FAC Explorer

Finding 560094 (2024-001)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-05-12
Audit: 356063
Organization: Lenawee Community Mental Health Authority (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 subrecipient contracts to include the necessary language.

Finding Text

2024-001 – Communication with Subrecipients Finding Type: Significant Deficiency in internal control over compliance / noncompliance Program: ALN 93.958 – Inter-Connections Drop-In Integrated Health 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. Contract selected for testing was not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the CMHSP update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.

Corrective Action Plan

Corrective Action Plan Single Audit FY24 May 5, 2025 In regards to finding # 2024-001, contracts with subrecipients did not include portions of required disclosures; the Chief Financial Officer will work directly with Chief Operating Officer and Contracts Department to identify any subrecipients during the budget process and throughout the fiscal year. Contracts department will then issue a contract in compliance with 2 CFR 200.332. The Chief Operating Officer will oversee and monitor compliance with 2 CFR 200.332 prior to the close of the next fiscal year (September 30, 2025). They will then be responsible for reviewing and issuing appropriate contracts to subrecipients going forward. Taylor J. Good Chief Financial Officer

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 1136536 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $101,395
93.958 Block Grants for Community Mental Health Services $38,356
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $16,546
93.788 Opioid Str $11,013
93.959 Block Grants for Prevention and Treatment of Substance Abuse $5,723