Audit 308099

FY End
2022-09-30
Total Expended
$1.29M
Findings
10
Programs
1
Organization: University Physician Group (MI)
Year: 2022 Accepted: 2024-06-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
399944 2022-001 Material Weakness Yes L
399945 2022-002 Significant Deficiency Yes P
399946 2022-003 Material Weakness Yes L
399947 2022-004 Material Weakness Yes P
399948 2022-005 Material Weakness - L
976386 2022-001 Material Weakness Yes L
976387 2022-002 Significant Deficiency Yes P
976388 2022-003 Material Weakness Yes L
976389 2022-004 Material Weakness Yes P
976390 2022-005 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.29M Yes 5

Contacts

Name Title Type
E3J4RM263QF3 Christopher Krieg Auditee
3134489310 Karen Welch, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1- Basis of Presentation Accounting Policies: Lost revenues reported in the SEFA are reported on accrual basis of accounting in accordance with HRSA terms and conditions for PRF funding. Lost revenues are reported based on the HRSA Option 1, reporting of lost revenues by comparing actual revenues by quarter during the period of availability to actual revenues for similar quarters during 2019 prior to the COVID-19 Pandemic. De Minimis Rate Used: N Rate Explanation: Note 3- Indirect Cost Rate. University Physician Group has elected not to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of University Physician Group under programs of the federal governement for the year ended Septemebr 30, 2022. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, And Audit Requirements for Federal Awards (the "Uniform Guidance"). All federal awards received directly and indirectly from ferderal agencies are included in this Schedule. Because the schedule presents only a selected portion of the operations of University Physician Group, it is not intended to and does not represent the fiancial position, changes in net position, or cash flows of University Physician Group. As outlined in the April 2022 OMB Compliance Supplement, the amounts reported in the accompanying SEFA related to the Provider Releif Fund (PRF), Assistance Listing No. 93.498, are reported based upon the PRF reporting portal submission guidlines established by the Health Resource and Service Administration (HRSA). Seven separate reporting periods were established by HRSA based on the dates of receipt of PRF payments. Each reporting period has a specific period of availability which begins on January 1, 2020 and extends through specific deadlines. The accompanying SEFA includes those lost revenues that were reported in the HRSA PRF portal for Period 4. Of that amount, $1,287,751 in PRF payments was recognized by the Organization in their statement of activities as other non-operating revenue during the year ended September 30, 2022.
Title: Note 2-Summary of Significant Accounting Policies Accounting Policies: Lost revenues reported in the SEFA are reported on accrual basis of accounting in accordance with HRSA terms and conditions for PRF funding. Lost revenues are reported based on the HRSA Option 1, reporting of lost revenues by comparing actual revenues by quarter during the period of availability to actual revenues for similar quarters during 2019 prior to the COVID-19 Pandemic. De Minimis Rate Used: N Rate Explanation: Note 3- Indirect Cost Rate. University Physician Group has elected not to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. Lost revenues reported in the SEFA are reported on accrual basis of accounting in accordance with HRSA terms and conditions for PRF funding. Lost revenues are reported based on the HRSA Option 1, reporting of lost revenues by comparing actual revenues by quarter during the period of availability to actual revenues for similar quarters during 2019 prior to the COVID-19 Pandemic.
Title: Note 3-Indirect Cost Rate Accounting Policies: Lost revenues reported in the SEFA are reported on accrual basis of accounting in accordance with HRSA terms and conditions for PRF funding. Lost revenues are reported based on the HRSA Option 1, reporting of lost revenues by comparing actual revenues by quarter during the period of availability to actual revenues for similar quarters during 2019 prior to the COVID-19 Pandemic. De Minimis Rate Used: N Rate Explanation: Note 3- Indirect Cost Rate. University Physician Group has elected not to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. University Physician Group has elected not to use the 10 percent de minimis cost rate allowed under the Uniform Guidance.

Finding Details

The Organization does not have an internal control system designed to provide for the preparation of the full financial statements and schedule of expenditures of federal awards being audited. In addition, we propose audit adjustments and reclassifications that would not have been identified as a result of the organization’s existing internal controls. As auditors, we are requested to draft the financial statements and accompanying notes to the financial statements and the SEFA.
The Organization does not currently have an internal control system to allow for proper segregation of duties in certain areas of the accounting function.
University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. The Organization reported lost revenue, Option 1, based on quarterly actual amounts. Amounts reported for each quarter were not calculated accurately.
The Organization has no documented internal controls for compliance with monitoring program performance, financial reporting, retention and access to records.
The organization is required to follow laws, regulation and grant agreements including timely audit filing with the Federal Audit Clearinghouse.
The Organization does not have an internal control system designed to provide for the preparation of the full financial statements and schedule of expenditures of federal awards being audited. In addition, we propose audit adjustments and reclassifications that would not have been identified as a result of the organization’s existing internal controls. As auditors, we are requested to draft the financial statements and accompanying notes to the financial statements and the SEFA.
The Organization does not currently have an internal control system to allow for proper segregation of duties in certain areas of the accounting function.
University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. The Organization reported lost revenue, Option 1, based on quarterly actual amounts. Amounts reported for each quarter were not calculated accurately.
The Organization has no documented internal controls for compliance with monitoring program performance, financial reporting, retention and access to records.
The organization is required to follow laws, regulation and grant agreements including timely audit filing with the Federal Audit Clearinghouse.