El Paso Human Services, Inc.

Reference Number: 2021-01 Major Program: 10.558 Child Care Food and Centers Program Compliance Requirement: Eligibility Criteria: In accordance with the with 2CFR 200.303, a non-federal entity must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the award. Condition: The Organization completes applications and makes income eligibility determinations annually on all clients. The applications are prepared, and the income determinations are entered into the system that compiles all information for claim reimbursements. Clients fall into one of three categories, free, reduced or paid. The category determines the amount to be reimbursed. Context: A total of 60 applications were tested. Three of which were prepared properly, and the correct income determination was made based on supporting documentation. However, the incorrect income determination was selected in the system that tracks and processes claims, causing claims for reimbursement to be overstated or understated. In the limited cases identified, the amount under or over paid was immaterial. This appears to be a clerical error. Effect: Erroneous coding errors may lead to inaccurate reimbursement received (overpayments) or not processed (underpayments). Recommendation: The Organization should update internal control procedures to ensure a review of system inputs is regularly performed. Management Response: See corrective action plan below.