FAC Explorer

Audit 399290

FY End
2025-09-30
Total Expended
$1.40M
Findings
1
Programs
1
Organization: Health Emergency Medical Services, Inc. (MI)
Year: 2025 Accepted: 2026-04-21
Auditor: COLE NEWTON & DURAN

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208270 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $12,000 Yes 0

Contacts

Name Title Type
UGNXVD9RYQM5 Robert E. Miljan, Jr. Auditee
7347277280 Gretchen Stuart Auditor
No contacts on file

Notes to SEFA

Federal revenues are recorded as grant revenues on the statement of activities and reconcile to the schedule of expenditures of federal awards as detailed below. Grant revenue per financial statements $ 1,535,824 Less: deferred federal grant revenues (59,293) Less: nonfederal grant revenues (80,981) Federal expenditures per schedule of expenditures of federal awards $ 1,395,550
The board members of Health Emergency Medical Services, Inc. are in management positions at various other healthcare organizations who receive reimbursement for pharmaceuticals, biohazard equipment, emergency communications equipment, and education and training. Of the amounts listed on the schedule of expenditures of federal awards there were $465,049 in expenses to related party individuals or organizations.
No amounts were provided to subrecipients.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Health Emergency Medical Services, Inc. (the Organization) under programs of the federal government for the year ended September 30, 2025. The information in the Schedule 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Finding Details

Finding 2025-001
Finding Type - Material Weakness Criteria - The Organization should have controls in place to ensure all year-end balances are reviewed and related adjusting journal entries have been recorded in the accounting system accordingly. Condition - Several accounts were not carefully reviewed such that multiple audit journal entries were required to be made to correct accidental miscoding of dates for transactions, not stopping recurring journal entries on a timely basis, and not adjusting year-end accrual balances. Context - There was no formal process in place for reviewing the balance sheets of the individual divisions either individual or on a consolidated basis. Cause - The Organization did not record adjustments needed to reflect the correct ending balances for several accounts. Effect - As of September 30, 2025, total assets were overstated, total liabilities were understated, total support and revenue were overstated, and total expenses were overstated. Recommendation - We recommend that management implement procedures to review the preliminary year-end financial statements in depth on both a division basis and consolidated basis. Corrective Action Plan - Management agrees with this finding. Management did not, as required, conduct a comprehensive review of the internal financial statements on both a monthly basis and at year-end on a combined basis resulting in inaccurate statements requiring auditor corrections. In the future, management will appropriately review the balance sheet and income statements monthly and on a combined basis at the end of the fiscal year to insure accurate account postings resulting is accurate financial report balances.