Finding Text
FINDING 2024-002 – Child and Adult Care Food Program (CACFP) – Assistance Listing No. 10.558;
Grant Period – For the year ended March 31, 2024
Condition: The internal controls over the expense approval process were not operating as designed. As a result, we were unable to review approval on a selection of expense transactions claimed as a part of the Child and Adult Care Food Program (CACFP).
Criteria: The Organization’s policy is to have dual signature approval from the purchaser, Finance Director, and Executive Director for all expenses. The Organization’s policy is to also have department and GL accounts coded onto the related invoice and signed off by the Finance Director. Proper functioning of internal controls would result in the Organization having consistent control procedures in place for expense approval.
Cause: The system of controls over the Child and Adult Care Food Program (CACFP) did not operate properly to allow for the Organization to provide evidence of the specific expense and/or approval and appropriate expense coding for 2 of the 40 items selected for testing as part of allowable cost testwork performed.
Effect of Condition: The Organization was unable to provide documentation to verify the specific expense transactions were approved in accordance with the purchasing policy.
Questioned Cost: None
Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample.
Recommendation: The Organization’s internal control system should be modified to document approval and provide general ledger coding of all federal expenditures.
Views of Responsible Officials and Planned Corrective Actions: We know that current procedures capture all required documentation necessary for substantiation of every CACFP expense. We changed Accounts Payable Clerks during this fiscal year and this issue arose because of a filing error. All documentation existed, and was found after audit request, but was filled incorrectly. Accounts Payable Clerk will continue to work closely with CACFP Program Director to ensure proper documentation is presented and is an allowable cost.