Audit 351666

FY End
2024-06-30
Total Expended
$16.35M
Findings
8
Programs
10
Organization: Wellspace Health (CA)
Year: 2024 Accepted: 2025-03-31
Auditor: Moss Adams LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
547477 2024-004 Significant Deficiency Yes N
547478 2024-004 Significant Deficiency Yes N
547479 2024-004 Significant Deficiency Yes N
547480 2024-005 Significant Deficiency - N
1123919 2024-004 Significant Deficiency Yes N
1123920 2024-004 Significant Deficiency Yes N
1123921 2024-004 Significant Deficiency Yes N
1123922 2024-005 Significant Deficiency - N

Contacts

Name Title Type
MUW3MJARNXH5 Chue Vang Auditee
9164694690 Etty Goldstein 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. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. The Organization uses the indirect cost rate as determined by the granting agencies. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Wellspace Health and Affiliates (collectively, the Organization) 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 the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets, functional expenses, or cash flows of the Organization.
Title: Note 4 – Subrecipients 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. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. The Organization uses the indirect cost rate as determined by the granting agencies. The Organization did not provide federal awards to any sub-recipients during the year ended June 30, 2024

Finding Details

Criteria: In accordance with OMB No. 0915-0193, the Uniform Data System (UDS) report is required to be submitted for the Health Centers Cluster program annually on a calendar year basis. In accordance with 42 CFR 56.303, health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted based on the patient’s ability to pay. The patient’s ability to pay is determined based on the official poverty guidelines, as revised annually by U.S. Department of Health and Human Services (HHS). The schedule of discounts must provide for a full discount to individuals and families with annual incomes at or below those set forth in the most recent poverty income guidelines (except that nominal fees for service may be collected from such individuals and families) and for no discount to individuals and families with annual incomes greater than twice those set forth in such Guidelines. Condition: The Organization determines the amount of fees to be charged to the patients based on their annual gross income and household size in conjunction with the sliding fee schedule. During our testing of sliding fee discount, we noted the following:  One (1) out of 60 patients selected was given a sliding fee discount when the patient did not qualify for any discount under the program, resulting in overstatement of the sliding fee discount by $289.  One (1) out of 60 selections were given a discount, however, the Organization did not retain physical support for proof of income for the verification of the eligibility and appropriate sliding fee scale, resulting in a possible overstatement of the sliding fee discount by $129. Context: The audit findings represent a systematic problem, see condition above. Questioned Costs: $418 of the $8,533 patient charges sampled. Effect: Patients were improperly categorized on the Organization’s sliding fee scale and were given an improper sliding fee discount. Cause: The inaccuracies in the application of the sliding fee program discounts were due to human error and inadequate oversight and review. Recommendation: We recommend that the Organization’s procedures be strengthened to ensure 1) income is properly verified and adequately documented, and 2) the sliding fee discount is properly determined and applied. The Organization should strengthen processes surrounding monitoring of the program to ensure the Organization’s policies are consistently and properly applied. Repeat finding: This is a similar repeat finding to last year’s audit #2023-002. Views of responsible officials and planned corrective actions: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be examined for accuracy, along with their supporting data. All information from these applications will be cross-verified in NextGen. The results from the sliding fee monthly audits will be monitored and reported quarterly at the Quality Assurance and Quality Improvement meetings. The Organization will be implementing a workflow adjustment stating all Slide applications will be noted in the system with a 30-day expiration deadline. This will ensure the staff will be able to notify the patient they would need to begin the process over and present the supporting documentation. Once the documentation is received the timeframe will extend to one year. Furthermore, the Organization will continue the practice of conducting skills assessments at the start of the year and once more in July. These assessments are crucial as they help pinpoint staff members who might benefit from refresher training. Moreover, a meeting has been scheduled to finalize the days and times for virtual sliding fee application training. This training, aimed at all staff who handle a sliding fee form, will be spread out over four weeks, with one session per week lasting an hour. Additionally, the Organization will introduce a sliding fee training video to the new employee orientation. After completing their NextGen training, staff will receive this training video via email. Furthermore, this video will also be sent to all health center leadership to be utilized at the health center level.
