FAC Explorer

Finding 512638 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-12-02
Audit: 330446
Organization: University Physician Group (MI)
Auditor: Melo USA PC

AI Summary

  • Core Issue: The organization lacks an effective internal control system for preparing accurate financial statements and federal award schedules.
  • Impacted Requirements: Existing controls failed to identify necessary audit adjustments and reclassifications.
  • Recommended Follow-Up: Implement a robust internal control system to ensure accurate financial reporting and compliance.

Finding Text

The Organization does not have an internal control system designed to provide for the preparation of the full financial statements and schedule of expenditures of federal awards being audited. In addition, we propose audit adjustments and reclassifications that would not have been identified as a result of the organization’s existing internal controls. As auditors, we are requested to draft the financial statements and accompanying notes to the financial statements and the SEFA.

Corrective Action Plan

It is not cost effective to have an internal control system designed to provide for the preparation of the financial statements and accompanying notes. We have an individual designated to review the auditor prepared financial statements, schedule of expenditures, notes and adjustments.

Categories

Questioned Costs Reporting

Other Findings in this Audit

  • 512639 2023-002
    Significant Deficiency Repeat
  • 512640 2023-003
    Material Weakness Repeat
  • 512641 2023-004
    Material Weakness Repeat
  • 512642 2023-005
    Material Weakness Repeat
  • 1089080 2023-001
    Material Weakness Repeat
  • 1089081 2023-002
    Significant Deficiency Repeat
  • 1089082 2023-003
    Material Weakness Repeat
  • 1089083 2023-004
    Material Weakness Repeat
  • 1089084 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $1.29M