Audit 413641

2025-001 Finding – Federal Award Finding Type: Material Weakness in Internal Control over Compliance – Eligibility Identification of Federal Program: AL Number: 10.558 Child and Adult Care Food Program Criteria / Requirement: The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. In order to be eligible for free meals under the Child and Adult Care Food Program, the participating child’s household must be at or below 130 percent of the poverty level. In order to be eligible for reduced price meals under the Child and Adult Care Food Program, the participating child’s household must be between 130 percent and 185 percent of the poverty level. Condition / Context: During the audit, 25 children participating in the Child and Adult Care Food Program were tested for eligibility. For one child tested, the supporting documentation for the child’s household income eligibility was unable to be located. However, the Organization was able to retroactively provide documentation that the child was eligible for the program. Additionally, one other child tested had the supporting documentation for eligibility, however there was no documented review of the eligibility file. Cause: The procedures and controls in place were not followed to ensure that eligibility determination was properly reviewed and that eligibility documentation is retained. Effect: The Organization could have provided meals to an ineligible child, resulting in noncompliance with the federal award requirements. Questioned Costs: None Recommendation: We recommend that the Organization implement the necessary internal controls to ensure that each child served under the program has a completed eligibility determination and that the file is appropriately reviewed. Management’s Response: Management concurs with the finding and will implement effective internal controls to ensure that eligibility requirements are met, documented, properly reviewed, and retained.