Criteria: In accordance with OMB No. 0915-0193, the Uniform Data System (UDS) report is required to be submitted for the Health Centers Cluster program annually on a calendar year basis. In accordance with 42 CFR 56.303, health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted based on the patient’s ability to pay. The patient’s ability to pay is determined based on the official poverty guidelines, as revised annually by U.S. Department of Health and Human Services (HHS). The schedule of discounts must provide for a full discount to individuals and families with annual incomes at or below those set forth in the most recent poverty income guidelines (except that nominal fees for service may be collected from such individuals and families) and for no discount to individuals and families with annual incomes greater than twice those set forth in such Guidelines. Condition: The Organization determines the amount of fees to be charged to the patients based on their annual gross income and household size in conjunction with the sliding fee schedule. During our testing of sliding fee discount, we noted the following:  One (1) out of 60 patients selected was given a sliding fee discount when the patient did not qualify for any discount under the program, resulting in overstatement of the sliding fee discount by $289.  One (1) out of 60 selections were given a discount, however, the Organization did not retain physical support for proof of income for the verification of the eligibility and appropriate sliding fee scale, resulting in a possible overstatement of the sliding fee discount by $129. Context: The audit findings represent a systematic problem, see condition above. Questioned Costs: $418 of the $8,533 patient charges sampled. Effect: Patients were improperly categorized on the Organization’s sliding fee scale and were given an improper sliding fee discount. Cause: The inaccuracies in the application of the sliding fee program discounts were due to human error and inadequate oversight and review. Recommendation: We recommend that the Organization’s procedures be strengthened to ensure 1) income is properly verified and adequately documented, and 2) the sliding fee discount is properly determined and applied. The Organization should strengthen processes surrounding monitoring of the program to ensure the Organization’s policies are consistently and properly applied. Repeat finding: This is a similar repeat finding to last year’s audit #2023-002. Views of responsible officials and planned corrective actions: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be examined for accuracy, along with their supporting data. All information from these applications will be cross-verified in NextGen. The results from the sliding fee monthly audits will be monitored and reported quarterly at the Quality Assurance and Quality Improvement meetings. The Organization will be implementing a workflow adjustment stating all Slide applications will be noted in the system with a 30-day expiration deadline. This will ensure the staff will be able to notify the patient they would need to begin the process over and present the supporting documentation. Once the documentation is received the timeframe will extend to one year. Furthermore, the Organization will continue the practice of conducting skills assessments at the start of the year and once more in July. These assessments are crucial as they help pinpoint staff members who might benefit from refresher training. Moreover, a meeting has been scheduled to finalize the days and times for virtual sliding fee application training. This training, aimed at all staff who handle a sliding fee form, will be spread out over four weeks, with one session per week lasting an hour. Additionally, the Organization will introduce a sliding fee training video to the new employee orientation. After completing their NextGen training, staff will receive this training video via email. Furthermore, this video will also be sent to all health center leadership to be utilized at the health center level.
Criteria: In accordance with OMB No. 0915-0193, the Uniform Data System (UDS) report is required to be submitted for the Health Centers Cluster program annually on a calendar year basis. In accordance with 42 CFR 56.303, health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted based on the patient’s ability to pay. The patient’s ability to pay is determined based on the official poverty guidelines, as revised annually by U.S. Department of Health and Human Services (HHS). The schedule of discounts must provide for a full discount to individuals and families with annual incomes at or below those set forth in the most recent poverty income guidelines (except that nominal fees for service may be collected from such individuals and families) and for no discount to individuals and families with annual incomes greater than twice those set forth in such Guidelines. Condition: The Organization determines the amount of fees to be charged to the patients based on their annual gross income and household size in conjunction with the sliding fee schedule. During our testing of sliding fee discount, we noted the following:  One (1) out of 60 patients selected was given a sliding fee discount when the patient did not qualify for any discount under the program, resulting in overstatement of the sliding fee discount by $289.  