FAC Explorer

Audit 358180

FY End
2024-12-31
Total Expended
$4.90M
Findings
6
Programs
4
Organization: Paterson Community Health Center, INC (NJ)
Year: 2024 Accepted: 2025-06-05
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564088 2024-001 Significant Deficiency - I
564089 2024-001 Significant Deficiency - I
564090 2024-001 Significant Deficiency - I
1140530 2024-001 Significant Deficiency - I
1140531 2024-001 Significant Deficiency - I
1140532 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.09M Yes 1
93.526 Grants for Capital Development in Health Centers $121,858 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $40,050 - 0
93.527 Grants for New and Expanded Services Under the Health Center Program $32,565 Yes 1

Contacts

Name Title Type
KGBNS6JY69Y7 Bevan Baker Auditee
9737906594 Gil Bernhard Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Paterson Community Health Center, Inc. (the "Center") under programs of the federal and New Jersey state governments for the year ended December 31, 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") and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center. 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 Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable. The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Paterson Community Health Center, Inc. (the "Center") under programs of the federal and New Jersey state governments for the year ended December 31, 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") and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center.
Title: Note 2 - Summary of significant accounting policies Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Paterson Community Health Center, Inc. (the "Center") under programs of the federal and New Jersey state governments for the year ended December 31, 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") and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center. 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 Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable. 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.
Title: Note 3 - Indirect cost rate Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Paterson Community Health Center, Inc. (the "Center") under programs of the federal and New Jersey state governments for the year ended December 31, 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") and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center. 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 Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable. The Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable.
Title: Note 4 - Expansion of Primary Care Services to the Uninsured by Federally Qualified Health Centers Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Paterson Community Health Center, Inc. (the "Center") under programs of the federal and New Jersey state governments for the year ended December 31, 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") and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center. 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 Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable. The Center contracted with the State of New Jersey Department of Health and Senior Services to provide health and medical services to the uninsured population under the Expansion of Primary Care Services to the Uninsured by Federally Qualified Health Centers. Per a Letter of Agreement, the Center is paid a fixed amount per visit regardless of the actual costs incurred. During the year ended December 31, 2024, the amount earned and recognized as revenue under this Letter of Agreement for the contract period from July 1, 2024 to June 30, 2025 was $231,876 and for the contract period from July 1, 2023 to June 30, 2024 was $226,518, both of which are included in patient services revenue.

