Audit 16889

FY End
2022-06-30
Total Expended
$10.26M
Findings
6
Programs
14
Year: 2022 Accepted: 2023-03-06
Auditor: Rsm US LLP

Organization Exclusion Status:

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Contacts

Name Title Type
X8RJCLCKBYF6 Randall Johnson Auditee
7732967683 Ryan Caldwell Auditor
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Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: 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 Health Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Health Center under programs of the federal government for the year ended June 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Health Center, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Health Center.
Title: Note 4. Non-Cash Assistance, Insurance, Loans and Loan Guarantees Outstandi Accounting Policies: 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 Health Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Health Center did not receive any non-cash assistance during the year ended June 30, 2022. There were no federal awards expended for insurance or any loans or loan guarantees outstanding as of June 30, 2022.
Title: Note 5. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribut Accounting Policies: 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 Health Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. For the federal awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) (ALN 93.498) program, the U.S. Department of Health and Human Services (HHS) has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources & Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to "Payment Received Periods" (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability).The accompanying Schedule includes $219,106 of Period 3 distributions received between January 1, 2021 through June 30, 2021. The Period 3 distributions have been reported by the Health Center in the HRSA PRF Reporting Portal as used during the corresponding Period of Availability in accordance with guidance from HHS. These amounts were recognized as CARES Act provider relief fund revenue in the Health Center's financial statements for the year ended June 30, 2022.

