Audit 334424

FY End
2023-12-31
Total Expended
$8.59M
Findings
4
Programs
2
Organization: Camcare Health Corporation (NJ)
Year: 2023 Accepted: 2024-12-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
516515 2023-001 Significant Deficiency Yes N
516516 2023-002 - Yes N
1092957 2023-001 Significant Deficiency Yes N
1092958 2023-002 - Yes N

Programs

Contacts

Name Title Type
MHZBA8MJFN95 Jim Cucinotta Auditee
8565832402 Charles Holmes Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting, the method used to prepare CAMcare’s basic financial statements. Such expenditures are recognized following cost principles contained in the Uniform Guidance and the state guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CAMcare did not elect to use the 10% de minimis indirect cost rate allowed under the uniform guidance. The accompanying schedule of expenditures of federal awards and schedule of expenditures of state financial assistance (the Schedules) include the federal and state grant activity of CAMcare Health Corporation (“CAMcare” or “the Center”) under programs of the federal and New Jersey state governments for year the ended December 31, 2023. The Schedules only present a selected portion of the operations of CAMcare and they are not intended to and do not present the financial position, changes in net assets, functional expenses, or cash flows (basic financial statements) of the Center. Federal awards received directly from federal agencies are designated as “Direct Program” on the schedule of expenditures of federal awards. Federal awards passed through from other grantor agencies, if any, are designated as “Pass-through” on the schedule of expenditures of federal awards. For the year ended December 31, 2023, CAMcare did not have any federal awards passed through from other grantor agencies. The information in the Schedules is presented in accordance with the audit 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”) and the State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (“New Jersey OMB Circular 15-08"). The amounts presented in the Schedules agree to the amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting, the method used to prepare CAMcare’s basic financial statements. Such expenditures are recognized following cost principles contained in the Uniform Guidance and the state guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CAMcare did not elect to use the 10% de minimis indirect cost rate allowed under the uniform guidance. Expenditures reported on the Schedules are reported on the accrual basis of accounting, the method used to prepare CAMcare’s basic financial statements. Such expenditures are recognized following cost principles contained in the Uniform Guidance and the state guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3: FEDERAL INDIRECT RATE Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting, the method used to prepare CAMcare’s basic financial statements. Such expenditures are recognized following cost principles contained in the Uniform Guidance and the state guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CAMcare did not elect to use the 10% de minimis indirect cost rate allowed under the uniform guidance. CAMcare did not elect to use the 10% de minimis indirect cost rate allowed under the uniform guidance.
Title: NOTE 4: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting, the method used to prepare CAMcare’s basic financial statements. Such expenditures are recognized following cost principles contained in the Uniform Guidance and the state guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: CAMcare did not elect to use the 10% de minimis indirect cost rate allowed under the uniform guidance. No amounts were passed through to subrecipients.

