FAC Explorer

Finding 398990 (2023-001)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-05-30
Audit: 307591
Organization: Lakeshore Regional Entity (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: Contracts with subrecipients lack required disclosures as per 2 CFR 200.332.
  • Impacted Requirements: Internal controls over compliance are inadequate, leading to noncompliance with federal regulations.
  • Recommended Follow-Up: Update all subrecipient contracts to include the necessary disclosures.

Finding Text

2023-001 – Communications with Subrecipients (repeat comment) Finding Type: Significant Deficiency in internal control over compliance / noncompliance Program: ALN 93.959 – COVID-19 - ARPA Prevention ALN 93.959 – SAPT Block Grant - Prevention ALN 93.959 – COVID-19 - Prevention 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 PIHP update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.

Corrective Action Plan

2023-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance / noncompliance Program: ALN 93.959 – COVID-19 – ARPA Prevention ALN 93.959 – SAPT Block Grant - Prevention ALN 93.959 – COVID-19 - Prevention 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 PIHP update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation. Planned corrective action: FY2024 contracts with subrecipients have been updated with all the required language. Responsible party: Chief Financial Officer Anticipated completion date: September 30, 2024

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 398991 2023-001
    Significant Deficiency Repeat
  • 398992 2023-001
    Significant Deficiency Repeat
  • 975432 2023-001
    Significant Deficiency Repeat
  • 975433 2023-001
    Significant Deficiency Repeat
  • 975434 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $2.29M
93.276 Drug-Free Communities Support Program Grants $127,877
93.958 Block Grants for Community Mental Health Services $68,000
93.959 Block Grants for Prevention and Treatment of Substance Abuse $67,130