Audit 1185

FY End
2023-04-30
Total Expended
$4.38M
Findings
8
Programs
4
Year: 2023 Accepted: 2023-10-24
Auditor: Forvis LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
590 2023-001 Significant Deficiency Yes N
591 2023-001 Significant Deficiency Yes N
592 2023-001 Significant Deficiency Yes N
593 2023-001 Significant Deficiency Yes N
577032 2023-001 Significant Deficiency Yes N
577033 2023-001 Significant Deficiency Yes N
577034 2023-001 Significant Deficiency Yes N
577035 2023-001 Significant Deficiency Yes N

Contacts

Name Title Type
FGW9Y14PTD35 Lindsay Durall Auditee
2703385777 Jennifer Williams Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Community Health Centers of Western Kentucky, Inc (Center) under programs of the federal government for the year ended April 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Center under programs of the federal government for the year ended April 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the Center.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Community Health Centers of Western Kentucky, Inc (Center) under programs of the federal government for the year ended April 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Community Health Centers of Western Kentucky, Inc (Center) under programs of the federal government for the year ended April 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Federal Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Community Health Centers of Western Kentucky, Inc (Center) under programs of the federal government for the year ended April 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Center did not have any federal or state loan programs during the year ended April 30, 2023.

Finding Details

Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.
Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.
Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.
Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.
Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.
Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.
Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.
Health Center Program Cluster; Federal Assistance Listing No. 93.224; U.S. Department of Health & Human Services; grant number H80CS00562; budget periods May 1, 2022, through April 30, 2023. Criteria or specific requirement: Special Tests and Provisions – 42 CFR, Part 56.303(e), (f) and (g). Health centers receiving funds under the Health Center Program Cluster are required to have prepared a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patients payments for services in accordance with the schedule of fees and discounts. Condition: We noted during our testing of compliance with federal awards that the Center did not apply the sliding fee discounts properly to two patients out of a sample of 25 patients for the year ended April 30, 2023. Questioned cost: None. Context: From financial records for patients treated during the audit period, we selected 25 discounts for testing. This sample was not, and was not intended to be, a statistically valid sample. The Center’s management prepared a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Center’s board of directors; and the schedule was uploaded into the Center’s billing system. However, there were errors when comparing the income or family information entered into the system during the year ended April 30, 2023. For 2 of the 25 accounts selected for testing, the account had an incorrect discount and nominal fee applied. Effect: Discounts were not properly applied to patient accounts. Cause: The errors for the two patients’ accounts were due to incorrect system errors in applying nominal fees which were not being corrected by billing staff. Identification as a repeat finding, if applicable: Yes. Recommendation: We recommend management should periodically test the application of the sliding fee to patient accounts. Views of responsible officials and planned corrective actions: The accounting department, under the direction of the chief financial officer, will conduct monthly audits of random patients’ accounts for whom the sliding fee schedule has been applied, as well as training for receptionists to minimize errors. Receptionists have been mandated, along with assistance from internal billing staff, to review all patients’ accounts (including income verification) at least annually.