Finding Details

Criteria CAMcare’s internal controls over the special tests and provisions compliance area include the financial screening processes and related control activities to complete patient applications during financial screening, including reviewing and approving patient applications and calculating of scale ratings per patient based on annual income and family size. Condition During our testing of special tests and provisions, we noted control deficiencies related to the financial screening process; 18 out of 40 patient records sampled showed instances where the patient scale ratings were calculated incorrectly on the patient applications. Cause Financial screening personnel were not applying control procedures correctly in accordance with their financial screening process. Additionally, a revised sliding fee scale was implemented as of 10/1/2023 with updated scale ratings. If patients have an active, valid application in place, CAMcare does not require the patients to return to financial screening, and front desk registration personnel are not required to update the patient applications. At the time of registration, some applications were not updated to indicate the correct rating. Effect Possibility of inaccurate discounts given to patients and significant or material noncompliance with major federal programs. Questioned Costs None Perspective Information We tested a statistically valid sample of 40 patient encounters out of a total population of 11,961 uncompensated care program encounters and determined that the audit finding represented a systemic problem. Repeat Finding This is a repeat of Finding # 2022-006. Recommendation We recommend that management review the financial screening process in place and closely monitor the patient application process to emphasize the importance of correct implementation of control procedures. Prior to registering patient encounters, front desk personnel should review patient application information to ensure the information agrees to the registration system. Any information that does not reconcile should be reviewed and corrected by the financial screening team promptly, and prior to applying the sliding fee discount to patient billing records. Additionally, any time CAMcare revises/updates their sliding fee discount schedule, all necessary personnel should be notified of the revisions, and the financial screening team should review and update patient applications accordingly. Such revisions/updates to the scale should be reflected in the billing system promptly upon implementation of the revised scale. Views of Responsible Officials Management recognizes the deficiency; on December 10, 2024, CAMcare’s Interim CFO, Jim Cucinotta agreed with this finding, and explained that Management has made significant revisions to the financial screening department’s leadership and workflows, as well as hiring a new Financial Screening Manager, who provided the team with subject matter expertise, additional training, and increased accountability.
Criteria Pursuant to 42 CFR section 56.303(g)(2), health centers must make every reasonable effort, including the establishment of systems for eligibility determination, billing, and collection, to secure from patients, payments for services in accordance with the schedule of fees and discounts. Condition During our testing of special tests and provisions, we noted instances of noncompliance relating to the health center’s application of sliding fee discounts to patient charges; 6 out of 53 patient records sampled showed instances where patient charges were not appropriately adjusted to be consistent with the sliding fee discount schedule. Cause Personnel were not following CAMcare’s Financial Sliding Fee Scale Policies and Procedures, which comply with 42 CFR section 56.303(g)(2). Additionally, a revised sliding fee scale was implemented as of 10/1/2023 with updated scale ratings, there was a delay in applying the revised scales to the billing system, and not all personnel were notified of the scale revisions prior to applying the discounts to patient charges. At the time of registration, some applications were not updated to indicate the correct rating, and the system was not updated with the correct payment information. Effect Possibility of draw down restriction being placed on Payment Management System (PMS) account or denial of future funding. Questioned Costs None Perspective Information We tested a statistically valid sample of 53 patient encounters out of a total population of 11,961 uncompensated care program encounters and determined that the audit finding represented a systemic problem. Repeat Finding This is a repeat of Finding # 2022-005. Recommendation We recommend that management review financial sliding fee scale policies and procedures in place and closely monitor the patient billing process to ensure CAMcare is in compliance with the compliance requirements of 42 CFR section 56.303(g)(2). Prior to registering patient visits, front desk personnel (i.e., Intake) should review patient application information to ensure the information agrees to the registration system. Any information that does not reconcile should be reviewed and corrected by the financial screening team promptly, and prior to applying the sliding fee discount to patient billing records. Additionally, any time CAMcare revises/updates their sliding fee discount schedule, all necessary personnel should be notified of the revisions, and the financial screening team should review and update patient applications accordingly. Such revisions/updates to the scale should be reflected in the billing system promptly upon implementation of the revised scale. Views of Responsible Officials Management recognizes the deficiency; on December 10, 2024, CAMcare’s Interim CFO, Jim Cucinotta agreed with this finding, and explained that CAMcare made significant changes to the patient payment collection process and other policies, and the new EMR system allows for individual Patient Service Representatives (front desk personnel) to monitor management’s adherence to collection efforts.
