2024-001 Meals claimed for reimbursement that were served on a date not approved by the State Agency. U.S. Department of Agriculture Summer Food Service Program for Children (SFSP) – AL #10.559 TN Department of Human Services Grant #175TN331N1099 Compliance Requirement – Eligibility Condition: The Organization operates multiple Summer Food Service Program (SFSP) sites across the State of Tennessee. During our audit, we identified that meals were served on a date not approved by the State agency. Although the participants were eligible and properly documented, the meals served on the unapproved date were included in the reimbursement claim submitted to the State. Criteria: The Summer Food Service Program Administration Guide 2024, Unit 3: Administering the Summer Food Service Program states that sponsors may claim reimbursement only for meals that meet SFSP requirements. Reimbursement may not be claimed for meals served outside of approved meal service times or approved dates of operation, unless the State agency determines that there was an unanticipated event, outside of the sponsor’s control. Meals served outside of the approved dates of operation are not eligible for reimbursement. Cause: The Organization lacked sufficient internal controls to ensure that meals were served only on dates authorized by the State agency. Effect: As a result, the Organization claimed reimbursement for meals that were not eligible under program requirements. The total questioned costs amounted to approximately $50,966, calculated as follows: 6,224 breakfast meals * $2.98 = $18,529 6,224 lunch meals * $5.21 = $32,437 Context: During the 2024 program year, one selected site - West Tennessee Healthcare Dyersburg Hospital - served meals on August 3, 2024, despite the approved operating period ending on August 2, 2024, as authorized by the Tennessee Department of Human Services. No formal request to extend the operating dates was submitted, and no written approval was received prior to meal service. The Organization included these meals in its reimbursement claim, believing it was acting in good faith to meet community needs. However, the absence of documented approval rendered the meals ineligible A sample of 25 meal count forms for various dates and locations were selected for testing. 1 out of the 25 selections consisted of meals served on an unapproved date, totaling 2,030 breakfast meals and 2,030 lunch meals served, with questioned costs of $16,626. A comparison of the State approved site listing with the Organization’s meal service summary revealed 5 additional sites that also served meals on August 3, 2024. These sites accounted for 4,193 breakfast meals and 4,193 lunch meals served, with questioned costs of $34,341. All instances were isolated to August 3rd, resulting in a total of 6,223 breakfast and 6,223 lunch meals improperly claimed, totaling $50,966 in disallowed meals. An audit adjustment was made to reduce SFSP revenue by this amount. These funds will be returned to the State and excluded from the Schedule of Expenditures of Federal Awards. See the chart below and management’s corrective action plan. $ 2.98 $ 5.21 Location Date Served Breakfast Meals Lunch Meals West TN Healthcare Dyersburg Hospital 8/3/2024 2030 2030 $ 16,626 New Mt. Zion Church 8/3/2024 1323 1323 10,835 Greater St John Missionary Baptist Church 8/3/2024 595 595 4,873 West TN Healthcare Milan Hospital 8/3/2024 903 903 7,396 Davy Crockett Mall 8/3/2024 1372 1372 11,237 6,223 6,223 $ 50,966 Breakfast Rate Lunch Rate Known Questioned Costs Recommendation: We recommend the Organization strengthen internal controls over scheduling and monitoring of meal services to ensure that meals are served and claimed only on State approved dates and times. One potential control includes requiring site supervisors to document approved site details, including location, service period, operating dates, and meal times, on each meal count form prior to initiating meal service.