FAC Explorer

Audit 320114

FY End
2023-12-31
Total Expended
$2.71M
Findings
4
Programs
10
Organization: Hamakua Health Center, Inc. (HI)
Year: 2023 Accepted: 2024-09-19
Auditor: Carbonaro Cpa's & Management Group

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497367 2023-002 - Yes I
497368 2023-002 - Yes I
1073809 2023-002 - Yes I
1073810 2023-002 - Yes I

Programs

ALN Program Spent Major Findings
93.224 Community Health Centers $193,147 Yes 0
93.527 Covid-19 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $151,893 Yes 0
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $76,181 - 0
93.526 Fip Verification $69,735 - 1
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $63,405 - 0
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $62,347 - 0
93.224 Covid-19 Community Health Centers $61,756 Yes 0
93.137 Covid-19 Community Programs to Improve Minority Health Grant Program $40,000 - 0
32.006 Covid-19 Telehealth Program $25,398 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $3,382 Yes 1

Contacts

Name Title Type
CW28BEMJXCK7 John R. White Auditee
8089302745 Rozanne Connell Auditor
No contacts on file

Notes to SEFA

Title: Note A. BASIS OF PRESENTATION Accounting Policies: Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable,wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Functional expenses are allocated to program related and administrative functions. Expense allocations are generally computed based on the number of employees or contractors performing program or administrative functions. The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activities of Hamakua Health Center, Inc. under programs of the Federal government for the year ended December 31, 2023. 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 Hamakua Health Center, Inc., it is not intended to and does not present the financial position, change in net assets, or cash flows of Hamakua Health Center, Inc.
Title: Note B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable,wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Functional expenses are allocated to program related and administrative functions. Expense allocations are generally computed based on the number of employees or contractors performing program or administrative functions. Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate: The Center has not negotiated an indirect cost rate and therefore, uses the 10% de minimis rate allowed when applicable.
Title: Note C. SUBRECIPIENT PASS THROUGH AWARDS Accounting Policies: Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable,wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Functional expenses are allocated to program related and administrative functions. Expense allocations are generally computed based on the number of employees or contractors performing program or administrative functions. No Federal awards were passed through to subrecipients.
Title: Note D. NONCASH ASSISTANCE Accounting Policies: Basis of Accounting: Expenditures reported on this Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance as applicable,wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Functional expenses are allocated to program related and administrative functions. Expense allocations are generally computed based on the number of employees or contractors performing program or administrative functions. As mentioned in Note 2, the value of the federal awards expended in the form of noncash internet utility services from the Universal Service Administrative Company (USAC), is valued at the time the credit is received and totaled $25,398 for the year ending December 31, 2023.

