Finding Text
Identification of federal programs
10.558 and 21.027 – Child and Adult Care Food Program (CACFP) and Child Care and Development Block Grant (ARPA)
Criteria or Specific Requirement
Per Part 6 of the Compliance Supplement, controls need to be designed such that they would prevent or detect potential noncompliance. Management should implement control activities through policies.
Condition
The Organization did not retain eligibility documentation for each site noting the control process.
Cause
In the last couple of years due to the Organization receiving significant federal funding, documentation and implementation of processes were still in process.
Effect or Potential Effect
Possibility of errors on the Schedule of Expenditures of Federal Awards.
Questioned Costs
None noted.
Context
The condition noted above was identified during the audit procedures related to Eligibility.
Identification as a Repeat Finding
Not a repeat finding.
Recommendation
The Organization should put in place a formal process to ensure the controls being implemented are documented.
Views of Responsible Officials:
Management agrees with the finding and observation.