Audit 362384

FY End
2024-12-31
Total Expended
$3.83M
Findings
8
Programs
3
Organization: Healthfirst Bluegrass INC (KY)
Year: 2024 Accepted: 2025-07-16

Organization Exclusion Status:

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Contacts

Name Title Type
ETKEQ8M71A77 Jeremy Alltop Auditee
8592882425 Jennifer Williams Auditor
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Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of HealthFirst Bluegrass, Inc. (Health Center) under programs of the federal government 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). Because the Schedule presents only a selected portion of the operations of the Health Center, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Health Center.
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Note 3: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Health Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Health Center did not have any federal loan programs during the year ended December 31, 2024.

Finding Details

Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Health Centers must comply with federal reporting requirements Condition – The Health Center did not accurately complete its Federal Financial Report Cause – The detailed review of the submitted report missed the error of the line item. Effect or Potential Effect – The Federal Financial Report was submitted reported with incorrect data for lines 10 (l) – Total Federal share of program income earned Questioned Costs – Not applicable Context – Out of a population of 3 financial report required to be submitted during the year under audit, 1 financial report was tested. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management continue to review the report and compare to other reports to help alleviate the error in the line item. Views of responsible officials and planned corrective actions – Management will continue their review process of the submitted reports.
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Special Tests and Provisions – 42 CFR, Part 56.303(e), (f), and (g). Health Centers receiving funds under the Health Center Program Cluster are required to prepare a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patient payments for services in accordance with the schedule of fees and discounts Condition – We noted during our testing of compliance with federal awards that the Health Center did not properly apply the sliding fee discounts approved by the board of directors for 4 out of a sample of 25 patients for the year ended December 31, 2024. Cause – Errors occurred when analyzing the patient account Effect or Potential Effect – Discounts were not properly applied to patient accounts based on the policy. Questioned Costs – Not applicable Context – From a total of 16,857 sliding fee discounts for the period, 25 discounts were selected for testing. This sample was not, and was not intended to be, a statistically valid sample. The Health Center’s management did prepare a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Health Center’s board of directors and the schedule was uploaded into the Health Center’s billing system. However, there were errors when comparing the approved schedule to certain actual adjustments to patient accounts during the year ended December 31, 2024. For 1 of the 25 accounts selected for testing, the account had an incorrect discount applied and the 3 patients did not have supporting documentation (school based lunch application) to support the slide applied. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management work to provide additional trainings to the staff responsible for completing sliding fee applications and those responsible for applying the sliding fee discount to patient accounts and conduct additional internal reviews to verify the patient accounts have been adjusted properly and appropriate supporting documentation is maintained in the patient’s file. Views of responsible officials and planned corrective actions – Management has begun staff training and will meet with the billing team regarding the sliding fee policy and process.
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Health Centers must comply with federal reporting requirements Condition – The Health Center did not accurately complete its Federal Financial Report Cause – The detailed review of the submitted report missed the error of the line item. Effect or Potential Effect – The Federal Financial Report was submitted reported with incorrect data for lines 10 (l) – Total Federal share of program income earned Questioned Costs – Not applicable Context – Out of a population of 3 financial report required to be submitted during the year under audit, 1 financial report was tested. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management continue to review the report and compare to other reports to help alleviate the error in the line item. Views of responsible officials and planned corrective actions – Management will continue their review process of the submitted reports.
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Special Tests and Provisions – 42 CFR, Part 56.303(e), (f), and (g). Health Centers receiving funds under the Health Center Program Cluster are required to prepare a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patient payments for services in accordance with the schedule of fees and discounts Condition – We noted during our testing of compliance with federal awards that the Health Center did not properly apply the sliding fee discounts approved by the board of directors for 4 out of a sample of 25 patients for the year ended December 31, 2024. Cause – Errors occurred when analyzing the patient account Effect or Potential Effect – Discounts were not properly applied to patient accounts based on the policy. Questioned Costs – Not applicable Context – From a total of 16,857 sliding fee discounts for the period, 25 discounts were selected for testing. This sample was not, and was not intended to be, a statistically valid sample. The Health Center’s management did prepare a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Health Center’s board of directors and the schedule was uploaded into the Health Center’s billing system. However, there were errors when comparing the approved schedule to certain actual adjustments to patient accounts during the year ended December 31, 2024. For 1 of the 25 accounts selected for testing, the account had an incorrect discount applied and the 3 patients did not have supporting documentation (school based lunch application) to support the slide applied. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management work to provide additional trainings to the staff responsible for completing sliding fee applications and those responsible for applying the sliding fee discount to patient accounts and conduct additional internal reviews to verify the patient accounts have been adjusted properly and appropriate supporting documentation is maintained in the patient’s file. Views of responsible officials and planned corrective actions – Management has begun staff training and will meet with the billing team regarding the sliding fee policy and process.