One (1) out of 60 selections were given a discount, however, the Organization did not retain physical support for proof of income for the verification of the eligibility and appropriate sliding fee scale, resulting in a possible overstatement of the sliding fee discount by $129. Context: The audit findings represent a systematic problem, see condition above. Questioned Costs: $418 of the $8,533 patient charges sampled. Effect: Patients were improperly categorized on the Organization’s sliding fee scale and were given an improper sliding fee discount. Cause: The inaccuracies in the application of the sliding fee program discounts were due to human error and inadequate oversight and review. Recommendation: We recommend that the Organization’s procedures be strengthened to ensure 1) income is properly verified and adequately documented, and 2) the sliding fee discount is properly determined and applied. The Organization should strengthen processes surrounding monitoring of the program to ensure the Organization’s policies are consistently and properly applied. Repeat finding: This is a similar repeat finding to last year’s audit #2023-002. Views of responsible officials and planned corrective actions: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be examined for accuracy, along with their supporting data. All information from these applications will be cross-verified in NextGen. The results from the sliding fee monthly audits will be monitored and reported quarterly at the Quality Assurance and Quality Improvement meetings. The Organization will be implementing a workflow adjustment stating all Slide applications will be noted in the system with a 30-day expiration deadline. This will ensure the staff will be able to notify the patient they would need to begin the process over and present the supporting documentation. Once the documentation is received the timeframe will extend to one year. Furthermore, the Organization will continue the practice of conducting skills assessments at the start of the year and once more in July. These assessments are crucial as they help pinpoint staff members who might benefit from refresher training. Moreover, a meeting has been scheduled to finalize the days and times for virtual sliding fee application training. This training, aimed at all staff who handle a sliding fee form, will be spread out over four weeks, with one session per week lasting an hour. Additionally, the Organization will introduce a sliding fee training video to the new employee orientation. After completing their NextGen training, staff will receive this training video via email. Furthermore, this video will also be sent to all health center leadership to be utilized at the health center level.
Criteria: The requirements for matching are contained in 2 CFR section 200.306, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. The requirements for level of effort and earmarking are contained in program legislation, Federal awarding agency regulations, and the terms and conditions of the award. Per review of the award documents for Certified Community Behavioral Health Clinics Program, key staff have identified the following level of effort requirements:  Project Director at 50%  Evaluator at 50% Any changes in the key staff including level of effort, involving separation from the projects for 3 or more months, or a 25% reduction in time dedicated to the projects requires prior approval from SAMHSA. Condition: During the audit, we noted that a level of effort for the Evaluator was below the 50% required minimum by the grant agreement. Context: The audit findings represent a systematic problem, see condition above. Effect: By not obtaining minimum level of effort percentages, the Clinic may have level of effort not in compliance with the requirement. Cause: There were ineffective controls in place during the period to ensure minimum level of effort requirement for key staff was tracking properly. Recommendation: We recommend that the Clinic work on improving tracking system for level of effort requirement to make sure the Organization stays in compliance. We would also recommend to contact SAMHSA staff that is identified in the Notice of Award if there is some uncertainty to address it timely. Repeat finding: This is not a repeat finding. Views of responsible officials and planned corrective actions: The Organization will ensure to track minimum level of effort requirement in regard to any key staff to stay in compliance. All invoices will be reviewed to ensure level of effort requirements are in compliance.
Criteria: In accordance with OMB No. 0915-0193, the Uniform Data System (UDS) report is required to be submitted for the Health Centers Cluster program annually on a calendar year basis. In accordance with 42 CFR 56.303, health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted based on the patient’s ability to pay. The patient’s ability to pay is determined based on the official poverty guidelines, as revised annually by U.S. Department of Health and Human Services (HHS). The schedule of discounts must provide for a full discount to individuals and families with annual incomes at or below those set forth in the most recent poverty income guidelines (except that nominal fees for service may be collected from such individuals and families) and for no discount to individuals and families with annual incomes greater than twice those set forth in such Guidelines. Condition: The Organization determines the amount of fees to be charged to the patients based on their annual gross income and household size in conjunction with the sliding fee schedule. During our testing of sliding fee discount, we noted the following:  One (1) out of 60 patients selected was given a sliding fee discount when the patient did not qualify for any discount under the program, resulting in overstatement of the sliding fee discount by $289.  