Southwest Magic Food Program, Inc.Non-Profit

New Client Enrollment Procedures: As the parent/guardian requests childcare services from one of our sites they are presented with a form entitled “Enrollment Data Tracking Form.” This form constitutes paper copy of every enrollment document. It will have a signature and a date on that form. Staff at the site level will enter this data on the KidKare enrollment form and present it to the parent and obtain an electronic signature and date of enrollment. The KidKare system is designed to recognize the date of enrollment and when that date approaches its 10th month a warning is sent to the site administrator. It warns that in a short bit of time an updated form must be obtained and entered into KidKare to allow the site the ability to claim meals for that child.

This finding documents our local staff failures to record attendance meal counts at the point of service and the failure of our monitors to identify these violations of the rules governing client enrollment. In the future, regardless of the KidKare system, site staff will produce Form 1535 (attendance and meal count record) and submit that document to the sponsor at the end of each week. The manual meal counts on the 1535 forms assure accurate point of service meal documentation. The information from the paper 1535 will be doubled checked for accuracy by the facility director or designee before entering the information into the MM/KidKare system. After entry, another check is made to ensure that both sets of meal counts match. This will assure that only meals that are supported by proper point of service source documentation will be entered in the KidKare system and claimed for reimbursement. At the end of the month, both copies i.e. manual and MM/KidKare counts are sent to the sponsor for another level of oversight. Both copies of these paper and system-printed counts will be filed at the facility in the director’s office and at the sponsor’s office in the file for each facility file. This procedure will be implemented July of 2023. Monitoring staff will verify that the procedure is being followed by conducting unannounced visits to all sites within two weeks of implementation. The Director will monitor these actions to ensure this follow up occurs.

Southwest Magic Food Program has updated its current management plan to reflect new strategies that demonstrate Program Accountability. Financial management system has been modified to provide a step-by-step procedure for ensuring integrity and accountability of all funds. Our new approach will ensure that only expenses that are approved, allowable, reasonable, and necessary will be reported as CACFP costs. Step 1: The first step in this process is creating a budget that will support our efforts to deliver meals to hungry children. We gather financial intel data on all proposed sites that tells us what will need to be purchased, when it needs to be purchased and what source documentation must be maintained. This data collection also includes predictions on the cost of labor. Next we have to assess our own organization’s needs and create a budget that will be submitted to TDA for approval. Every item in the budget must stand the test of allowability vis a vi FNS Instruction 796-2, Revision 4. During our data gathering process we will identify cost items that require Special Prior Written Approval prior to entering the cost in our CACFP budget. These items are submitted to the SPWA process for approval. Examples of SPWA cost reviews can be viewed in the Square Meals web site. This budgeting process requires us to examine every anticipated expense and verify the allowability of the expense. Our policy is that if the expense item is not included in the budget, it will not be allowed or reported to TDA. The Director will be responsible for each task, as of January 21, 2024. We now consider budgeting as an ongoing process that occurs daily, weekly and monthly as does the analysis of planned vs. actual expenses. Step 2: Every procurement must be validated with a receipt which identifies the vendor, date of purchase, items purchases, and how the purchases were paid for. Labor costs must be supported by time distribution reports, attendance records, payroll documentation and proof that the item was actually paid for. Step 3: Ensure all source documentation is provided to the accountant maintaining our general ledger. Step 4: Ensure that expenses recorded in the annual financial sampling tool are supported by the source documents listed above. If documents cannot be provided then in costs cannot be recorded regardless of any test of allowability, reasonableness or necessary. Our current management plan has been updated to include the comments shown in yellow. We believe that it should also be recognized that KidKare aka Minute Menu is a viable tool that assists in maintaining up to date and available on demand enrollment and MBIE documents. In addition, it is a powerful tool that greatly enhances accuracy in attendance and meal count records. The KidKare system was purchased because it is designed to collect enrollment, income, attendance, and menu data. When used properly it will address every concerned identified with regard to Enrollment, MBIE, Attendance and Meal Counts, and Meal Production Records.

Training logs will be maintained and will include agenda, and sign-in sheets complete with staff titles and signature. Staff training on this new strategy will begin on August 1, 2024. The Director is responsible for ensuring this training occurs and is properly documented. Documentation of all training will be maintained. - The Directors of all participating sites under this sponsorship must attend annual training provided by the Director. - A new employee of the sponsoring organization or site who performs key activities will be trained by the ED or an appropriate supervisor prior to a new employee beginning key activities. All current sponsor level employees receive training annually.

We gather financial intel data on all proposed sites that tell us what will need to be purchased, when it needs to be purchased and what source documentation must be maintained. This data collection also includes predictions on the cost of labor. Next, we have to assess our own organization’s needs and create a budget that will be submitted to TDA for approval. Every item in the budget must stand the test of allowability vis a vi FNS Instruction 796-2, Revision 4. During our data gathering process we will identify cost items that require Special Prior Written Approval prior to entering the cost in our CACFP budget.

The organization will ensure that the selection and approval of the documentation is obtained in a sufficient time period to allow the audit to begin in a timely manner in order the audit report file by the due date.

2019-001 ? Preparation of Financial Statements Corrective Action Plan: Southwest Magic Food Program, Inc. management will hire competent staff capable to prepare records adequately. Office staff will complete training throughout the year and all training will be filed in employee personnel files to make sure they are prepared for internal, external financial statement which has been on the fore front of the company agenda. Southwest Magic Food Program, Inc. management will decide as to whether the cost of correcting the deficiency concerning the expertise of accounting personnel exceeds the expected benefits to be derived from doing such. Due to the size of organization, we must rely on our auditor to assist with preparation. Southwest Magic Food Program outside accountant assists with review of financial recordings. Contact person responsible for corrective action: Gail Lane

2018-001

2019-002 ? Segregation of Duties Corrective Action Plan: Southwest Magic Food Program, Inc. management will implement a policy and procedure to properly segregate duties to prevent the risk of misappropriation of funds, material misstatement of finances, and/or fraud. This will be effective by January 2, 2020. Due to small staff organization to implement mitigating controls by having board members not involved in the financial process and review financial reporting documents. Contact person responsible for corrective action: Gail Lane

2018-002

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GSA_MIGRATION