American Indian Health and Family Services of Southeastern Michigan, Inc.Non-Profit

SECTION III FEDERAL AWARD AUDIT FINDINGS 2020-001 Finding Type Significant Deficiency Federal Program Urban Indian Health Services, CFDA #93.193 Criteria Pursuant to 2 CFR ?200.305(b), ?payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity.? Condition During our testing, we noted that two disbursements within our sample of forty disbursements were not paid for with entity funds within three business days after Federal funds were drawn down for the expense. Cause We identified that the Organization?s cash management policy was not being followed for the last month of the Contract grant period. The Organization?s management was under the impression that the grant expenses were required to be fully drawn upon by the end of the grant period, even if these expenses had not been paid yet. Effect The Organization did not comply with the requirements of 2 CFR ?200.305(b) for these instances. The U.S. Department of Health and Human Services could request repayment of the funds drawn down prior to being paid. However, the chances of this occurring are remote due to the overall immateriality of the transactions. Known Questioned Costs $4,788 Identification of a Repeat Finding This is not a repeat finding from the prior year?s audit. Recommendation We recommend procedures be established to ensure that costs are paid within three business days after Federal funds are drawn down for the expense. Response AIHFS will not request a drawdown of Federal funds for costs charged to the grant program without first ensuring that these costs were either paid or will be paid from AIHFS?s bank account within three business days after the drawdown. Check registers from QuickBooks will be utilized for calculating paid grant expenses.

FEDERAL AWARD AUDIT FINDINGS 2019-002 Finding Type Significant Deficiency. Federal Program Urban Indian Health Services, CFDA #93.193 Substance Abuse and Mental Health Services, CFDA #93.243 Criteria The allocation of employee?s salaries and wages between programs must be supported by signed personnel activity reports that indicates the actual time the employee spent on each program. Condition During our testing, we noted two instances where monthly personnel activity reports were prepared but did not correctly reflect the actual time the employee allocated their time between programs. Cause Monthly personnel activity reports were prepared by each employee to indicate how much time they spent on each grant. Although the reports include the allocation for each day during the month, the allocation is often the same for each day during the month. During our testing, we noted two instances where employees changed the allocation of time spent on each program during the month. This change in allocation of time was not properly reflected on the personnel activity reports. Effect Personnel activity reports do not accurately reflect the actual time spent on each program. Identification of a Repeat Finding This is not a repeat finding from the prior year?s audit. Recommendation We recommend procedures be put in place to ensure accurate personnel activity reports are completed for each pay period. Response The Organization implemented a new procedure in April 2019 where employees are required to complete personnel activity reports for each pay period to ensure that the personnel activity reports reflect the correct allocation of their time to each program.

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