FAC Explorer

Finding 20476 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-07
Audit: 26769
Organization: South Arkansas Developmental Center for Children and Families, Inc. (AR)
Auditor: Forvis LLP

AI Summary

  • Core Issue: Individuals were incorrectly categorized for meal reimbursements, affecting federal cash received.
  • Impacted Requirements: Eligibility classifications must align with USDA guidelines to ensure accurate reimbursements.
  • Recommended Follow-Up: Implement new policies to review eligibility forms and ensure correct billing starting July 2023.

Finding Text

United States Department of Agriculture Federal Assistance Listing Number 10.558 Child and Adult Care Food Program Criteria or specific requirement: Eligibility (7 CFR 226) The Organization receives higher federal cash reimbursement for all meals served to children and adults who meet Income Eligibility Criteria for meals served free or at a reduced price. Condition: Individuals were incorrectly categorized. Questioned Costs: None Context: A sample of 36 individuals were tested out of the total population of 236 individuals. The sampling methodology used is not and is not intended to be statistically valid. Two individuals were not classified correctly between free or reduced. Effect: Incorrect reimbursements were provided to the Organization. Cause: The Organization did not have proper oversight to ensure eligibility classifications were accurately determined. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend implementing policies and procedures to ensure eligibility follows the guidelines as set by the United States Department of Agriculture. Views of Responsible Officials and Planned Corrective Actions: Management concurs with findings and plans to implement the recommendations above. Starting in July 2023, SADCCF's Quality Assurance will conduct a review of every eligibility form completed during the year to ensure that it was completed correctly. The form will then be traced to the USDA attendance sheet to make sure that the status (free, reduced or paid) is recorded correctly on the sheet to ensure that the billing for each child is correct.

Corrective Action Plan

Contact Name: Barbara Staggs, CFO Contact Phone Number: 870-863-8194 Audit Period Ending: June 30, 2022 Audit Firm: FORVIS, LLP Federal Program: Child and Adult Food Care Program, Assistance Listing No. 10.558 Federal Agency: U.S. Department of Health and Human Services Management concurs with findings and plans to implement the recommendations above. Starting in July 2023, SADCCF's Quality Assurance will conduct a review of every eligibility form completed during the year to ensure that it was completed correctly. The form will then be traced to the USDA attendance sheet to make sure that the status (free, reduced or paid) is recorded correctly on the sheet to ensure that the billing for each child is correct.

Categories

Cash Management Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20474 2022-004
    Material Weakness
  • 20475 2022-001
    Material Weakness
  • 20477 2022-003
    Material Weakness
  • 596916 2022-004
    Material Weakness
  • 596917 2022-001
    Material Weakness
  • 596918 2022-002
    Material Weakness
  • 596919 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $301,167
93.575 Covid-19 Child Care and Development Block Grant $216,600
10.558 Child and Adult Care Food Program $204,657
93.575 Child Care and Development Block Grant $61,901
93.667 Social Services Block Grant $9,640