EIN: 383474766
UEI: E3J4RM263QF3
Audited by: Melo USA PC
Oversight agency: 93 [Department of Health and Human Services]
View federal awards & risk assessment →
Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 2, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 2, 2025 (458 days ago).
What is a management decision? →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.
Show full finding ▾Hide full finding ▴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.
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.
2022-001
The Organization does not currently have an internal control system to allow for proper segregation of duties in certain areas of the accounting function.
Show full finding ▾Hide full finding ▴The Organization does not currently have an internal control system to allow for proper segregation of duties in certain areas of the accounting function.
It is not cost effective to increase office staff to assure optimal internal control. Management will continue close supervision and review accounting information as a means of preventing and detecting errors and irregularities.
2022-002
University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. The Organization reported lost revenue, Option 1, based on quarterly actual amounts. Amounts reported for each quarter were not calculated accurately.
Show full finding ▾Hide full finding ▴University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. The Organization reported lost revenue, Option 1, based on quarterly actual amounts. Amounts reported for each quarter were not calculated accurately.
The Organization has corrected the reporting on use of funds and has put controls in place to ensure future compliance. The Organization has created a Federal Awards Internal Control document and submitted it to the Health Resources and Services Administration (HRSA) in July of 2023.
2022-003
For the majority of the fiscal year, the Organization has no documented internal controls for compliance with monitoring program performance, financial reporting, retention and access to records.
Show full finding ▾Hide full finding ▴For the majority of the fiscal year, the Organization has no documented internal controls for compliance with monitoring program performance, financial reporting, retention and access to records.
Upon advice and guidance from external auditors, a Federal Awards Internal Controls document was prepared by University Physician Group.
2022-004
The organization is required to follow laws, regulation and grant agreements including timely audit filing with the Federal Audit Clearinghouse.
Show full finding ▾Hide full finding ▴The organization is required to follow laws, regulation and grant agreements including timely audit filing with the Federal Audit Clearinghouse.
A policy will be established to have audits complete on a timely basis, within nine months of fiscal year end.
2022-005
FAC accepted this audit on June 5, 2024 — management decision was due December 5, 2024.
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.
Show full finding ▾Hide full finding ▴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.
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.
2021-001
The Organization does not currently have an internal control system to allow for proper segregation of duties in certain areas of the accounting function.
Show full finding ▾Hide full finding ▴The Organization does not currently have an internal control system to allow for proper segregation of duties in certain areas of the accounting function.
It is not cost effective to increase office staff to assure optimal internal control. Management will continue close supervision and review accounting information as a means of preventing and detecting errors and irregularities.
2021-002
University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. The Organization reported lost revenue, Option 1, based on quarterly actual amounts. Amounts reported for each quarter were not calculated accurately.
Show full finding ▾Hide full finding ▴University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. The Organization reported lost revenue, Option 1, based on quarterly actual amounts. Amounts reported for each quarter were not calculated accurately.
The Organization has corrected the reporting on use of funds and has put controls in place to ensure future compliance. The Organization has created a Federal Awards Internal Control document and submitted it to the Health Resources and Services Administration (HRSA) in July of 2023.
2021-003
The Organization has no documented internal controls for compliance with monitoring program performance, financial reporting, retention and access to records.
Show full finding ▾Hide full finding ▴The Organization has no documented internal controls for compliance with monitoring program performance, financial reporting, retention and access to records.
The Organization does not plan on implementing written internal control policies over compliance with monitoring and reporting program performance, financial reporting, retention and access to records as the Organization has only received federal funding through the Covid-19 Provider Relief Fund which are no longer available. This finding is not relevant at this time.
2021-004
The organization is required to follow laws, regulation and grant agreements including timely audit filing with the Federal Audit Clearinghouse.
Show full finding ▾Hide full finding ▴The organization is required to follow laws, regulation and grant agreements including timely audit filing with the Federal Audit Clearinghouse.
A policy will be established to have audits complete on a timely basis, within nine months of fiscal year end.
FAC accepted this audit on February 9, 2023 — management decision was due August 9, 2023.
Assistance Listing Number, Federal Agency, and Program Name ? 93.498, Health and Human Resources, Covid-19 Provider Relief Funds Federal Award Identification Number and Year ? N/A, 2021 Pass-through Entity ? N/A Finding Type ? Material Weakness/Noncompliance Repeat Finding ? No Criteria ? Reporting of use of funds is required to be reported through the Health Resources and Services Administration reporting portal. Condition ? University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. Questioned Costs ? None Identification of How Questioned Costs Were Computed ? N/A Cause and Effect ? The Organization did not have a procedure in place to ensure that laws, regulations and grant agreements were followed. This caused the entity to file an inaccurate report with Health Resources and Services Administration. Recommendation ? We recommend the Organization implement a process and internal controls to ensure compliance with laws, regulations and grant agreements. Views of Responsible Officials ? Management concurs with the auditor?s findings and has amended and resubmitted the report.