Finding Details

Finding 2024-001
Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) FAIN # H8000163, H8F41100 for 2024 - (Significant Deficiency) Criteria: Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. The Center's policy is to conduct an exclusion search for all newly hired employees and new contractors. Statement of condition: During our audit, we noted that certain employees hired in 2024 have no record of an exclusion search conducted. Cause: Inconsistent application of the internal control to ensure compliance with the general suspension and debarment requirements. Effect: Failure in implementing the exclusion search raises the risk that salaries of employees who are suspended or debarred may be charged to the program. Questioned costs: None Context: Two out of four samples tested did not have any exclusion searches on file upon hiring in 2024. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center train its personnel in relation to the exclusion screening and proper documentation thereof and that the Center conduct regular reviews to ensure the completeness of exclusion search documentation. Management response: We will ensure that the center's personnel are trained in the exclusion screening, maintain the location of the proper documentation, and conduct regular reviews to ensure the completeness of exclusion search documentation. The center performs background checks but was unable to locate the documents for those two new employees who were terminated but will ensure that we will put control processes in place to make sure we can demonstrate that the exclusion search was conducted.
Finding 2024-001
Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) FAIN # H8000163, H8F41100 for 2024 - (Significant Deficiency) Criteria: Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. The Center's policy is to conduct an exclusion search for all newly hired employees and new contractors. Statement of condition: During our audit, we noted that certain employees hired in 2024 have no record of an exclusion search conducted. Cause: Inconsistent application of the internal control to ensure compliance with the general suspension and debarment requirements. Effect: Failure in implementing the exclusion search raises the risk that salaries of employees who are suspended or debarred may be charged to the program. Questioned costs: None Context: Two out of four samples tested did not have any exclusion searches on file upon hiring in 2024. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center train its personnel in relation to the exclusion screening and proper documentation thereof and that the Center conduct regular reviews to ensure the completeness of exclusion search documentation. Management response: We will ensure that the center's personnel are trained in the exclusion screening, maintain the location of the proper documentation, and conduct regular reviews to ensure the completeness of exclusion search documentation. The center performs background checks but was unable to locate the documents for those two new employees who were terminated but will ensure that we will put control processes in place to make sure we can demonstrate that the exclusion search was conducted.
Finding 2024-001
Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) FAIN # H8000163, H8F41100 for 2024 - (Significant Deficiency) Criteria: Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. The Center's policy is to conduct an exclusion search for all newly hired employees and new contractors. Statement of condition: During our audit, we noted that certain employees hired in 2024 have no record of an exclusion search conducted. Cause: Inconsistent application of the internal control to ensure compliance with the general suspension and debarment requirements. Effect: Failure in implementing the exclusion search raises the risk that salaries of employees who are suspended or debarred may be charged to the program. Questioned costs: None Context: Two out of four samples tested did not have any exclusion searches on file upon hiring in 2024. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center train its personnel in relation to the exclusion screening and proper documentation thereof and that the Center conduct regular reviews to ensure the completeness of exclusion search documentation. Management response: We will ensure that the center's personnel are trained in the exclusion screening, maintain the location of the proper documentation, and conduct regular reviews to ensure the completeness of exclusion search documentation. The center performs background checks but was unable to locate the documents for those two new employees who were terminated but will ensure that we will put control processes in place to make sure we can demonstrate that the exclusion search was conducted.
Finding 2024-001
Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) FAIN # H8000163, H8F41100 for 2024 - (Significant Deficiency) Criteria: Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. The Center's policy is to conduct an exclusion search for all newly hired employees and new contractors. Statement of condition: During our audit, we noted that certain employees hired in 2024 have no record of an exclusion search conducted. Cause: Inconsistent application of the internal control to ensure compliance with the general suspension and debarment requirements. Effect: Failure in implementing the exclusion search raises the risk that salaries of employees who are suspended or debarred may be charged to the program. Questioned costs: None Context: Two out of four samples tested did not have any exclusion searches on file upon hiring in 2024. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center train its personnel in relation to the exclusion screening and proper documentation thereof and that the Center conduct regular reviews to ensure the completeness of exclusion search documentation. Management response: We will ensure that the center's personnel are trained in the exclusion screening, maintain the location of the proper documentation, and conduct regular reviews to ensure the completeness of exclusion search documentation. The center performs background checks but was unable to locate the documents for those two new employees who were terminated but will ensure that we will put control processes in place to make sure we can demonstrate that the exclusion search was conducted.
Finding 2024-001
Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) FAIN # H8000163, H8F41100 for 2024 - (Significant Deficiency) Criteria: Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. The Center's policy is to conduct an exclusion search for all newly hired employees and new contractors. Statement of condition: During our audit, we noted that certain employees hired in 2024 have no record of an exclusion search conducted. Cause: Inconsistent application of the internal control to ensure compliance with the general suspension and debarment requirements. Effect: Failure in implementing the exclusion search raises the risk that salaries of employees who are suspended or debarred may be charged to the program. Questioned costs: None Context: Two out of four samples tested did not have any exclusion searches on file upon hiring in 2024. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center train its personnel in relation to the exclusion screening and proper documentation thereof and that the Center conduct regular reviews to ensure the completeness of exclusion search documentation. Management response: We will ensure that the center's personnel are trained in the exclusion screening, maintain the location of the proper documentation, and conduct regular reviews to ensure the completeness of exclusion search documentation. The center performs background checks but was unable to locate the documents for those two new employees who were terminated but will ensure that we will put control processes in place to make sure we can demonstrate that the exclusion search was conducted.
Finding 2024-001
Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) FAIN # H8000163, H8F41100 for 2024 - (Significant Deficiency) Criteria: Recipients and subrecipients are subject to the procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. The Center's policy is to conduct an exclusion search for all newly hired employees and new contractors. Statement of condition: During our audit, we noted that certain employees hired in 2024 have no record of an exclusion search conducted. Cause: Inconsistent application of the internal control to ensure compliance with the general suspension and debarment requirements. Effect: Failure in implementing the exclusion search raises the risk that salaries of employees who are suspended or debarred may be charged to the program. Questioned costs: None Context: Two out of four samples tested did not have any exclusion searches on file upon hiring in 2024. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center train its personnel in relation to the exclusion screening and proper documentation thereof and that the Center conduct regular reviews to ensure the completeness of exclusion search documentation. Management response: We will ensure that the center's personnel are trained in the exclusion screening, maintain the location of the proper documentation, and conduct regular reviews to ensure the completeness of exclusion search documentation. The center performs background checks but was unable to locate the documents for those two new employees who were terminated but will ensure that we will put control processes in place to make sure we can demonstrate that the exclusion search was conducted.