Audit 330447

FY End
2024-06-30
Total Expended
$5.62M
Findings
6
Programs
4
Year: 2024 Accepted: 2024-12-02
Auditor: Capincrouse LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
512643 2024-002 - Yes L
512644 2024-002 - Yes L
512645 2024-003 - - N
1089085 2024-002 - Yes L
1089086 2024-002 - Yes L
1089087 2024-003 - - N

Contacts

Name Title Type
N1CYLGCC3XZ3 Stephen T. Kennedy Auditee
2138931960 Robert J. Faulk, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Los Angeles Christian Health Centers and Subsidiary (LACHC) under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. If LACHC is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not to use the de minimis cost rate. See the notes to the SEFA for chart/table.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Los Angeles Christian Health Centers and Subsidiary (LACHC) under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. If LACHC is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not to use the de minimis cost rate. LACHC did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Title: MEDICARE AND MEDICAID PAYMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Los Angeles Christian Health Centers and Subsidiary (LACHC) under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. If LACHC is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not to use the de minimis cost rate. Medicare and Medicaid payments received from the federal medical assistance program, CFDA #93.778 for providing patient care services to eligible individuals are excluded from Uniform Guidance compliance audit requirements and therefore, not included on the schedule of expenditures of federal awards.

Finding Details

Uniform Data System (UDS) Reporting DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 and 93.527 Federal Award Identification #: 2023 Reporting Year Condition: LACHC did not retain adequate support for the 2023 UDS report submission. Criteria: Section 330 of the Public Health Service (PHS) Act (42 U.S.C. 254b) Questioned Costs: $-0- Context: LACHC had supporting documentation for the key line items on patient visits; however, this support did not agree to the 2023 UDS report. Cause: Staffing turnover. Effect: Inaccurate reporting or lack of adequate support. Identification as repeat finding, if applicable: 2023-003 Recommendation: We recommend LACHC retain adequate supporting documentation for UDS report submissions. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Uniform Data System (UDS) Reporting DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 and 93.527 Federal Award Identification #: 2023 Reporting Year Condition: LACHC did not retain adequate support for the 2023 UDS report submission. Criteria: Section 330 of the Public Health Service (PHS) Act (42 U.S.C. 254b) Questioned Costs: $-0- Context: LACHC had supporting documentation for the key line items on patient visits; however, this support did not agree to the 2023 UDS report. Cause: Staffing turnover. Effect: Inaccurate reporting or lack of adequate support. Identification as repeat finding, if applicable: 2023-003 Recommendation: We recommend LACHC retain adequate supporting documentation for UDS report submissions. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Sliding Scale Assessment Billing DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 Federal Award Identification #: H80CS6674 Condition: The sliding scale assessment based on a patient's ability to pay was not always applied properly for patient’s billing. Criteria: 42 CFR Part 51c.303 (f) Questioned Costs: $-0- Context: Out of 31 patients tested that had a sliding scale assessment, 3 patients had the correct sliding fee assessment completed; however, for the visit tested, the billing did not reflect the correct sliding fee. Cause: Human error. Effect: Non-compliance with federal regulations. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend LACHC implement additional checks and balances for patient billing to prevent sliding fee billing errors. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Uniform Data System (UDS) Reporting DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 and 93.527 Federal Award Identification #: 2023 Reporting Year Condition: LACHC did not retain adequate support for the 2023 UDS report submission. Criteria: Section 330 of the Public Health Service (PHS) Act (42 U.S.C. 254b) Questioned Costs: $-0- Context: LACHC had supporting documentation for the key line items on patient visits; however, this support did not agree to the 2023 UDS report. Cause: Staffing turnover. Effect: Inaccurate reporting or lack of adequate support. Identification as repeat finding, if applicable: 2023-003 Recommendation: We recommend LACHC retain adequate supporting documentation for UDS report submissions. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Uniform Data System (UDS) Reporting DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 and 93.527 Federal Award Identification #: 2023 Reporting Year Condition: LACHC did not retain adequate support for the 2023 UDS report submission. Criteria: Section 330 of the Public Health Service (PHS) Act (42 U.S.C. 254b) Questioned Costs: $-0- Context: LACHC had supporting documentation for the key line items on patient visits; however, this support did not agree to the 2023 UDS report. Cause: Staffing turnover. Effect: Inaccurate reporting or lack of adequate support. Identification as repeat finding, if applicable: 2023-003 Recommendation: We recommend LACHC retain adequate supporting documentation for UDS report submissions. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Sliding Scale Assessment Billing DEPARTMENT OF HEALTH AND HUMAN SERVICES ALN #: 93.224 Federal Award Identification #: H80CS6674 Condition: The sliding scale assessment based on a patient's ability to pay was not always applied properly for patient’s billing. Criteria: 42 CFR Part 51c.303 (f) Questioned Costs: $-0- Context: Out of 31 patients tested that had a sliding scale assessment, 3 patients had the correct sliding fee assessment completed; however, for the visit tested, the billing did not reflect the correct sliding fee. Cause: Human error. Effect: Non-compliance with federal regulations. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend LACHC implement additional checks and balances for patient billing to prevent sliding fee billing errors. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.