Finding 577832 (2023-001)

Material Weakness
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2023-11-08

AI Summary

  • Core Issue: Comprehensive Community Child Care Organization, Inc. lacks effective controls for timely disbursement of meal reimbursement payments.
  • Impacted Requirements: Payments must be made within five working days as per 7 CFR Section 226.16(g) and (h); two instances of late payments were identified.
  • Recommended Follow-Up: Implement a robust internal control process to ensure compliance with the 5-day disbursement requirement.

Finding Text

Criteria: Controls over cash management. 7 CFR Section 226.16(g) and (h) requires sponsoring organizations to disburse meal reimbursement payments to centers and day care homes under its sponsorship within five working days of receiving them from its state agency. Internal controls should ensure that disbursements to centers and day care homes occur within the required time frame required under the grant. Condition: Comprehensive Community Child Care Organization, Inc. does not have an effective internal control process for disbursing meal reimbursement payments within the required 5-day period. The lack of a key control resulted in two instances (in a sample of 8) of late remittances. Cause of Condition: Comprehensive Community Child Care Organization, Inc. has not implemented an effective internal control process. Effect of Condition: Meal reimbursement payments could be disbursed after the five-working day requirement. Known questioned costs totaled $9,745 related to the two instances (in a sample of 8 with a population of $1,226,531) there disbursements were made later than five business days after receipt. Recommendation: Comprehensive Community Child Care Organization, Inc. needs to implement an effective internal control process for disbursing meal reimbursement payments within the required 5-day period. Management’s Response: See corrective action plan on page 24.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 1390 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $6.00M
93.575 Child Care and Development Block Grant $1.70M
21.027 Coronavirus State and Local Fiscal Recovery Funds $71,712