DEEP FORK COMMUNITY ACTION FOUNDATION, INC

Material Weakness Condition: During the majority of the year ended September 30, 2024, the Organization’s purchase order policy was not consistently followed. While there appeared to be a proper segregation of duties and proper review and approval of expenses prior to purchase, the process was not consistently followed, and evidence of review and approval was not always available. Criteria and Cause: The purchase order policy is designed to prevent purchases that are not authorized by management. Our consideration of the Organization’s internal control system disclosed that there was not sufficient documentation for review and approval of expenses prior to purchase. Effect: The lack of proper documentation of review and approval of expenses increases the risk that purchases could be made without authorization by management. Recommendation: A purchase order policy should be in place and consistently followed that includes documented authorization by the program manager or the Executive Director to ensure that all expenses have documentation of review and approval prior to purchase. Views of responsible officials and planned corrective actions: In July 2024, the contracted community action agency assisted with drafting a new purchase order policy and began training on this to implement one department at a time. The new policy requires the use of a payment authorization form authorized by the program manager or the Executive Director to ensure that all expenses have documentation of review and approval prior to purchase.

n July 2024, the contracted community action agency assisted with drafting a new purchase order policy and began training on this to implement one department at a time. The new policy requires the use of a payment authorization form authorized by the program manager or the Executive Director to ensure that all expenses have documentation of review and approval prior to purchase.

Material Instance of Non-compliance Condition: The Organization did not fully and permanently correct the areas of serious deficiency identified by The Oklahoma State Department of Education Office of Child Nutrition Programs (the State agency). Deep Fork Community Action Foundation, Inc. Schedule of Findings and Questioned Costs Year ended September 30, 2024 See Report. 28 Criteria and Cause: The State agency conducted a claim validation and administrative review of the Organization’s CACFP operations during the year ended September 30, 2024. Based on the information gathered during the review, the State agency declared the Organization’s CACFP program seriously deficient. The areas found to be seriously deficient included failure to perform required financial or administrative responsibilities, failure to properly train and monitor subrecipients, and claiming reimbursement for meals that do not meet program requirements. The State agency sent the Organization a Notice of Serious Deficiency dated August 6, 2024. The Organization submitted corrective action but the State agency concluded that the Organization did not fully and permanently correct the areas of serious deficiency. Effect: On November 8, 2024, the State agency proposed to terminate the Organization’s agreement to participate in CACFP. Recommendation: The Organization should implement the actions necessary to correct all deficiencies identified during monitoring reviews within the time period allowed for corrected action. Views of responsible officials and planned corrective actions: The Organization feels that it made a good faith attempt to correct the deficiencies noted by the State Agency. On November 8, 2024, the Organization received notification that the State agency proposed to terminate the Organization’s agreement to participate in CACFP. The Organization decided not to appeal the decision. Effective December 1, 2024, the Organization ended the CACFP program and notified the day care homes that they would need to find a new sponsor.

The Organization feels that it made a good faith attempt to correct the deficiencies noted by the State Agency. On November 8, 2024, the Organization received notification that the State agency proposed to terminate the Organization’s agreement to participate in CACFP. The Organization decided not to appeal the decision. Effective December 1, 2024, the Organization ended the CACFP program and notified the day care homes that they would need to find a new sponsor.

Condition: The Organization did not submit the audit report to the Federal Audit Clearinghouse (FAC) within 9 months after the end of the fiscal year in accordance with Uniform Guidance. Criteria and Cause: The September 30, 2022 audit was required to be submitted to the FAC within 9 months after the end of the fiscal year in accordance with Uniform Guidance. Due to turnover of the contracted CPA, a change in auditor, and other factors, additional time was needed to gather the necessary information and this deadline was not met. Effect: The potential effect of not submitting the financial statements in a timely manner could subject the Organization to disciplinary measures by Federal and state grant agencies including ODOC and Oklahoma Department of Education. Recommendation: We recommend that the Organization submit the current audit to the FAC as soon as available, and that the Organization work diligently to meet all future audit filing deadlines.

The Organization will submit the current audit to the FAC as soon as available, and the Organization will work diligently to meet all future audit filing deadlines. The Organization has already scheduled with the current auditor for work on the FY 2023 audit and it should be ahead of the scheduled deadline.