FAC Explorer

Audit 8866

FY End
2022-09-30
Total Expended
$8.60M
Findings
8
Programs
4
Organization: Lakeshore Regional Entity (MI)
Year: 2022 Accepted: 2023-12-29
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6889 2022-001 Significant Deficiency - M
6890 2022-001 Significant Deficiency - M
6891 2022-002 Significant Deficiency - B
6892 2022-001 Significant Deficiency - M
583331 2022-001 Significant Deficiency - M
583332 2022-001 Significant Deficiency - M
583333 2022-002 Significant Deficiency - B
583334 2022-001 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $2.66M Yes 1
93.788 Opioid Str $1.49M Yes 0
93.958 Block Grants for Community Mental Health Services $315,000 - 0
93.276 Drug-Free Communities Support Program Grants $153,580 - 0

Contacts

Name Title Type
N82QCBGJ3ND7 Stacia Chick Auditee
2317470904 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. The Entity has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Lakeshore Regional Entity (the Entity) 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 (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 Entity, it is not intended to and does not present its financial position or changes in net position of the Entity
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. The Entity has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A Federal expenditures are reported as revenues in the following funds in the financial statements of the Entity: Description Amount Total “State and federal grants” per financial statement audit 9,756,961 State revenues and remaining federal revenues not subject to single audit (1,157,332) Federal revenues subject to single audit 8,599,629

Finding Details

Finding 2022-001
2022-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – SAPT COVID Supplement ALN 93.959 – Prevention, Women’s Specialty Services, Administration ALN 93.959 – Treatment/AMS Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the Entity update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.
Finding 2022-001
2022-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – SAPT COVID Supplement ALN 93.959 – Prevention, Women’s Specialty Services, Administration ALN 93.959 – Treatment/AMS Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the Entity update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.
Finding 2022-002
2022-002 – Activities Allowed/Allowable Costs Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – Prevention, Women’s Specialty Services, Administration Criteria: As required by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: For the timecard tested, all paid time off was charged to the grant. However, based on the percentage allocations in the timecard, only a portion should have been charged to the grant. Cause/Effect: Management oversight. Unallowable costs were charged to the grant. Questioned Cost: None. Recommendation: We recommend that the Entity review the internal controls over approval of payroll costs and modify them, if necessary, to assure that only allowable costs are charged to grants. View of Responsible Official: Management is in agreement with this recommendation.
Finding 2022-001
2022-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – SAPT COVID Supplement ALN 93.959 – Prevention, Women’s Specialty Services, Administration ALN 93.959 – Treatment/AMS Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the Entity update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.
Finding 2022-001
2022-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – SAPT COVID Supplement ALN 93.959 – Prevention, Women’s Specialty Services, Administration ALN 93.959 – Treatment/AMS Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the Entity update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.
Finding 2022-001
2022-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – SAPT COVID Supplement ALN 93.959 – Prevention, Women’s Specialty Services, Administration ALN 93.959 – Treatment/AMS Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the Entity update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.
Finding 2022-002
2022-002 – Activities Allowed/Allowable Costs Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – Prevention, Women’s Specialty Services, Administration Criteria: As required by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: For the timecard tested, all paid time off was charged to the grant. However, based on the percentage allocations in the timecard, only a portion should have been charged to the grant. Cause/Effect: Management oversight. Unallowable costs were charged to the grant. Questioned Cost: None. Recommendation: We recommend that the Entity review the internal controls over approval of payroll costs and modify them, if necessary, to assure that only allowable costs are charged to grants. View of Responsible Official: Management is in agreement with this recommendation.
Finding 2022-001
2022-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – SAPT COVID Supplement ALN 93.959 – Prevention, Women’s Specialty Services, Administration ALN 93.959 – Treatment/AMS Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the Entity update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.