NUTRITION & HEALTH EDUCATION RESOURCES

FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARD Finding Number: 2022-001 Repeat Finding: Yes, 2021-001 Program Name: Child and Adult Care Food Program (CACFP) Assistance Listing Number: 10.558 Federal Agency: U.S. Department of Agriculture Federal Award No.: 7AZ300AZ3 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Meal Counts and Provider Documentation CRITERIA According to the CACFP Child Care Home Compliance Manual, Section 5.2 the Organization should review the meal counts reported on the monthly meal count summaries to ensure that meal counts are accurate. CONDITION Meal/snack counts reported on the sponsor?s reimbursement claim did not always agree with all supporting documentation. CAUSE The condition was caused by clerical error as the majority of reports from providers are handwritten in nature. EFFECT Meal count errors were not caught during the review process. Federal and State of Arizona requirements were not always met. CONTEXT For one of 30 providers' meal count summaries reviewed, the number of afternoon snacks reported on the meal count summaries did not agree to the supporting documentation. Afternoon snacks were over reported by 25, or $21.75. The sample was statistically valid. RECOMMENDATION The Organization should enhance internal review procedures to ensure provider meal counts and Meals Served Report are reported correctly. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

REFERENCE: 2021-101 CFDA NUMBER: 10.558 ? CHILD AND ADULT CARE FOOD PROGRAM U.S. DEPARTMENT OF AGRICULTURE - FOOD AND NUTRITION - 2021 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER 6AZ300003 QUESTIONED COSTS N/A CONDITION The following errors were noted during testing of FDCH Sponsor Claims and 18 Day Care Home provider files for the months of months of October 2020 and June 2021: 1. For 2 of 18 provides files tested, menus were clerically inaccurate and did not support the meals claimed in both months tested. These errors resulted in the following revised meal counts: See Schedule of Findings and Questioned Costs for chart/table These variances resulted in an over payment (known questioned costs) of $11. However, after projecting the various types of errors over six meal categories for the entire year, likely questioned costs totaled $516. CRITERIA In accordance with Uniform Guidance, Compliance Supplement (April 2017), Part IV, United States Department of Agriculture, CFDA 10.558 Child and Adult Care Food Program (CACFP), III Compliance Requirements, L. 3. b., Subrecipient Special Reporting, to receive reimbursement payments for meals served, an institution must submit claims for reimbursement to its State agency. A claim must include the number of meals served by category and type during the period (generally a month) covered by the claim. All meals claimed for reimbursement must be of types authorized by the institution?s State agency; must be served to eligible children or adults; and must be supported by accurate meal counts and records indicating the number of meals served by category and type. Reimbursement is not allowed for meals served to a participant who is not enrolled for care (if applicable), meals served in excess of an institution?s licensed or authorized capacity, meal types that are not approved in the institution?s agreement with its State agency, or meals served in excess of the maximum number of approved meal services (7 CFR sections 226.10(c), 226.17(b)(4), 226.17a(p), 226.19(b)(5), and 226.19a(b)(6)). In accordance with the Arizona Department of Education, Day Care Home Compliance Manual, Chapter 10, Meal Requirements, Section 10.7 Other Meal Requirements, in order to claim a meal, the provider must abide by the following criteria: ? The provider must serve a fully reimbursable meal that meets the meal pattern requirements and are supported by complete and up to date attendance, meal count, and menu records; ? The child must be present and participate in the meal service; ? All meal components must be served together; ? The meal must be fully consumed on the premises in a congregate setting. Meals sent home with a child due to the parent picking up the child during meal service cannot be claimed; ? Meal must be served during approved meal service time; ? The provider can be reimbursed for a maximum of two meals and one snack or two snacks and one meal per child, per day; ? Only children who are enrolled can be claimed and the number of children cannot exceed the allowable ratio; ? Payment may be made for meals served to provider?s own child(ren) or foster children only when: ? Their child(ren) are enrolled and participating in the child care program during the time of the meal service; ? At least one enrolled, non-resident child is present and participating in the child care program; ? The provider meets the family size income standards for free or reduced-price meals; ? Seconds may be served but are not reimbursable; and ? If a school age child receives a breakfast, lunch or afterschool snack at school, a provider may not claim the same meal. In accordance with the Uniform Guidance, Compliance Supplement, Part 6 ? 2 CFR section 200.303 require that non-Federal entities receiving federal awards establish and maintain internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and terms and conditions of the Federal awards. EFFECT Program requirements were not complied with. Additionally, providers and the sponsor were incorrectly reimbursed. CAUSE Although the internal controls were adequately designed, there were deficiencies in the execution of the controls. RECOMMENDATION AND BENEFIT Provider meal count sheets should be reviewed for proper claiming of children and allowable meals prior to the preparation of the reimbursement claim. Additionally, the monthly Sponsor Claim should be reviewed by a send person to ensure amounts claimed are appropriately supported. These reviews should be documented. This will help ensure that program requirements are complied with and only meals served to eligible participants are claimed for reimbursement. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

