Audit 366075

FY End
2024-02-29
Total Expended
$2.16M
Findings
10
Programs
3
Year: 2024 Accepted: 2025-09-11
Auditor: Kcoe Isom LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
576160 2024-002 Significant Deficiency - N
576161 2024-003 Significant Deficiency - P
576162 2024-002 Significant Deficiency - N
576163 2024-003 Significant Deficiency - P
576164 2024-003 Significant Deficiency - P
1152602 2024-002 Significant Deficiency - N
1152603 2024-003 Significant Deficiency - P
1152604 2024-002 Significant Deficiency - N
1152605 2024-003 Significant Deficiency - P
1152606 2024-003 Significant Deficiency - P

Contacts

Name Title Type
TTR5SJD35W99 Brett Middleton Auditee
6207925700 Megan Connors Auditor
No contacts on file

Notes to SEFA

Title: Federal Loan Programs Accounting Policies: 1. BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Heart of Kansas Family Healthcare, Inc. under programs of the federal government for the year ended February 29, 2024. The information in this Schedule is presented in accordance with 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 Heart of Kansas Family Healthcare, Inc., it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of Heart of Kansas Family Healthcare, Inc. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: 3. INDIRECT COST RATE Heart of Kansas Family Healthcare, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Heart of Kansas Family Healthcare, Inc. did not have any federal loan programs during the year ended February 29, 2024.