Show full finding ▾Hide full finding ▴Assistance Listing Number, Federal Agency, and Program Name ? 93.498, Health and Human Resources, Covid-19 Provider Relief Funds Federal Award Identification Number and Year ? N/A, 2021 Pass-through Entity ? N/A Finding Type ? Material Weakness/Noncompliance Repeat Finding ? No Criteria ? Reporting of use of funds is required to be reported through the Health Resources and Services Administration reporting portal. Condition ? University Physician Group did not have adequate internal controls over and did not comply with federal requirements for reporting on use of funds. Questioned Costs ? None Identification of How Questioned Costs Were Computed ? N/A Cause and Effect ? The Organization did not have a procedure in place to ensure that laws, regulations and grant agreements were followed. This caused the entity to file an inaccurate report with Health Resources and Services Administration. Recommendation ? We recommend the Organization implement a process and internal controls to ensure compliance with laws, regulations and grant agreements. Views of Responsible Officials ? Management concurs with the auditor?s findings and has amended and resubmitted the report.
Finding Number: 2021-003 Federal Program, CFDA Number and Name: Health and Human Resources, Covid-19 Provider Relief Funds ? CFDA 93.498 Condition: The Organization did not comply with federal requirements for reporting on use of funds. Planned Corrective Action: The Organization has amended the reporting on use of funds and has put controls in place to ensure future compliance. Contact person responsible for corrective action: Jeffery Kohlitz, CFO Anticipated Completion Date: June 15, 2022
Assistance Listing Number, Federal Agency, and Program Name ? 93.498, Health and Human Resources, Covid-19 Provider Relief Funds Federal Award Identification Number and Year ? N/A, 2021 Pass-through Entity ? N/A Finding Type ? Material Weakness Repeat Finding ? No Criteria ? The Organization must establish and maintain effective internal control over federal awards that provide reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition ? The Organization has no documented internal controls for compliance with monitoring and reporting program performance, financial reporting, retention and access to records. Questioned Costs ? None Identification of How Questioned Costs Were Computed ? N/A Cause and Effect ? The Organization does not have a written policy related to monitoring and reporting program performance, financial reporting, retention and access to records. Inadequate controls over this area of compliance result in an environment where it is reasonably possible that the Organization would not have the required documentation in place and would not be able to detect and correct noncompliance in a timely manner. Recommendation ? We recommend the Organization implement written internal control policies over compliance with monitoring and reporting program performance, financial reporting, retention and access to records. Views of Responsible Officials ? Management agrees with the finding and, due to the urgency of the program, this was never adopted. The Organization has only, and expects to only, received federal funding through the Covid-19 Provider Relief Fund, which are no longer available, therefore, this finding is not relevant at this time.
Show full finding ▾Hide full finding ▴Assistance Listing Number, Federal Agency, and Program Name ? 93.498, Health and Human Resources, Covid-19 Provider Relief Funds Federal Award Identification Number and Year ? N/A, 2021 Pass-through Entity ? N/A Finding Type ? Material Weakness Repeat Finding ? No Criteria ? The Organization must establish and maintain effective internal control over federal awards that provide reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition ? The Organization has no documented internal controls for compliance with monitoring and reporting program performance, financial reporting, retention and access to records. Questioned Costs ? None Identification of How Questioned Costs Were Computed ? N/A Cause and Effect ? The Organization does not have a written policy related to monitoring and reporting program performance, financial reporting, retention and access to records. Inadequate controls over this area of compliance result in an environment where it is reasonably possible that the Organization would not have the required documentation in place and would not be able to detect and correct noncompliance in a timely manner. Recommendation ? We recommend the Organization implement written internal control policies over compliance with monitoring and reporting program performance, financial reporting, retention and access to records. Views of Responsible Officials ? Management agrees with the finding and, due to the urgency of the program, this was never adopted. The Organization has only, and expects to only, received federal funding through the Covid-19 Provider Relief Fund, which are no longer available, therefore, this finding is not relevant at this time.
Finding Number: 2021-004 Federal Program, CFDA Number and Name: Health and Human Resources, Covid-19 Provider Relief Funds ? CFDA 93.498 Condition: The Organization has no documented internal controls for compliance with monitoring and reporting program performance, financial reporting, retention and access to records. Planned Corrective Action: The Organization does not plan on implementing written internal control policies over compliance with monitoring and reporting program performance, financial reporting, retention and access to records as the Organization has only received federal funding through the Covid-19 Provider Relief Fund which are no longer available. This finding is not relevant at this time. Contact person responsible for corrective action: Jeffery Kohlitz, CFO Anticipated Completion Date: N/A
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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