Audit 55747

FY End
2022-06-30
Total Expended
$1.24M
Findings
8
Programs
3
Year: 2022 Accepted: 2023-03-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
59069 2022-004 Significant Deficiency - C
59070 2022-005 Significant Deficiency - C
59071 2022-006 Significant Deficiency - J
59072 2022-007 - - J
635511 2022-004 Significant Deficiency - C
635512 2022-005 Significant Deficiency - C
635513 2022-006 Significant Deficiency - J
635514 2022-007 - - J

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant-Child Care Certificate Program $783,946 Yes 1
93.575 Ccdf - Arp Stabilization Funds $327,364 - 0
10.558 Child & Adult Care Food Program $128,378 Yes 3

Contacts

Name Title Type
WMQPQ6ANGKH4 Jennifer Foran Auditee
6158245060 David Von Dohlen Auditor
No contacts on file

Notes to SEFA

Title: CCDF ARP Act Stabilization Funds 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Child care stabilization funds included in the ARP Act are for the benefit of child care providers and are considered payments made to beneficiaries of a federal program. Qualified providers receiving ARP Act Stabilization Funds are therefore not categorized as "sub-recipients" as defined at 45 CFR 75.2 but instead as beneficiaries. The Single Audit Act requirements at 45 CPR Subpart F and the sub-recipient monitoring requirements at 45 CFR 75.352 do not apply to beneficiaries.

Finding Details

Department of Health and Human Services Significant Deficiency Assistance Listing 93.575 Child Care and Development Block Grant; Grant Period - Years Ended September 30, 2021 and 2022 Significant Deficiency. As discussed at Finding 2022-001, instances were noted where there was no indication of supporting documentation review by a designated individual prior to signing of check or authorizing electronic payment for disbursements. Failure to provide authorization may lead to unauthorized or misclassified disbursements. Procedures should be implemented to require documented authorization of disbursements. Total - Department of Health and Human Services Questioned Costs $ -0-
Department of Agriculture Significant Deficiency Assistance Listing 10.558 Child and Adult Care Food Program; Grant Period - Years Ended September 30, 2021 and 2022 Significant Deficiency. The significant deficiency at Findings 2022-001 and 2022- 004 also applies to this grant. Questioned Costs $ -0-
Department of Agriculture Significant Deficiency Assistance Listing 10.558 Child and Adult Care Food Program; Grant Period - Year Ended September 30, 2022 Statement of Condition: Instances were noted where there was no secondary review of the calculation of payment for meals provided based on the income as provided by the family. Criteria: Eligibility for program payment for meals provided to be based on Federal poverty income guidelines regarding household size and income levels. Cause: There is no requirement for additional review of periodic payment request for accuracy. Effect: Without secondary review of the payment requests, there is a greater likelihood of errors not being subject to correction. Recommendation: An individual knowledgeable of the Federal program requirements should be assigned the responsibility of reviewing the periodic request for payment prior to submission. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the finding and the recommended procedure will be implemented. Questioned Costs $ -0-
Department of Agriculture Compliance Assistance Listing I 0.558 Child and Adult Care Food Program; Grant Period - Year Ended September 30, 2022 Statement of Condition: Fourteen instances noted in a monthly period where the amount claimed for meals was incorrectly calculated based on the household size and income provided by the household. Criteria: Eligibility for payment of meals served is based in part on household size and income levels of the affected households as established by Federal guidelines. Cause: Incorrect calculations for payment associated with meals served was submitted without additional review. Effect: The lack of secondary review of the payment request for meals served resulted in incorrect payment request. Context: A sample of 45 CACFP Meal Benefit Eligibility forms out of a population of 119 were selected or audit. The test found that 14 of the files indicated incorrect classification between Paid, Reduced, and Free categories. The questioned costs from the sample for the month resulted in an overpayment of $429 for the period which is extended for the year results in a potential overpayment of $5,143. Questioned Costs $ 5,143 Recommendation: The Organization should implement a policy of requiring secondary review of payment requests for meals served by a responsible individual as a means of reducing the likelihood of error. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the finding and the recommended procedure will be implemented.
Department of Health and Human Services Significant Deficiency Assistance Listing 93.575 Child Care and Development Block Grant; Grant Period - Years Ended September 30, 2021 and 2022 Significant Deficiency. As discussed at Finding 2022-001, instances were noted where there was no indication of supporting documentation review by a designated individual prior to signing of check or authorizing electronic payment for disbursements. Failure to provide authorization may lead to unauthorized or misclassified disbursements. Procedures should be implemented to require documented authorization of disbursements. Total - Department of Health and Human Services Questioned Costs $ -0-
Department of Agriculture Significant Deficiency Assistance Listing 10.558 Child and Adult Care Food Program; Grant Period - Years Ended September 30, 2021 and 2022 Significant Deficiency. The significant deficiency at Findings 2022-001 and 2022- 004 also applies to this grant. Questioned Costs $ -0-
Department of Agriculture Significant Deficiency Assistance Listing 10.558 Child and Adult Care Food Program; Grant Period - Year Ended September 30, 2022 Statement of Condition: Instances were noted where there was no secondary review of the calculation of payment for meals provided based on the income as provided by the family. Criteria: Eligibility for program payment for meals provided to be based on Federal poverty income guidelines regarding household size and income levels. Cause: There is no requirement for additional review of periodic payment request for accuracy. Effect: Without secondary review of the payment requests, there is a greater likelihood of errors not being subject to correction. Recommendation: An individual knowledgeable of the Federal program requirements should be assigned the responsibility of reviewing the periodic request for payment prior to submission. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the finding and the recommended procedure will be implemented. Questioned Costs $ -0-
Department of Agriculture Compliance Assistance Listing I 0.558 Child and Adult Care Food Program; Grant Period - Year Ended September 30, 2022 Statement of Condition: Fourteen instances noted in a monthly period where the amount claimed for meals was incorrectly calculated based on the household size and income provided by the household. Criteria: Eligibility for payment of meals served is based in part on household size and income levels of the affected households as established by Federal guidelines. Cause: Incorrect calculations for payment associated with meals served was submitted without additional review. Effect: The lack of secondary review of the payment request for meals served resulted in incorrect payment request. Context: A sample of 45 CACFP Meal Benefit Eligibility forms out of a population of 119 were selected or audit. The test found that 14 of the files indicated incorrect classification between Paid, Reduced, and Free categories. The questioned costs from the sample for the month resulted in an overpayment of $429 for the period which is extended for the year results in a potential overpayment of $5,143. Questioned Costs $ 5,143 Recommendation: The Organization should implement a policy of requiring secondary review of payment requests for meals served by a responsible individual as a means of reducing the likelihood of error. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the finding and the recommended procedure will be implemented.