FAC Explorer

Finding 33423 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-24
Audit: 28950
Organization: Mid-State Child Care and Nutrition (AZ)
Auditor: Heinfeld Meech & CO PC

AI Summary

  • Core Issue: Meal and snack counts reported by providers often did not match supporting documentation, leading to inaccuracies in claims.
  • Impacted Requirements: Compliance with CACFP guidelines for accurate meal counts and administrative expense reporting was not consistently met.
  • Recommended Follow-Up: Implement a review process for meal counts and administrative costs to ensure accuracy and adherence to federal and state requirements.

Finding Text

Finding Number: 2022-001 Repeat Finding: No Program Name: Child and Adult Care Food Program (CACFP) Assistance Listing Number: 10.558 Federal Agency: U.S. Department of Agriculture Federal Award No.: 7AZ300AZ3 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Meal Counts and Provider Documentation CRITERIA According to the CACFP Child Care Home Compliance Manual, Section 5.2 the Sponsor should review the meal counts reported on the monthly meal count summaries to ensure that meal counts are accurate. The Sponsor should also ensure that administrative expenses reported agree to the supporting documentation. CONDITION Meal/snack counts and monthly administrative labor costs reported on the sponsor?s reimbursement claim did not always agree with all supporting documentation. CAUSE The condition was caused by clerical error as the majority of reports from providers are handwritten in nature. EFFECT Meal/snack counts and administrative expense errors were not caught during the review process. Federal and State of Arizona requirements were not always met. CONTEXT For four of 25 providers' meal count summaries reviewed, the number of meals and snacks reported on the meal count summaries did not agree to the supporting documentation. Afternoon snacks were under reported by 2, or ($1.65). Lunch was over reported by 20, or $58.80. Supper was over reported by 3, or $8.82. In addition, administrative labor costs reported on the September 2022 Sponsor claim did not agree to the supporting documentation by $50. The sample was statistically valid. RECOMMENDATION The Organization should follow federal and the State of Arizona requirements to ensure the amounts reported for meals/snacks and administrative costs are correct. To ensure guidelines are met, the Sponsor should review provider meal counts and Meals Served Report totals for accuracy. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Corrective Action Plan

Findings and Questioned Costs Related to Federal Awards Finding Number: 2022-001 Program Name: Child and Adult Care Food Program (CACFP) Assistance Listing Number: 10.558 Anticipated Completion Date: July 1, 2023 Planned Corrective Action: We concur with the condition. Mid-State Child Care will conduct technical assistance with staff on reviewing the menus/meal counts for accuracy, dates received, and children in attendance, ratios, creditable meal components and eligibility regarding certification prior to the preparation of the reimbursement claim. The menu reader/co-director will initially review provider menus for mathematical accuracy prior to submitted to the Program Director to double check the total calculated by menu reader/co-director. The Program Director is responsible for final review and approval prior to preparation of the reimbursement claim. The initial and final reviews of the menus will be completed and documented monthly to ensure that all program requirements are complied with. The provider menu review documentation will be kept on file in the file cabinet of the menu reader/co-director office. When preparing revised monthly claims, a copy of the original admin claim will be attached to insure the monthly administrative labor costs are reported correctly. Mid-State Child Care & Nutrition has implemented this corrective action effective fiscal year 2023.

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 609865 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $798,504