Audit 50049

FY End
2022-09-30
Total Expended
$1.85M
Findings
4
Programs
18
Year: 2022 Accepted: 2023-03-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
58897 2022-005 Significant Deficiency - B
58898 2022-005 Significant Deficiency - B
635339 2022-005 Significant Deficiency - B
635340 2022-005 Significant Deficiency - B

Contacts

Name Title Type
NBUPML1KFHZ1 Denise Bryan Auditee
9893871836 Cynthia R. Scott Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to financial statements Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the cash activity of the Health Department's federal awards and does not present transactions that would be included in financial statements of the Health Department presented on the accrual basis of accounting, as contemplated by accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: District Health Department No. 2 did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate. Federal revenue presented in the financial statements $1,836,105 Accounts receivable for the year ended September 30, 2021 received more than 60 days after year-end and to be recognized as federal revenue in fiscal year September 30, 2022 financial statements: Empowering Youth Today - Sexual Risk Avoidance Education FY21 (14,040)Michigan Tobacco Control Grant Program E20210069-00 (8,273)Care Coordination: Title V / XIX Clients 2005MI5ADM/MAP (1,080)CSHCS Outreach & Advocacy 2005MI5ADM FY21 (4,401)Medicaid Administration 2205MI5ADM FY21 (1,758)Strong Families Safe Children Coordination CT190000000120 FY21 (82)Local Assistance - Drinking water Revolving Loan Program FS975487-17 FY21 (384)Great Lakes Beach Monitoring and Notification Program CU00E99308 FY21 (4,333) Accounts receivable for the year ended September 30, 2022 received more than 60 days after year-end and to be recognized as federal revenue in fiscal year September 30, 2023 financial statements: Empowering Youth Today - Sexual Risk Avoidance Education FY22 18,957 Medicaid Administration 2205MI5ADM FY22 15 Medicaid Administration 2205MI5ADM FY23 800 Medicaid Services 2305MI5MAP FY22 132 CSHCS Medicaid Administration 2205MI5ADM FY22 11,005 CSHCS Medicaid Administration 2205MI5ADM FY23 4,290 MCH B0445223 FFY22 400 Public Water Supply Supervision FY 2022 FS97548720 1,836 Standard Operator Assistance Grant FY 2022 FS97548720 54 Great Lakes Beach Monitoring Grant FY 2022 CU00E99308 11,439 Federal revenue on the Schedule of Expenditures of Federal Awards $1,850,682
Title: Reconciliation for Accrued (Deferred) Revenue at September 30, 2021 Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the cash activity of the Health Department's federal awards and does not present transactions that would be included in financial statements of the Health Department presented on the accrual basis of accounting, as contemplated by accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: District Health Department No. 2 did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate. Accrued (Deferred) Revenue at September 30, 2021 (per Single Audit Report) $(85,698) Prior year revenues and expenses that were overstated and should not have been included in accounts receivable at September 30, 2021: Local Assistance - Drinking water Revolving Loan Program FS975487-17 FY21 (384)Great Lakes Beach Monitoring and Notification Program CU00E99308 FY21 (1,881) Adjusted Accrued (Deferred) Revenue at September 30, 2021 $(87,963)
Title: Grant Payment Adjustments Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the cash activity of the Health Department's federal awards and does not present transactions that would be included in financial statements of the Health Department presented on the accrual basis of accounting, as contemplated by accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: District Health Department No. 2 did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate. In the current year, various grant payments were reduced in order for the State to recapture previous year's unearned revenue. Thesereductions are shown on the schedule of expenditures of federal awards as adjustments.
Title: Basis of Presentation Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the cash activity of the Health Department's federal awards and does not present transactions that would be included in financial statements of the Health Department presented on the accrual basis of accounting, as contemplated by accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: District Health Department No. 2 did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District Health Department No. 2 under programs of the federal government for the year ended September 30, 2022. The information in this 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District Health Department No.2, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District Health Department No. 2.

