NORTHERN MICHIGAN HEALTH CONSORTIUM

Finding 2023-003 Material Noncompliance Late Submission of Audit Package Criteria: 2 CFR Section 200.512 requires the audit, data collection form, and the reporting package be submitted within thirty calendar days after the auditee received the auditor's report or nine months after end of the audit period (whichever is earlier). Condition: The Consortium did not file the audit, the data collection form and the reporting package within the required timeframe. Cause: Near the end of the fiscal year, there was a change in the allocation of a grant's funds between federal and state funding, that was not communicated to the Consortium timely. The change in allocation resulted in federal expenditures exceeding the single audit threshold. However, the Consortium was unaware of this change in allocation and therefore was unaware of the single audit requirement. Effect: As a result of this condition, a single audit was not obtained timely, and the audit, data collection form, and the reporting package were not filed by the due date. Recommendation: Implement and adhere to procedures whereby state and federal funding allocations are known and tracked, to allow for timely completion of an audit for submission by the deadline when required. Management's Response: It is the responsibility of the Finance Supervisor to ensure all contracts entered into includes language indicating if the funding is federal or state. If it is federal funding, the contract must include the federal assistance listing number, which will be reported on the year-end schedule of federal awards. A single audit will be performed if the federal expenditures reach the maximum allowable per auditing standards. If a single audit is required, it will be completed and submitted to the appropriate grantors within nine months of the end of the fiscal year. Person Responsible: Amy Decker, Finance Supervisor Anticipate Completion Date: December 2024