Finding Text
REFERENCE: 2024-102
CFDA NUMBER: 10.558 – CHILD AND ADULT CARE FOOD PROGRAM
U.S. DEPARTMENT OF AGRICULTURE - FOOD AND NUTRITION - 2024
PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION
GRANT NUMBER 6AZ300003
QUESTIONED COSTS N/A
CONDITION
The following errors were noted while testing the Category Detail Reports, Sponsor Claim and Child and Adult Care Food Program (CACFP) expenses for July 2024 and September 2024:
1. The hourly timesheet for one employee in September 2024 was clerically inaccurate.
2. Contracted services for September 2024 were double claimed.
These errors resulted in the following revised amounts:
These errors resulted in an over reporting of total Administrative Costs (known questioned costs) of $183. However, after projecting the various types of errors over operating costs for the entire year, likely questioned costs totaled $943.
CRITERIA
In accordance with the Uniform Guidance, Compliance Supplement, Part 6 – Internal Control, 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 accordance with the Arizona Department of Education, Day Care Home Compliance Manual, Revised June 2019, Chapter 5 Sponsor Responsibilities, Section 5.2 Sponsor Recordkeeping Requirements, sponsoring organizations are required to maintain records to fully support the monthly claim for reimbursement and compliance with program regulations. All sponsoring organizations must have a written policy pertaining to their recordkeeping procedures. All records shall be retained for a period of five years after the date of submission of the final claim for the fiscal year to which they pertain.
EFFECT
Program requirements were not complied with. Additionally, administrative costs were over reported.
CAUSE
Although the internal controls were adequately designed, there were deficiencies in the execution of the controls. Costs were not correctly summarized and reported on the Sponsor Claim.
RECOMMENDATION AND BENEFIT
The Organization’s monthly administrative cost report and supporting documentation should be reviewed for accuracy prior to completing the reimbursement claim. Any review should be documented. This will help ensure that program requirements are complied with and that administrative costs are accurately reported.
VIEWS OF RESPONSIBLE OFFICIALS
See Corrective Action Plan.