News Photo by Kayla Wikaryasz District Health Department No. 4's Alpena office is seen in this photo taken Wednesday.

ALPENA — District Health Department No. 4 (DHD4) continues to navigate financial challenges amid a long-awaited audit.

At Tuesday’s DHD4 meeting in Atlanta, DHD4’s current financial director, Michelle Konwinski, updated the board on two key financial challenges the department is facing, which include their unfunded pension liabilities and Medicaid cost reimbursement reports for 2022, 2023, and 2024.

Konwinski explained that the three Medicaid cost reimbursement reports are what is holding up the department audit. The audit was originally due back in March of this year, before Konwinski was brought on the leadership team.

The News left a message with DHD4’s auditing firm, Maner Costerisan, to clarify details regarding the audit and when they expect the audit to be finished.

According to Konwinski, the Medicaid reimbursement reports are documentation that tracks money advanced from the state for services. The department is obligated to report back to the state regarding the use of those funds.

Konwinski was hired in July of this year.

Health administrative officer, Denise Bryan, told The News on Wednesday that the board and leadership team are hopeful that the final audit report will be presented to them in September.

Bryan also reaffirmed that the estimated amount of money taken back by the state, due to misreporting from the 2024 Fiscal Year, likely totals $1 million. However, Bryan did note that she cannot confirm a finalized amount until the audit is completed.

She described the challenges the department has faced since learning of their lost revenue in the spring of this year as a “whirlwind.” She said that both the board and the leadership team have been in “limbo” since then, awaiting final answers to their financial circumstances.

Bryan stated that hiring Konwinski as their new financial director has made the situation easier to manage as Konwinski brings years of accounting experience and expertise.

“I am confident in Michelle’s abilities,” Bryan said. She added that hiring Konwinski was the “first major step in the right direction.”

Bryan explained that the state has been cooperative and has offered the department training and further resources to remedy their situation. She also said the department is hard at work creating checks and balances to ensure their current financial situation is not repeated in the future.

Despite the challenges the department is facing, Bryan stated that the work the department’s employees do should not be overshadowed.

Bryan told The News, “I feel like there is a gray cloud hanging over our hard-working employees. My leadership role is to move us forward.”

Kayla Wikaryasz can be reached at 989-358-5688 or kwikaryasz@TheAlpenaNews.com.