Finding 596968 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-06-20

AI Summary

  • Core Issue: Seven out of twenty-nine reimbursement claims for the Child and Adult Care Food Program lacked proper documentation to support meal headcounts.
  • Impacted Requirements: Compliance with USDA guidelines is essential for substantiating claims; failure to do so risks funding reductions.
  • Recommended Follow-Up: Enhance internal procedures for meal count documentation and conduct regular site visits to ensure compliance with program requirements.

Finding Text

2022-001 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Agriculture Grant: Child and Adult Care Food Program CFDA Number: 10.558 Criteria: In accordance with the Child and Adult Care Food Program administered by the United States Department of Agriculture's Food and Nutrition Service, participating independent centers agree to submit accurate monthly claims for reimbursement. Condition: During our auditing procedures, we noted seven out of the twenty-nine Child and Adult Care food program claims for reimbursements could not be substantiated with appropriate supporting documentation. Questioned costs: Unable to be determined. Context: Reimbursements for meals administered under the grant are allowed to the extent the Organization can substantiate the headcounts for each child participating in the program on a monthly basis. During our testing, we noted several instances where the headcount information was not able to be provided upon request, as the headcounts information was not properly being retained. Effect: Failure to comply with the requirements set forth by the United States Department of Agriculture's Food and Nutrition Service could lead to a reduction of funding or being reimbursed for more than allowed under the program guidelines. Cause: We noted turnover in the administration of the program resulted in a lack of periodic internal site visits. Lack of awareness and training on the requirements of the program resulted in the lack of headcounts to be tracked and maintained in order to substantiate expense reimbursements which needed to be properly documented and accounted for in order to substantiate expense reimbursement requests under the grant. Recommendation: We recommend that the Organization review their current policy and implement more robust internal preparation and management review procedures surrounding completion of the meal count reimbursement request materials, and a review the meal counts for accuracy so the supporting meal counts are properly calculated and agree to the monthly Child and Adult Care Food Program Claim for Reimbursement. In addition, the Organization should ensure periodic internal site visits are conducted timely. This will help to ensure the Organization is adhering to the requirements of the funding agency.

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 20526 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $3.00M
93.558 Temporary Assistance for Needy Families $2.05M
10.558 Child and Adult Care Food Program $988,342
84.287 Twenty-First Century Community Learning Centers $320,121
16.726 Juvenile Mentoring Program $302,366
10.559 Summer Food Service Program for Children $227,051
14.218 Community Development Block Grants/entitlement Grants $95,750
17.261 Wia Pilots, Demonstrations, and Research Projects $65,950
21.027 Coronavirus State and Local Fiscal Recovery Funds $23,345