Finding 34865 (2022-004)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-09-04
Audit: 24343

AI Summary

  • Core Issue: Amendments to meal claim reimbursements were not filed on time, leading to significant deficiencies in internal controls.
  • Impacted Requirements: The organization failed to comply with the 60-day submission rule for final meal claims, resulting in $19,305 in overpaid reimbursements.
  • Recommended Follow-Up: Implement a secondary review process for monthly meal claims to ensure timely filing of amendments and adherence to internal control procedures.

Finding Text

2022-004 ? Claim Reimbursement Amendments Not Filed Timely Significant Deficiency in Internal Controls over Compliance Award 10.558; Compliance Requirement A ? Activities Allowed Condition: Amendments to monthly meal claim reimbursements were not filed timely. Criteria: The Child and Adult Care Food Program description provided that institutions ?must submit final meal claims no later than 60 days after the claiming month.? Cause: Existing internal control procedures were not followed. Effect: The Organization received $19,305 in overpaid meal reimbursements. These overpayments were not reported within the 60-day timeframe. In addition, the overpayments were not accrued at year-end. Context: All monthly reimbursement reports were reviewed. Two (2) months were not filed timely, within 60-days. Recommendation: Internal controls over compliance include procedures of a secondary review of monthly meal claims reimbursements in order to file amended claim forms within the 60-day timeframe. We recommend management review and follow current internal control procedures. Management?s Response: See accompanying management?s corrective action form.

Corrective Action Plan

Corrective Action ? Management will update the existing Internal Control policy which will include a secondary review of monthly meal claim reimbursements prior to resubmitting revised claims. Management will ensure that all revised claims will be submitted within the 60-day timeframe.

Categories

Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 34864 2022-003
    Significant Deficiency Repeat
  • 611306 2022-003
    Significant Deficiency Repeat
  • 611307 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $1.75M
10.559 Summer Food Service Program for Children $128,977