Audit 289590

Reference No.: 2022-001 Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child and Adult Care Food Program (CACFP), Assistance Listing #10.558, for 1/1/2022 through 12/31/2022. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: The Club was unable to replicate exact payroll expenses that were reported to the state monthly for the program. This is due to a lack of payroll documentation retained monthly. This documentation took time to replicate during the audit. No fraud is suspected related to payroll reporting issues for the program. Context: This is a condition identified per review of the Club’s compliance with specified requirements using a statistically valid sample. Effect: Without adequate controls in place to ensure payroll is properly reported, the reimbursements requested for the program could be over-stated or under-stated. Cause: Policies and procedures were not in place to retain paperwork of payroll. Repeat of a Prior-Year Finding: Yes, 2021-001 Recommendation: The payroll paperwork for each month should be retained and verified to match what is reported to the state. View of Responsible Officials: The Club and management agree with this finding.

Reference No.: 2022-002 Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child and Adult Care Food Program (CACFP), Assistance Listing #10.558, for 1/1/2022 through 12/31/2022. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: As part of our review of the Child and Adult Care Food Program (CACFP) it was noted some of the Club’s daily food invoices were missing the site supervisor’s signature for having received the meals specified. Context: This is a condition identified per review of the program’s financial data throughout the year. Effect: Without adequate controls in place to ensure paperwork is properly filled out and reviewed, the reimbursements requested for the program could be inaccurate. Cause: Policies and procedures were not in place to confirm the receiving signature on daily food invoices. Repeat of a Prior-Year Finding: Yes, 2021-002 Recommendation: Additional reviewing should be added to the procedures performed monthly to ensure all appropriate receiving signatures occur. View of Responsible Officials: The Club and management agree with this finding.

Reference No.: 2022-003 Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child and Adult Care Food Program (CACFP), Assistance Listing #10.558, for 1/1/2020 through 12/31/2021. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: The Club was unable to adhere to accrual accounting as it pertains to providing a list of expenses for the year for our testing. Adjustments were proposed to correct the list of expenses. Context: This is a condition identified per review of the Club’s compliance with specified requirements using a statistically valid sample. Effect: Without adequate controls in place to ensure financial reports are properly reported to the state, the reimbursements requested for the program could be over-stated or under-stated. Cause: Policies and procedures were not in place to adjust expenditures monthly from cash to accrual basis. Repeat of a Prior-Year Finding: No Recommendation: Additional reviewing should be added to the procedures performed monthly to ensure all adjusting entries have been made. View of Responsible Officials: The Club and management agree with this finding.

Reference No.: 2022-001 Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child and Adult Care Food Program (CACFP), Assistance Listing #10.558, for 1/1/2022 through 12/31/2022. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: The Club was unable to replicate exact payroll expenses that were reported to the state monthly for the program. This is due to a lack of payroll documentation retained monthly. This documentation took time to replicate during the audit. No fraud is suspected related to payroll reporting issues for the program. Context: This is a condition identified per review of the Club’s compliance with specified requirements using a statistically valid sample. Effect: Without adequate controls in place to ensure payroll is properly reported, the reimbursements requested for the program could be over-stated or under-stated. Cause: Policies and procedures were not in place to retain paperwork of payroll. Repeat of a Prior-Year Finding: Yes, 2021-001 Recommendation: The payroll paperwork for each month should be retained and verified to match what is reported to the state. View of Responsible Officials: The Club and management agree with this finding.

Reference No.: 2022-002 Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child and Adult Care Food Program (CACFP), Assistance Listing #10.558, for 1/1/2022 through 12/31/2022. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: As part of our review of the Child and Adult Care Food Program (CACFP) it was noted some of the Club’s daily food invoices were missing the site supervisor’s signature for having received the meals specified. Context: This is a condition identified per review of the program’s financial data throughout the year. Effect: Without adequate controls in place to ensure paperwork is properly filled out and reviewed, the reimbursements requested for the program could be inaccurate. Cause: Policies and procedures were not in place to confirm the receiving signature on daily food invoices. Repeat of a Prior-Year Finding: Yes, 2021-002 Recommendation: Additional reviewing should be added to the procedures performed monthly to ensure all appropriate receiving signatures occur. View of Responsible Officials: The Club and management agree with this finding.

Reference No.: 2022-003 Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child and Adult Care Food Program (CACFP), Assistance Listing #10.558, for 1/1/2020 through 12/31/2021. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: The Club was unable to adhere to accrual accounting as it pertains to providing a list of expenses for the year for our testing. Adjustments were proposed to correct the list of expenses. Context: This is a condition identified per review of the Club’s compliance with specified requirements using a statistically valid sample. Effect: Without adequate controls in place to ensure financial reports are properly reported to the state, the reimbursements requested for the program could be over-stated or under-stated. Cause: Policies and procedures were not in place to adjust expenditures monthly from cash to accrual basis. Repeat of a Prior-Year Finding: No Recommendation: Additional reviewing should be added to the procedures performed monthly to ensure all adjusting entries have been made. View of Responsible Officials: The Club and management agree with this finding.