FINDING REFERENCE NUMBER 2022-002 FEDERAL PROGRAM Child and Adult Care Food Program COMPLIANCE REQUIREMENT Subrecipient Monitoring TYPE OF FINDING Material Noncompliance and Material Weakness in Internal Control Statement of Condition The auditor noted the following issues during testing of compliance requirements: 1. There was one instance out of forty CACFP claims tested in which the Organization failed to collect all invoices and receipts from the subrecipient site, resulting in the spreadsheet tracking the subrecipient sites? allowable food and non-food expenditures being incomplete. In addition, there was one instance out of forty CACFP claims tested in which the spreadsheet tracking the subrecipient sites? expenditures was corrupted and could not be opened. By failing to track food costs, the Organization was unable to verify whether the nonprofit service program sites generated an excessive nonprofit food service program balance or take corrective action to monitor the appropriate use of such excessive nonprofit food service program balances in future periods. 2. There were two instances out of forty CACFP claims tested in which the Organization could not locate the monitoring visit forms. 3. There was one instance out of forty CACFP claims tested in which the Organization retained a 10% administrative fee despite the Sponsor Agreement indicating a 15% admin fee. The error resulted in the subrecipient site being over-reimbursed by $282. 4. There were two instances out of forty CACFP claims tested in which the subrecipients? Site Information Form was incomplete. The forms were missing contact names and dates of birth, hours of operation, licensed capacity, average daily attendance, meal times, and whether the food is prepared by the site or obtained from a vendor. Criteria or Specific Requirement 1. In regard to the first issue noted above, CACFP sponsors are required to maintain data in order to determine if a nonprofit food service program site is generating an excessive nonprofit food service program balance defined as a profit exceeding three months? average program operating expenses. 2. In regard to the second issue noted above, CACFP sponsors are required to retain subrecipient site monitoring forms to support that monitoring visits were performed throughout the year. 3. In regard to the third issue noted above, the Organization is to retain an administrative fee for the percentage stated within the Sponsor Agreement. 4. In regard to the fourth issue noted above, CACFP sponsors are required to retain information regarding the subrecipient sites? operations to ensure that the sites are eligible to participate in the CACFP and the information required to effectively perform subrecipient monitoring procedures is on file. Questioned Costs Not applicable. Effect The Organization did not comply with the subrecipient monitoring requirements established by the Federal Agency. Cause During fiscal 2021, and continuing into fiscal 2022, the Organization experienced significant growth in the number of subrecipients under its sponsorship and the number of claims processed, largely due to the impacts of the COVID-19 pandemic. As a result, the systems of controls in place were inadequate to meet demands for services. There was a lack of staffing to handle administrative and program responsibilities, as well as a lack of oversight to identify errors and gaps in documentation. Recommendation The Organization should expand staffing to better manage caseloads and meet the demands of administrative and program responsibilities. In addition, the Organization should implement a quality control function to ensure that processes in place are operating effectively. Lastly, the Organization should perform checks of documentation periodically to ensure that no documentation is missing, or if there is a lack of documentation, that it is addressed and corrected timely.
