Finding 1141965 (2024-001)

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Requirement
P
Questioned Costs
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Year
2024
Accepted
2025-06-20

AI Summary

  • Core Issue: Federal meal payments to providers were distributed about one month late, violating program regulations.
  • Impacted Requirements: Providers must be reimbursed within five working days of receiving federal meal payments from CDSS.
  • Recommended Follow-Up: Ensure accounting staff consistently follow updated policies for timely disbursement and implement a dual notification system to prevent future delays.

Finding Text

Program Information: Child Care Food Program-Homes – CFDA No. 10.558; Grant No. 04593-CACFP-10-NP-DCH; Grant period – Year ended June 30, 2024 Criteria: Program regulations regarding provider disbursements require the organization to reimburse providers within five working days of receipt of all federal meal payments from CDSS. Statement of Condition: During our review of revenue, we noted two of the federal meal payments received from CDSS were distributed to the providers approximately one month late. Cause: Policies and procedures are in place for accounting staff to verify that the federal meal payments received from CDSS are distributed to providers within five working days of receipt. The Organization was inconsistent in following these policies and procedures. Possible Asserted Effect: Provider reimbursements for meals were not all distributed timely. Questioned Costs: $0 Perspective Information: Per review of files throughout tests of compliance, incident appears to have a low level of occurrence. Identification of Repeat Findings: Finding is not a repeat of a finding in the immediate prior audit. Recommendation: We recommend that accounting staff verify that the federal meal payments received from CDSS are distributed to providers within five working days of receipt. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the result of the finding above. Going forward, policies and procedures in place will be followed by Organization staff. The Organization has updated their policies and procedures to ensure timely disbursement of CACFP provider reimbursements. A backup person in the CACFP department will be emailed a copy of the date stamped checks notifying them that a reimbursement check has arrived from CDSS. Having two people in the department receive the notification will ensure that an email is not overlooked and the provider reimbursement is processed within the required timeframe.

Categories

Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $3.11M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $1.74M
21.027 Coronavirus State and Local Fiscal Recovery Funds $853,000
93.658 Foster Care Title IV-E $760,131
93.778 Medical Assistance Program $240,141
93.575 Child Care and Development Block Grant $179,990
84.419 Preschool Development Grants $501