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Effective Accounting Systems

SFAs must consider the following financial management standards in developing a financial management system:

Accounting System Qualities

  1. ​Documentation that demonstrates accurate, current, an complete disclosure of the program's financial transactions - including budgeted authorizations, obligations, unobligated balances, assets, liabilities, and expenditures as well as income or revenue;
  2. Procedures that ensure that no one person has complete control over all aspects of financial transactions;
  3. Methodology that allows for the comparison of actual expenditures against budgeted amounts.

Accounting Practices

  1. Procedures that ensure that all costs are necessary, reasonable, allocable, and allowable;
  2. Procedures that track the source of funds;
  3. Procedures that track the allocation or planned use of funds;
  4. Procedures that track the application or use of funds;
  5. Procedures that track the person who authorized the use of funds to pay expenses.

Audit Practices

  1. Procedures that require organization-wide audits, or program specific audits if applicable, to determine, at a minimum, the fiscal integrity of financial transactions and reports, compliance with laws, regulations, and administrative requirements;
  2. Procedures that ensure that there is a systemic method for assuring timely and appropriate resolution of all audit findings and recommendations, including organization-wide strategies.

 

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USDA Nondiscrimination Statement

In accordance with federal civil rights law and USDA civil rights regulations and policies, the USDA, its agencies, offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the state or local agency that administers the program or contact USDA through the Telecommunications Relay Service at 711 (voice and TTY). Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

  1. Mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Mail Stop 9410, Washington, D.C. 20250-9410;
  2. Fax: (202) 690-7442; or
  3. Email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

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