One (1) out of 60 selections were given a discount, however, the Organization did not retain physical support for proof of income for the verification of the eligibility and appropriate sliding fee scale, resulting in a possible overstatement of the sliding fee discount by $129. Context: The audit findings represent a systematic problem, see condition above. Questioned Costs: $418 of the $8,533 patient charges sampled. Effect: Patients were improperly categorized on the Organization’s sliding fee scale and were given an improper sliding fee discount. Cause: The inaccuracies in the application of the sliding fee program discounts were due to human error and inadequate oversight and review. Recommendation: We recommend that the Organization’s procedures be strengthened to ensure 1) income is properly verified and adequately documented, and 2) the sliding fee discount is properly determined and applied. The Organization should strengthen processes surrounding monitoring of the program to ensure the Organization’s policies are consistently and properly applied. Repeat finding: This is a similar repeat finding to last year’s audit #2023-002. Views of responsible officials and planned corrective actions: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be examined for accuracy, along with their supporting data. All information from these applications will be cross-verified in NextGen. The results from the sliding fee monthly audits will be monitored and reported quarterly at the Quality Assurance and Quality Improvement meetings. The Organization will be implementing a workflow adjustment stating all Slide applications will be noted in the system with a 30-day expiration deadline. This will ensure the staff will be able to notify the patient they would need to begin the process over and present the supporting documentation. Once the documentation is received the timeframe will extend to one year. Furthermore, the Organization will continue the practice of conducting skills assessments at the start of the year and once more in July. These assessments are crucial as they help pinpoint staff members who might benefit from refresher training. Moreover, a meeting has been scheduled to finalize the days and times for virtual sliding fee application training. This training, aimed at all staff who handle a sliding fee form, will be spread out over four weeks, with one session per week lasting an hour. Additionally, the Organization will introduce a sliding fee training video to the new employee orientation. After completing their NextGen training, staff will receive this training video via email. Furthermore, this video will also be sent to all health center leadership to be utilized at the health center level.
Criteria: In accordance with OMB No. 0915-0193, the Uniform Data System (UDS) report is required to be submitted for the Health Centers Cluster program annually on a calendar year basis. In accordance with 42 CFR 56.303, health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted based on the patient’s ability to pay. The patient’s ability to pay is determined based on the official poverty guidelines, as revised annually by U.S. Department of Health and Human Services (HHS). The schedule of discounts must provide for a full discount to individuals and families with annual incomes at or below those set forth in the most recent poverty income guidelines (except that nominal fees for service may be collected from such individuals and families) and for no discount to individuals and families with annual incomes greater than twice those set forth in such Guidelines. Condition: The Organization determines the amount of fees to be charged to the patients based on their annual gross income and household size in conjunction with the sliding fee schedule. During our testing of sliding fee discount, we noted the following:  One (1) out of 60 patients selected was given a sliding fee discount when the patient did not qualify for any discount under the program, resulting in overstatement of the sliding fee discount by $289.  One (1) out of 60 selections were given a discount, however, the Organization did not retain physical support for proof of income for the verification of the eligibility and appropriate sliding fee scale, resulting in a possible overstatement of the sliding fee discount by $129. Context: The audit findings represent a systematic problem, see condition above. Questioned Costs: $418 of the $8,533 patient charges sampled. Effect: Patients were improperly categorized on the Organization’s sliding fee scale and were given an improper sliding fee discount. Cause: The inaccuracies in the application of the sliding fee program discounts were due to human error and inadequate oversight and review. Recommendation: We recommend that the Organization’s procedures be strengthened to ensure 1) income is properly verified and adequately documented, and 2) the sliding fee discount is properly determined and applied. The Organization should strengthen processes surrounding monitoring of the program to ensure the Organization’s policies are consistently and properly applied. Repeat finding: This is a similar repeat finding to last year’s audit #2023-002. Views of responsible officials and planned corrective actions: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be examined for accuracy, along with their supporting data. All information from these applications will be cross-verified in NextGen. The results from the sliding fee monthly audits will be monitored and reported quarterly at the Quality Assurance and Quality Improvement meetings. The Organization will be implementing a workflow adjustment stating all Slide applications will be noted in the system with a 30-day expiration deadline. This will ensure the staff will be able to notify the patient they would need to begin the process over and present the supporting documentation. Once the documentation is received the timeframe will extend to one year. Furthermore, the Organization will continue the practice of conducting skills assessments at the start of the year and once more in July. These assessments are crucial as they help pinpoint staff members who might benefit from refresher training. Moreover, a meeting has been scheduled to finalize the days and times for virtual sliding fee application training. This training, aimed at all staff who handle a sliding fee form, will be spread out over four weeks, with one session per week lasting an hour. Additionally, the Organization will introduce a sliding fee training video to the new employee orientation. After completing their NextGen training, staff will receive this training video via email. Furthermore, this video will also be sent to all health center leadership to be utilized at the health center level.
