Finding 38582 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 36753
Organization: The Bailey Foundation (MO)

AI Summary

  • Core Issue: The organization lacks sufficient internal controls for compliance with the Child and Adult Care Food Program.
  • Impacted Requirements: Compliance with internal control standards, specifically the need for segregation of duties among administration staff.
  • Recommended Follow-up: Hire additional accounting staff or enhance board oversight to address the segregation of duties issue.

Finding Text

Part III ? Federal Award Findings and Questioned Costs U.S. Department of Agriculture 2022-001 Child and Adult Care Food Program 10.558 Condition: Significant Deficiency ? Subsequent to the year under audit, the Organization does not have sufficient internal controls to ensure compliance with the program. Criteria: The Child and Adult Care Food Program and Uniform Guidance 7 CFR requires recipients to maintain a standard of internal controls including segregation of duties between administration staff. Subsequent to the year under audit, effective March 2023, the outsourced accounting department engagement concluded. Effect: Subsequent to the year under audit, program compliance requirements are at risk of not being met. Recommendation: The Bailey Foundation should seek additional accounting staff, or the board needs to provide additional oversight, to mitigate the risk relating to lack of proper segregation of duties between administration staff

Corrective Action Plan

View of Responsible Official and Planned Corrective Action. The outsourced CFO engagement ended due to cash flow issues related to program deferral and a lapse in federal programming. Re-engagement attempts failed as the CFO no longer had capacity to service The Bailey Foundation. The Bailey Foundation is actively seeking a skilled accountant for essential internal controls. Meanwhile, the board is organizing additional oversight to manage risks in federal program operations.

Categories

Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 615024 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $822,663