FAC Explorer

Finding 20271 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-25
Audit: 21044
Organization: Healthwest (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: FICA expenses were overcharged by $14,047 due to incorrect allocation for one employee.
  • Impacted Requirements: Compliance with 2 CFR 200.309, which limits charges to allowable costs during the performance period.
  • Recommended Follow-Up: CMHSP should review and improve its fringe benefit allocation methods for grants.

Finding Text

2022-002: OVERCHARGE OF FICA EXPENSES Type: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion 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 by $14,047. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: 14,047 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.

Corrective Action Plan

Finding 2022-002 ? Considered a significant deficiency in internal control over compliance/immaterial non-compliance Federal Grant ? ALN 93.958 Condition ? During testing it was noted that FICA costs were overcharged by $14,047. Corrective Action ? HealthWest will review its methods for determining allocations of fringe benefits to their grants. Review and, any necessary, updates to daily procedures and processes are occurring. All finance staff and any HealthWest staff assigned to grants will be required to obtain grants specific training annually. Finally, monthly monitoring of all expenses will be reviewed. Contract Person ? Brandy Carlson, Chief Financial Officer Anticipated Completion Date ? June 30, 2023

Categories

Questioned Costs Allowable Costs / Cost Principles Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 596713 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.51M
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $694,826
93.788 Opioid Str $469,987
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $283,765
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $162,024
93.959 Block Grants for Prevention and Treatment of Substance Abuse $102,690
93.434 Every Student Succeeds Act/preschool Development Grants $75,793
93.778 Medical Assistance Program $62,729
14.235 Supportive Housing Program $21,518
93.958 Block Grants for Community Mental Health Services $17,949