Finding Details

Condition and Criteria: ?2 CRF Part 200 Subpart E ? Cost Principals? requires that all indirect costs be applied on a consistent basis, while considering the reasonableness and equitability of such treatments. Effect: Various federal grants were over or under charged for their equitable portion of the indirect costs. Cause: Management believed that because certain grants did not allow for indirect costs to be drawn down off the grant, that they did not need to be part of the total calculation for determining the portion of indirect costs that should be charged to each grant, thus overcharging the grants that allow for indirect costs to be drawn. Context: All grant activity is tracked separately, with administrative and facility costs being tracked in a separate program. Those administrative and facility costs are then allocated to all of the grant programs, based on square footage being used as well as time charged to each program. The time spent on the programs that did not allow for indirect costs to be drawn down, were fully removed from the calculation, charging 100% of the administrative and facility costs to only those grants that allowed for indirect costs to be drawn. Questioned Costs: $1,721.86 for ALN 10.557 and $7,556.69 for ALN 93.323. Auditor's Recommendation: We recommend that management allocates indirect costs to all programs, regardless of whether or not the program allows for the indirect costs to be drawn down off the grant. Views of Responsible Officials and Planned Corrective Actions: The Health Officer and Finance Team understand the issue and have already implemented procedures to ensure that all programs are charged their portion of the indirect costs.
Condition and Criteria: ?2 CRF Part 200 Subpart E ? Cost Principals? requires that all indirect costs be applied on a consistent basis, while considering the reasonableness and equitability of such treatments. Effect: Various federal grants were over or under charged for their equitable portion of the indirect costs. Cause: Management believed that because certain grants did not allow for indirect costs to be drawn down off the grant, that they did not need to be part of the total calculation for determining the portion of indirect costs that should be charged to each grant, thus overcharging the grants that allow for indirect costs to be drawn. Context: All grant activity is tracked separately, with administrative and facility costs being tracked in a separate program. Those administrative and facility costs are then allocated to all of the grant programs, based on square footage being used as well as time charged to each program. The time spent on the programs that did not allow for indirect costs to be drawn down, were fully removed from the calculation, charging 100% of the administrative and facility costs to only those grants that allowed for indirect costs to be drawn. Questioned Costs: $1,721.86 for ALN 10.557 and $7,556.69 for ALN 93.323. Auditor's Recommendation: We recommend that management allocates indirect costs to all programs, regardless of whether or not the program allows for the indirect costs to be drawn down off the grant. Views of Responsible Officials and Planned Corrective Actions: The Health Officer and Finance Team understand the issue and have already implemented procedures to ensure that all programs are charged their portion of the indirect costs.
Condition and Criteria: ?2 CRF Part 200 Subpart E ? Cost Principals? requires that all indirect costs be applied on a consistent basis, while considering the reasonableness and equitability of such treatments. Effect: Various federal grants were over or under charged for their equitable portion of the indirect costs. Cause: Management believed that because certain grants did not allow for indirect costs to be drawn down off the grant, that they did not need to be part of the total calculation for determining the portion of indirect costs that should be charged to each grant, thus overcharging the grants that allow for indirect costs to be drawn. Context: All grant activity is tracked separately, with administrative and facility costs being tracked in a separate program. Those administrative and facility costs are then allocated to all of the grant programs, based on square footage being used as well as time charged to each program. The time spent on the programs that did not allow for indirect costs to be drawn down, were fully removed from the calculation, charging 100% of the administrative and facility costs to only those grants that allowed for indirect costs to be drawn. Questioned Costs: $1,721.86 for ALN 10.557 and $7,556.69 for ALN 93.323. Auditor's Recommendation: We recommend that management allocates indirect costs to all programs, regardless of whether or not the program allows for the indirect costs to be drawn down off the grant. Views of Responsible Officials and Planned Corrective Actions: The Health Officer and Finance Team understand the issue and have already implemented procedures to ensure that all programs are charged their portion of the indirect costs.
Condition and Criteria: ?2 CRF Part 200 Subpart E ? Cost Principals? requires that all indirect costs be applied on a consistent basis, while considering the reasonableness and equitability of such treatments. Effect: Various federal grants were over or under charged for their equitable portion of the indirect costs. Cause: Management believed that because certain grants did not allow for indirect costs to be drawn down off the grant, that they did not need to be part of the total calculation for determining the portion of indirect costs that should be charged to each grant, thus overcharging the grants that allow for indirect costs to be drawn. Context: All grant activity is tracked separately, with administrative and facility costs being tracked in a separate program. Those administrative and facility costs are then allocated to all of the grant programs, based on square footage being used as well as time charged to each program. The time spent on the programs that did not allow for indirect costs to be drawn down, were fully removed from the calculation, charging 100% of the administrative and facility costs to only those grants that allowed for indirect costs to be drawn. Questioned Costs: $1,721.86 for ALN 10.557 and $7,556.69 for ALN 93.323. Auditor's Recommendation: We recommend that management allocates indirect costs to all programs, regardless of whether or not the program allows for the indirect costs to be drawn down off the grant. Views of Responsible Officials and Planned Corrective Actions: The Health Officer and Finance Team understand the issue and have already implemented procedures to ensure that all programs are charged their portion of the indirect costs.