Wellness Networks, Inc. DBA Unified HIV Health and BeyondNon-Profit

CFDA Number, Federal Agency, and Program Name: CFDA# 93.914? Department of Health and Human Services, HIV Emergency Relief Project Grants CFDA# 93.917 ? Department of Health and Human Services, HIV Care Formula Grants Federal Award Identification Number and Year: 03/01/2019 - 02/28/2020 - RW/MAI 1 03/01/2020 - 02/28/2021 - RW/MAI 2 10/01/2019 - 09/30/2020 - E20201261-00 10/01/2019 - 09/30/2020 - E20203299-00 10/01/2019 - 09/30/2020 - E20201260-00 Pass-through Entity ? Passed through Southeastern Michigan Health Associates Finding Type ? Significant Deficiency Repeat Finding ? No Criteria ? Per 2 CFR ? 200.430, costs of compensation are allowable to the extent that they satisfy the specific requirements, and that the total compensation for individual employees is determined and supported. In addition, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition ? Control deficiencies were identified in the allowable cost/cost principles compliance (payroll transactions) process. Out of 60 transactions tested, there was one instance where the payroll register rate did not match the employee's approved compensation. Identification of How Questioned Costs Were Computed ? n/a Questioned Costs ? none Context ? The Organization did not pay the correct pay rate to one employee that charged time under the grant. Cause ? The error was caused by lack of strong internal controls within the accounting department. Effect ? Change in pay rate for one employee was not reported correctly; therefore, payroll was not calculated properly. Recommendation ? The Organization should design their internal controls over the payroll process to ensure all transactions are properly reviewed and approved. View of Responsible Officials and Corrective Action Plan ? Management agrees with the finding and although the amount was immaterial and there are mitigating controls that would have caught a mistake of a material amount. Currently, we use a paper process to make wage changes for employees. This paper flows from the HR department and Payroll department to make the appropriate changes. We are expanding our access and capabilities in ADP to create a process that is automated and interconnected to detect errors in the future. The HR module in ADP is currently being explored to assist in automating this process. The HR department will be responsible for updating salary amounts in the system after approval and it will be reviewed by the Payroll department. If the HR module is not going to be used, the HR department will review any changes or new employee compensation on a quarterly basis and sign the report. These records will be maintained for verification purposes.

Finding Type ? Material WeaknessRepeat Finding - NoCriteria ? The Organization should have appropriate procedures in place over review and reconciling the general ledger accounts to ensure timely and accurate financial statements.Condition ? The Organization?s internal controls did not detect all adjustments necessary to properly record fifteen month period end balances and close the books in a timely manner. Multiple adjustments were recorded by the Organization after the start of fieldwork in order to reach proper fifteen month period end balances and close the books. As a result of this condition, the Organization?s accounting records were misstated by amounts material to the financial statements. UHY recommends that the Organization develop, document, and follow procedures for monthly, quarterly and annual closing of the accounting records.Context ? During our audit, we noted that the three invoices were recorded twice in accounts payable and the invoice was not properly accrued. In additional, during our audit, the Organization re-performed reconciliation of grant receivable and revenue and noted the final FSRs of the three grants were not recorded in the general ledger accounts.Cause ? The Organization did not have processes in place of reconciliation and review of account balances of grant reconcilable/grant revenue and accounts payable.Effect ? As a result of the lack of appropriate procedures of reconciliation and review, grant receivable/grant revenue and accounts payable were misstated. Adjustments were made to these general ledger accounts.Recommendation ? The Organization should implement procedures for reconciling and reviewing general ledger account balances, including analytical analysis and adjustment as needed to aid in ensuring general ledgers are complete and accurate.

CFDA Number, Federal Agency, and Program Name:CFDA# 93.940 ? Department of Health and Human Services, HIV Prevention Activities Health Department BasedFederal Award Identification Number and Year:10/01/2017 - 09/30/2018 - E20180029-0010/01/2018 - 09/30/2019 - E20190035-0010/01/2017 - 09/30/2018 - E20180099-00310/01/2018 - 09/30/2019 - E20192685-0010/01/2017 - 09/30/2018 - E20180100-00110/01/2017 - 09/30/2018 - E20180027-0010/01/2018 - 09/30/2019 - E20190077-00Pass-through Entity ? Passed through Michigan Department ofHealth and Human ServicesFinding Type ? Material WeaknessRepeat Finding ? Repeat findingCriteria ? In accordance with 2 CFR 200.318, the non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. Finally, the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.Condition ? During our testing over Procurement, Suspension, and Debarment compliance requirement, we noted that the Organization did not maintain records of the history of procurement process.Identification of How Questioned Costs Were Computed ? n/aQuestioned Costs ? noneContext ? The Organization procured with a contractor to perform professional services for period July 1, 2018 through September 30, 2019. The Organization did not maintain records sufficient to detail the history of procurement.Cause/Effect ? The Organization did not maintain records sufficient to detail the history of procurement as required by 2 CFR 200.318. As a result, required information was omitted.Recommendation ? We recommend the Organization should identify areas where internal controls should be implemented to include monitoring of compliance with procurement standards and documents are maintain in accordance with document retention polices.

CFDA Number, Federal Agency, and Program Name:CFDA# 93.917 ? Department of Health and Human Services, HIV Care Formula GrantsFederal Award Identification Number and Year:10/01/2017 - 09/30/2018 - RWA-B110/01/2018 - 02/28/2019 - RWA-B210/01/2017 - 09/30/2018 - E20180096-0010/01/2018 - 09/30/2019 - E20190070-0010/01/2017 - 09/30/2018 - E20180024-00210/01/2018 - 09/30/2019 - E20190507-0010/01/2017 - 09/30/2018 - E20180084-00110/01/2018 - 09/30/2019 - E20190067-00Pass-through Entity ? Passed through Michigan Department of Health and Human Services and Southeastern Michigan Health AssociatesFinding Type ? Material WeaknessRepeat Finding ? NoCriteria ? In accordance with 2 CFR 200 Compliance Supplement for CFDA# 93.917 to be eligible to receive assistance in the form of therapeutics, an individual must have a medical diagnosis of HIV/AIDS and be (a) a low-income individual (as defined by the State), (b) a resident of the State, and (c) uninsured underinsured (42 USC 300ff-26(b)).Condition ? During our test work over the eligibility compliance requirement, we selected 60 beneficiaries who received program services the for the fifteen month period ended September 30, 2019 and noted the following. The Organization was unbale to provide the participant's file for one of the beneficiaries.Identification of How Questioned Costs Were Computed ? n/aQuestioned Costs ? noneContext ? The objective of the program is to enable States and Territories to improve the quality, availability, and organization of a comprehensive continuum of HIV/AIDS health care, treatment, and support services for eligible individuals living with Human Immunodeficiency Virus (HIV) disease. The Organization administers and provides such services under the grant; however, it was not able to provide sufficient and appropriate documentation on eligibility determination.Cause/Effect ? Documentation was not provided for one beneficiary; therefore, the Organization was unable to sustain its compliance with Eligibility compliance requirements.Recommendation ? We recommend that the Organization has a process in place to maintain records that accurately determine the eligibility of participants.

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