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Health Centers must comply with federal reporting requirements Condition – The Health Center did not accurately complete its Federal Financial Report Cause – The detailed review of the submitted report missed the error of the line item. Effect or Potential Effect – The Federal Financial Report was submitted reported with incorrect data for lines 10 (l) – Total Federal share of program income earned Questioned Costs – Not applicable Context – Out of a population of 3 financial report required to be submitted during the year under audit, 1 financial report was tested. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management continue to review the report and compare to other reports to help alleviate the error in the line item. Views of responsible officials and planned corrective actions – Management will continue their review process of the submitted reports.
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Special Tests and Provisions – 42 CFR, Part 56.303(e), (f), and (g). Health Centers receiving funds under the Health Center Program Cluster are required to prepare a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patient payments for services in accordance with the schedule of fees and discounts Condition – We noted during our testing of compliance with federal awards that the Health Center did not properly apply the sliding fee discounts approved by the board of directors for 4 out of a sample of 25 patients for the year ended December 31, 2024. Cause – Errors occurred when analyzing the patient account Effect or Potential Effect – Discounts were not properly applied to patient accounts based on the policy. Questioned Costs – Not applicable Context – From a total of 16,857 sliding fee discounts for the period, 25 discounts were selected for testing. This sample was not, and was not intended to be, a statistically valid sample. The Health Center’s management did prepare a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Health Center’s board of directors and the schedule was uploaded into the Health Center’s billing system. However, there were errors when comparing the approved schedule to certain actual adjustments to patient accounts during the year ended December 31, 2024. For 1 of the 25 accounts selected for testing, the account had an incorrect discount applied and the 3 patients did not have supporting documentation (school based lunch application) to support the slide applied. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management work to provide additional trainings to the staff responsible for completing sliding fee applications and those responsible for applying the sliding fee discount to patient accounts and conduct additional internal reviews to verify the patient accounts have been adjusted properly and appropriate supporting documentation is maintained in the patient’s file. Views of responsible officials and planned corrective actions – Management has begun staff training and will meet with the billing team regarding the sliding fee policy and process.
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Health Centers must comply with federal reporting requirements Condition – The Health Center did not accurately complete its Federal Financial Report Cause – The detailed review of the submitted report missed the error of the line item. Effect or Potential Effect – The Federal Financial Report was submitted reported with incorrect data for lines 10 (l) – Total Federal share of program income earned Questioned Costs – Not applicable Context – Out of a population of 3 financial report required to be submitted during the year under audit, 1 financial report was tested. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management continue to review the report and compare to other reports to help alleviate the error in the line item. Views of responsible officials and planned corrective actions – Management will continue their review process of the submitted reports.
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS28202-09 for project period February 1, 2022 through January 31, 2025 Criteria or specific requirement – Special Tests and Provisions – 42 CFR, Part 56.303(e), (f), and (g). Health Centers receiving funds under the Health Center Program Cluster are required to prepare a schedule of fees or payments for the provision of its services designed to cover its reasonable costs of operation and a corresponding schedule of discounts adjusted on the basis of the patient’s ability to pay, to make every reasonable effort, including the establishment of systems for eligibility determination, billing and collection, and to secure from patient payments for services in accordance with the schedule of fees and discounts Condition – We noted during our testing of compliance with federal awards that the Health Center did not properly apply the sliding fee discounts approved by the board of directors for 4 out of a sample of 25 patients for the year ended December 31, 2024. Cause – Errors occurred when analyzing the patient account Effect or Potential Effect – Discounts were not properly applied to patient accounts based on the policy. Questioned Costs – Not applicable Context – From a total of 16,857 sliding fee discounts for the period, 25 discounts were selected for testing. This sample was not, and was not intended to be, a statistically valid sample. The Health Center’s management did prepare a schedule of discounts adjusted on the basis of the patient’s ability to pay; such schedule was periodically updated and approved by the Health Center’s board of directors and the schedule was uploaded into the Health Center’s billing system. However, there were errors when comparing the approved schedule to certain actual adjustments to patient accounts during the year ended December 31, 2024. For 1 of the 25 accounts selected for testing, the account had an incorrect discount applied and the 3 patients did not have supporting documentation (school based lunch application) to support the slide applied. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend management work to provide additional trainings to the staff responsible for completing sliding fee applications and those responsible for applying the sliding fee discount to patient accounts and conduct additional internal reviews to verify the patient accounts have been adjusted properly and appropriate supporting documentation is maintained in the patient’s file. Views of responsible officials and planned corrective actions – Management has begun staff training and will meet with the billing team regarding the sliding fee policy and process.