Finding 366670 (2022-001)

Reference No.: 2022-001 Program: U.S. Department of Agriculture; Passed through Alabama Department of Education; Child and Adult Care Food Program (CACFP), Assistance Listing #10.558, for 1/1/2022 through 12/31/2022. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: The Club was unable to replicate exact payroll expenses that were reported to the state monthly for the program. This is due to a lack of payroll documentation retained monthly. This documentation took time to replicate during the audit. No fraud is suspected related to payroll reporting issues for the program. Context: This is a condition identified per review of the Club’s compliance with specified requirements using a statistically valid sample. Effect: Without adequate controls in place to ensure payroll is properly reported, the reimbursements requested for the program could be over-stated or under-stated. Cause: Policies and procedures were not in place to retain paperwork of payroll. Repeat of a Prior-Year Finding: Yes, 2021-001 Recommendation: The payroll paperwork for each month should be retained and verified to match what is reported to the state. View of Responsible Officials: The Club and management agree with this finding.