Finding Text
Major Program: 10.558 - Child and Adult Care Food Program (Grantor - Department of Agriculture)
Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance
Compliance Requirement: Eligibility
Condition: We tested 18 provider files and identified six billing errors within the March 2023 claim
submissions. For each instance of error, the number of meals served was incorrectly determined and
submitted for reimbursement.
Criteria: Federal assistance to institutions takes the form of cash reimbursement for meals served. An
institution's entitlement to cash reimbursement is computed by multiplying the number of meals served, by
category and type, by prescribed per-unit payment rates called “reimbursement rates.” “Type” refers to the
kind of meal service for which the institution seeks reimbursement (breakfast, lunch, snack, or supper). For
meals served in centers, “category” refers to the economic need of the child or adult to whom a meal is
served; such meals are categorized as paid, reduced, or free. Meals served in day care homes are categorized
by the tiering structure (Tier I or II). Under this formula, an institution's entitlement to funding is a function of
the categories and types of services provided. An institution establishes its entitlement to reimbursement
payments by submitting claims for reimbursement.
Cause: Human error in summarizing the meals served by providers.
Effect: The March 2023 claims contained immaterial billing errors.
Recommendation: We suggest that Charities review its controls and implement procedures to ensure
accurate claims are being submitted for reimbursement.