FAC Explorer

Audit 354928

FY End
2024-09-30
Total Expended
$1.24M
Findings
4
Programs
3
Organization: Sanilac County Community Mental Health Authority (MI)
Year: 2024 Accepted: 2025-04-29
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
558069 2024-001 Significant Deficiency Yes I
558070 2024-002 Significant Deficiency - A
1134511 2024-001 Significant Deficiency Yes I
1134512 2024-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.00M Yes 2
93.778 Medical Assistance Program $26,869 - 0
93.958 Block Grants for Community Mental Health Services $7,500 - 0

Contacts

Name Title Type
YNCLX9JGXYH8 Tony Shaver Auditee
8105830312 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 full 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 Sanilac County Community Mental Health Authority (the CMHSP) under programs of the federal government for the year ended September 30, 2024. 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 full 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 following is a reconciliation of federal expenditures reported on the SEFA with the federal revenues reported in the financial statements: Description Amount Federal awards subject to single audit as seen on SEFA 1,244,536 Revenues not subject to single audit 208,956 Total Federal funding per financial statements 1,453,492

Finding Details

Finding 2024-001
2024-001: PROCUREMENT (repeat comment) Type: Considered a significant deficiency in internal control over compliance/noncompliance Program: ALN 93.969 Certified Community Behavioral Health Clinics Expansion (CCBHC) Grants Criteria: Per 2 CFR section 200.214 and section 180.300; 48 CFR section 52.209-6, when entering into a covered transaction, a nonfederal entity must verify that the person with whom they intend to do business is not suspended, debarred, or otherwise excluded or disqualified. Condition: The CMHSP did not perform a review of sam.gov to ensure that the vendor was not suspended or debarred prior to entering into an agreement with them. A subsequent review of sam.gov was conducted showing that the vendor was not suspended or debarred. Cause/Effect: Management oversight. Questioned Cost: None Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that verification of suspension, debarment or exclusion is conducted prior to entering into a contract. Management’s Resp: Management is in agreement with this recommendation.
Finding 2024-002
2024-002: ACTIVITIES ALLOWED/ALLOWABLE COSTS – INDIRECT COSTS Type: Considered a significant deficiency in internal control over compliance/noncompliance Program: ALN 93.969 Certified Community Behavioral Health Clinics Expansion (CCBHC) Grants Criteria: Per 2 CFR requirements, and the grant budget, modified total direct costs must exclude the portion of each subaward or contract in excess of $25,000. Condition: The CMHSP included all contract costs, including amounts over $25,000, in the modified total direct costs. Cause/Effect: Management oversight. Questioned Cost: $14,765 Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that amounts used to calculate indirect costs charged to the grant properly exclude contract amounts over the allowed limit. Management’s Resp: Management is in agreement with this recommendation.
Finding 2024-001
2024-001: PROCUREMENT (repeat comment) Type: Considered a significant deficiency in internal control over compliance/noncompliance Program: ALN 93.969 Certified Community Behavioral Health Clinics Expansion (CCBHC) Grants Criteria: Per 2 CFR section 200.214 and section 180.300; 48 CFR section 52.209-6, when entering into a covered transaction, a nonfederal entity must verify that the person with whom they intend to do business is not suspended, debarred, or otherwise excluded or disqualified. Condition: The CMHSP did not perform a review of sam.gov to ensure that the vendor was not suspended or debarred prior to entering into an agreement with them. A subsequent review of sam.gov was conducted showing that the vendor was not suspended or debarred. Cause/Effect: Management oversight. Questioned Cost: None Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that verification of suspension, debarment or exclusion is conducted prior to entering into a contract. Management’s Resp: Management is in agreement with this recommendation.
Finding 2024-002
2024-002: ACTIVITIES ALLOWED/ALLOWABLE COSTS – INDIRECT COSTS Type: Considered a significant deficiency in internal control over compliance/noncompliance Program: ALN 93.969 Certified Community Behavioral Health Clinics Expansion (CCBHC) Grants Criteria: Per 2 CFR requirements, and the grant budget, modified total direct costs must exclude the portion of each subaward or contract in excess of $25,000. Condition: The CMHSP included all contract costs, including amounts over $25,000, in the modified total direct costs. Cause/Effect: Management oversight. Questioned Cost: $14,765 Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that amounts used to calculate indirect costs charged to the grant properly exclude contract amounts over the allowed limit. Management’s Resp: Management is in agreement with this recommendation.