Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Federal Agency:

United States Department of Agriculture

Federal Program:

Child and Adult Care Food Program (10.558)

Federal Award Numbers:

201817N109944, 201818N109944, and 201919N109944

Federal Award Years:

2018 and 2019

State Agency:

Department of Health

Reference:

2019-024

Criteria Title 7 U.S. Code of Federal Regulations Part 226 (7 CFR 226), Child and Adult Care Food Program , section 226.6(m)(4), Review of sponsored facilities , states as part of each required review of a sponsoring organization, the State agency must select a sample of facilities, in accordance with paragraph (m)(6) of this section. As part of such reviews, the State agency must conduct verification of Program applications in accordance with section 226.23(h) and must compare enrollment and attendance records (except in those outside-school-hours care centers, at-risk afterschool care centers, and emergency shelters where enrollment records are not required and the sponsoring organization’s review results for that facility to meal counts submitted by those facilities for five days. Additionally, Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , section 303(a) states the nonfederal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition For the fiscal year ended March 31, 2019, the Department of Health (the Department) did not have sufficient internal controls in place to ensure that all required reviews of sponsored facilities included a review of meal counts submitted by those facilities for five days (five-day reconciliation). For two of two subrecipient home sponsors not utilizing Kid Kare, the Department’s automated reporting system, selected for testwork receiving Child and Adult Care Food Program funds from the Department, management did not prepare or maintain the required five-day reconciliation as part of the Department’s review of the organization. For 40 of 40 center sponsors selected for testwork, supporting documentation for the five-day reconciliation was prepared and maintained and no exceptions were noted. Cause The condition is due to the Department not having sufficient internal controls in place to ensure that all support for the required manual five-day reconciliations were adequately maintained. The Department performs reviews on a triennial basis for all center and home sponsors. For home sponsors, 42 of 73 home sponsors utilize an automated system, Kid Kare (Minute Menu), which meets the requirements of the five-day reconciliation. For the remaining sponsors, the reconciliation must be performed manually. Documentation was not maintained to verify the five-day reconciliation was performed for the home sponsors. Training was conducted for the

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