Finding Text
Federal Agency: U.S. Department of Agriculture
Federal Program Name: Child and Adult Care Food Program
Assistance Listing Number: 10.558
Pass-Through Agency: Feeding Our Future
Award Period: February 2021 – December 2021
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Material Noncompliance (Adverse Opinion)
Criteria or specific requirement: 7 CFR 226.17a(c) states that at-risk afterschool snacks and/or at-risk afterschool meals are reimbursable only if served to children who are participating in an approved afterschool care program.
Condition: Siblings of children participating in an approved afterschool care program received meals that were reimbursed under the program through a weekly meal delivery. The siblings were not participating in an approved afterschool care program. There had been a waiver from USDA to serve all children, regardless of participation in an approved afterschool care program, but it expired on June 30, 2020. Management was not aware the waiver had expired and indicated that the sponsoring organization encouraged the continued enrollment of all children throughout 2021.
Questioned costs: Known questioned costs from the sample tested for the 25 ineligible children in that month totaled $2,731.
Context: We tested 40 enrollment forms, and noted that out of 40 children selected for testing, 25 were not participating or enrolled in an approved after school care program. Additionally, we noted that on the enrollment forms, siblings were enrolled in the program as young as one year old, and entire sibling groups were enrolled despite not participating in or being enrolled in an approved after school care program. Additionally, none of the home meal delivery authorization forms were signed providing consent for meal delivery and release of information.
Cause: Management has indicated that their sponsor organization, Feeding Our Future, told them they were required to sign up all children if requested. Management was not aware that forms were required to be signed or that the waiver from USDA had expired.
Effect: Meals and snacks were reimbursed to the Organization from federal funds related to children that were not eligible.
Recommendation: We recommend the Organization attend training, review federal requirements, and fully understand the eligibility requirements of children they can serve if they apply for funding with this program again.
Views of responsible officials: This program was initiated during the height of COVID, when guidelines on both state and federal levels were changing rapidly. Management provided auditors with documentation for participation in the meal program. Documentation included participant names that were printed and/or written in cursive as is customary for the served population. The printed names were not considered signatures and rejected by the auditors. Management attended all trainings provided by the sponsor organization and followed all of the program sponsor guidelines. See the Corrective Action Plan for further details.