FAC Explorer

Audit 341112

FY End
2024-03-31
Total Expended
$7.43M
Findings
8
Programs
13
Organization: Hamilton Health Center, Inc. (PA)
Year: 2024 Accepted: 2025-02-04
Auditor: Baker Tilly

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
521156 2024-002 Significant Deficiency Yes L
521157 2024-003 Significant Deficiency Yes B
521158 2024-002 Significant Deficiency Yes L
521159 2024-003 Significant Deficiency Yes B
1097598 2024-002 Significant Deficiency Yes L
1097599 2024-003 Significant Deficiency Yes B
1097600 2024-002 Significant Deficiency Yes L
1097601 2024-003 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $3.28M Yes 2
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $1.23M Yes 0
93.926 Healthy Start Initiative $1.06M - 0
93.224 Community Health Centers $684,947 Yes 2
93.268 Immunization Cooperative Agreements $538,396 - 0
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $266,302 - 0
93.217 Family Planning Services $154,187 - 0
93.994 Maternal and Child Health Services Block Grant to the States $49,765 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $43,511 - 0
93.667 Social Services Block Grant $38,850 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $38,149 - 0
93.788 Opioid Str $34,427 - 0
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $17,264 - 0

Contacts

Name Title Type
PNLNCXKS1CH6 Frackson Sakala Auditee
7172329971 Debra Bowes, CPA 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 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 (where applicable) 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 applicable. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hamilton Health Center, Inc. (the Center) and subsidiaries (the Organization) under programs of the federal government for the year ended March 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Organization.
Title: 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 (where applicable) 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 applicable. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as 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 (where applicable) 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 applicable.
Title: Indirect Costs 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 (where applicable) 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 applicable. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: WIC Special Supplemental Nutrition Program for Women, Infants, and Children 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 (where applicable) 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 applicable. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization receives funding under Assistance Listing number 10.557, WIC Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which is passed through the Pennsylvania Department of Health (PA DOH). The grant program year for the WIC program is October 1 through September 30 each year. The Organization invoices PA DOH for WIC program expenditures on a reimbursement basis, after eligible costs have been incurred. Amounts receivable from PA DOH at the end of each period are recorded as grants receivable in the consolidated balance sheets, and are disclosed in Note 5 to the consolidated financial statements. Grant revenue is recognized by the Organization as eligible expenditures are incurred under the terms of the grant agreement. Such revenue is recorded as a component of grant revenue in the consolidated statements of operations. A rollforward schedule of grants receivable related to the WIC program is as follows for the year ended March 31, 2024: [see table in footnote 4 in Notes to the SEFA]