Finding Details

2022-001 Lack of Support for Allowable Cost/Cost Principles Requirement U.S. Department of Health and Human Services Health Center Cluster (93.224 and 93.527) Federal Award Year 2021-2022 Criteria: The Health Center must prepare and apply a sliding fee discount schedule so that the amounts owed for Health Center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay (42 USC 254(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Condition: While testing the special tests and provisions requirement, we noted there was one patient for which the Health Center did not have documentation to support whether the sliding scale discount was appropriately provided, one patient where the sliding scale discount was erroneously calculated, and one patient who qualified for the sliding scale discount that was erroneously not provided a sliding scale discount. Cause: The Health Center did not have consistent controls for application of the sliding fee discounts. Documentation to support the usage of the sliding fee discount was not consistently maintained, and in instances where documentation was maintained, the sliding fee discounts were not calculated appropriately based on the information provided by the patient. Effect: Sliding scale adjustments totaling $4 were provided in error to one patient. Sliding scale adjustments totaling $187 were not provided to two patients that qualified for the sliding scale adjustments. Questioned Costs: $183 Context: We noted sliding scale adjustments were inappropriately applied to 3 of 60 patients tested. Repeat finding?: 2021-002 Recommendation: We recommend that additional training of responsible staff be performed to ensure that all documentation related to the sliding scale adjustments is retained and that sliding scale adjustments are applied to qualifying patients in the correct amounts. View of responsible officials of the auditee: Management agrees with the finding and recommendation.
2022-001 Lack of Support for Allowable Cost/Cost Principles Requirement U.S. Department of Health and Human Services Health Center Cluster (93.224 and 93.527) Federal Award Year 2021-2022 Criteria: The Health Center must prepare and apply a sliding fee discount schedule so that the amounts owed for Health Center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay (42 USC 254(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Condition: While testing the special tests and provisions requirement, we noted there was one patient for which the Health Center did not have documentation to support whether the sliding scale discount was appropriately provided, one patient where the sliding scale discount was erroneously calculated, and one patient who qualified for the sliding scale discount that was erroneously not provided a sliding scale discount. Cause: The Health Center did not have consistent controls for application of the sliding fee discounts. Documentation to support the usage of the sliding fee discount was not consistently maintained, and in instances where documentation was maintained, the sliding fee discounts were not calculated appropriately based on the information provided by the patient. Effect: Sliding scale adjustments totaling $4 were provided in error to one patient. Sliding scale adjustments totaling $187 were not provided to two patients that qualified for the sliding scale adjustments. Questioned Costs: $183 Context: We noted sliding scale adjustments were inappropriately applied to 3 of 60 patients tested. Repeat finding?: 2021-002 Recommendation: We recommend that additional training of responsible staff be performed to ensure that all documentation related to the sliding scale adjustments is retained and that sliding scale adjustments are applied to qualifying patients in the correct amounts. View of responsible officials of the auditee: Management agrees with the finding and recommendation.
2022-001 Lack of Support for Allowable Cost/Cost Principles Requirement U.S. Department of Health and Human Services Health Center Cluster (93.224 and 93.527) Federal Award Year 2021-2022 Criteria: The Health Center must prepare and apply a sliding fee discount schedule so that the amounts owed for Health Center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay (42 USC 254(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Condition: While testing the special tests and provisions requirement, we noted there was one patient for which the Health Center did not have documentation to support whether the sliding scale discount was appropriately provided, one patient where the sliding scale discount was erroneously calculated, and one patient who qualified for the sliding scale discount that was erroneously not provided a sliding scale discount. Cause: The Health Center did not have consistent controls for application of the sliding fee discounts. Documentation to support the usage of the sliding fee discount was not consistently maintained, and in instances where documentation was maintained, the sliding fee discounts were not calculated appropriately based on the information provided by the patient. Effect: Sliding scale adjustments totaling $4 were provided in error to one patient. Sliding scale adjustments totaling $187 were not provided to two patients that qualified for the sliding scale adjustments. Questioned Costs: $183 Context: We noted sliding scale adjustments were inappropriately applied to 3 of 60 patients tested. Repeat finding?: 2021-002 Recommendation: We recommend that additional training of responsible staff be performed to ensure that all documentation related to the sliding scale adjustments is retained and that sliding scale adjustments are applied to qualifying patients in the correct amounts. View of responsible officials of the auditee: Management agrees with the finding and recommendation.
2022-001 Lack of Support for Allowable Cost/Cost Principles Requirement U.S. Department of Health and Human Services Health Center Cluster (93.224 and 93.527) Federal Award Year 2021-2022 Criteria: The Health Center must prepare and apply a sliding fee discount schedule so that the amounts owed for Health Center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay (42 USC 254(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Condition: While testing the special tests and provisions requirement, we noted there was one patient for which the Health Center did not have documentation to support whether the sliding scale discount was appropriately provided, one patient where the sliding scale discount was erroneously calculated, and one patient who qualified for the sliding scale discount that was erroneously not provided a sliding scale discount. Cause: The Health Center did not have consistent controls for application of the sliding fee discounts. Documentation to support the usage of the sliding fee discount was not consistently maintained, and in instances where documentation was maintained, the sliding fee discounts were not calculated appropriately based on the information provided by the patient. Effect: Sliding scale adjustments totaling $4 were provided in error to one patient. Sliding scale adjustments totaling $187 were not provided to two patients that qualified for the sliding scale adjustments. Questioned Costs: $183 Context: We noted sliding scale adjustments were inappropriately applied to 3 of 60 patients tested. Repeat finding?: 2021-002 Recommendation: We recommend that additional training of responsible staff be performed to ensure that all documentation related to the sliding scale adjustments is retained and that sliding scale adjustments are applied to qualifying patients in the correct amounts. View of responsible officials of the auditee: Management agrees with the finding and recommendation.
2022-001 Lack of Support for Allowable Cost/Cost Principles Requirement U.S. Department of Health and Human Services Health Center Cluster (93.224 and 93.527) Federal Award Year 2021-2022 Criteria: The Health Center must prepare and apply a sliding fee discount schedule so that the amounts owed for Health Center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay (42 USC 254(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Condition: While testing the special tests and provisions requirement, we noted there was one patient for which the Health Center did not have documentation to support whether the sliding scale discount was appropriately provided, one patient where the sliding scale discount was erroneously calculated, and one patient who qualified for the sliding scale discount that was erroneously not provided a sliding scale discount. Cause: The Health Center did not have consistent controls for application of the sliding fee discounts. Documentation to support the usage of the sliding fee discount was not consistently maintained, and in instances where documentation was maintained, the sliding fee discounts were not calculated appropriately based on the information provided by the patient. Effect: Sliding scale adjustments totaling $4 were provided in error to one patient. Sliding scale adjustments totaling $187 were not provided to two patients that qualified for the sliding scale adjustments. Questioned Costs: $183 Context: We noted sliding scale adjustments were inappropriately applied to 3 of 60 patients tested. Repeat finding?: 2021-002 Recommendation: We recommend that additional training of responsible staff be performed to ensure that all documentation related to the sliding scale adjustments is retained and that sliding scale adjustments are applied to qualifying patients in the correct amounts. View of responsible officials of the auditee: Management agrees with the finding and recommendation.
2022-001 Lack of Support for Allowable Cost/Cost Principles Requirement U.S. Department of Health and Human Services Health Center Cluster (93.224 and 93.527) Federal Award Year 2021-2022 Criteria: The Health Center must prepare and apply a sliding fee discount schedule so that the amounts owed for Health Center services by eligible patients are adjusted (discounted) based on the patient?s ability to pay (42 USC 254(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Condition: While testing the special tests and provisions requirement, we noted there was one patient for which the Health Center did not have documentation to support whether the sliding scale discount was appropriately provided, one patient where the sliding scale discount was erroneously calculated, and one patient who qualified for the sliding scale discount that was erroneously not provided a sliding scale discount. Cause: The Health Center did not have consistent controls for application of the sliding fee discounts. Documentation to support the usage of the sliding fee discount was not consistently maintained, and in instances where documentation was maintained, the sliding fee discounts were not calculated appropriately based on the information provided by the patient. Effect: Sliding scale adjustments totaling $4 were provided in error to one patient. Sliding scale adjustments totaling $187 were not provided to two patients that qualified for the sliding scale adjustments. Questioned Costs: $183 Context: We noted sliding scale adjustments were inappropriately applied to 3 of 60 patients tested. Repeat finding?: 2021-002 Recommendation: We recommend that additional training of responsible staff be performed to ensure that all documentation related to the sliding scale adjustments is retained and that sliding scale adjustments are applied to qualifying patients in the correct amounts. View of responsible officials of the auditee: Management agrees with the finding and recommendation.