FAC Explorer

Audit 24343

FY End
2022-12-31
Total Expended
$1.88M
Findings
4
Programs
2
Organization: Giving Youth A Chance Initiative (TN)
Year: 2022 Accepted: 2023-09-04
Auditor: Watkins Uiberall PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34864 2022-003 Significant Deficiency Yes A
34865 2022-004 Significant Deficiency - A
611306 2022-003 Significant Deficiency Yes A
611307 2022-004 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $1.75M Yes 2
10.559 Summer Food Service Program for Children $128,977 - 0

Contacts

Name Title Type
CBU8QW2476E4 Rosman Randle Auditee
9015737238 Clark Province Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement.2) Pass-through entity identifying numbers are presented where available.3) GYAC has elected not to use the de minimis indirect cost rate as allowed under the UniformGuidance.4) There were no federal awards passed through to subrecipients.5) The grant revenue amounts received and expended (eligible for reimbursement) are subject toaudit adjustment. If any expenses are disallowed by the grantor as a result of such audit, any claimfor reimbursement to the grantor would become a liability to the GYAC. In the opinion ofmanagement, all grant expenses (eligible for reimbursement) are in compliance with the terms ofthe grant agreement and applicable federal and state laws and regulations. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-003
2022-003 ? Reimbursement Claims Not Supported by Meal Count Sheets Significant Deficiency in Internal Controls over Compliance Award 10.558; Compliance Requirement A ? Activities Allowed Condition: For the monthly meal reimbursement claims, we noted several instances in which the amount requested for reimbursement exceeded the underlying daily meal count forms provided by site supervisors or participant rosters. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) stated, ?In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.? Cause: Three mitigating internal controls over compliance for submitting claims for reimbursement are failed at varying rates as the internal control procedures were inconsistently followed. Effect: Incorrect claims for reimbursement were made which resulted in noncompliance with the Activities Allowed or Unallowed compliance requirement of the Uniform Guidance. As noted above, some claims were overstated and some were understated. However, amounts overstated yielded an overbilling of $2,552. Context: A sample of sixty (60) daily meal count sheets were selected for testing. The daily meal counts sheets did not agree to the monthly internal summary for three (3) selections. The daily counts reported on the internal summary did not agree to the monthly claims reimbursement for fifteen (15) selections. The daily meal counts exceeded the participant roster listing or the participant roster listing was missing for nine (9) selections. These failures resulted in noncompliance for nine (9) selections and resulted in total known and likely questioned costs of $25,485. Recommendation: Currently management has a process to reconcile daily meal count sheets to the reimbursement claims. This process includes a second review to be completed within 60 days of month end in order for the timely filing of claim reimbursement amendments. We recommend that current internal controls of compliance be reviewed and followed. Management?s Response: See accompanying management?s corrective action form.
Finding 2022-004
2022-004 ? Claim Reimbursement Amendments Not Filed Timely Significant Deficiency in Internal Controls over Compliance Award 10.558; Compliance Requirement A ? Activities Allowed Condition: Amendments to monthly meal claim reimbursements were not filed timely. Criteria: The Child and Adult Care Food Program description provided that institutions ?must submit final meal claims no later than 60 days after the claiming month.? Cause: Existing internal control procedures were not followed. Effect: The Organization received $19,305 in overpaid meal reimbursements. These overpayments were not reported within the 60-day timeframe. In addition, the overpayments were not accrued at year-end. Context: All monthly reimbursement reports were reviewed. Two (2) months were not filed timely, within 60-days. Recommendation: Internal controls over compliance include procedures of a secondary review of monthly meal claims reimbursements in order to file amended claim forms within the 60-day timeframe. We recommend management review and follow current internal control procedures. Management?s Response: See accompanying management?s corrective action form.
Finding 2022-003
2022-003 ? Reimbursement Claims Not Supported by Meal Count Sheets Significant Deficiency in Internal Controls over Compliance Award 10.558; Compliance Requirement A ? Activities Allowed Condition: For the monthly meal reimbursement claims, we noted several instances in which the amount requested for reimbursement exceeded the underlying daily meal count forms provided by site supervisors or participant rosters. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) stated, ?In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.? Cause: Three mitigating internal controls over compliance for submitting claims for reimbursement are failed at varying rates as the internal control procedures were inconsistently followed. Effect: Incorrect claims for reimbursement were made which resulted in noncompliance with the Activities Allowed or Unallowed compliance requirement of the Uniform Guidance. As noted above, some claims were overstated and some were understated. However, amounts overstated yielded an overbilling of $2,552. Context: A sample of sixty (60) daily meal count sheets were selected for testing. The daily meal counts sheets did not agree to the monthly internal summary for three (3) selections. The daily counts reported on the internal summary did not agree to the monthly claims reimbursement for fifteen (15) selections. The daily meal counts exceeded the participant roster listing or the participant roster listing was missing for nine (9) selections. These failures resulted in noncompliance for nine (9) selections and resulted in total known and likely questioned costs of $25,485. Recommendation: Currently management has a process to reconcile daily meal count sheets to the reimbursement claims. This process includes a second review to be completed within 60 days of month end in order for the timely filing of claim reimbursement amendments. We recommend that current internal controls of compliance be reviewed and followed. Management?s Response: See accompanying management?s corrective action form.
Finding 2022-004
2022-004 ? Claim Reimbursement Amendments Not Filed Timely Significant Deficiency in Internal Controls over Compliance Award 10.558; Compliance Requirement A ? Activities Allowed Condition: Amendments to monthly meal claim reimbursements were not filed timely. Criteria: The Child and Adult Care Food Program description provided that institutions ?must submit final meal claims no later than 60 days after the claiming month.? Cause: Existing internal control procedures were not followed. Effect: The Organization received $19,305 in overpaid meal reimbursements. These overpayments were not reported within the 60-day timeframe. In addition, the overpayments were not accrued at year-end. Context: All monthly reimbursement reports were reviewed. Two (2) months were not filed timely, within 60-days. Recommendation: Internal controls over compliance include procedures of a secondary review of monthly meal claims reimbursements in order to file amended claim forms within the 60-day timeframe. We recommend management review and follow current internal control procedures. Management?s Response: See accompanying management?s corrective action form.