FINDING REFERENCE NUMBER 2022-002 FEDERAL PROGRAM Child and Adult Care Food Program COMPLIANCE REQUIREMENT Subrecipient Monitoring TYPE OF FINDING Material Noncompliance and Material Weakness in Internal Control Statement of Condition The auditor noted the following issues during testing of compliance requirements: 1. There was one instance out of forty CACFP claims tested in which the Organization failed to collect all invoices and receipts from the subrecipient site, resulting in the spreadsheet tracking the subrecipient sites? allowable food and non-food expenditures being incomplete. In addition, there was one instance out of forty CACFP claims tested in which the spreadsheet tracking the subrecipient sites? expenditures was corrupted and could not be opened. By failing to track food costs, the Organization was unable to verify whether the nonprofit service program sites generated an excessive nonprofit food service program balance or take corrective action to monitor the appropriate use of such excessive nonprofit food service program balances in future periods. 2. There were two instances out of forty CACFP claims tested in which the Organization could not locate the monitoring visit forms. 3. There was one instance out of forty CACFP claims tested in which the Organization retained a 10% administrative fee despite the Sponsor Agreement indicating a 15% admin fee. The error resulted in the subrecipient site being over-reimbursed by $282. 4. There were two instances out of forty CACFP claims tested in which the subrecipients? Site Information Form was incomplete. The forms were missing contact names and dates of birth, hours of operation, licensed capacity, average daily attendance, meal times, and whether the food is prepared by the site or obtained from a vendor. Criteria or Specific Requirement 1. In regard to the first issue noted above, CACFP sponsors are required to maintain data in order to determine if a nonprofit food service program site is generating an excessive nonprofit food service program balance defined as a profit exceeding three months? average program operating expenses. 2. In regard to the second issue noted above, CACFP sponsors are required to retain subrecipient site monitoring forms to support that monitoring visits were performed throughout the year. 3. In regard to the third issue noted above, the Organization is to retain an administrative fee for the percentage stated within the Sponsor Agreement. 4. In regard to the fourth issue noted above, CACFP sponsors are required to retain information regarding the subrecipient sites? operations to ensure that the sites are eligible to participate in the CACFP and the information required to effectively perform subrecipient monitoring procedures is on file. Questioned Costs Not applicable. Effect The Organization did not comply with the subrecipient monitoring requirements established by the Federal Agency. Cause During fiscal 2021, and continuing into fiscal 2022, the Organization experienced significant growth in the number of subrecipients under its sponsorship and the number of claims processed, largely due to the impacts of the COVID-19 pandemic. As a result, the systems of controls in place were inadequate to meet demands for services. There was a lack of staffing to handle administrative and program responsibilities, as well as a lack of oversight to identify errors and gaps in documentation. Recommendation The Organization should expand staffing to better manage caseloads and meet the demands of administrative and program responsibilities. In addition, the Organization should implement a quality control function to ensure that processes in place are operating effectively. Lastly, the Organization should perform checks of documentation periodically to ensure that no documentation is missing, or if there is a lack of documentation, that it is addressed and corrected timely.
FINDING REFERENCE NUMBER 2022-002 FEDERAL PROGRAM Child and Adult Care Food Program COMPLIANCE REQUIREMENT Subrecipient Monitoring TYPE OF FINDING Material Noncompliance and Material Weakness in Internal Control Statement of Condition The auditor noted the following issues during testing of compliance requirements: 1. There was one instance out of forty CACFP claims tested in which the Organization failed to collect all invoices and receipts from the subrecipient site, resulting in the spreadsheet tracking the subrecipient sites? allowable food and non-food expenditures being incomplete. In addition, there was one instance out of forty CACFP claims tested in which the spreadsheet tracking the subrecipient sites? expenditures was corrupted and could not be opened. By failing to track food costs, the Organization was unable to verify whether the nonprofit service program sites generated an excessive nonprofit food service program balance or take corrective action to monitor the appropriate use of such excessive nonprofit food service program balances in future periods. 2. There were two instances out of forty CACFP claims tested in which the Organization could not locate the monitoring visit forms. 3. There was one instance out of forty CACFP claims tested in which the Organization retained a 10% administrative fee despite the Sponsor Agreement indicating a 15% admin fee. The error resulted in the subrecipient site being over-reimbursed by $282. 4. There were two instances out of forty CACFP claims tested in which the subrecipients? Site Information Form was incomplete. The forms were missing contact names and dates of birth, hours of operation, licensed capacity, average daily attendance, meal times, and whether the food is prepared by the site or obtained from a vendor. Criteria or Specific Requirement 1. In regard to the first issue noted above, CACFP sponsors are required to maintain data in order to determine if a nonprofit food service program site is generating an excessive nonprofit food service program balance defined as a profit exceeding three months? average program operating expenses. 2. In regard to the second issue noted above, CACFP sponsors are required to retain subrecipient site monitoring forms to support that monitoring visits were performed throughout the year. 3. In regard to the third issue noted above, the Organization is to retain an administrative fee for the percentage stated within the Sponsor Agreement. 4. In regard to the fourth issue noted above, CACFP sponsors are required to retain information regarding the subrecipient sites? operations to ensure that the sites are eligible to participate in the CACFP and the information required to effectively perform subrecipient monitoring procedures is on file. Questioned Costs Not applicable. Effect The Organization did not comply with the subrecipient monitoring requirements established by the Federal Agency. Cause During fiscal 2021, and continuing into fiscal 2022, the Organization experienced significant growth in the number of subrecipients under its sponsorship and the number of claims processed, largely due to the impacts of the COVID-19 pandemic. As a result, the systems of controls in place were inadequate to meet demands for services. There was a lack of staffing to handle administrative and program responsibilities, as well as a lack of oversight to identify errors and gaps in documentation. Recommendation The Organization should expand staffing to better manage caseloads and meet the demands of administrative and program responsibilities. In addition, the Organization should implement a quality control function to ensure that processes in place are operating effectively. Lastly, the Organization should perform checks of documentation periodically to ensure that no documentation is missing, or if there is a lack of documentation, that it is addressed and corrected timely.
