FAC Explorer

Finding 401239 (2023-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-06-19
Audit: 309232
Organization: Healthwest (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: FICA expenses were overcharged by $6,663 for ALN 93.958 and $458 for ALN 93.959 due to incorrect allocation.
  • Impacted Requirements: Compliance with 2 CFR 200.309 regarding allowable costs for federal awards was not met.
  • Recommended Follow-Up: CMHSP should review and improve its methods for allocating fringe benefits to ensure accurate charges to grants.

Finding Text

2023-001: OVERCHARGE OF FICA EXPENSES (repeat comment) Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block 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 for ALN 93.958 by $6,663 and for ALN 93.959 by $458. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: Immaterial 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 2023-001: Overcharge of FICA Expenses Federal Grant – ALN 93.958 and ALN 93.959 Condition – During testing it was noted that FICA costs were overcharged for ALN 93.958 by $6,663 and for ALN 93.959 by $458. Corrective Action – HealthWest is implementing Attendance on Demand (AOD). AOD is a timekeeping system that will allow staff to account for times worked under grant funding. HealthWest will update the grants policies and procedures accordingly and will review expenses monthly for accuracy and compliance. HealthWest will also create a Timekeeping policy and procedure for AOD. All HealthWest staff will be required to review the policy annually. Contract Person – Brandy Carlson, Chief Financial Officer Anticipated Completion Date – October 1, 2024

Categories

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

Other Findings in this Audit

  • 401240 2023-001
    Significant Deficiency Repeat
  • 401241 2023-002
    Significant Deficiency
  • 977681 2023-001
    Significant Deficiency Repeat
  • 977682 2023-001
    Significant Deficiency Repeat
  • 977683 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $892,495
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $809,843
93.788 Opioid Str $717,462
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $138,678
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $126,130
93.778 Medical Assistance Program $87,387
93.959 Block Grants for Prevention and Treatment of Substance Abuse $79,140
93.575 Child Care and Development Block Grant $77,604
14.235 Supportive Housing Program $30,834
93.958 Block Grants for Community Mental Health Services $20,706