FAC Explorer

Audit 356248

FY End
2024-09-30
Total Expended
$835,780
Findings
2
Programs
1
Organization: Mid-State Child Care and Nutrition (AZ)
Year: 2024 Accepted: 2025-05-14
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560338 2024-001 Significant Deficiency Yes A
1136780 2024-001 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $835,780 Yes 1

Contacts

Name Title Type
FKYPDB78SYC4 Deanna Barrowdale Auditee
9284259603 Brian Hemmerle Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mid-State Child Care & Nutrition under the Child and Adult Care Food Program for the year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Mid-State Child Care & Nutrition, it is not intended to and does not present the financial position, changes in net position or cash flows of Mid-State Child Care & Nutrition.

Finding Details

Finding 2024-001
Criteria: According to the CACFP Child Care Home Compliance Manual, Section 5.2 the Sponsor should review the meal counts reported on the monthly meal count summaries to ensure that meal counts are accurate. Condition: Meal and snack counts reported on Sponsor’s reimbursement claim did not always agree with all supporting documentation. Cause: The condition was caused by clerical error as the majority of reports from providers are handwritten in nature. Effect: Meal and snack count errors were not caught during the review process. Federal and State of Arizona requirements were not always met. Context: For 8 out of 21 providers' meal count summaries reviewed, the number of meals and snacks reported on the meal count summaries did not agree to the supporting documentation. For November 2023, Breakfast counts were overstated by 1, AM Snack was overstated by 1, Lunch was understated by 80, PM Snack was understated by 27, Supper was understated by 23, and Late Snack was understated by 3. The total error for November 2023 resulted in an underpayment of $346.68. For April 2024, Breakfast counts were overstated by 1, Lunch was understated by 8, PM Snack was overstated by 1, and Supper was overstated by 7. The total error for April 2024 resulted in an overpayment of $0.14. The net errors resulted in an underpayment of $346.54. The sample size was statistically valid. Recommendation: The Organization should follow Federal and State requirements to ensure the CACFP operates properly .To ensure guidelines are met, the Organization should review provider meal counts and Meals Served Report totals for accuracy.
Finding 2024-001
Criteria: According to the CACFP Child Care Home Compliance Manual, Section 5.2 the Sponsor should review the meal counts reported on the monthly meal count summaries to ensure that meal counts are accurate. Condition: Meal and snack counts reported on Sponsor’s reimbursement claim did not always agree with all supporting documentation. Cause: The condition was caused by clerical error as the majority of reports from providers are handwritten in nature. Effect: Meal and snack count errors were not caught during the review process. Federal and State of Arizona requirements were not always met. Context: For 8 out of 21 providers' meal count summaries reviewed, the number of meals and snacks reported on the meal count summaries did not agree to the supporting documentation. For November 2023, Breakfast counts were overstated by 1, AM Snack was overstated by 1, Lunch was understated by 80, PM Snack was understated by 27, Supper was understated by 23, and Late Snack was understated by 3. The total error for November 2023 resulted in an underpayment of $346.68. For April 2024, Breakfast counts were overstated by 1, Lunch was understated by 8, PM Snack was overstated by 1, and Supper was overstated by 7. The total error for April 2024 resulted in an overpayment of $0.14. The net errors resulted in an underpayment of $346.54. The sample size was statistically valid. Recommendation: The Organization should follow Federal and State requirements to ensure the CACFP operates properly .To ensure guidelines are met, the Organization should review provider meal counts and Meals Served Report totals for accuracy.