FAC Explorer

Audit 306434

FY End
2021-12-31
Total Expended
$3.78M
Findings
12
Programs
1
Organization: Open Cities Health Center, Inc. and Affiliate (MN)
Year: 2021 Accepted: 2024-05-16
Auditor: Bwk Rogers PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397056 2021-005 Material Weakness Yes B
397057 2021-005 Material Weakness Yes B
397058 2021-005 Material Weakness Yes B
397059 2021-006 Material Weakness Yes N
397060 2021-006 Material Weakness Yes N
397061 2021-006 Material Weakness Yes N
973498 2021-005 Material Weakness Yes B
973499 2021-005 Material Weakness Yes B
973500 2021-005 Material Weakness Yes B
973501 2021-006 Material Weakness Yes N
973502 2021-006 Material Weakness Yes N
973503 2021-006 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) $1.09M Yes 2

Contacts

Name Title Type
QNL4MD86X281 Open Cities Health Center, Inc. and Affiliate Auditee
6512909200 O Barry Rogers Auditor
No contacts on file

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. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: Open Cities Health Center, Inc. and Affiliate has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Open Cities Health Center, Inc. and Affiliate under programs of the federal government for the year ended December 31, 2021. 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: NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: Open Cities Health Center, Inc. and Affiliate has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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 represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
Title: NOTE 3. INDIRECT COST RATE 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. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: Open Cities Health Center, Inc. and Affiliate has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Open Cities Health Center, Inc. and Affiliate has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2021-005
Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Finding 2021-005 Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Material Weakness Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to payroll and personnel which should be supported by internal controls to ensure that employees working for the Organization have the proper documentation in personnel files to support employment activities. All personnel files should contain approved wage rates, I-9 forms, W-4 forms and applications or resumes. Condition: A walkthrough of fourteen individuals was performed to agree personnel files and to payroll. Of the fourteen files reviewed, seven had no approved current pay rate documented, and the salary or hourly rate paid was not the rate contained in the file. Cause: Management of the Organization’s human resources area turned over several times during the past few years, and personnel files were not prioritized to keep them in good order and in accordance with the Organization’s policy. Effect: Without proper documentation, it is not possible to support the appropriate wage rate being paid to an individual, the proper amounts of withholdings, or even their eligibility for employment. Questioned Costs: $330,000 Repeat Finding: Yes Recommendation: Recommend use of a checklist within each file as an additional procedure to ensure that each file contains all necessary documents and that the file has been updated for current rates of pay. Management’s Response: Management agrees with the recommendation and will implement the use of a checklist to improve compliance.
Finding 2021-005
Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Finding 2021-005 Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Material Weakness Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to payroll and personnel which should be supported by internal controls to ensure that employees working for the Organization have the proper documentation in personnel files to support employment activities. All personnel files should contain approved wage rates, I-9 forms, W-4 forms and applications or resumes. Condition: A walkthrough of fourteen individuals was performed to agree personnel files and to payroll. Of the fourteen files reviewed, seven had no approved current pay rate documented, and the salary or hourly rate paid was not the rate contained in the file. Cause: Management of the Organization’s human resources area turned over several times during the past few years, and personnel files were not prioritized to keep them in good order and in accordance with the Organization’s policy. Effect: Without proper documentation, it is not possible to support the appropriate wage rate being paid to an individual, the proper amounts of withholdings, or even their eligibility for employment. Questioned Costs: $330,000 Repeat Finding: Yes Recommendation: Recommend use of a checklist within each file as an additional procedure to ensure that each file contains all necessary documents and that the file has been updated for current rates of pay. Management’s Response: Management agrees with the recommendation and will implement the use of a checklist to improve compliance.
Finding 2021-005
Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Finding 2021-005 Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Material Weakness Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to payroll and personnel which should be supported by internal controls to ensure that employees working for the Organization have the proper documentation in personnel files to support employment activities. All personnel files should contain approved wage rates, I-9 forms, W-4 forms and applications or resumes. Condition: A walkthrough of fourteen individuals was performed to agree personnel files and to payroll. Of the fourteen files reviewed, seven had no approved current pay rate documented, and the salary or hourly rate paid was not the rate contained in the file. Cause: Management of the Organization’s human resources area turned over several times during the past few years, and personnel files were not prioritized to keep them in good order and in accordance with the Organization’s policy. Effect: Without proper documentation, it is not possible to support the appropriate wage rate being paid to an individual, the proper amounts of withholdings, or even their eligibility for employment. Questioned Costs: $330,000 Repeat Finding: Yes Recommendation: Recommend use of a checklist within each file as an additional procedure to ensure that each file contains all necessary documents and that the file has been updated for current rates of pay. Management’s Response: Management agrees with the recommendation and will implement the use of a checklist to improve compliance.
Finding 2021-006
Assistance Listing Numbers 93.224 Consolidated Health Centers Grant Number H80CS00112 US Department of Health and Human Services Finding 2021-006 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness 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. Condition and Context: Supporting documents could not be located for four of the thirty patients selected for testing. As such, we were unable to determine eligibility. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Various files were moved off-stie and stored without adequate communication to incoming personnel. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Questioned Costs: None Repeat Finding: Yes Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Management’s Response: Management agrees with the finding.
Finding 2021-006
Assistance Listing Numbers 93.224 Consolidated Health Centers Grant Number H80CS00112 US Department of Health and Human Services Finding 2021-006 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness 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. Condition and Context: Supporting documents could not be located for four of the thirty patients selected for testing. As such, we were unable to determine eligibility. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Various files were moved off-stie and stored without adequate communication to incoming personnel. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Questioned Costs: None Repeat Finding: Yes Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Management’s Response: Management agrees with the finding.
