Finding Text
Criteria: Controls over cash management. 7 CFR Section 226.16(g) and (h) requires sponsoring organizations to disburse meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency. Internal controls should ensure that disbursements to centers and day care homes occur within the required time frame required under the grant. Condition: Comprehensive Community Child Care Organization, Inc. does not have an effective internal control process for disbursing meal reimbursement payments within the required 5-day period. The lack of a key control resulted in two instances (in a sample of 8) of late remittances. Cause of Condition: Comprehensive Community Child Care Organization, Inc. has not implemented
an effective internal control process. Effect of Condition: Meal reimbursement payments could be disbursed after the five-working day requirement. Known questioned costs totaled $9,745 related to the two instances (in a sample of 8 with a population of $1,226,531) there disbursements were made later than five business days after receipt. Recommendation: Comprehensive Community Child Care Organization, Inc. needs to implement an effective internal control process for disbursing meal reimbursement payments within the
required 5-day period. Management’s Response: See corrective action plan on page 24.