FAC Explorer

Finding 29015 (2022-001)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-06-20
Audit: 29226
Organization: Northern Michigan Regional Entity (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding compliance with contract requirements for subrecipients.
  • Impacted Requirements: Contracts did not include necessary disclosures as mandated by 2 CFR 200.332.
  • Recommended Follow-up: Update all contracts with subrecipients to include the required disclosures; management agrees with this action.

Finding Text

2022-001: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (Prevention, COVID-19 Prevention II, and COVID-19 ARPA Prevention) Criteria: As detailed by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: During testing of contracts with subrecipients it was noted that these contracts did not include portions of required disclosures. Cause/Effect: This condition appears to be the result of inconsistent application of internal controls over compliance. Contracts with subrecipients 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.

Corrective Action Plan

June 14, 2023 Roslund, Prestage & Company, P.C. 525 West Warwick Drive Suite Alma, MI 48801 Finding: 2022-001 Federal Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (Prevention, COVID-19 Prevention II, and COVID-19 ARPA Prevention) Condition: During testing of contracts with subrecipients it was noted that these contracts did not include portions of required disclosures. Corrective Action Plan: The NMRE will include the information in contracts with subrecipients that are required in 2 CFR 200.332. Responsible Party: Chris VanWagoner, Provider Network Manager Date of anticipated implementation: FY23 going forward Thank you Regards, Deanna Yockey, CFO Northern Michigan Regional Entity 1999 Walden Drive Gaylord, MI 49770 231-383-6438

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 29016 2022-001
    Significant Deficiency
  • 29017 2022-001
    Significant Deficiency
  • 605457 2022-001
    Significant Deficiency
  • 605458 2022-001
    Significant Deficiency
  • 605459 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $1.32M
93.958 Block Grants for Community Mental Health Services $99,798
93.959 Block Grants for Prevention and Treatment of Substance Abuse $96,053
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $17,087