Sunshine Connections

SIGNIFICANT DEFICIENCY 2025-002 10.558 – Child and Adult Care Food Program – Eligibility Criteria or specific requirement Internal controls should be in place to ensure that complete and accurate meal counts for eligible providers and children are submitted to the State for reimbursement. Condition Two providers received an improper amount for their meal reimbursement for the month tested. Context We determined, through testing of provider meal reimbursements, that an inaccurate number of meals was submitted to the State for reimbursement for 2 transactions within our sample of 60. Cause For one of the transactions, an inaccurate meal count was submitted to the State because of an incorrectly recapped meal count. For the second, a new provider entered the program and took over the children from a previous provider of the program who would no longer be providing those services. The new provider’s children had been enrolled under the previous provider, and they also did not share a last name with their provider parent, so staff did not catch that they needed to be flagged as Provider Children during the transfer. As a result, no Income Eligibility Form was completed for those children. Effect For one transaction, the provider was under-reimbursed by one snack for the month tested. The known questioned cost for this is ($0.96), and the estimated questioned cost when compared against the population is ($33). For the second transaction, a provider joined the program for the last three months of the fiscal year, and her children were reimbursed for their meals during that time. However, no Income Eligibility Form was on file for them. Total reimbursements received for those children during the period was $760. Recommendation Controls should be reviewed and updated to ensure that complete and accurate meal counts are submitted to the State for reimbursement. Views of responsible officials and planned corrective actions See corrective action plan.

10.558 – Child and Adult Care Food Program – Eligibility Criteria or specific requirement Internal controls should be in place to ensure that complete and accurate meal counts for eligible providers and children be submitted to the State for reimbursement. Condition Two providers received an improper amount for their meal reimbursement for the month tested. Context We determined, through testing of provider meal reimbursements, that an inaccurate number of meals was submitted to the State for reimbursement for two transactions within our sample. Effect One provider’s children were disallowed for the month tested on the basis of income eligibility. However, she had completed an income eligibility form that was effective beginning that month that showed that her children were, in fact, eligible. Another provider was over-reimbursed by one snack for the month tested due to meal counts being incorrectly recounted and recapped. These items totaled to a net underreimbursement of the providers of $51. Total estimated errors come to an under-reimbursement of $2,108. Cause Inaccurate meal counts were submitted to the State as a result of incorrectly recapped meal counts, as well as staff receiving the income eligibility form late in the month and not recognizing that an adjustment needed to be made to recognize the provider’s children as being eligible. Both were the result of human error. Recommendation Controls should be reviewed and updated to ensure that complete and accurate meal counts are submitted to the State for reimbursement. Views of responsible officials and planned corrective actions See corrective action plan.

10.558 – Child and Adult Care Food Program – Subrecipient Monitoring Criteria or specific requirement In accordance with 7 CFR 226.16(d)(4)(iii)(C), at least one review must be made during each new facility’s first four weeks of Program operations. Condition Two providers who began Program operations during the period did not undergo a site visit during their first four weeks of operations. Context We determined, through testing of provider site visits, that two new providers had their first site visit fall slightly outside of the required first four weeks. Effect New providers did not receive a timely visit. Cause This was the result of human error. Recommendation Controls should be reviewed and updated to ensure that all new providers undergo a site visit within the first four weeks of operations. Views of responsible officials and planned corrective actions See corrective action plan.

10.558 – Child and Adult Care Food Program – Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Eligibility Criteria or specific requirement Internal controls should be in place to ensure that complete and accurate meal counts for eligible providers and children be submitted to the State for reimbursement. Condition Four providers received an improper amount for their meal reimbursement for the month tested. Context We determined, through testing of provider meal reimbursements, that an inaccurate number of meals was submitted to the State for reimbursement for four providers in our sample. Effect Two providers were incorrectly reimbursed for a meal that did not meet the food guidelines of the program. One provider was reimbursed for a child that was not properly enrolled within the program for all of the days being reimbursed. The final provider had their meal counts incorrectly recounted and recapped, resulting in the wrong number of meals being reimbursed. These items totaled to a net overreimbursement of the providers of $73. Total estimated errors come to an over-reimbursement of $2,742. Cause Inaccurate meal counts were submitted to the State as a result of incorrectly recapped meal counts, meals being reimbursed for a child that was not properly enrolled, and for meals being reimbursed that did not meet the food guidelines of the program. All were the result of human error. Recommendation Controls should be reviewed and updated to ensure that complete and accurate meal counts are submitted to the State for reimbursement. Views of responsible officials and planned corrective actions See corrective action plan.

Criteria or specific requirement Internal controls should be in place to ensure that complete and accurate meal counts are submitted to the State for reimbursement. Condition Inaccurate meal counts were submitted to the State. Context We determined, through internal control testing of provider meal reimbursements, that an inaccurate number of meals were submitted to the State for reimbursement for two providers for the months tested. Effect Two providers were over reimbursed. The total number of meals that were incorrectly claimed is 1 breakfast, 1 lunch, and 2 snacks. Cause Provider claims were recalculated incorrectly. The employee that completes the claim report is the same individual who later conducts a review of the claims before submission to the State. As a result, these mistakes were not caught during the review process. Recommendation Procedures should be established and implemented in order to segregate incompatible duties. Views of responsible officials and planned corrective actions See corrective action plan.

Criteria or specific requirement Internal controls should be in place to ensure that only eligible individuals are submitted to the State for reimbursement. Condition Children lacking enrollment forms were included in meal counts that were submitted to the State. Context We determined, through testing of provider meal reimbursements, that two providers submitted meal counts to the State for reimbursement for a child who did not have an enrollment form. Effect Two providers were over reimbursed. The total number of meals that were incorrectly claimed is 18 breakfasts, 20 lunches, and 21 snacks. Cause While reviewing provider claims reports, an employee places a mark next to the child?s name after ensuring that they have a properly completed enrollment form on file. However, the reviewer failed to notice the lack of marker next to the two incorrectly claimed children. Recommendation Procedures should be established and implemented in order to more clearly document and flag children that are missing enrollment forms. Views of responsible officials and planned corrective actions See corrective action plan.

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