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 Institutions must determine each enrolled participant's eligibility for free and reduced price meals in order to claim reimbursement for the meals served to that individual at the correct rate. Condition During our audit, we identified one participant that had the incorrect meal code being claimed. Cause The site responsible for entering participants meal codes did not have adequate training or oversight to ensure the correct eligibility category was applied. The error was not detected prior to submission of reimbursement claims. Effect Inadequate control over the income eligibility determination can lead to improper rate determinations resulting in incorrect reimbursement claims. As a result, questioned costs projected based on a sample error rate of 2.05% applied to the total population of $422,011, resulting in projected questioned costs of $8,658. Recommendation We recommend that staff responsible for determining eligibility at the site receive additional training regarding grant requirements. Management's Response Additional training will be provided to staff responsible for determining and entering participant meal eligibility codes to ensure proper classification and reimbursement claims. Management will also implement a secondary review process for eligibility determination prior to submission of reimbursement claims to reduce risk of future errors.