Finding Text
2023-002 – Reimbursement Claims Not Supported by Meal Count Sheets Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement A – Activities Allowed and Unallowed 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) states, “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: The primary internal control over compliance for submitting claims for reimbursement and reviewing the claim reimbursement against monthly internal spreadsheets failed.
Effect: Incorrect claims for reimbursement were submitted which resulted in noncompliance with the
Activities Allowed and Unallowed compliance requirement of the Uniform Guidance. Total known and
questioned costs were less than the reportable threshold of $25,000. Context: A sample of sixty (60) daily meal counts were selected for testing. The daily meal count for the specific day and location per the monthly internal summary did not agree to the meal count reported on the monthly claims reimbursement for (7) of the selections. Recommendation: Currently, management has a process to reconcile daily meal count sheets to the
reimbursement claims. Due to cash management needs, claims are originally reported within a few days
of month end. The claims are later amended as a part of a second review to be completed within 60
days of month end for the timely filing of claim reimbursement amendments. We recommend that current
internal controls over compliance be reviewed and followed. Management’s Response: See accompanying management’s corrective action plan.