Finding Text
• Federal Grantor – U.S. Department of Agriculture
• Pass-Through Grantor – State of Connecticut Department of Education
• Federal Program Name – Child and Adult Food Care Program
• CFDA Number – 10.558
• Finding Type – Significant Deficiency in Internal Control over Major Programs
• Compliance Requirement – Cash Management
• Criteria – Per the OMB Compliance Supplement: "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 (7 CFR sections 226.16(g) and (h))."
• Condition – Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis.
• Cause – Not enough emphasis is placed on the importance of controls and documentation.
• Effect – Some differences existed between what was received from the state and what was paid out during a given month. The reason for these differences was not able to be readily explained.
• Questioned Costs – Unknown
• Repeat Finding – Yes (first reported as Finding #2022-003)
• Recommendation – Management needs to develop a process of formally documenting what was received for a day care center each month versus what was paid out to the day care center and if there is a difference, the reason and how it was resolved needs to be documented. In addition, the activity needs to be reconciled to the bank statement and general ledger accounts monthly.
• Views of Responsible Officials – Management agrees with the finding. A spreadsheet with the amount the provider requested and the actual amount paid will be maintained for each month. If there is a difference, it will be noted on the spreadsheet.