FAC Explorer

Audit 299941

FY End
2020-09-30
Total Expended
$2.92M
Findings
4
Programs
2
Organization: Detroit Central City Cmh, Inc. (MI)
Year: 2020 Accepted: 2024-03-28
Auditor: Gregory Terrell and Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388127 2020-003 Material Weakness - L
388128 2020-003 Material Weakness - L
964569 2020-003 Material Weakness - L
964570 2020-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $196,114 Yes 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $50,000 Yes 0

Contacts

Name Title Type
VS8LQK5RAFK6 Charles Allen Auditee
3133338360 Gregory Terrell Auditor
No contacts on file

Notes to SEFA

Title: (1) GENERAL Accounting Policies: The Schedule of Expenditures of Federal Awards was prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Used indirect cost rate or cost allocation plan approved by Grantor The accompanying Schedule of Expenditures of Federal Awards presents the activity of federal financial award programs of the Detroit Central City Community Mental Health, Inc. (“DCCCMH”). Federal financial awards passed through other agencies are included on the schedule. DCCCMH had no subrecipients.
Title: (2) BASIS OF ACCOUNTING Accounting Policies: The Schedule of Expenditures of Federal Awards was prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Used indirect cost rate or cost allocation plan approved by Grantor The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting.
Title: (3) TAX-EXEMPT STATUS Accounting Policies: The Schedule of Expenditures of Federal Awards was prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Used indirect cost rate or cost allocation plan approved by Grantor DCCCMH is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code.
Title: (4) MAJOR PROGRAMS Accounting Policies: The Schedule of Expenditures of Federal Awards was prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Used indirect cost rate or cost allocation plan approved by Grantor The major programs were determined in accordance with the Uniform Guidance. Subsequent to the issuance of our report dated October 24, 2023, we audited the DCCCMH’s HRSA Health Center grant programs under CFDA #93.224 as a major program. During a post issuance review it was determined that this Type A program had not been audited the previous two fiscal years and accordingly should have been audited as a Major Program for the year ended September 30, 2020.

