Audit 392018

SIGNIFICANT DEFICIENCY 2025-002 10.558 – Child and Adult Care Food Program – Eligibility Criteria or specific requirement Internal controls should be in place to ensure that complete and accurate meal counts for eligible providers and children are submitted to the State for reimbursement. Condition Two providers received an improper amount for their meal reimbursement for the month tested. Context We determined, through testing of provider meal reimbursements, that an inaccurate number of meals was submitted to the State for reimbursement for 2 transactions within our sample of 60. Cause For one of the transactions, an inaccurate meal count was submitted to the State because of an incorrectly recapped meal count. For the second, a new provider entered the program and took over the children from a previous provider of the program who would no longer be providing those services. The new provider’s children had been enrolled under the previous provider, and they also did not share a last name with their provider parent, so staff did not catch that they needed to be flagged as Provider Children during the transfer. As a result, no Income Eligibility Form was completed for those children. Effect For one transaction, the provider was under-reimbursed by one snack for the month tested. The known questioned cost for this is ($0.96), and the estimated questioned cost when compared against the population is ($33). For the second transaction, a provider joined the program for the last three months of the fiscal year, and her children were reimbursed for their meals during that time. However, no Income Eligibility Form was on file for them. Total reimbursements received for those children during the period was $760. Recommendation Controls should be reviewed and updated to ensure that complete and accurate meal counts are submitted to the State for reimbursement. Views of responsible officials and planned corrective actions See corrective action plan.