Criteria: In accordance with OMB No. 0915-0193, the Uniform Data System (UDS) report is required to be submitted for the Health Centers Cluster program annually on a calendar year basis. In accordance with 42 CFR 56.303, health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted based on the patient’s ability to pay. The patient’s ability to pay is determined based on the official poverty guidelines, as revised annually by U.S. Department of Health and Human Services (HHS). The schedule of discounts must provide for a full discount to individuals and families with annual incomes at or below those set forth in the most recent poverty income guidelines (except that nominal fees for service may be collected from such individuals and families) and for no discount to individuals and families with annual incomes greater than twice those set forth in such Guidelines. Condition: The Organization determines the amount of fees to be charged to the patients based on their annual gross income and household size in conjunction with the sliding fee schedule. During our testing of sliding fee discount, we noted the following:  One (1) out of 60 patients selected was given a sliding fee discount when the patient did not qualify for any discount under the program, resulting in overstatement of the sliding fee discount by $289.  One (1) out of 60 selections were given a discount, however, the Organization did not retain physical support for proof of income for the verification of the eligibility and appropriate sliding fee scale, resulting in a possible overstatement of the sliding fee discount by $129. Context: The audit findings represent a systematic problem, see condition above. Questioned Costs: $418 of the $8,533 patient charges sampled. Effect: Patients were improperly categorized on the Organization’s sliding fee scale and were given an improper sliding fee discount. Cause: The inaccuracies in the application of the sliding fee program discounts were due to human error and inadequate oversight and review. Recommendation: We recommend that the Organization’s procedures be strengthened to ensure 1) income is properly verified and adequately documented, and 2) the sliding fee discount is properly determined and applied. The Organization should strengthen processes surrounding monitoring of the program to ensure the Organization’s policies are consistently and properly applied. Repeat finding: This is a similar repeat finding to last year’s audit #2023-002. Views of responsible officials and planned corrective actions: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be examined for accuracy, along with their supporting data. All information from these applications will be cross-verified in NextGen. The results from the sliding fee monthly audits will be monitored and reported quarterly at the Quality Assurance and Quality Improvement meetings. The Organization will be implementing a workflow adjustment stating all Slide applications will be noted in the system with a 30-day expiration deadline. This will ensure the staff will be able to notify the patient they would need to begin the process over and present the supporting documentation. Once the documentation is received the timeframe will extend to one year. Furthermore, the Organization will continue the practice of conducting skills assessments at the start of the year and once more in July. These assessments are crucial as they help pinpoint staff members who might benefit from refresher training. Moreover, a meeting has been scheduled to finalize the days and times for virtual sliding fee application training. This training, aimed at all staff who handle a sliding fee form, will be spread out over four weeks, with one session per week lasting an hour. Additionally, the Organization will introduce a sliding fee training video to the new employee orientation. After completing their NextGen training, staff will receive this training video via email. Furthermore, this video will also be sent to all health center leadership to be utilized at the health center level.
Criteria: The requirements for matching are contained in 2 CFR section 200.306, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. The requirements for level of effort and earmarking are contained in program legislation, Federal awarding agency regulations, and the terms and conditions of the award. Per review of the award documents for Certified Community Behavioral Health Clinics Program, key staff have identified the following level of effort requirements:  Project Director at 50%  Evaluator at 50% Any changes in the key staff including level of effort, involving separation from the projects for 3 or more months, or a 25% reduction in time dedicated to the projects requires prior approval from SAMHSA. Condition: During the audit, we noted that a level of effort for the Evaluator was below the 50% required minimum by the grant agreement. Context: The audit findings represent a systematic problem, see condition above. Effect: By not obtaining minimum level of effort percentages, the Clinic may have level of effort not in compliance with the requirement. Cause: There were ineffective controls in place during the period to ensure minimum level of effort requirement for key staff was tracking properly. Recommendation: We recommend that the Clinic work on improving tracking system for level of effort requirement to make sure the Organization stays in compliance. We would also recommend to contact SAMHSA staff that is identified in the Notice of Award if there is some uncertainty to address it timely. Repeat finding: This is not a repeat finding. Views of responsible officials and planned corrective actions: The Organization will ensure to track minimum level of effort requirement in regard to any key staff to stay in compliance. All invoices will be reviewed to ensure level of effort requirements are in compliance.