Finding 1150595 (2024-003)

U.S. Department of Agriculture Passed through the Alabama State Department of Education Program: Summer Food Service Program CFDA: 10.559 Grant Number: AF6-0000 Noncompliance/Significant Deficiency Eligibility Criteria Under 7 CFR 225.6(c) and 2 CFR 200.303, sponsors of the Summer Food Service Program must ensure that all sites meet federal eligibility criteria. Sponsors are responsible for collecting and maintaining documentation that demonstrates site eligibility and must conduct appropriate oversight of sites to ensure ongoing compliance. Condition During our audit, we identified two closed enrolled operating sites for which the YMCA did not provide documentation to support eligiblity based on enrollment of children. The YMCA did not perform sufficient oversight as a sponsor of the sites to verify that required eligibility records were obtained and maintained. Cause Operating sites are separate from the YMCA. As such, all enrollment and child records are maintained separately by the operating site. The YMCA verified that free meals may be provided to children based on the appropriate data maintained by schools; however, the YMCA failed to monitor that the operating sites were maintaining records to support that meals were only being provided to enrolled children. Effect Operating sites without documented eligibility may result in unallowable costs and reimbursements for ineligible meals or sites, placing the program at risk for disallowed funding. As a result, questioned costs totaling $4,163 were identified for meals claimed at the two sites lacking eligibility support. Recommendation We recommend the entity implement and enforce procedures to collect and retain all required eligibility documents for each SFSP site. Management's Response Management recognizes the critival role of eligibility documentation in maintaining compliance with SFSP regulations and ensuring program integrity.