Criteria CAMcare’s internal controls over the special tests and provisions compliance area include the financial screening processes and related control activities to complete patient applications during financial screening, including reviewing and approving patient applications and calculating of scale ratings per patient based on annual income and family size. Condition During our testing of special tests and provisions, we noted control deficiencies related to the financial screening process; 18 out of 40 patient records sampled showed instances where the patient scale ratings were calculated incorrectly on the patient applications. Cause Financial screening personnel were not applying control procedures correctly in accordance with their financial screening process. Additionally, a revised sliding fee scale was implemented as of 10/1/2023 with updated scale ratings. If patients have an active, valid application in place, CAMcare does not require the patients to return to financial screening, and front desk registration personnel are not required to update the patient applications. At the time of registration, some applications were not updated to indicate the correct rating. Effect Possibility of inaccurate discounts given to patients and significant or material noncompliance with major federal programs. Questioned Costs None Perspective Information We tested a statistically valid sample of 40 patient encounters out of a total population of 11,961 uncompensated care program encounters and determined that the audit finding represented a systemic problem. Repeat Finding This is a repeat of Finding # 2022-006. Recommendation We recommend that management review the financial screening process in place and closely monitor the patient application process to emphasize the importance of correct implementation of control procedures. Prior to registering patient encounters, front desk personnel should review patient application information to ensure the information agrees to the registration system. Any information that does not reconcile should be reviewed and corrected by the financial screening team promptly, and prior to applying the sliding fee discount to patient billing records. Additionally, any time CAMcare revises/updates their sliding fee discount schedule, all necessary personnel should be notified of the revisions, and the financial screening team should review and update patient applications accordingly. Such revisions/updates to the scale should be reflected in the billing system promptly upon implementation of the revised scale. Views of Responsible Officials Management recognizes the deficiency; on December 10, 2024, CAMcare’s Interim CFO, Jim Cucinotta agreed with this finding, and explained that Management has made significant revisions to the financial screening department’s leadership and workflows, as well as hiring a new Financial Screening Manager, who provided the team with subject matter expertise, additional training, and increased accountability.
Criteria Pursuant to 42 CFR section 56.303(g)(2), health centers must make every reasonable effort, including the establishment of systems for eligibility determination, billing, and collection, to secure from patients, payments for services in accordance with the schedule of fees and discounts. Condition During our testing of special tests and provisions, we noted instances of noncompliance relating to the health center’s application of sliding fee discounts to patient charges; 6 out of 53 patient records sampled showed instances where patient charges were not appropriately adjusted to be consistent with the sliding fee discount schedule. Cause Personnel were not following CAMcare’s Financial Sliding Fee Scale Policies and Procedures, which comply with 42 CFR section 56.303(g)(2). Additionally, a revised sliding fee scale was implemented as of 10/1/2023 with updated scale ratings, there was a delay in applying the revised scales to the billing system, and not all personnel were notified of the scale revisions prior to applying the discounts to patient charges. At the time of registration, some applications were not updated to indicate the correct rating, and the system was not updated with the correct payment information. Effect Possibility of draw down restriction being placed on Payment Management System (PMS) account or denial of future funding. Questioned Costs None Perspective Information We tested a statistically valid sample of 53 patient encounters out of a total population of 11,961 uncompensated care program encounters and determined that the audit finding represented a systemic problem. Repeat Finding This is a repeat of Finding # 2022-005. Recommendation We recommend that management review financial sliding fee scale policies and procedures in place and closely monitor the patient billing process to ensure CAMcare is in compliance with the compliance requirements of 42 CFR section 56.303(g)(2). Prior to registering patient visits, front desk personnel (i.e., Intake) should review patient application information to ensure the information agrees to the registration system. Any information that does not reconcile should be reviewed and corrected by the financial screening team promptly, and prior to applying the sliding fee discount to patient billing records. Additionally, any time CAMcare revises/updates their sliding fee discount schedule, all necessary personnel should be notified of the revisions, and the financial screening team should review and update patient applications accordingly. Such revisions/updates to the scale should be reflected in the billing system promptly upon implementation of the revised scale. Views of Responsible Officials Management recognizes the deficiency; on December 10, 2024, CAMcare’s Interim CFO, Jim Cucinotta agreed with this finding, and explained that CAMcare made significant changes to the patient payment collection process and other policies, and the new EMR system allows for individual Patient Service Representatives (front desk personnel) to monitor management’s adherence to collection efforts.