NUTRITION AND HEALTH EDUCATION RESOURCES SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION 3 ? FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS MATERIAL WEAKNESS SEPTEMBER 30, 2019 REFERENCE: 2019-101 CFDA NUMBER: 10.558 ? CHILD AND ADULT CARE FOOD PROGRAM U.S. DEPARTMENT OF AGRICULTURE - FOOD AND NUTRITION - 2019 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER 6AZ300003 QUESTIONED COSTS N/A CONDITION The following errors were noted during testing of FDCH Site Claims and 21 Day Care Home provider files for the months of months of April and August 2019: 1. For 2 of 21 provides files tested, menus were clerically inaccurate and did not support the meals claimed in both months tested. 2. For 1 of 21 provider files tested, meals were claimed for the provider?s own children when there were no other children in attendance. This error occurred during April 2019. 3. For 1 of 21 provider files tested, a non-credible menu component was listed on the provider menu. This error occurred in August 2019. 4. For 1 of 12 months tested, the meal counts on the August 2019 Provider Claim Totals Report did not agree to the Sponsor Claim. The amounts reported and reimbursed were the same as the July 2019 claim. These errors resulted in the following revised meal counts: SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR TABLE These variances resulted in an over payment (known questioned costs) of $8,379. However, after projecting the various types of errors over six meal categories for the entire year, likely questioned costs totaled $657. CRITERIA In accordance with Uniform Guidance, Compliance Supplement (April 2017), Part IV, United States Department of Agriculture, CFDA 10.558 Child and Adult Care Food Program (CACFP), III Compliance Requirements, L. 3. b., Subrecipient Special Reporting, to receive reimbursement payments for meals served, an institution must submit claims for reimbursement to its State agency. A claim must include the number of meals served by category and type during the period (generally a month) covered by the claim. All meals claimed for reimbursement must be of types authorized by the institution?s State agency; must be served to eligible children or adults; and must be supported by accurate meal counts and records indicating the number of meals served by category and type. Reimbursement is not allowed for meals served to a participant who is not enrolled for care (if applicable), meals served in excess of an institution?s licensed or authorized capacity, meal types that are not approved in the institution?s agreement with its State agency, or meals served in excess of the maximum number of approved meal services (7 CFR sections 226.10(c), 226.17(b)(4), 226.17a(p), 226.19(b)(5), and 226.19a(b)(6)). In accordance with the Arizona Department of Education, Day Care Home Compliance Manual, Chapter 10, Meal Requirements, Section 10.7 Other Meal Requirements, in order to claim a meal, the provider must abide by the following criteria: ? The provider must serve a fully reimbursable meal that meets the meal pattern requirements and are supported by complete and up to date attendance, meal count, and menu records; ? The child must be present and participate in the meal service; ? All meal components must be served together; ? The meal must be fully consumed on the premises in a congregate setting. Meals sent home with a child due to the parent picking up the child during meal service cannot be claimed; ? Meal must be served during approved meal service time; ? The provider can be reimbursed for a maximum of two meals and one snack or two snacks and one meal per child, per day; ? Only children who are enrolled can be claimed and the number of children cannot exceed the allowable ratio; ? Payment may be made for meals served to provider?s own child(ren) or foster children only when: ? Their child(ren) are enrolled and participating in the child care program during the time of the meal service; ? At least one enrolled, non-resident child is present and participating in the child care program; ? The provider meets the family size income standards for free or reduced-price meals; ? Seconds may be served but are not reimbursable; and ? If a school age child receives a breakfast, lunch or afterschool snack at school, a provider may not claim the same meal. In accordance with the Uniform Guidance, Compliance Supplement, Part 6 ? 2 CFR section 200.303 require that non-Federal entities receiving federal awards establish and maintain internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and terms and conditions of the Federal awards. EFFECT Program requirements were not complied with. Additionally, providers and the sponsor were incorrectly reimbursed. CAUSE Although the internal controls were adequately designed, there were deficiencies in the execution of the controls. RECOMMENDATION AND BENEFIT Provider meal count sheets should be reviewed for proper claiming of children and allowable meals prior to the preparation of the reimbursement claim. Additionally, the monthly Sponsor Claim should be reviewed by a send person to ensure amounts claimed are appropriately supported. These reviews should be documented. This will help ensure that program requirements are complied with and only meals served to eligible participants are claimed for reimbursement.

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