Audit 364910

FY End
2024-12-31
Total Expended
$3.83M
Findings
4
Programs
3
Organization: Friends of Family Health Center (CA)
Year: 2024 Accepted: 2025-08-25
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
574641 2024-001 Significant Deficiency - N
574642 2024-002 Significant Deficiency - L
1151083 2024-001 Significant Deficiency - N
1151084 2024-002 Significant Deficiency - L

Contacts

Name Title Type
NBGEJ3CJK9L8 Dawn Ta Auditee
5625011701 Julie Toups Auditor
No contacts on file

Notes to SEFA

Title: Note 1: General Accounting Policies: The accompanying schedule of expenditures of federal (the “Schedule”) includes the federal grant activity of Friends of Family Health Center under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with requirements of the 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 Friends of Family Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friends of Family Health Center (the "Organization"). De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal (the “Schedule”) includes the federal grant activity of Friends of Family Health Center under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with requirements of the 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 Friends of Family Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friends of Family Health Center (the "Organization").
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal (the “Schedule”) includes the federal grant activity of Friends of Family Health Center under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with requirements of the 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 Friends of Family Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friends of Family Health Center (the "Organization"). De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures on the Schedule are reported on the accrual basis of accounting and 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 (the “Schedule”) includes the federal grant activity of Friends of Family Health Center under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with requirements of the 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 Friends of Family Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friends of Family Health Center (the "Organization"). De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal (the “Schedule”) includes the federal grant activity of Friends of Family Health Center under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with requirements of the 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 Friends of Family Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friends of Family Health Center (the "Organization"). De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization do not have any subrecipients of federal awards.

Finding Details

Finding 2024-001 - Sliding Fee Discount Determination Federal Agency: U.S. Department of Health and Human Services Program Name: Health Center Program Federal Assistance Listing Number: 93.224/93.527 Questioned Costs: N/A Repeat Finding: No Type of Finding: Noncompliance, significant deficiency Compliance Requirement: Special Tests and Provisions - Sliding fee Schedule ("SFS") Condition: Friends of Family Health Center lacked adequate controls over its sliding fee discount program to ensure patients received the correct discount. Criteria: Health Centers must maintain a sliding fee discount policy and apply a sliding fee discount based on patient's ability to pay (42 USC 254(k((3)(E), (F), (G); 42 CFR sections 53c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Context: In testing patients receiving discounts under Friends of Family Health Center's sliding fee schedule, we noted that for 1 of 40 patients selected for testing Friends of Family Health Center incorrectly applied the discount or were put in the incorrect category based on income and family size. Cause: Friends of Family Health Center's review process was not effective in verifying the sliding fee discount was correctly calculated and applied in accordance to the Friends of Family Health Center's policy. Effect: There is an increased risk that discounts may be given to patients not eligible to receive a discount, or incorrect discounts may be provided for patients eligible to receive a discount. Recommendation: We recommend Friends of Family Health Center periodically review patients receiving discounts under the sliding fee program to ensure that the correct discounts are being applied based on the current sliding fee schedule. View of Responsible Officials: Friends of Family Health Center will implement procedures for reviewing sliding fee discounts and provide additional training to staff for calculating those discounts.
Finding 2024-002 - Compliance Over Reporting Federal Agency: U.S. Department of Health and Human Services Program Name: Health Center Program Federal Assistance Listing Number: 93.224/93.527 Questioned Costs: N/A Repeat Finding: No Type of Finding: Noncompliance, significant deficiency Compliance Requirement: Reporting Condition: Friends of Family Health Center did not meet it financial reporting obligations under the grant during the year. Friends of Family Health Center did not file the Federal Financial Reporting ("FFR") by the due date. Criteria: Friends of Family Health Center is required to file the FFR within 90 days of the grant reporting period end date. Cause: The FFR was due on July 31 and was filed on September 9 due to administrative delays. Effect: Friends of Family Health Center was not in compliance with the grant regulations. Recommendation: We recommend Friends of Family Health Center complete and file the FFR's on a timely basis to ensure the reporting deadline is met. View of Responsible Officials: Friends of Family Health Center will implement procedures to ensure timely filing of the FFR's.
Finding 2024-001 - Sliding Fee Discount Determination Federal Agency: U.S. Department of Health and Human Services Program Name: Health Center Program Federal Assistance Listing Number: 93.224/93.527 Questioned Costs: N/A Repeat Finding: No Type of Finding: Noncompliance, significant deficiency Compliance Requirement: Special Tests and Provisions - Sliding fee Schedule ("SFS") Condition: Friends of Family Health Center lacked adequate controls over its sliding fee discount program to ensure patients received the correct discount. Criteria: Health Centers must maintain a sliding fee discount policy and apply a sliding fee discount based on patient's ability to pay (42 USC 254(k((3)(E), (F), (G); 42 CFR sections 53c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Context: In testing patients receiving discounts under Friends of Family Health Center's sliding fee schedule, we noted that for 1 of 40 patients selected for testing Friends of Family Health Center incorrectly applied the discount or were put in the incorrect category based on income and family size. Cause: Friends of Family Health Center's review process was not effective in verifying the sliding fee discount was correctly calculated and applied in accordance to the Friends of Family Health Center's policy. Effect: There is an increased risk that discounts may be given to patients not eligible to receive a discount, or incorrect discounts may be provided for patients eligible to receive a discount. Recommendation: We recommend Friends of Family Health Center periodically review patients receiving discounts under the sliding fee program to ensure that the correct discounts are being applied based on the current sliding fee schedule. View of Responsible Officials: Friends of Family Health Center will implement procedures for reviewing sliding fee discounts and provide additional training to staff for calculating those discounts.
Finding 2024-002 - Compliance Over Reporting Federal Agency: U.S. Department of Health and Human Services Program Name: Health Center Program Federal Assistance Listing Number: 93.224/93.527 Questioned Costs: N/A Repeat Finding: No Type of Finding: Noncompliance, significant deficiency Compliance Requirement: Reporting Condition: Friends of Family Health Center did not meet it financial reporting obligations under the grant during the year. Friends of Family Health Center did not file the Federal Financial Reporting ("FFR") by the due date. Criteria: Friends of Family Health Center is required to file the FFR within 90 days of the grant reporting period end date. Cause: The FFR was due on July 31 and was filed on September 9 due to administrative delays. Effect: Friends of Family Health Center was not in compliance with the grant regulations. Recommendation: We recommend Friends of Family Health Center complete and file the FFR's on a timely basis to ensure the reporting deadline is met. View of Responsible Officials: Friends of Family Health Center will implement procedures to ensure timely filing of the FFR's.