FINDING REFERENCE NUMBER 2022-002 FEDERAL PROGRAM Child and Adult Care Food Program COMPLIANCE REQUIREMENT Subrecipient Monitoring TYPE OF FINDING Material Noncompliance and Material Weakness in Internal Control Statement of Condition The auditor noted the following issues during testing of compliance requirements: 1. There was one instance out of forty CACFP claims tested in which the Organization failed to collect all invoices and receipts from the subrecipient site, resulting in the spreadsheet tracking the subrecipient sites? allowable food and non-food expenditures being incomplete. In addition, there was one instance out of forty CACFP claims tested in which the spreadsheet tracking the subrecipient sites? expenditures was corrupted and could not be opened. By failing to track food costs, the Organization was unable to verify whether the nonprofit service program sites generated an excessive nonprofit food service program balance or take corrective action to monitor the appropriate use of such excessive nonprofit food service program balances in future periods. 2. There were two instances out of forty CACFP claims tested in which the Organization could not locate the monitoring visit forms. 3. There was one instance out of forty CACFP claims tested in which the Organization retained a 10% administrative fee despite the Sponsor Agreement indicating a 15% admin fee. The error resulted in the subrecipient site being over-reimbursed by $282. 4. There were two instances out of forty CACFP claims tested in which the subrecipients? Site Information Form was incomplete. The forms were missing contact names and dates of birth, hours of operation, licensed capacity, average daily attendance, meal times, and whether the food is prepared by the site or obtained from a vendor. Criteria or Specific Requirement 1. In regard to the first issue noted above, CACFP sponsors are required to maintain data in order to determine if a nonprofit food service program site is generating an excessive nonprofit food service program balance defined as a profit exceeding three months? average program operating expenses. 2. In regard to the second issue noted above, CACFP sponsors are required to retain subrecipient site monitoring forms to support that monitoring visits were performed throughout the year. 3. In regard to the third issue noted above, the Organization is to retain an administrative fee for the percentage stated within the Sponsor Agreement. 4. In regard to the fourth issue noted above, CACFP sponsors are required to retain information regarding the subrecipient sites? operations to ensure that the sites are eligible to participate in the CACFP and the information required to effectively perform subrecipient monitoring procedures is on file. Questioned Costs Not applicable. Effect The Organization did not comply with the subrecipient monitoring requirements established by the Federal Agency. Cause During fiscal 2021, and continuing into fiscal 2022, the Organization experienced significant growth in the number of subrecipients under its sponsorship and the number of claims processed, largely due to the impacts of the COVID-19 pandemic. As a result, the systems of controls in place were inadequate to meet demands for services. There was a lack of staffing to handle administrative and program responsibilities, as well as a lack of oversight to identify errors and gaps in documentation. Recommendation The Organization should expand staffing to better manage caseloads and meet the demands of administrative and program responsibilities. In addition, the Organization should implement a quality control function to ensure that processes in place are operating effectively. Lastly, the Organization should perform checks of documentation periodically to ensure that no documentation is missing, or if there is a lack of documentation, that it is addressed and corrected timely.