Finding Details

Finding 2023-002
Finding 2023-002 – Inadequate Design of Monitoring Controls over Procurement Policies, Assistance Listing 93.224 Health Center Program, Affordable Care Act Grants for New and Expanded Services Under the Health Center Program and Assistance Listing 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers, Continuation of Finding 2022-003 Criteria: 2 CFR 200.320 requires the non-Federal entity to have and use documented procurement procedures that are consistent with the standards of that section. Additionally, Management is responsible for the design, implementation, and maintenance of effective internal controls over compliance with requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements to prevent, or detect and correct noncompliance on a timely basis. When small purchase procedures are used, 2 CFR 200.320(a)(2) requires price or rate quotations to be obtained from an adequate number of qualified sources. For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the methods prescribed by 2 CFR 200.320(b) or (c): the sealed bid method; the competitive proposals method; or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c)). Condition: For three vendors tested during the prior year audit, procurement documentation was not prepared and/or retained to support compliance with the regulations above and the Center’s procurement policy. During 2023, the same three vendors continued to receive funding under these established contracts. No new vendors required procurement procedures. Context and Cause of Condition: Although the Center has established policies and procedures in place over the procurement process, there was a lack of documentation to support that the procurement process had been completed as required. In addition, it is not practical to follow the procurement process for existing vendors with contracts that were already in place from previous years. Potential Effect: Failure to perform and/or retain documentation of the procurement process resulted in noncompliance with the procurement requirement. Questioned Costs: None Recommendation: Recommend to consistently follow the existing procurement policy and to maintain documentation through the recommended terms outlined in the award. Views of Responsible Officials: Although Hamakua Health staff were not able to provide all the procurement records required by the auditors in the short period of time that was given, these procurement documents should have been scanned by those who initiated and completed the procurement processes and kept them in a ShareFile for easier access, especially for those contracts that are still active. This is now the new standard practice for all new procurement processes. See Management’s Response and Corrective Action Plans on page 33.
Finding 2023-002
Finding 2023-002 – Inadequate Design of Monitoring Controls over Procurement Policies, Assistance Listing 93.224 Health Center Program, Affordable Care Act Grants for New and Expanded Services Under the Health Center Program and Assistance Listing 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers, Continuation of Finding 2022-003 Criteria: 2 CFR 200.320 requires the non-Federal entity to have and use documented procurement procedures that are consistent with the standards of that section. Additionally, Management is responsible for the design, implementation, and maintenance of effective internal controls over compliance with requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements to prevent, or detect and correct noncompliance on a timely basis. When small purchase procedures are used, 2 CFR 200.320(a)(2) requires price or rate quotations to be obtained from an adequate number of qualified sources. For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the methods prescribed by 2 CFR 200.320(b) or (c): the sealed bid method; the competitive proposals method; or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c)). Condition: For three vendors tested during the prior year audit, procurement documentation was not prepared and/or retained to support compliance with the regulations above and the Center’s procurement policy. During 2023, the same three vendors continued to receive funding under these established contracts. No new vendors required procurement procedures. Context and Cause of Condition: Although the Center has established policies and procedures in place over the procurement process, there was a lack of documentation to support that the procurement process had been completed as required. In addition, it is not practical to follow the procurement process for existing vendors with contracts that were already in place from previous years. Potential Effect: Failure to perform and/or retain documentation of the procurement process resulted in noncompliance with the procurement requirement. Questioned Costs: None Recommendation: Recommend to consistently follow the existing procurement policy and to maintain documentation through the recommended terms outlined in the award. Views of Responsible Officials: Although Hamakua Health staff were not able to provide all the procurement records required by the auditors in the short period of time that was given, these procurement documents should have been scanned by those who initiated and completed the procurement processes and kept them in a ShareFile for easier access, especially for those contracts that are still active. This is now the new standard practice for all new procurement processes. See Management’s Response and Corrective Action Plans on page 33.
Finding 2023-002
Finding 2023-002 – Inadequate Design of Monitoring Controls over Procurement Policies, Assistance Listing 93.224 Health Center Program, Affordable Care Act Grants for New and Expanded Services Under the Health Center Program and Assistance Listing 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers, Continuation of Finding 2022-003 Criteria: 2 CFR 200.320 requires the non-Federal entity to have and use documented procurement procedures that are consistent with the standards of that section. Additionally, Management is responsible for the design, implementation, and maintenance of effective internal controls over compliance with requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements to prevent, or detect and correct noncompliance on a timely basis. When small purchase procedures are used, 2 CFR 200.320(a)(2) requires price or rate quotations to be obtained from an adequate number of qualified sources. For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the methods prescribed by 2 CFR 200.320(b) or (c): the sealed bid method; the competitive proposals method; or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c)). Condition: For three vendors tested during the prior year audit, procurement documentation was not prepared and/or retained to support compliance with the regulations above and the Center’s procurement policy. During 2023, the same three vendors continued to receive funding under these established contracts. No new vendors required procurement procedures. Context and Cause of Condition: Although the Center has established policies and procedures in place over the procurement process, there was a lack of documentation to support that the procurement process had been completed as required. In addition, it is not practical to follow the procurement process for existing vendors with contracts that were already in place from previous years. Potential Effect: Failure to perform and/or retain documentation of the procurement process resulted in noncompliance with the procurement requirement. Questioned Costs: None Recommendation: Recommend to consistently follow the existing procurement policy and to maintain documentation through the recommended terms outlined in the award. Views of Responsible Officials: Although Hamakua Health staff were not able to provide all the procurement records required by the auditors in the short period of time that was given, these procurement documents should have been scanned by those who initiated and completed the procurement processes and kept them in a ShareFile for easier access, especially for those contracts that are still active. This is now the new standard practice for all new procurement processes. See Management’s Response and Corrective Action Plans on page 33.
Finding 2023-002
Finding 2023-002 – Inadequate Design of Monitoring Controls over Procurement Policies, Assistance Listing 93.224 Health Center Program, Affordable Care Act Grants for New and Expanded Services Under the Health Center Program and Assistance Listing 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers, Continuation of Finding 2022-003 Criteria: 2 CFR 200.320 requires the non-Federal entity to have and use documented procurement procedures that are consistent with the standards of that section. Additionally, Management is responsible for the design, implementation, and maintenance of effective internal controls over compliance with requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements to prevent, or detect and correct noncompliance on a timely basis. When small purchase procedures are used, 2 CFR 200.320(a)(2) requires price or rate quotations to be obtained from an adequate number of qualified sources. For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the methods prescribed by 2 CFR 200.320(b) or (c): the sealed bid method; the competitive proposals method; or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR 200.320(c)). Condition: For three vendors tested during the prior year audit, procurement documentation was not prepared and/or retained to support compliance with the regulations above and the Center’s procurement policy. During 2023, the same three vendors continued to receive funding under these established contracts. No new vendors required procurement procedures. Context and Cause of Condition: Although the Center has established policies and procedures in place over the procurement process, there was a lack of documentation to support that the procurement process had been completed as required. In addition, it is not practical to follow the procurement process for existing vendors with contracts that were already in place from previous years. Potential Effect: Failure to perform and/or retain documentation of the procurement process resulted in noncompliance with the procurement requirement. Questioned Costs: None Recommendation: Recommend to consistently follow the existing procurement policy and to maintain documentation through the recommended terms outlined in the award. Views of Responsible Officials: Although Hamakua Health staff were not able to provide all the procurement records required by the auditors in the short period of time that was given, these procurement documents should have been scanned by those who initiated and completed the procurement processes and kept them in a ShareFile for easier access, especially for those contracts that are still active. This is now the new standard practice for all new procurement processes. See Management’s Response and Corrective Action Plans on page 33.