Finding Text
2023-006: Preparing Accurate and Complete Schedule of Expenditures of Federal Awards (SEFA)
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant
Federal Award Identification Number and Year: 1H79SM086680-01, Program Grant Period 09/29/2022-09/29/2023
Pass-through Entity: N/A
Type: Material weakness in internal controls and material noncompliance with laws and regulations
Repeat Finding: No
Criteria: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements, which must include the total federal awards expended as determined with section 200.502.
Condition: The Authority did not identify that they were subject to an audit under the Uniform Guidance (U.G.) and a schedule of expenditures of federal awards (SEFA) was not prepared by management.
Identification of How Likely Questioned Costs Were Computed: N/A
Known Questioned Costs: None
Context: This was the first year of the CCBHC grant which was $568,350 of the total of $1,029,718 federal awards. In reviewing if a single audit was required only the CCBHC grant was consider which was below the $750,000 threshold, however when combined with the entities other federal awards the amount exceed the $750,000 threshold. As a result, management may fail to identify that an audit under the Uniform Guidance is required and that all federal dollars are included.
Cause/Effect: The Authority’s controls were not adequate to ensure that they identify the requirement to have an audit under the Uniform Guidance and the preparation of an accurate and complete SEFA. As a result, management may fail to identify that an audit under the Uniform Guidance is required and that all federal dollars are included.
Recommendation: We recommend the Authority review federal, state, and local grants to determine if they are federally funded and, if federally funded, utilize the account number outlined in the State of Michigan chart of accounts to track federal funding.
View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.