Distribution of Cash Compliance Requirement States are required to promptly and equitably distribute – cash to recipients of grants or contracts under OAA Title C1 and C2 (42 USC NSIP 3030a(d)(4)). Audit Objective Determine whether States are distributing cash promptly and – equitably. Suggested Audit Procedures a. Review the procedures for handling cash to determine whether there State’s NSIP is a documented process for distributing cash, including established time frames. b. Review a sample of transactions during the audit period in which the State received cash and determine whether the State complied with its established NSIP process, including time frames. IV. OTHER INFORMATION The program may include both cash payments to States and NSIP use of cash to purchase commodities Assistance in the form of from USDA and for USDA administrative expenses. commodities is considered Federal awards expended in accordance with 2 CFR section 200.40 definition of and should be valued in accordance with 2 CFR “Federal financial assistance” section 200.502(g). Therefore, both cash expenditures for the purchase of food and the value of commodities received from the State Distribution Agencies should be (1) used when determining Type A programs and (2) included in the Schedule of Expenditures of Federal Awards in accordance with 2 CFR section 200.510(b).
Distribution of Cash Compliance Requirement – States are required to promptly and equitably distribute NSIP cash to recipients of grants or contracts under OAA Title C1 and C2 (42 USC 3030a(d)(4)). Audit Objective – Determine whether States are distributing cash promptly and equitably. Suggested Audit Procedures a. Review the State’s procedures for handling NSIP cash to determine whether there is a documented process for distributing cash, including established time frames. b. Review a sample of transactions during the audit period in which the State received NSIP cash and determine whether the State complied with its established process, including time frames. IV. OTHER INFORMATION The NSIP program may include both cash payments to States and use of cash to purchase commodities from USDA and for USDA administrative expenses. Assistance in the form of commodities is considered Federal awards expended in accordance with 2 CFR section 200.40 definition of “Federal financial assistance” and should be valued in accordance with 2 CFR section 200.502(g). Therefore, both cash expenditures for the purchase of food and the value of commodities received from the State Distribution Agencies should be (1) used when determining Type A programs and (2) included in the Schedule of Expenditures of Federal Awards in accordance with 2 CFR section 200.510(b).
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