FAC Explorer

Audit 309232

FY End
2023-09-30
Total Expended
$7.21M
Findings
6
Programs
10
Organization: Healthwest (MI)
Year: 2023 Accepted: 2024-06-19
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401239 2023-001 Significant Deficiency Yes B
401240 2023-001 Significant Deficiency Yes B
401241 2023-002 Significant Deficiency - B
977681 2023-001 Significant Deficiency Yes B
977682 2023-001 Significant Deficiency Yes B
977683 2023-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $892,495 - 0
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $809,843 - 0
93.788 Opioid Str $717,462 - 0
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $138,678 - 0
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $126,130 - 0
93.778 Medical Assistance Program $87,387 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $79,140 Yes 0
93.575 Child Care and Development Block Grant $77,604 - 0
14.235 Supportive Housing Program $30,834 - 0
93.958 Block Grants for Community Mental Health Services $20,706 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The CMHSP has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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, 2023. 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: PASS-THROUGH AGENCIES 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The CMHSP has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The CMHSP receives certain federal grants as subawards from non-federal entities. These pass-through entities have been identified on the schedule with the following abbreviations: Pass-through Agency Abbreviation Michigan Department of Health and Human Services MDHHS Lakeshore Regional Entity LRE
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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The CMHSP has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Federal expenditures are reported as revenues in the financial statements of the CMHSP: Description Amount Federal awards subject to single audit as seen on SEFA 7,205,393 Federal revenues not subject to single audit/adjustments 466 Total “Federal funding” per financial statements 7,205,859

Finding Details

Finding 2023-001
2023-001: OVERCHARGE OF FICA EXPENSES (repeat comment) Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block 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 for ALN 93.958 by $6,663 and for ALN 93.959 by $458. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: Immaterial 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 2023-001
2023-001: OVERCHARGE OF FICA EXPENSES (repeat comment) Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block 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 for ALN 93.958 by $6,663 and for ALN 93.959 by $458. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: Immaterial 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 2023-002
2023-002 OVERCHARGE OF INDIRECT COSTS Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block 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 indirect costs were overcharged for ALN 93.959 by an immaterial amount. Cause/Effect: This condition was the result of requesting indirect costs based on 1/12th of the budgeted indirect costs each month instead of requesting a percentage of direct costs each month. Questioned Cost: Immaterial Recommendation: We recommend that the CMHSP review its methods for applying indirect costs to grants. Management’s Resp: Management is in agreement with this recommendation.
Finding 2023-001
2023-001: OVERCHARGE OF FICA EXPENSES (repeat comment) Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block 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 for ALN 93.958 by $6,663 and for ALN 93.959 by $458. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: Immaterial 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 2023-001
2023-001: OVERCHARGE OF FICA EXPENSES (repeat comment) Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block 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 for ALN 93.958 by $6,663 and for ALN 93.959 by $458. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: Immaterial 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 2023-002
2023-002 OVERCHARGE OF INDIRECT COSTS Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block 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 indirect costs were overcharged for ALN 93.959 by an immaterial amount. Cause/Effect: This condition was the result of requesting indirect costs based on 1/12th of the budgeted indirect costs each month instead of requesting a percentage of direct costs each month. Questioned Cost: Immaterial Recommendation: We recommend that the CMHSP review its methods for applying indirect costs to grants. Management’s Resp: Management is in agreement with this recommendation.