Finding 611306 (2022-003)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-09-04
Audit: 24343

AI Summary

  • Core Issue: Reimbursement claims exceeded meal count sheets, leading to incorrect claims and noncompliance.
  • Impacted Requirements: Violations of Title 7 CFR Section 225.9 (d)(5) regarding accurate claims and supporting records.
  • Recommended Follow-Up: Review and enforce internal controls to ensure compliance with meal count reconciliations and timely claim amendments.

Finding Text

2022-003 ? Reimbursement Claims Not Supported by Meal Count Sheets Significant Deficiency in Internal Controls over Compliance Award 10.558; Compliance Requirement A ? Activities Allowed Condition: For the monthly meal reimbursement claims, we noted several instances in which the amount requested for reimbursement exceeded the underlying daily meal count forms provided by site supervisors or participant rosters. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) stated, ?In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.? Cause: Three mitigating internal controls over compliance for submitting claims for reimbursement are failed at varying rates as the internal control procedures were inconsistently followed. Effect: Incorrect claims for reimbursement were made which resulted in noncompliance with the Activities Allowed or Unallowed compliance requirement of the Uniform Guidance. As noted above, some claims were overstated and some were understated. However, amounts overstated yielded an overbilling of $2,552. Context: A sample of sixty (60) daily meal count sheets were selected for testing. The daily meal counts sheets did not agree to the monthly internal summary for three (3) selections. The daily counts reported on the internal summary did not agree to the monthly claims reimbursement for fifteen (15) selections. The daily meal counts exceeded the participant roster listing or the participant roster listing was missing for nine (9) selections. These failures resulted in noncompliance for nine (9) selections and resulted in total known and likely questioned costs of $25,485. Recommendation: Currently management has a process to reconcile daily meal count sheets to the reimbursement claims. This process includes a second review to be completed within 60 days of month end in order for the timely filing of claim reimbursement amendments. We recommend that current internal controls of compliance be reviewed and followed. Management?s Response: See accompanying management?s corrective action form.

Categories

Questioned Costs Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 34864 2022-003
    Significant Deficiency Repeat
  • 34865 2022-004
    Significant Deficiency
  • 611307 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $1.75M
10.559 Summer Food Service Program for Children $128,977