Finding Text
Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Social Services Program Name: Child and Adult Care Food Program (CACFP) Federal Financial Assistance Listing: 10.558 Award Identification Number: 13529, 13534 Award Year: 2024-2025 Compliance Requirement: M. Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Control over Compliance, Noncompliance Criteria Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii) requires sponsoring organizations to review each subrecipient facility a minimum of three times per year. Additionally, at least two of the three reviews must be unannounced. Condition At eight of 10 sites tested, the District has not met the minimum monitoring requirements. Five of 10 sites tested had no monitoring visits completed during the year, one of 10 sites tested had only one monitoring visit during the year, and two of 10 sites had only two monitoring visits during the year. Through further discussions with management, it was noted that the District does not perform monitoring visits on the secondary school sites, of which there are seven sites. This resulted in an additional three deviations for a total of 11 deviations noted. Cause The cause appears to be due to lack of internal controls over compliance for subrecipient monitoring. Effect The District is not in compliance with the provisions of Title 7, Code of Federal Regulations, Part 226.16(d)(4)(iii). Questioned Costs None reported. Context/Sampling: A nonstatistical sample of five out of 26 sites was initially tested. This resulted in four instances of noncompliance as follows: three sites had no monitoring visits completed, and one site had only one of the three required monitoring visits completed. In response to this noncompliance, five additional sites were tested for a total of 10 out of 26 sites. This resulted in four additional instances of noncompliance as follows: two sites had no monitoring visits completed, and two sites had only two of the three required monitoring visits completed. Repeat Finding No. Recommendation The District should implement internal controls over subrecipient monitoring to ensure that an adequate number of monitoring visits of each type are made during each year.