopted an updated procurement policy during 2023, testing of the Fund’s controls on compliance over procurement and suspension and debarment identified transactions under the old policy. The Fund did not have a procurement policy in place for the full year that is in compliance with prescribed standards in the Uniform Guidance; therefore, prior to the adoption of the updated procurement policy, suspension and debarment verifications were not performed prior to entering a covered transaction. Cause: While the Fund adopted an updated procurement policy, including policies over suspension and debarment that fully conforms to Uniform Guidance, the policy was adopted during 2023. Effect: The Fund was not in compliance with the procurement policy requirements of Uniform Guidance, specifically around suspension and debarment for the entirety of 2023. Questioned Costs: None Context: The Fund adopted an updated procurement policy in 2023, which fully complies with Uniform Guidance requirements addressed in Chapter 2 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. As the policy was not in place for the full year, we are unable to adequately test compliance prior to the adoption of the new policy. Repeat finding: Yes, Finding 2022-002 Recommendation: We acknowledge the Fund adopted and documented procurement procedures, which conform to the procurement standards identified in 2 CFR section §§ 200.317 through 200.327, and also addressed suspension and debarment during 2023. We recommend management continue training to ensure all applicable personnel are familiar with the revised policy. Views of responsible individuals: Management concurs with and will implement the recommendation. See corrective action plan.

Finding 2023-003: Noncompliance with Reporting Requirements under the Federal Funding Accountability and Transparency Act (FFATA) Identification of federal programs: Program Title: Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies Assistance Listing Number: 12.610 Award Identification: W9124J2120002 Federal Agency: U.S. Department of Defense, Office of Local Defense Community Cooperation Criteria or Specific Requirement: Under the requirements of the Federal Funding and Transparency Act (FFATA) (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, hereafter referred as the Transparency Act that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The requirements pertain to recipients (i.e., direct recipients) of grants or cooperative agreements who make first-tier subawards and contractors (i.e., prime contractors) that award first-tier subcontracts. There are limited exceptions as specified in 2 CFR Part 170 and the Federal Acquisition Regulation (FAR). Condition: The Fund works with subrecipients and some of its subawards require compliance with the FFATA requirement. Cause: Historically the Fund has had few subawards and therefore has not developed procedures to ensure subawards are evaluated for reporting requirements under FFATA and if required, the reporting is completed within the required timeframe. Effect: The Fund is not in compliance with FFATA reporting requirements. Questioned Costs: None Context: The Fund did not report its one subaward under this program as required to FSRS system. Repeat finding: No Recommendation: We recommend management implement procedures to ensure subawards are evaluated for reporting requirements under FFATA and if required, the reporting is completed within the required timeframe required. Views of responsible individuals: Management concurs with and will implement the recommendation. See corrective action plan.

Significant Deficiency Finding 2022-001: Reporting Identification of federal program: Program Title: Agriculture Research Basic and Applied Research Assistance Listing Number: 10.001 Award Identification: CA 59-8082-0-001 Federal Agency: U.S. Department of Agriculture, Agriculture Research Service Criteria or Specific Requirement: As described in the Fund?s award with the U.S. Department of Agriculture?s, Agriculture Research Service, the Fund is required to submit annual and final financial and performance reports as required by 2 CRF 200. The annual federal financial report (FFR) (SF-425) shall be submitted no later than 90 days after the end of each reporting period. Final federal financial report shall be submitted no later than 90 days after the project or grant period end date. Condition: In testing compliance over reporting, we noted that the annual federal financial report (FFR) (SF-425) was not submitted timely. The annual SF-425 for the reporting period ending March 31, 2022, was submitted on March 14, 2023, which was more than 90 days after the end of the reporting period. Cause: There was turnover in accounting and program staff during the grant period. This resulted in delays in timely financial report submission. Effect: In accordance with 2 CRF 200, section 200.328, the Fund should implement procedures and policies for monitoring and reporting on financial and program performance using the necessary standard reporting forms. Reporting that is required in accordance with the criteria described above was not submitted timely. Questioned Costs: None Context: The Fund did not comply with the annual and final financial and performance reports as required by 2 CRF 200. Repeat finding: No Recommendation: Implement procedures and policies for timely submission of the required financial and performance reports within the required timeframe. Views of responsible individuals: Management concurs with and will implement the recommendation. See corrective action plan.

Finding 2022-002: Procurement and Suspension and Debarment Identification of federal program: Program Title: Agriculture Research Basic and Applied Research Assistance Listing Number: 10.001 Award Identification: CA 59-8082-0-001 Federal Agency: U.S. Department of Agriculture, Agriculture Research Service Criteria or Specific Requirement: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During testing for the Fund?s controls on compliance over procurement and suspension and debarment, the Fund could not provide a procurement policy that is in compliance with prescribed standards in the Uniform Guidance. Additionally, suspension and debarment verifications were not performed prior to entering a covered transaction. Cause: The Fund has not updated its procurement policy to fully conform with Uniform Guidance, including policies over suspension and debarment. Effect: The Fund was not in compliance with the procurement policy requirements of Uniform Guidance, specifically around suspension and debarment. Questioned Costs: None Context: The Fund currently does not have a procurement policy that fully complies with Uniform Guidance requirements addressed in Chapter 2 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Repeat finding: No Recommendation: The Fund should ensure its documented procurement procedures conform to the procurement standards identified in 2 CFR section ?? 200.317 through 200.327, and also address suspension and debarment. Views of responsible individuals: Management concurs with and will implement the recommendation. See corrective action plan.

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