FAC Explorer

Finding 503108 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-10-17
Audit: 325109
Organization: Southwest Magic Food Program, Inc. (TX)
Auditor: Bruno & Tervalon LLP

AI Summary

  • Answer: The Organization did not obtain necessary approvals for certain expenses and lacked required documentation for labor costs.
  • Trend: This indicates a pattern of non-compliance with approval processes and documentation standards.
  • List: Follow up by ensuring all expenditures have SPWA, provide proper documentation for labor costs, and correctly classify employees in the budget.

Finding Text

The Organization failed to request approval for Specific Prior Written Approval (SPWA) for certain expenditures such as bookkeeping services, rental expense, telephone service, or meal tracking software. The Organization failed to provide supporting documentation, as required for all labor costs reported. Employees listed in the approved budget were classified as independent contractors.

Corrective Action Plan

We gather financial intel data on all proposed sites that tell us what will need to be purchased, when it needs to be purchased and what source documentation must be maintained. This data collection also includes predictions on the cost of labor. Next, we have to assess our own organization’s needs and create a budget that will be submitted to TDA for approval. Every item in the budget must stand the test of allowability vis a vi FNS Instruction 796-2, Revision 4. During our data gathering process we will identify cost items that require Special Prior Written Approval prior to entering the cost in our CACFP budget.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 503104 2023-001
    Material Weakness
  • 503105 2023-002
    Material Weakness
  • 503106 2023-003
    Material Weakness
  • 503107 2023-004
    Material Weakness
  • 503109 2023-006
    Significant Deficiency
  • 1079546 2023-001
    Material Weakness
  • 1079547 2023-002
    Material Weakness
  • 1079548 2023-003
    Material Weakness
  • 1079549 2023-004
    Material Weakness
  • 1079550 2023-005
    Material Weakness
  • 1079551 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $2.40M