Finding Details

Finding 2024-002
2024-002: Significant Deficiency in Internal Control - Reporting Repeat finding of 2023-002 Federal Program: Health Center Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit thirty-five reports during its fiscal year ended March 31, 2024, which comprised six financial reports and twenty-nine performance reports. Two performance reports and three financial reports were not filed timely. Reports that were filed late ranged from being 1 day late up to seventeen days late. The Organization was able to demonstrate its attempt to file 4 of the late reports before their respective due dates however due to login issues on the federal submission site, the reports were not timely filed. The fifth late submission was late by one day. Effect: The Organization did not comply with the reporting requirements for the submission of its performance and financial reports for the fiscal year ending March 31, 2024. Cause: The Organization did not file these reports timely due to an oversight by management. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: The late submission of grant reports was mainly due to login issues when the HRSA changed the process for logging in by adding on a second layer for authentication. A diary system has been developed to alert the CFO and the Controller when grant reports are due. Also, the Controller and Assistant Controller have been given access to both the Payment Management System and the Electronic Handbook (EHB) and have been trained in federal grant reporting so that in the absence of one the others can prepare the reports and submit on time.
Finding 2024-003
2024-003: Significant Deficiency in Internal Control - Indirect Costs Repeat Finding of 2023-003 Federal Program: COVID-19: Community Health Centers (Health Center Program Cluster) Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $6,054 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period April 2023 through June 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $6,054 in excess of what was allowed during the year ended March 31, 2024. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: The continued use of the expired indirecto cost rate was caused by the departure of the former CFO, who was responsible for reviewing federal grant draw downs. After the CFO let, the controller continued using the expired indirect cost rate. The new CFO has put in place a system to review the indirect cost rate in effect prior to the drawdown of grant funds.
Finding 2024-002
2024-002: Significant Deficiency in Internal Control - Reporting Repeat finding of 2023-002 Federal Program: Health Center Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit thirty-five reports during its fiscal year ended March 31, 2024, which comprised six financial reports and twenty-nine performance reports. Two performance reports and three financial reports were not filed timely. Reports that were filed late ranged from being 1 day late up to seventeen days late. The Organization was able to demonstrate its attempt to file 4 of the late reports before their respective due dates however due to login issues on the federal submission site, the reports were not timely filed. The fifth late submission was late by one day. Effect: The Organization did not comply with the reporting requirements for the submission of its performance and financial reports for the fiscal year ending March 31, 2024. Cause: The Organization did not file these reports timely due to an oversight by management. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: The late submission of grant reports was mainly due to login issues when the HRSA changed the process for logging in by adding on a second layer for authentication. A diary system has been developed to alert the CFO and the Controller when grant reports are due. Also, the Controller and Assistant Controller have been given access to both the Payment Management System and the Electronic Handbook (EHB) and have been trained in federal grant reporting so that in the absence of one the others can prepare the reports and submit on time.
Finding 2024-003
2024-003: Significant Deficiency in Internal Control - Indirect Costs Repeat Finding of 2023-003 Federal Program: COVID-19: Community Health Centers (Health Center Program Cluster) Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $6,054 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period April 2023 through June 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $6,054 in excess of what was allowed during the year ended March 31, 2024. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: The continued use of the expired indirecto cost rate was caused by the departure of the former CFO, who was responsible for reviewing federal grant draw downs. After the CFO let, the controller continued using the expired indirect cost rate. The new CFO has put in place a system to review the indirect cost rate in effect prior to the drawdown of grant funds.
Finding 2024-002
2024-002: Significant Deficiency in Internal Control - Reporting Repeat finding of 2023-002 Federal Program: Health Center Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit thirty-five reports during its fiscal year ended March 31, 2024, which comprised six financial reports and twenty-nine performance reports. Two performance reports and three financial reports were not filed timely. Reports that were filed late ranged from being 1 day late up to seventeen days late. The Organization was able to demonstrate its attempt to file 4 of the late reports before their respective due dates however due to login issues on the federal submission site, the reports were not timely filed. The fifth late submission was late by one day. Effect: The Organization did not comply with the reporting requirements for the submission of its performance and financial reports for the fiscal year ending March 31, 2024. Cause: The Organization did not file these reports timely due to an oversight by management. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: The late submission of grant reports was mainly due to login issues when the HRSA changed the process for logging in by adding on a second layer for authentication. A diary system has been developed to alert the CFO and the Controller when grant reports are due. Also, the Controller and Assistant Controller have been given access to both the Payment Management System and the Electronic Handbook (EHB) and have been trained in federal grant reporting so that in the absence of one the others can prepare the reports and submit on time.
Finding 2024-003
2024-003: Significant Deficiency in Internal Control - Indirect Costs Repeat Finding of 2023-003 Federal Program: COVID-19: Community Health Centers (Health Center Program Cluster) Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $6,054 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period April 2023 through June 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $6,054 in excess of what was allowed during the year ended March 31, 2024. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: The continued use of the expired indirecto cost rate was caused by the departure of the former CFO, who was responsible for reviewing federal grant draw downs. After the CFO let, the controller continued using the expired indirect cost rate. The new CFO has put in place a system to review the indirect cost rate in effect prior to the drawdown of grant funds.
Finding 2024-002
2024-002: Significant Deficiency in Internal Control - Reporting Repeat finding of 2023-002 Federal Program: Health Center Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit thirty-five reports during its fiscal year ended March 31, 2024, which comprised six financial reports and twenty-nine performance reports. Two performance reports and three financial reports were not filed timely. Reports that were filed late ranged from being 1 day late up to seventeen days late. The Organization was able to demonstrate its attempt to file 4 of the late reports before their respective due dates however due to login issues on the federal submission site, the reports were not timely filed. The fifth late submission was late by one day. Effect: The Organization did not comply with the reporting requirements for the submission of its performance and financial reports for the fiscal year ending March 31, 2024. Cause: The Organization did not file these reports timely due to an oversight by management. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: The late submission of grant reports was mainly due to login issues when the HRSA changed the process for logging in by adding on a second layer for authentication. A diary system has been developed to alert the CFO and the Controller when grant reports are due. Also, the Controller and Assistant Controller have been given access to both the Payment Management System and the Electronic Handbook (EHB) and have been trained in federal grant reporting so that in the absence of one the others can prepare the reports and submit on time.
Finding 2024-003
2024-003: Significant Deficiency in Internal Control - Indirect Costs Repeat Finding of 2023-003 Federal Program: COVID-19: Community Health Centers (Health Center Program Cluster) Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2024 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $6,054 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period April 2023 through June 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $6,054 in excess of what was allowed during the year ended March 31, 2024. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: The continued use of the expired indirecto cost rate was caused by the departure of the former CFO, who was responsible for reviewing federal grant draw downs. After the CFO let, the controller continued using the expired indirect cost rate. The new CFO has put in place a system to review the indirect cost rate in effect prior to the drawdown of grant funds.