FAC Explorer

Finding 400854 (2023-001)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-06-14
Audit: 308882
Organization: Northern Michigan 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.
  • Recommended Follow-Up: Update all contracts with subrecipients to include the necessary language.

Finding Text

2023-001 – Communications with Subrecipients (repeat comment) Finding Type: Significant Deficiency in internal control over compliance / noncompliance Program: ALN 93.959 – Prevention ALN 93.959 – COVID-19 – Treatment ALN 93.959 – COVID-19 – Prevention II ALN 93.959 – COVID-19 – ARPA 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

Federal Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (Prevention, COVID-19 Prevention II, COVID-19 Treatment, 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: Provider Network Manager Date of anticipated implementation: FY24 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

  • 400855 2023-001
    Significant Deficiency Repeat
  • 400856 2023-001
    Significant Deficiency Repeat
  • 400857 2023-001
    Significant Deficiency Repeat
  • 977296 2023-001
    Significant Deficiency Repeat
  • 977297 2023-001
    Significant Deficiency Repeat
  • 977298 2023-001
    Significant Deficiency Repeat
  • 977299 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $1.71M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $230,625
93.958 Block Grants for Community Mental Health Services $89,588
93.959 Block Grants for Prevention and Treatment of Substance Abuse $83,745