Finding 977377 (2023-003)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-06-17

AI Summary

  • Core Issue: Amendments to reimbursement claims were not submitted on time, violating compliance requirements.
  • Impacted Requirements: Claims must be submitted within 60 days after the claiming month, as per federal guidelines.
  • Recommended Follow-Up: Management should establish a clear deadline for reviewing and preparing amended claims to ensure timely submissions.

Finding Text

Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement A – Activities Allowed and Unallowed Condition: Amendments made to original claims for reimbursement were not submitted timely. Criteria: The Child and Adult Care Food assistance listing from sam.gov states “Institutions file monthly reports on Program operations to claim reimbursement for meals served. They must submit final claims no later than 60 days after the claiming month.” Cause: Timely amendments were not filed. Effect: Amounts owed to and from the federal program provider were not determined timely. Context: All ten (10) months of the program original and amended claim reimbursements were reviewed. Of the eight (8) months which had amended claim reimbursements, five (5) months were not filed timely, within 60 days after the claiming month. Recommendation: Currently, management has a process to review monthly claim reimbursements for a second time after the original claim reimbursement is filed. There currently is not a deadline to complete this review, other than within 60 days. We suggest that management further define this review process to include timely review and preparation of any needed amended claim reimbursements. Management’s Response: See accompanying management’s corrective action plan.

Categories

Procurement, Suspension & Debarment Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 400934 2023-002
    Significant Deficiency Repeat
  • 400935 2023-003
    Significant Deficiency Repeat
  • 400936 2023-004
    Significant Deficiency
  • 977376 2023-002
    Significant Deficiency Repeat
  • 977378 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $1.93M
10.559 Summer Food Service Program for Children $295,050