FAC Explorer

Audit 28879

FY End
2022-04-30
Total Expended
$3.54M
Findings
6
Programs
7
Organization: High Country Community Health, Inc. (NC)
Year: 2022 Accepted: 2022-10-23
Auditor: Terry Horne CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28791 2022-002 Material Weakness Yes L
28792 2022-002 Material Weakness Yes L
28793 2022-002 Material Weakness Yes L
605233 2022-002 Material Weakness Yes L
605234 2022-002 Material Weakness Yes L
605235 2022-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.65M Yes 1
93.224 Covid-19-Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $646,566 Yes 1
93.498 Covid-19-Provider Relief Fund $609,360 Yes 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $507,080 Yes 1
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $68,399 - 0
93.767 Children's Health Insurance Program $43,500 - 0
32.006 Covid-19 Telehealth Program $11,710 - 0

Contacts

Name Title Type
NZCCA72AXLK1 Alice Salthouse Auditee
8282623886 Terry Horne Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note A- Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award (the Schedule) of High Country Community Health, Inc. 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of High Country Community Health, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of High Country Community Health, Inc.Note B-Summary of Significant Accounting PoliciesExpenditures 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 represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. High Country Community Health, Inc. has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance.Note C- Loans OutstandingThe Organization had the following loan balances outstanding at April 30, 2022:Program TitleFederal CFDA NumberAmount OutstandingCommunity Facilities Loan10.766$1,854,970 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Finding: 2022-002 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approximately $2.4 million. Cause: The above exception resulted from omitting 340B contract pharmacy charges in Table 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure actual charges and payments from all sources including 340B contract pharmacies are reported and reconciled to the UDS report. The DHHS should be informed of the error and the 2021Table 9D should be revised and resubmitted if requested. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that the revenue and expenses from all sources are reconciled to the revenue and expenses on the UDS report. Contact Person: Alice Salthouse, CEO Anticipated Date of Completion: October 31, 2022
Finding 2022-002
Finding: 2022-002 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approximately $2.4 million. Cause: The above exception resulted from omitting 340B contract pharmacy charges in Table 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure actual charges and payments from all sources including 340B contract pharmacies are reported and reconciled to the UDS report. The DHHS should be informed of the error and the 2021Table 9D should be revised and resubmitted if requested. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that the revenue and expenses from all sources are reconciled to the revenue and expenses on the UDS report. Contact Person: Alice Salthouse, CEO Anticipated Date of Completion: October 31, 2022
Finding 2022-002
Finding: 2022-002 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approximately $2.4 million. Cause: The above exception resulted from omitting 340B contract pharmacy charges in Table 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure actual charges and payments from all sources including 340B contract pharmacies are reported and reconciled to the UDS report. The DHHS should be informed of the error and the 2021Table 9D should be revised and resubmitted if requested. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that the revenue and expenses from all sources are reconciled to the revenue and expenses on the UDS report. Contact Person: Alice Salthouse, CEO Anticipated Date of Completion: October 31, 2022
Finding 2022-002
Finding: 2022-002 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approximately $2.4 million. Cause: The above exception resulted from omitting 340B contract pharmacy charges in Table 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure actual charges and payments from all sources including 340B contract pharmacies are reported and reconciled to the UDS report. The DHHS should be informed of the error and the 2021Table 9D should be revised and resubmitted if requested. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that the revenue and expenses from all sources are reconciled to the revenue and expenses on the UDS report. Contact Person: Alice Salthouse, CEO Anticipated Date of Completion: October 31, 2022
Finding 2022-002
Finding: 2022-002 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approximately $2.4 million. Cause: The above exception resulted from omitting 340B contract pharmacy charges in Table 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure actual charges and payments from all sources including 340B contract pharmacies are reported and reconciled to the UDS report. The DHHS should be informed of the error and the 2021Table 9D should be revised and resubmitted if requested. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that the revenue and expenses from all sources are reconciled to the revenue and expenses on the UDS report. Contact Person: Alice Salthouse, CEO Anticipated Date of Completion: October 31, 2022
Finding 2022-002
Finding: 2022-002 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for patient revenue. The charges and payments were not correctly reported on Table 9D of the UDS report. The charges were understated by approximately $2.4 million. Cause: The above exception resulted from omitting 340B contract pharmacy charges in Table 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure actual charges and payments from all sources including 340B contract pharmacies are reported and reconciled to the UDS report. The DHHS should be informed of the error and the 2021Table 9D should be revised and resubmitted if requested. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that the revenue and expenses from all sources are reconciled to the revenue and expenses on the UDS report. Contact Person: Alice Salthouse, CEO Anticipated Date of Completion: October 31, 2022