Finding 1224318 (2025-002)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-07-21
Audit: 407613
Organization: YMCA of Memphis & the Mid-South (TN)

AI Summary

  • Core Issue: Meal count sheets were reviewed but not reconciled to the summary spreadsheet and reimbursement claims, risking noncompliance.
  • Impacted Requirements: Claims must provide sufficient information and maintain records as per 7 CFR Part 225.9(d)(5) to justify reimbursement.
  • Recommended Follow-Up: Review and adhere to existing internal controls for reconciling meal count sheets before submitting claims.

Finding Text

2025-002 Meal Count Sheets Reviewed but Not Reconciled to Summary Spreadsheet and Claim for Reimbursement U.S. Department of Agriculture Child Nutrition Cluster - Summer Food Service Program for Children (SFSP) – AL #10.559 TN Department of Human Services Grant #175TN331N1099 Compliance Requirement – Activities Allowed Condition: We noted multiple instances in which the meal count forms were reviewed by the State Application Coordinator but not reconciled to the summary spreadsheet and claim for reimbursement for the month. Criteria: 7 CFR Part 225.9(d)(5) states that claims for reimbursement must report sufficient information to justify the reimbursement claimed. In submitting a claim for reimbursement, each sponsor must certify that the claim is correct and that records are available to support the claim. Failure to maintain such records may be grounds for denial of reimbursement. Additionally, USDA guidance on meal claim validation identifies daily meal count forms and consolidated meal count records as key documentation supporting claims for reimbursement. Cause: The existing controls in place were not followed relating to reviewing daily meal count forms and reconciling to the summary spreadsheet and claim for reimbursement. Effect: Ineffective review of meal count forms and lack of reconciliation to summary spreadsheet and claims for reimbursement could potentially result in noncompliance if reimbursement is received for meals not distributed. Context: A sample of 40 daily meal count sheets were selected for testing. The State Application did not adequately tie the daily meal count sheets to the summary spreadsheet for 3 out of 40 selections. Recommendation: Currently, management has a process to reconcile daily meal count sheets to the summary spreadsheet and reimbursement claims. This process includes a second review to be completed prior to submitting the claim reimbursement to the State of Tennessee. We recommend that current internal controls of compliance be reviewed and followed. Management’s Response: See accompanying management’s corrective action plan.

Corrective Action Plan

Current policy and procedure in place will be followed. The Daily meal count sheets will be reconciled to the dummary spreadsheet and the reimburement claims, including a second review prior to submitting the claim for reinburement.

Categories

Cash Management School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1224317 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $1.21M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $538,527
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $321,948
17.280 WIOA DISLOCATED WORKER NATIONAL RESERVE DEMONSTRATION GRANTS $275,376
10.558 CHILD AND ADULT CARE FOOD PROGRAM $29,040