FAC Explorer

Audit 345945

FY End
2024-06-30
Total Expended
$6.54M
Findings
2
Programs
11
Organization: Hcc Network (MO)
Year: 2024 Accepted: 2025-03-13
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
526849 2024-001 Material Weakness - I
1103291 2024-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $935,628 - 0
93.493 Congressional Directives $762,691 - 0
10.766 Community Facilities Loans and Grants $468,772 - 0
93.526 Grants for Capital Development in Health Centers $341,459 Yes 1
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $311,680 Yes 0
93.778 Medical Assistance Program $204,366 - 0
93.107 Area Health Education Centers $117,906 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $103,958 - 0
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges $66,947 - 0
93.800 Organized Approaches to Increase Colorectal Cancer Screening $21,000 - 0
93.527 Grants for New and Expanded Services Under the Health Center Program $2,105 Yes 0

Contacts

Name Title Type
JXQAJ5Z7NCC3 Toniann Richard Auditee
6602592440 Justin Kensinger Auditor
No contacts on file

Notes to SEFA

Title: Note 1. 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, if any, represents 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: HCC Network has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of HCC Network under programs of the federal government for the year ended June 30, 2024. 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 HCC Network it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of HCC Network.
Title: Note 4. Federal Loan Program 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, if any, represents 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: HCC Network has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan programs listed subsequently are administered directly by HCC Network and balances and transactions relating to these programs are included in HCC Network’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2024, consists of: Assistance Listing Number- 10.766; Program Name- Community Facilities Loans and Grants; Outstanding Balance at June 30, 2024- $459,970

Finding Details

Finding 2024-001
Grants for Capital Development in Health Centers – ALN 93.526 U.S. Department of Health and Human Services Award No. 6 C8ECS44310-01-05, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-04, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-03, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-02, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-01, September 15, 2021-September 14, 2024 Award No. 1 C8ECS44310-01-00, September 15, 2021-September 14, 2024 Criteria or Specific Requirement – Procurement – 45 CFR 75.329 Condition – Procurement procedure was not followed for use of vendor with costs greater than $250,000 for purchase of dental equipment. Questioned cost – None Context – A sample of 1 vendor was tested out of a population of 3 vendors. The sampling methodology used is not and is not intended to be statistically valid. For the vendor that was tested, it was found that selection of this vendor was inconsistent with the procurement policy. The client initially had intended to use the grant money for other purposes and had not intended to use federal funds to purchase dental equipment. Therefore, they did not go through the formal procurement processes to select the tested vendor. Effect – Procurement methodology was not followed for vendor with expenses of over $250,000. Cause – The Organization did not comply with their procurement policy. Identification as a repeat finding, if applicable – New finding Recommendation – We recommend management continue to ensure all personnel understand the procurement policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that vendors, especially those over $250,000, are selected and vetted in accordance with policy and Uniform Guidance.
Finding 2024-001
Grants for Capital Development in Health Centers – ALN 93.526 U.S. Department of Health and Human Services Award No. 6 C8ECS44310-01-05, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-04, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-03, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-02, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-01, September 15, 2021-September 14, 2024 Award No. 1 C8ECS44310-01-00, September 15, 2021-September 14, 2024 Criteria or Specific Requirement – Procurement – 45 CFR 75.329 Condition – Procurement procedure was not followed for use of vendor with costs greater than $250,000 for purchase of dental equipment. Questioned cost – None Context – A sample of 1 vendor was tested out of a population of 3 vendors. The sampling methodology used is not and is not intended to be statistically valid. For the vendor that was tested, it was found that selection of this vendor was inconsistent with the procurement policy. The client initially had intended to use the grant money for other purposes and had not intended to use federal funds to purchase dental equipment. Therefore, they did not go through the formal procurement processes to select the tested vendor. Effect – Procurement methodology was not followed for vendor with expenses of over $250,000. Cause – The Organization did not comply with their procurement policy. Identification as a repeat finding, if applicable – New finding Recommendation – We recommend management continue to ensure all personnel understand the procurement policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that vendors, especially those over $250,000, are selected and vetted in accordance with policy and Uniform Guidance.