Finding 968544 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-04-02
Audit: 302252
Organization: Child Nutrition, INC (VA)
Auditor: Pbmares LLP

AI Summary

  • Core Issue: The Organization failed to conduct the required three monitoring visits per year for one provider under the CACFP eligibility guidelines.
  • Impacted Requirements: This oversight violates the federal monitoring requirements as outlined in 7 CFR §226.16(iii), which mandates visits within the fiscal year.
  • Recommended Follow-Up: Implement a tracking system to ensure compliance with the fiscal year visit requirements for all providers.

Finding Text

Eligibility – Child and Adult Care Food Program – Federal Assistance Listing Number 10.558; Award Period: Year ended September 30, 2023; Pass-through entity name: Virginia Department of Health Criteria: Per 7 CFR §226.16(iii), sponsoring organizations must review each facility three times each year. Each year is defined as the fiscal year per Virginia Department of Health clarification. Condition: The Organization did not complete the monitoring procedures required by the CACFP eligibility of three visits per year for one of the providers tested. This is a violation of the monitoring requirements under the CACFP. Cause: The Organization did not have a clear understanding of the compliance requirement that the three visits per year had to take place within the fiscal year and adhered to a 12 month cycle for each provider instead of the specified 12 month time frame. Therefore there was also a lack of internal controls to detect if the minimum number of visits had occurred for each provider within the required time frame. Effect: The lack of review of eligibility could result in an ineligible provider receiving reimbursement under the federal award. Questioned Costs: None noted. Context: One provider tested did not receive the required minimum of three visits during the fiscal year. Recommendation: We recommend the Organization implement an addition to the tracking of monitor visits already in place that will identify eligibility compliance for the fiscal year. Views of Responsible Officials: Child Nutrition, Inc. management agrees with Finding 2023-001: Eligibility – Child and Adult Care Food Program – Federal Assistance Listing Number 10.558; Award Period: Year ended September 30, 2023; Pass-through entity name: Virginia Department of Health.

Categories

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties Cash Management School Nutrition Programs

Other Findings in this Audit

  • 392102 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $3.83M