Finding 960783 (2023-001)

Cash Management, U.S. Department of Agriculture, NC Department of Health and Human Services: Award 9422, Child and Adult Care Food Program (CACFP): Federal Assistance Listing Number 10.558. Criteria CACFP guidance requires that the sponsoring organization disburses payments to Centers and Homes within 5 working days of receiving it from the NC Department of Health and Human Services. Condition The Chatham County Partnership for Children failed to disburse payment within 5 working days of revenue received from the NC Department of Health and Human Services for two Centers. Cause Sponsoring organizations are instructed to disburse payments within 5 working days as part of their contract. The Chatham County Partnership for Children did not have controls in place to ensure payments were made in accordance with the requirements. Effect or Potential Effect The effect is noncompliance with the United States Department of Agriculture regulations, which could result in a loss of funding. Questioned Costs: None. Context During our testing of the cash management compliance requirement, it was noted that the Chatham County Partnership for Children failed to disburse payment within 5 working days to two out of the 40 Centers and Homes sampled from all CACFP providers. Identification of Repeat Finding: No. Recommendation Management should implement controls over reimbursement procedures to ensure payments are sent within 5 working days. Reporting Views of Responsible Officials As soon as the oversight was detected by the Food Program Manager, the payment was initiated and transferred within 7 days of receipt, 2 days longer than it should have been. A communication process was initiated so that the 3 staff involved in the payment process (the Executive Director, Finance Assistant, and the Food Program Manager), coordinate their time off so that one is designated to be on the lookout for bank notifications. Also, there is better communication with the new Finance Assistant about illness and time off so that alternate coverage for bank notification and payment processing can be put in place.