FAC Explorer

Audit 292911

FY End
2020-12-31
Total Expended
$3.28M
Findings
8
Programs
2
Organization: Open Cities Health Center, Inc. and Affiliate (MN)
Year: 2020 Accepted: 2024-02-29
Auditor: Smith Schafer

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
371207 2020-007 Material Weakness Yes B
371208 2020-007 Material Weakness Yes B
371209 2020-008 Material Weakness Yes N
371210 2020-008 Material Weakness Yes N
947649 2020-007 Material Weakness Yes B
947650 2020-007 Material Weakness Yes B
947651 2020-008 Material Weakness Yes N
947652 2020-008 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $3.05M Yes 2
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $225,904 Yes 2

Contacts

Name Title Type
QNL4MD86X281 Harold Minor Auditee
6512909200 Jason Miller Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Open Cities Health Center, Inc. and Affiliate has not charged indirect costs to any of the federal programs. Therefore, the election of the 10 percent de minimis indirect cost rate is not applicable as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Open Cities Health Center, Inc. and Affiliate under programs of the federal government for the year ended December 31, 2020. 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 Open Cities Health Center, Inc. and Affiliate, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Open Cities Health Center, Inc. and Affiliate.
Title: Other Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Open Cities Health Center, Inc. and Affiliate has not charged indirect costs to any of the federal programs. Therefore, the election of the 10 percent de minimis indirect cost rate is not applicable as allowed under the Uniform Guidance. Open Cities Health Center, Inc. and Affiliate did not pass any federal funds to subrecipients during 2020.

Finding Details

Finding 2020-007
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Material Weakness Condition and Context: Five individuals were selected to review personnel files and payroll related to salary for the Organization. Of the five files reviewed, one file support could not be located to verify existence. Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to salaries for the Organization which should be properly supported by internal controls to ensure that personnel documentation properly supports the salaries that were paid to qualified individuals and that compensation to individual employees must be reasonable for the services rendered. Effect: There was exposure which could have resulted in errors occurring in the payroll that was incurred during the year. Cause: The Center did not have a formal policy to retain documentation of approved wage rates for all employees. Questioned Costs: $97,115 Repeat Finding: Repeat finding of 2019-005 Recommendation: The Organization’s human resources staff should use a checklist to ensure that all necessary documents are kept in the personnel files, including applications or resumes, approved pay rate, Form I-9, and Form W-4. Views of Responsible Official: Management of the Organization concurs with the audit finding
Finding 2020-007
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Material Weakness Condition and Context: Five individuals were selected to review personnel files and payroll related to salary for the Organization. Of the five files reviewed, one file support could not be located to verify existence. Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to salaries for the Organization which should be properly supported by internal controls to ensure that personnel documentation properly supports the salaries that were paid to qualified individuals and that compensation to individual employees must be reasonable for the services rendered. Effect: There was exposure which could have resulted in errors occurring in the payroll that was incurred during the year. Cause: The Center did not have a formal policy to retain documentation of approved wage rates for all employees. Questioned Costs: $97,115 Repeat Finding: Repeat finding of 2019-005 Recommendation: The Organization’s human resources staff should use a checklist to ensure that all necessary documents are kept in the personnel files, including applications or resumes, approved pay rate, Form I-9, and Form W-4. Views of Responsible Official: Management of the Organization concurs with the audit finding
Finding 2020-008
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness Condition and Context: Supporting documents could not be located for two of the forty patients selected for testing. As such, we were unable to determine eligibility. Criteria: Health centers are required to have a corresponding schedule of discounts applied and adjusted on the basis of the patient’s ability to pay and their eligibility. A patient’s eligibility to pay is determined on the basis of the official poverty guidelines. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Questioned Costs: None Repeat Finding: Repeat finding of 2019-006 Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Views of Responsible Official: Management of the Organization concurs with the audit finding.
Finding 2020-008
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness Condition and Context: Supporting documents could not be located for two of the forty patients selected for testing. As such, we were unable to determine eligibility. Criteria: Health centers are required to have a corresponding schedule of discounts applied and adjusted on the basis of the patient’s ability to pay and their eligibility. A patient’s eligibility to pay is determined on the basis of the official poverty guidelines. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Questioned Costs: None Repeat Finding: Repeat finding of 2019-006 Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Views of Responsible Official: Management of the Organization concurs with the audit finding.
Finding 2020-007
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Material Weakness Condition and Context: Five individuals were selected to review personnel files and payroll related to salary for the Organization. Of the five files reviewed, one file support could not be located to verify existence. Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to salaries for the Organization which should be properly supported by internal controls to ensure that personnel documentation properly supports the salaries that were paid to qualified individuals and that compensation to individual employees must be reasonable for the services rendered. Effect: There was exposure which could have resulted in errors occurring in the payroll that was incurred during the year. Cause: The Center did not have a formal policy to retain documentation of approved wage rates for all employees. Questioned Costs: $97,115 Repeat Finding: Repeat finding of 2019-005 Recommendation: The Organization’s human resources staff should use a checklist to ensure that all necessary documents are kept in the personnel files, including applications or resumes, approved pay rate, Form I-9, and Form W-4. Views of Responsible Official: Management of the Organization concurs with the audit finding
Finding 2020-007
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Material Weakness Condition and Context: Five individuals were selected to review personnel files and payroll related to salary for the Organization. Of the five files reviewed, one file support could not be located to verify existence. Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to salaries for the Organization which should be properly supported by internal controls to ensure that personnel documentation properly supports the salaries that were paid to qualified individuals and that compensation to individual employees must be reasonable for the services rendered. Effect: There was exposure which could have resulted in errors occurring in the payroll that was incurred during the year. Cause: The Center did not have a formal policy to retain documentation of approved wage rates for all employees. Questioned Costs: $97,115 Repeat Finding: Repeat finding of 2019-005 Recommendation: The Organization’s human resources staff should use a checklist to ensure that all necessary documents are kept in the personnel files, including applications or resumes, approved pay rate, Form I-9, and Form W-4. Views of Responsible Official: Management of the Organization concurs with the audit finding
Finding 2020-008
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness Condition and Context: Supporting documents could not be located for two of the forty patients selected for testing. As such, we were unable to determine eligibility. Criteria: Health centers are required to have a corresponding schedule of discounts applied and adjusted on the basis of the patient’s ability to pay and their eligibility. A patient’s eligibility to pay is determined on the basis of the official poverty guidelines. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Questioned Costs: None Repeat Finding: Repeat finding of 2019-006 Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Views of Responsible Official: Management of the Organization concurs with the audit finding.
Finding 2020-008
Assistance Listing Numbers 93.224 and 93.527 – Health Center Program Cluster Award Numbers: H80CS00112, H8CCS34790, H8DCS36181 and H8ECS38688 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness Condition and Context: Supporting documents could not be located for two of the forty patients selected for testing. As such, we were unable to determine eligibility. Criteria: Health centers are required to have a corresponding schedule of discounts applied and adjusted on the basis of the patient’s ability to pay and their eligibility. A patient’s eligibility to pay is determined on the basis of the official poverty guidelines. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Questioned Costs: None Repeat Finding: Repeat finding of 2019-006 Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Views of Responsible Official: Management of the Organization concurs with the audit finding.