FAC Explorer

Audit 358936

FY End
2023-06-30
Total Expended
$9.33M
Findings
32
Programs
7
Organization: Human Resource Development Institute (IL)
Year: 2023 Accepted: 2025-06-16
Auditor: Benford Brown & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565032 2023-001 - Yes P
565033 2023-002 Significant Deficiency - L
565034 2023-003 Material Weakness Yes N
565035 2023-001 - Yes P
565036 2023-002 Significant Deficiency - L
565037 2023-003 Material Weakness Yes N
565038 2023-001 - Yes P
565039 2023-002 Significant Deficiency - L
565040 2023-003 Material Weakness Yes N
565041 2023-001 - Yes P
565042 2023-002 Significant Deficiency - L
565043 2023-003 Material Weakness Yes N
565044 2023-001 - Yes P
565045 2023-002 Significant Deficiency - L
565046 2023-003 Material Weakness Yes N
565047 2023-001 - - P
1141474 2023-001 - Yes P
1141475 2023-002 Significant Deficiency - L
1141476 2023-003 Material Weakness Yes N
1141477 2023-001 - Yes P
1141478 2023-002 Significant Deficiency - L
1141479 2023-003 Material Weakness Yes N
1141480 2023-001 - Yes P
1141481 2023-002 Significant Deficiency - L
1141482 2023-003 Material Weakness Yes N
1141483 2023-001 - Yes P
1141484 2023-002 Significant Deficiency - L
1141485 2023-003 Material Weakness Yes N
1141486 2023-001 - Yes P
1141487 2023-002 Significant Deficiency - L
1141488 2023-003 Material Weakness Yes N
1141489 2023-001 - - P

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) $2.19M Yes 3
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $930,023 Yes 1
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $304,469 Yes 3
93.493 Congressional Directives $249,995 - 0
93.516 Affordable Care Act (aca) Public Health Training Centers Program $186,958 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $54,548 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $31,378 - 0

Contacts

Name Title Type
NKL8CX8CHTK7 Raheel Shahzad Auditee
8479576244 Timothy S. Watson Auditor
No contacts on file

Notes to SEFA

Title: (1) Schedule of Expenditures of Federal Awards Accounting Policies: Basis of Presentation The Schedule of Expenditures of Federal Awards (Schedule) has been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Schedule includes the federal grant activity of Friend Family Health Center, Inc. and Affiliates (Organization) and 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 presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: Y Rate Explanation: The Organization elected to use the 10% de minimis cost rate during fiscal year 2023. Basis of Presentation The Schedule of Expenditures of Federal Awards (Schedule) has been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Schedule includes the federal grant activity of Friend Family Health Center, Inc. and Affiliates (Organization) and 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 presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Sub-recipients The Organization did not make any disbursements to subrecipients during the fiscal year 2023. Non-cash Assistance The Organization did not receive any federal non-cash assistance during the fiscal year 2023. Insurance The Organization did not receive any federally-funded insurance during fiscal year 2023. Loans The Organization did not have any federal loans or loan guarantees outstanding as of June 30, 2023. De Minimis Cost Rate The Organization elected to use the 10% de minimis cost rate during fiscal year 2023.

Finding Details

Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-002
Finding 2023-002 Significant Deficiency in Internal Control Over Reporting Assistance Listing Numbers: 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency : U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency: N/A Award Number/Year: 2023 Criteria FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we noted that the Universal Data System report and the required annual Federal Financial Reports for the grants within these programs were not submitted by applicable deadlines. Cause FFHC experienced significant turnover of personnel during fiscal years 2021 and 2022 which resulted in a lack of effective transfer of knowledge to new accounting and grant administration personnel. As such, the new personnel were not able to resulted in a significant amount of time needed for the new personnel to get FFHC’s accounting records up to date, resulting in the late completion and submission of the Universal Data System Report and Federal Financial Reports for the grants within these programs.Finding 2023-002 (continued) Effect FFHC was not in compliance with the Reporting requirements for its federally funded programs as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding No. Recommendation We recommend that FFHC enforce its current specific internal control procedures to ensure compliance with applicable federal reporting requirements and ensure that all reports be filed timely in accordance with the federal reporting requirements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-003
Finding 2023-003 Material Weakness in Internal Control Over Special Tests and Provisions Assistance Listing Numbers 93.224 Health Center Program 93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency N/A Award Number/Year 2023Criteria FFHC is responsible for keeping adequate supporting documentation of the calculation of patient service fees for those patients who qualify for discounted fees based on family size and household income. FFHC is also required to apply discounted fees accurately based on an approved sliding fee scale that meets federal compliance requirements. Condition For AL No. 93.224, Health Center Program and AL 93.527, Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program, we were not able to obtain supporting documentation of the family size and household income for nine (9) of forty (40) patients selected for testing. For the remaining thirty-one (31) patients we did not receive enough supporting documentation to recalculate discounted fees in order to determine whether they were in compliance with special tests and provisions for these programs. Cause During fiscal year 2023 sliding scale fees were not properly documented due to the allowance of telehealth visits and limited staff available to collect and maintain proper documentation. Effect FFHC was not in compliance with the Special Tests and Provisions requirements applicable to the Health Center Program and Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program as prescribed by Uniform Guidance. Questioned Costs None reported. Repeat Finding Yes. See Finding 2022-002.Recommendation We recommend that FFHC enforce its current policy and related internal control procedures to ensure compliance with the requirement to provide discounted fees based on federally determined poverty levels for fiscal year 2023. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Finding 2023-001
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.224 Health Centers Program 93.527 Affordable Care Act Grants (ACA) for New and Expanded Services Under the Health Center Program 93.526 Affordable Care Act (ACA) Grants for Capital Development in Health Centers Federal Agency U.S. Department of Health and Human Services Passthrough Agency N/A Award Number/Year 2023 Criteria Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. Cause This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes. See Finding 2022-003 in the summary schedule of prior audit findings. Recommendation We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.