Finding Details

Finding 2020-003
FINDING 2020-003 Federal Award: U.S. Department of Housing and Urban Development CFDA# 14.267 Continuum of Care Grant No. MI0071L5F011811 U.S. Department of Health and Human Services CFDA# 93.224 HRSA Health Center Program No. H8ECS26571-06-06 Finding Type: Material Weakness – Financial Management Criteria: The Uniform Guidance requires that a non-Federal entity maintain a financial management system that accurately accounts for the receipt and expenditure of Federal grant funds. Condition: Expenditures reported in the general ledger for the Continuum of Care Grant of $960,405 did not agree with the expenditures reported to HUD of $1,071,510 and for which HUD provided reimbursement. This condition resulted in the Organization being required to make an adjustment to reduce grant reported revenue and record an amount due to HUD for excess funds received. Expenditures reported in the general ledger for the noted HRSA grant exceeded the amount reported and requested for reimbursement. DCCCM elected to use non-Federal funds to cover the excess expenditures. Effect: Noncompliance with the Uniform Guidance regarding financial management, including the receipt of HUD grant payments in excess of expenditures incurred. Cause: The lack of monitoring and review to ensure that the accounting records were in agreement with amounts requested from HUD and HRSA for grant reimbursement. Recommendation: DCCCMH should review and monitor general ledger accounts used to report Federal grant activity to ensure that recorded expenditures agree with amounts reported to HUD, HRSA, and other grantor agencies for reimbursement. Management Response: DCCCMH has hired a grant accountant who will ensure expenses claimed are accurately reflected in the books and records of DCCCMH. In addition, DCCCMH is hiring a General Ledger Accountant who will ensure all Balance Sheet accounts are reconciled monthly.
Finding 2020-003
FINDING 2020-003 Federal Award: U.S. Department of Housing and Urban Development CFDA# 14.267 Continuum of Care Grant No. MI0071L5F011811 U.S. Department of Health and Human Services CFDA# 93.224 HRSA Health Center Program No. H8ECS26571-06-06 Finding Type: Material Weakness – Financial Management Criteria: The Uniform Guidance requires that a non-Federal entity maintain a financial management system that accurately accounts for the receipt and expenditure of Federal grant funds. Condition: Expenditures reported in the general ledger for the Continuum of Care Grant of $960,405 did not agree with the expenditures reported to HUD of $1,071,510 and for which HUD provided reimbursement. This condition resulted in the Organization being required to make an adjustment to reduce grant reported revenue and record an amount due to HUD for excess funds received. Expenditures reported in the general ledger for the noted HRSA grant exceeded the amount reported and requested for reimbursement. DCCCM elected to use non-Federal funds to cover the excess expenditures. Effect: Noncompliance with the Uniform Guidance regarding financial management, including the receipt of HUD grant payments in excess of expenditures incurred. Cause: The lack of monitoring and review to ensure that the accounting records were in agreement with amounts requested from HUD and HRSA for grant reimbursement. Recommendation: DCCCMH should review and monitor general ledger accounts used to report Federal grant activity to ensure that recorded expenditures agree with amounts reported to HUD, HRSA, and other grantor agencies for reimbursement. Management Response: DCCCMH has hired a grant accountant who will ensure expenses claimed are accurately reflected in the books and records of DCCCMH. In addition, DCCCMH is hiring a General Ledger Accountant who will ensure all Balance Sheet accounts are reconciled monthly.
Finding 2020-003
FINDING 2020-003 Federal Award: U.S. Department of Housing and Urban Development CFDA# 14.267 Continuum of Care Grant No. MI0071L5F011811 U.S. Department of Health and Human Services CFDA# 93.224 HRSA Health Center Program No. H8ECS26571-06-06 Finding Type: Material Weakness – Financial Management Criteria: The Uniform Guidance requires that a non-Federal entity maintain a financial management system that accurately accounts for the receipt and expenditure of Federal grant funds. Condition: Expenditures reported in the general ledger for the Continuum of Care Grant of $960,405 did not agree with the expenditures reported to HUD of $1,071,510 and for which HUD provided reimbursement. This condition resulted in the Organization being required to make an adjustment to reduce grant reported revenue and record an amount due to HUD for excess funds received. Expenditures reported in the general ledger for the noted HRSA grant exceeded the amount reported and requested for reimbursement. DCCCM elected to use non-Federal funds to cover the excess expenditures. Effect: Noncompliance with the Uniform Guidance regarding financial management, including the receipt of HUD grant payments in excess of expenditures incurred. Cause: The lack of monitoring and review to ensure that the accounting records were in agreement with amounts requested from HUD and HRSA for grant reimbursement. Recommendation: DCCCMH should review and monitor general ledger accounts used to report Federal grant activity to ensure that recorded expenditures agree with amounts reported to HUD, HRSA, and other grantor agencies for reimbursement. Management Response: DCCCMH has hired a grant accountant who will ensure expenses claimed are accurately reflected in the books and records of DCCCMH. In addition, DCCCMH is hiring a General Ledger Accountant who will ensure all Balance Sheet accounts are reconciled monthly.
Finding 2020-003
FINDING 2020-003 Federal Award: U.S. Department of Housing and Urban Development CFDA# 14.267 Continuum of Care Grant No. MI0071L5F011811 U.S. Department of Health and Human Services CFDA# 93.224 HRSA Health Center Program No. H8ECS26571-06-06 Finding Type: Material Weakness – Financial Management Criteria: The Uniform Guidance requires that a non-Federal entity maintain a financial management system that accurately accounts for the receipt and expenditure of Federal grant funds. Condition: Expenditures reported in the general ledger for the Continuum of Care Grant of $960,405 did not agree with the expenditures reported to HUD of $1,071,510 and for which HUD provided reimbursement. This condition resulted in the Organization being required to make an adjustment to reduce grant reported revenue and record an amount due to HUD for excess funds received. Expenditures reported in the general ledger for the noted HRSA grant exceeded the amount reported and requested for reimbursement. DCCCM elected to use non-Federal funds to cover the excess expenditures. Effect: Noncompliance with the Uniform Guidance regarding financial management, including the receipt of HUD grant payments in excess of expenditures incurred. Cause: The lack of monitoring and review to ensure that the accounting records were in agreement with amounts requested from HUD and HRSA for grant reimbursement. Recommendation: DCCCMH should review and monitor general ledger accounts used to report Federal grant activity to ensure that recorded expenditures agree with amounts reported to HUD, HRSA, and other grantor agencies for reimbursement. Management Response: DCCCMH has hired a grant accountant who will ensure expenses claimed are accurately reflected in the books and records of DCCCMH. In addition, DCCCMH is hiring a General Ledger Accountant who will ensure all Balance Sheet accounts are reconciled monthly.