Finding 1134780 (2024-003)

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 be 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 two transactions within our sample. Effect One provider’s children were disallowed for the month tested on the basis of income eligibility. However, she had completed an income eligibility form that was effective beginning that month that showed that her children were, in fact, eligible. Another provider was over-reimbursed by one snack for the month tested due to meal counts being incorrectly recounted and recapped. These items totaled to a net underreimbursement of the providers of $51. Total estimated errors come to an under-reimbursement of $2,108. Cause Inaccurate meal counts were submitted to the State as a result of incorrectly recapped meal counts, as well as staff receiving the income eligibility form late in the month and not recognizing that an adjustment needed to be made to recognize the provider’s children as being eligible. Both were the result of human error. 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.