Finding Text
U.S. Department of Agriculture Passed through the Alabama State Department of Education Program: Child and Adult Care Food Program CFDA: 10.558 Grant Number: AF6-0000 Noncompliance/Significant Deficiency Eligibility Criteria Under 7 CFR Part 226 and 2 CFR 200.303, institutions participating in the Child and Adult Care Program must ensure that all participants meet federal eligibility criteria. Sponsors are responsible for collecting and maintaining documentation that demonstrates participants eligibility and must conduct appropriate oversight of sites to ensure ongoing compliance. Condition During our audit, we identified two participants for which the YMCA did not provide documentation to support eligibility based on enrollment forms and Income Eligibility Forms. Cause Operating sites are separate from the YMCA. As such, all enrollment and child records are maintained by the operating sites. The YMCA failed to monitor that the operating sites were maintaining records to support the participants. Effect Sponsors without documentation for participants may result in unallowable costs and reimbursements for ineligible meals, placing the program at risk for disallowed funding. The YMCA may be required to repay federal funds for meals claimed on behalf of participants whose eligibility could not be substantiated. As a result, questioned costs projected based on a sample error rate of 7.05% applied to the total population of $422,011, resulting in projected questioned costs of $29,735. Recommendation We recommend the entity implement and enforce procedures to collect and retain all required eligibility documents for participants. Management's Response The YMCA has updated documentation and communicated that to all operating sites and will strengthen oversight procedures to ensure enrollment forms and Income Eligibility Forms are collected, retained, and reviewed timely. Management will implement periodic compliance monitoring and provide additional training to site staff to ensure all required participant documentation is properly maintained.