Finding 2021-006
Assistance Listing Numbers 93.224 Consolidated Health Centers Grant Number H80CS00112 US Department of Health and Human Services Finding 2021-006 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness 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. Condition and Context: Supporting documents could not be located for four of the thirty patients selected for testing. As such, we were unable to determine eligibility. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Various files were moved off-stie and stored without adequate communication to incoming personnel. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Questioned Costs: None Repeat Finding: Yes Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Management’s Response: Management agrees with the finding.
Finding 2021-005
Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Finding 2021-005 Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Material Weakness Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to payroll and personnel which should be supported by internal controls to ensure that employees working for the Organization have the proper documentation in personnel files to support employment activities. All personnel files should contain approved wage rates, I-9 forms, W-4 forms and applications or resumes. Condition: A walkthrough of fourteen individuals was performed to agree personnel files and to payroll. Of the fourteen files reviewed, seven had no approved current pay rate documented, and the salary or hourly rate paid was not the rate contained in the file. Cause: Management of the Organization’s human resources area turned over several times during the past few years, and personnel files were not prioritized to keep them in good order and in accordance with the Organization’s policy. Effect: Without proper documentation, it is not possible to support the appropriate wage rate being paid to an individual, the proper amounts of withholdings, or even their eligibility for employment. Questioned Costs: $330,000 Repeat Finding: Yes Recommendation: Recommend use of a checklist within each file as an additional procedure to ensure that each file contains all necessary documents and that the file has been updated for current rates of pay. Management’s Response: Management agrees with the recommendation and will implement the use of a checklist to improve compliance.
Finding 2021-005
Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Finding 2021-005 Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Material Weakness Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to payroll and personnel which should be supported by internal controls to ensure that employees working for the Organization have the proper documentation in personnel files to support employment activities. All personnel files should contain approved wage rates, I-9 forms, W-4 forms and applications or resumes. Condition: A walkthrough of fourteen individuals was performed to agree personnel files and to payroll. Of the fourteen files reviewed, seven had no approved current pay rate documented, and the salary or hourly rate paid was not the rate contained in the file. Cause: Management of the Organization’s human resources area turned over several times during the past few years, and personnel files were not prioritized to keep them in good order and in accordance with the Organization’s policy. Effect: Without proper documentation, it is not possible to support the appropriate wage rate being paid to an individual, the proper amounts of withholdings, or even their eligibility for employment. Questioned Costs: $330,000 Repeat Finding: Yes Recommendation: Recommend use of a checklist within each file as an additional procedure to ensure that each file contains all necessary documents and that the file has been updated for current rates of pay. Management’s Response: Management agrees with the recommendation and will implement the use of a checklist to improve compliance.
Finding 2021-005
Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Finding 2021-005 Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Material Weakness Criteria: Uniform Guidance Allowable Costs/Cost Principles addresses activities related to payroll and personnel which should be supported by internal controls to ensure that employees working for the Organization have the proper documentation in personnel files to support employment activities. All personnel files should contain approved wage rates, I-9 forms, W-4 forms and applications or resumes. Condition: A walkthrough of fourteen individuals was performed to agree personnel files and to payroll. Of the fourteen files reviewed, seven had no approved current pay rate documented, and the salary or hourly rate paid was not the rate contained in the file. Cause: Management of the Organization’s human resources area turned over several times during the past few years, and personnel files were not prioritized to keep them in good order and in accordance with the Organization’s policy. Effect: Without proper documentation, it is not possible to support the appropriate wage rate being paid to an individual, the proper amounts of withholdings, or even their eligibility for employment. Questioned Costs: $330,000 Repeat Finding: Yes Recommendation: Recommend use of a checklist within each file as an additional procedure to ensure that each file contains all necessary documents and that the file has been updated for current rates of pay. Management’s Response: Management agrees with the recommendation and will implement the use of a checklist to improve compliance.
Finding 2021-006
Assistance Listing Numbers 93.224 Consolidated Health Centers Grant Number H80CS00112 US Department of Health and Human Services Finding 2021-006 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness 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. Condition and Context: Supporting documents could not be located for four of the thirty patients selected for testing. As such, we were unable to determine eligibility. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Various files were moved off-stie and stored without adequate communication to incoming personnel. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Questioned Costs: None Repeat Finding: Yes Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Management’s Response: Management agrees with the finding.
Finding 2021-006
Assistance Listing Numbers 93.224 Consolidated Health Centers Grant Number H80CS00112 US Department of Health and Human Services Finding 2021-006 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness 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. Condition and Context: Supporting documents could not be located for four of the thirty patients selected for testing. As such, we were unable to determine eligibility. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Various files were moved off-stie and stored without adequate communication to incoming personnel. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Questioned Costs: None Repeat Finding: Yes Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Management’s Response: Management agrees with the finding.
Finding 2021-006
Assistance Listing Numbers 93.224 Consolidated Health Centers Grant Number H80CS00112 US Department of Health and Human Services Finding 2021-006 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Type of Finding: Material Weakness 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. Condition and Context: Supporting documents could not be located for four of the thirty patients selected for testing. As such, we were unable to determine eligibility. Cause: The condition can be attributed to changeover in patient management software, personnel, and passage of time. Various files were moved off-stie and stored without adequate communication to incoming personnel. Effect: Sliding fee discounts given could potentially be incorrect, or the patient could be ineligible. Questioned Costs: None Repeat Finding: Yes Recommendation: The Organization should be implementing and monitoring procedures to ensure that all supporting documents are kept for determining patient eligibility. Management’s Response: Management agrees with the finding.