FAC Explorer

Audit 21044

FY End
2022-09-30
Total Expended
$6.55M
Findings
2
Programs
10
Organization: Healthwest (MI)
Year: 2022 Accepted: 2023-06-25
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20271 2022-002 Significant Deficiency - B
596713 2022-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.51M Yes 0
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $694,826 - 0
93.788 Opioid Str $469,987 - 0
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $283,765 - 0
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $162,024 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $102,690 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $75,793 - 0
93.778 Medical Assistance Program $62,729 - 0
14.235 Supportive Housing Program $21,518 - 0
93.958 Block Grants for Community Mental Health Services $17,949 Yes 0

Contacts

Name Title Type
MSJQGPC8SDF1 Brandy Carlson Auditee
2317241174 Christina Schaub Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of HealthWest (the CMHSP) under programs of the federal government for the year ended September 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the CMHSP, it is not intended to and does not present its financial position or changes in net position of the CMHSP.
Title: RECONCILIATION WITH AUDITED FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Revenues related to federal expenditures are reported as follows in the financial statements of HealthWest: DescriptionAmountFederal revenues subject to single audit as seen on SEFA6,552,606Federal revenues not subject to single audit in current year (net)556,425Total Federal funding per financial statement audit7,109,031

Finding Details

Finding 2022-002
2022-002: OVERCHARGE OF FICA EXPENSES Type: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) Criteria: As detailed by 2 CFR 200.309, ?A non-Federal CMHSP may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through CMHSP made the Federal award that were authorized by the Federal awarding agency or pass-through CMHSP.?. Condition: During testing it was noted that FICA costs were overcharged by $14,047. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: 14,047 Recommendation: We recommend that the CMHSP review its methods for determining allocations of fringe benefits to the grants. Management?s Resp: Management is in agreement with this recommendation.
Finding 2022-002
2022-002: OVERCHARGE OF FICA EXPENSES Type: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) Criteria: As detailed by 2 CFR 200.309, ?A non-Federal CMHSP may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through CMHSP made the Federal award that were authorized by the Federal awarding agency or pass-through CMHSP.?. Condition: During testing it was noted that FICA costs were overcharged by $14,047. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: 14,047 Recommendation: We recommend that the CMHSP review its methods for determining allocations of fringe benefits to the grants. Management?s Resp: Management is in agreement with this recommendation.