FAC Explorer

Finding 401254 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-19
Audit: 309274
Organization: Upcap Services, Inc. (MI)
Auditor: Maner Costerisan

AI Summary

  • Core Issue: Lack of review for Financial Status Reports (FSRs) increases the risk of errors.
  • Impacted Requirements: Internal controls are not effective as per Title 2 U.S. CFR Part 200.
  • Recommended Follow-Up: Implement a review process for FSRs by a different person and document the review.

Finding Text

Finding 2023-002 Considered a significant deficiency Criteria: Under the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), auditees are required to establish and maintain effective internal controls that provide reasonable assurance that the federal awards are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Financial Status Reports (FSRs) were prepared and submitted by one person without review by another person. Cause: The Organization did not have controls in place requiring FSRs to be reviewed by someone other than the preparer. Effect: Errors or misstatements could occur without timely detection. Questioned Costs: $0 Recommendation: The Organization should implement a process to ensure FSRs are reviewed by someone other than the preparer and the review is documented for future reference. Management's View: The Organization concurs with the facts of this finding and is implementing review procedures.

Corrective Action Plan

UPCAP Services, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2023. Auditor: Maner Costerisan 2425 E. Grand River Ave., Suite 1 Lansing, Michigan 48912 Audit Period: Year ended September 30, 2023 Organization Contact Person: Melissa Sheedlo, Director of Finance The findings from the September 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding - Financial statement audit Finding 2023-001 - Material Weakness Recommendation: The Organization should implement a process to review the Medicaid waiver program and develop estimates to be accrued for potential contractual adjustments or settlements. Action to be Taken: The Organization concurs with the facts of this finding and is implementing review and estimation procedures. Finding – Federal audit Finding 2023-002 - Significant deficiency Recommendation: The Organization should implement a process to ensure FSRs are reviewed by someone other than the preparer and the review is documented for future reference. Action to be Taken: The Organization concurs with the facts of this finding and is implementing review procedures.

Categories

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 401255 2023-002
    Significant Deficiency
  • 401256 2023-002
    Significant Deficiency
  • 401257 2023-002
    Significant Deficiency
  • 401258 2023-002
    Significant Deficiency
  • 401259 2023-002
    Significant Deficiency
  • 401260 2023-002
    Significant Deficiency
  • 977696 2023-002
    Significant Deficiency
  • 977697 2023-002
    Significant Deficiency
  • 977698 2023-002
    Significant Deficiency
  • 977699 2023-002
    Significant Deficiency
  • 977700 2023-002
    Significant Deficiency
  • 977701 2023-002
    Significant Deficiency
  • 977702 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $508,483
93.053 Nutrition Services Incentive Program $483,471
93.052 National Family Caregiver Support, Title Iii, Part E $326,419
17.235 Senior Community Service Employment Program $66,527
93.324 State Health Insurance Assistance Program $55,954
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $47,900
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $41,936
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $28,495
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $19,977
93.268 Immunization Cooperative Agreements $19,043
93.624 Aca - State Innovation Models: Funding for Model Design and Model Testing Assistance $15,344
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $9,212
93.778 Medical Assistance Program $8,456
93.071 Medicare Enrollment Assistance Program $4,550