Audit 296160

Major Program: 10.558 - Child and Adult Care Food Program (Grantor - Department of Agriculture) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirement: Eligibility Condition: We tested 18 provider files and identified six billing errors within the March 2023 claim submissions. For each instance of error, the number of meals served was incorrectly determined and submitted for reimbursement. Criteria: Federal assistance to institutions takes the form of cash reimbursement for meals served. An institution's entitlement to cash reimbursement is computed by multiplying the number of meals served, by category and type, by prescribed per-unit payment rates called “reimbursement rates.” “Type” refers to the kind of meal service for which the institution seeks reimbursement (breakfast, lunch, snack, or supper). For meals served in centers, “category” refers to the economic need of the child or adult to whom a meal is served; such meals are categorized as paid, reduced, or free. Meals served in day care homes are categorized by the tiering structure (Tier I or II). Under this formula, an institution's entitlement to funding is a function of the categories and types of services provided. An institution establishes its entitlement to reimbursement payments by submitting claims for reimbursement. Cause: Human error in summarizing the meals served by providers. Effect: The March 2023 claims contained immaterial billing errors. Recommendation: We suggest that Charities review its controls and implement procedures to ensure accurate claims are being submitted for reimbursement.

Major Program: 93.568 - Low Income Home Energy Assistance (Grantor - Department of Health and Social Services) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirements: Reporting and Cash Management Condition: The 2023 program year heating funds reconciliation report was not completed and submitted to the State of Delaware in a timely manner. Criteria: Charities receives advanced funding from the State of Delaware to make payments to energy vendors on behalf of eligible program participants. In some instances, a participant’s approved benefit amount may exceed the amount of funds actually utilized by the energy vendor. At the end of each heating season, Charities must perform a reconciliation of unused heating benefits, request the return of unutilized benefits from the energy vendors, and refund the State of Delaware by June 15th. Cause: Turnover in program staff and lack of established procedures to reconcile DEAP payment vouchers with the corresponding funding invoices. Effect: Unused heating benefits were not refunded to the State of Delaware by June 15, 2023. Recommendation: We suggest that Charities implement procedures to ensure the final heating funds reconciliation report is completed accurately and any related refund is remitted to the State of Delaware in accordance with the established timeline.

Major Program: 10.558 - Child and Adult Care Food Program (Grantor - Department of Agriculture) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirement: Eligibility Condition: We tested 18 provider files and identified six billing errors within the March 2023 claim submissions. For each instance of error, the number of meals served was incorrectly determined and submitted for reimbursement. Criteria: Federal assistance to institutions takes the form of cash reimbursement for meals served. An institution's entitlement to cash reimbursement is computed by multiplying the number of meals served, by category and type, by prescribed per-unit payment rates called “reimbursement rates.” “Type” refers to the kind of meal service for which the institution seeks reimbursement (breakfast, lunch, snack, or supper). For meals served in centers, “category” refers to the economic need of the child or adult to whom a meal is served; such meals are categorized as paid, reduced, or free. Meals served in day care homes are categorized by the tiering structure (Tier I or II). Under this formula, an institution's entitlement to funding is a function of the categories and types of services provided. An institution establishes its entitlement to reimbursement payments by submitting claims for reimbursement. Cause: Human error in summarizing the meals served by providers. Effect: The March 2023 claims contained immaterial billing errors. Recommendation: We suggest that Charities review its controls and implement procedures to ensure accurate claims are being submitted for reimbursement.

Major Program: 93.568 - Low Income Home Energy Assistance (Grantor - Department of Health and Social Services) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirements: Reporting and Cash Management Condition: The 2023 program year heating funds reconciliation report was not completed and submitted to the State of Delaware in a timely manner. Criteria: Charities receives advanced funding from the State of Delaware to make payments to energy vendors on behalf of eligible program participants. In some instances, a participant’s approved benefit amount may exceed the amount of funds actually utilized by the energy vendor. At the end of each heating season, Charities must perform a reconciliation of unused heating benefits, request the return of unutilized benefits from the energy vendors, and refund the State of Delaware by June 15th. Cause: Turnover in program staff and lack of established procedures to reconcile DEAP payment vouchers with the corresponding funding invoices. Effect: Unused heating benefits were not refunded to the State of Delaware by June 15, 2023. Recommendation: We suggest that Charities implement procedures to ensure the final heating funds reconciliation report is completed accurately and any related refund is remitted to the State of Delaware in accordance with the established timeline.