Finding 43093 (2022-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: The Organization failed to disburse meal reimbursement payments to home providers within the required five working days.
  • Impacted Requirements: Compliance with cash management regulations as mandated by the State agency.
  • Recommended Follow-Up: Implement procedures to ensure timely disbursement of payments to avoid cash flow issues for home providers.

Finding Text

2022-001 Grant No. 3233 - Grant period October 1, 2020 to September 30, 2021, and Grant period October 1, 2021 to September 30, 2022 - Fiscal year ended June 30, 2022 Significant Deficiency Criteria: A sponsoring organization must disburse advance and meal reimbursement payments to centers and day care homes under its sponsorship, within five working days of receiving them from its State agency. Condition(s): During the course of our audit procedures, it was noted that the Organization did not disburse December 2021 meal reimbursement payments to home providers within five working days of receiving them from the New York State Department of Health. Context: During our review of three CACFP monthly claim periods, we noted that the Organization did not disburse meal reimbursement payments to home providers on time for one claim period. This is a condition identified per review of the Day Care Council of New York, Inc.?s internal control over compliance with cash management. Effect: The late disbursement of meal reimbursement payments to home providers could cause a shortage of a home provider?s cash flows or impact the home provider?s operations. Cause: The Organization did not process meal reimbursement payments to home providers until three weeks later. Recommendation: We recommend that the Organization ensure that the Organization adhere to the required disbursement timeline so the Organization can always disburse meal reimbursement payments to home providers on time. The Organization should implement procedures to verify all payouts are made timely

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Based on our payment practice prior to and after this occurrence, the organization believes that it has demonstrated and has sufficient controls in place to ensure continued adherence to the criteria.

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 619535 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $1.51M