FAC Explorer

Audit 34352

FY End
2022-06-30
Total Expended
$6.84M
Findings
4
Programs
10
Organization: Hidalgo Medical Services (NM)
Year: 2022 Accepted: 2022-11-10
Auditor: Weaver and Tidwell LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37992 2022-001 Significant Deficiency Yes N
37993 2022-001 Significant Deficiency Yes N
614434 2022-001 Significant Deficiency Yes N
614435 2022-001 Significant Deficiency 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) $1.16M Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $898,000 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $230,242 - 0
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $191,105 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $125,250 Yes 1
93.053 Nutrition Services Incentive Program $110,395 - 0
93.958 Block Grants for Community Mental Health Services $84,236 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $65,674 - 0
93.461 Covid-19 Testing for the Uninsured $52,861 - 0
93.242 Mental Health Research Grants $42,731 - 0

Contacts

Name Title Type
NFANL539HER6 Gretchen Cannon Auditee
5755422335 Anna Stevens Auditor
No contacts on file

Notes to SEFA

Title: Note 3. CFDA 93.530 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Hidalgo Medical Services under the programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with 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 Hidalgo Medical Services, it is not intended to and does not present the financial position, results of operations, changes in net assets or cash flows of Hidalgo Medical Services. 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 allowed or are limited to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization received and expended funds from the Affordable Care Act Teaching Health Center Graduate Medical Education (THCGME) Payments Program. The amount of funds received during the period under audit, $724,110, is not included in the Schedule of Expenditures of Federal Awards above as the program, CFDA 93.530, is exempt from the Uniform Guidance requirements per the program description.
Title: Note 4. Subsequent Events Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Hidalgo Medical Services under the programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with 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 Hidalgo Medical Services, it is not intended to and does not present the financial position, results of operations, changes in net assets or cash flows of Hidalgo Medical Services. 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 allowed or are limited to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organizations management has evaluated subsequent events through November 3, 2022, the date the Schedule of Expenditures of Federal Awards was available to be issued.

Finding Details

Finding 2022-001
Findings Required to be Reported by the Uniform Guidance Finding 2022-001 ? Improper application of sliding fee discount CFDA Nos. ? 93.224 and 93.527 Federal Award ID # and Year ? 2 H80CS00744-19-00 Program Year 2022 Federal Agency Name: U.S. Department of Health and Human Services Type of finding Significant deficiency in internal control over compliance Criteria or Specific Requirement Special Tests and Provisions: Sliding Fee Discounts per Title 42 Chapter 1 Subchapter D Section 51c303(f) Condition The Organization?s sliding fee program provides discounts on patient services based upon the individual?s level of income. However, the Organization applied the incorrect discount based upon the individual?s income per the Organizations sliding fee discount policy. Cause Clerical error in updating and applying the sliding fee category in the billing system for the patient. Effect or Potential Effect Improper sliding fee discounts given to patients. Questioned Costs None Context or Perspective Information A sample of 40 patients were tested out of the total population of 1,994 encounters. The sampling methodology used is not statistically valid. Three patients received the incorrect sliding fee discount based upon their income level. Identification as a repeat finding, if applicable Yes, see prior year finding 2021-001. Recommendation We recommend that the Organization implement a verification process to ensure the sliding fee discounts being applied are in accordance with their sliding fee policy. Views of Responsible Officials and Planned Corrective Actions See corrective action plan
Finding 2022-001
Findings Required to be Reported by the Uniform Guidance Finding 2022-001 ? Improper application of sliding fee discount CFDA Nos. ? 93.224 and 93.527 Federal Award ID # and Year ? 2 H80CS00744-19-00 Program Year 2022 Federal Agency Name: U.S. Department of Health and Human Services Type of finding Significant deficiency in internal control over compliance Criteria or Specific Requirement Special Tests and Provisions: Sliding Fee Discounts per Title 42 Chapter 1 Subchapter D Section 51c303(f) Condition The Organization?s sliding fee program provides discounts on patient services based upon the individual?s level of income. However, the Organization applied the incorrect discount based upon the individual?s income per the Organizations sliding fee discount policy. Cause Clerical error in updating and applying the sliding fee category in the billing system for the patient. Effect or Potential Effect Improper sliding fee discounts given to patients. Questioned Costs None Context or Perspective Information A sample of 40 patients were tested out of the total population of 1,994 encounters. The sampling methodology used is not statistically valid. Three patients received the incorrect sliding fee discount based upon their income level. Identification as a repeat finding, if applicable Yes, see prior year finding 2021-001. Recommendation We recommend that the Organization implement a verification process to ensure the sliding fee discounts being applied are in accordance with their sliding fee policy. Views of Responsible Officials and Planned Corrective Actions See corrective action plan
Finding 2022-001
Findings Required to be Reported by the Uniform Guidance Finding 2022-001 ? Improper application of sliding fee discount CFDA Nos. ? 93.224 and 93.527 Federal Award ID # and Year ? 2 H80CS00744-19-00 Program Year 2022 Federal Agency Name: U.S. Department of Health and Human Services Type of finding Significant deficiency in internal control over compliance Criteria or Specific Requirement Special Tests and Provisions: Sliding Fee Discounts per Title 42 Chapter 1 Subchapter D Section 51c303(f) Condition The Organization?s sliding fee program provides discounts on patient services based upon the individual?s level of income. However, the Organization applied the incorrect discount based upon the individual?s income per the Organizations sliding fee discount policy. Cause Clerical error in updating and applying the sliding fee category in the billing system for the patient. Effect or Potential Effect Improper sliding fee discounts given to patients. Questioned Costs None Context or Perspective Information A sample of 40 patients were tested out of the total population of 1,994 encounters. The sampling methodology used is not statistically valid. Three patients received the incorrect sliding fee discount based upon their income level. Identification as a repeat finding, if applicable Yes, see prior year finding 2021-001. Recommendation We recommend that the Organization implement a verification process to ensure the sliding fee discounts being applied are in accordance with their sliding fee policy. Views of Responsible Officials and Planned Corrective Actions See corrective action plan
Finding 2022-001
Findings Required to be Reported by the Uniform Guidance Finding 2022-001 ? Improper application of sliding fee discount CFDA Nos. ? 93.224 and 93.527 Federal Award ID # and Year ? 2 H80CS00744-19-00 Program Year 2022 Federal Agency Name: U.S. Department of Health and Human Services Type of finding Significant deficiency in internal control over compliance Criteria or Specific Requirement Special Tests and Provisions: Sliding Fee Discounts per Title 42 Chapter 1 Subchapter D Section 51c303(f) Condition The Organization?s sliding fee program provides discounts on patient services based upon the individual?s level of income. However, the Organization applied the incorrect discount based upon the individual?s income per the Organizations sliding fee discount policy. Cause Clerical error in updating and applying the sliding fee category in the billing system for the patient. Effect or Potential Effect Improper sliding fee discounts given to patients. Questioned Costs None Context or Perspective Information A sample of 40 patients were tested out of the total population of 1,994 encounters. The sampling methodology used is not statistically valid. Three patients received the incorrect sliding fee discount based upon their income level. Identification as a repeat finding, if applicable Yes, see prior year finding 2021-001. Recommendation We recommend that the Organization implement a verification process to ensure the sliding fee discounts being applied are in accordance with their sliding fee policy. Views of Responsible Officials and Planned Corrective Actions See corrective action plan