Finding Details

#2024-002: Grant Program: Department of Health and Human Services Health Centers Cluster – Assistance Listing #93.224 and 93.527 Condition: As a result of our audit procedures, we noted an instance where no appropriate supporting documentation or income verification were maintained by Heart of Kansas Family Healthcare, Inc. (the Organization) to substantiate eligibility for the sliding-fee discount the patient received. Criteria: The sliding-fee scale is based on patient income and demographic information. Controls should be in place to ensure the sliding fee scale is consistently applied for each patient. Context: The Organization did not maintain an eligibility application and income verification for 1 out of 40 patients tested. Cause: The Organization did not ensure that all required documentation, including the sliding fee application and income verification, was obtained and retained in the patient file. Effect: The absence of required documentation may result in patients receiving sliding fee discounts without proper eligibility verification, potentially leading to noncompliance with program requirements and expose the Organization to reputational risks. Continued noncompliance could result in loss of funding. Recommendation: We recommend that management reinforce training for all relevant personnel on the sliding fee policy and documentation requirements. Procedures should be strengthened to ensure that all patient files include complete and accurate documentation of eligibility for sliding fee scale adjustments, including the application and income verification. Additionally, a secondary review of the applications and system input could be conducted to ensure proper documentation is verified to support eligibility. Management Response: See Corrective Action Plan.
#2024-003: Grant Program: All Programs Included in the Schedule of Expenditures of Federal Awards – Assistance Listing # – Various Condition: The Organization did not submit the Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe for both fiscal years ended February 29, 2024, and February 28, 2023. Criteria: Per 2 CFR §200.512(b), the Organization must submit the completed DCF and the reporting package to FAC within the earlier of 30 calendar days after receipt of the Auditors’ report(s), or nine months after the end of the audit period. Context: The DCF for the year ended February 28, 2023 was not timely filed during the year ended February 29, 2024. At the time of completion of the audit for the year ended February 29, 2024, the deadline for submission of November 28, 2024, was passed and the DCF is considered not timely filed. Cause: The late submission was due to delays in finalizing the audits. Effect: Failure to submit the DCF timely may delay Federal Agencies’ access to audit results and could impact the Organization’s eligibility for future funding. Additionally, an untimely filed DCF results in high risk auditee status. Recommendation: We recommend the Organization implement procedures to ensure timely submission of the DCF and reporting packing, including establishing internal deadlines ahead of the federal due date for audit completion. Management Response: See Corrective Action Plan.
#2024-002: Grant Program: Department of Health and Human Services Health Centers Cluster – Assistance Listing #93.224 and 93.527 Condition: As a result of our audit procedures, we noted an instance where no appropriate supporting documentation or income verification were maintained by Heart of Kansas Family Healthcare, Inc. (the Organization) to substantiate eligibility for the sliding-fee discount the patient received. Criteria: The sliding-fee scale is based on patient income and demographic information. Controls should be in place to ensure the sliding fee scale is consistently applied for each patient. Context: The Organization did not maintain an eligibility application and income verification for 1 out of 40 patients tested. Cause: The Organization did not ensure that all required documentation, including the sliding fee application and income verification, was obtained and retained in the patient file. Effect: The absence of required documentation may result in patients receiving sliding fee discounts without proper eligibility verification, potentially leading to noncompliance with program requirements and expose the Organization to reputational risks. Continued noncompliance could result in loss of funding. Recommendation: We recommend that management reinforce training for all relevant personnel on the sliding fee policy and documentation requirements. Procedures should be strengthened to ensure that all patient files include complete and accurate documentation of eligibility for sliding fee scale adjustments, including the application and income verification. Additionally, a secondary review of the applications and system input could be conducted to ensure proper documentation is verified to support eligibility. Management Response: See Corrective Action Plan.
#2024-003: Grant Program: All Programs Included in the Schedule of Expenditures of Federal Awards – Assistance Listing # – Various Condition: The Organization did not submit the Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe for both fiscal years ended February 29, 2024, and February 28, 2023. Criteria: Per 2 CFR §200.512(b), the Organization must submit the completed DCF and the reporting package to FAC within the earlier of 30 calendar days after receipt of the Auditors’ report(s), or nine months after the end of the audit period. Context: The DCF for the year ended February 28, 2023 was not timely filed during the year ended February 29, 2024. At the time of completion of the audit for the year ended February 29, 2024, the deadline for submission of November 28, 2024, was passed and the DCF is considered not timely filed. Cause: The late submission was due to delays in finalizing the audits. Effect: Failure to submit the DCF timely may delay Federal Agencies’ access to audit results and could impact the Organization’s eligibility for future funding. Additionally, an untimely filed DCF results in high risk auditee status. Recommendation: We recommend the Organization implement procedures to ensure timely submission of the DCF and reporting packing, including establishing internal deadlines ahead of the federal due date for audit completion. Management Response: See Corrective Action Plan.
#2024-003: Grant Program: All Programs Included in the Schedule of Expenditures of Federal Awards – Assistance Listing # – Various Condition: The Organization did not submit the Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe for both fiscal years ended February 29, 2024, and February 28, 2023. Criteria: Per 2 CFR §200.512(b), the Organization must submit the completed DCF and the reporting package to FAC within the earlier of 30 calendar days after receipt of the Auditors’ report(s), or nine months after the end of the audit period. Context: The DCF for the year ended February 28, 2023 was not timely filed during the year ended February 29, 2024. At the time of completion of the audit for the year ended February 29, 2024, the deadline for submission of November 28, 2024, was passed and the DCF is considered not timely filed. Cause: The late submission was due to delays in finalizing the audits. Effect: Failure to submit the DCF timely may delay Federal Agencies’ access to audit results and could impact the Organization’s eligibility for future funding. Additionally, an untimely filed DCF results in high risk auditee status. Recommendation: We recommend the Organization implement procedures to ensure timely submission of the DCF and reporting packing, including establishing internal deadlines ahead of the federal due date for audit completion. Management Response: See Corrective Action Plan.
#2024-002: Grant Program: Department of Health and Human Services Health Centers Cluster – Assistance Listing #93.224 and 93.527 Condition: As a result of our audit procedures, we noted an instance where no appropriate supporting documentation or income verification were maintained by Heart of Kansas Family Healthcare, Inc. (the Organization) to substantiate eligibility for the sliding-fee discount the patient received. Criteria: The sliding-fee scale is based on patient income and demographic information. Controls should be in place to ensure the sliding fee scale is consistently applied for each patient. Context: The Organization did not maintain an eligibility application and income verification for 1 out of 40 patients tested. Cause: The Organization did not ensure that all required documentation, including the sliding fee application and income verification, was obtained and retained in the patient file. Effect: The absence of required documentation may result in patients receiving sliding fee discounts without proper eligibility verification, potentially leading to noncompliance with program requirements and expose the Organization to reputational risks. Continued noncompliance could result in loss of funding. Recommendation: We recommend that management reinforce training for all relevant personnel on the sliding fee policy and documentation requirements. Procedures should be strengthened to ensure that all patient files include complete and accurate documentation of eligibility for sliding fee scale adjustments, including the application and income verification. Additionally, a secondary review of the applications and system input could be conducted to ensure proper documentation is verified to support eligibility. Management Response: See Corrective Action Plan.
#2024-003: Grant Program: All Programs Included in the Schedule of Expenditures of Federal Awards – Assistance Listing # – Various Condition: The Organization did not submit the Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe for both fiscal years ended February 29, 2024, and February 28, 2023. Criteria: Per 2 CFR §200.512(b), the Organization must submit the completed DCF and the reporting package to FAC within the earlier of 30 calendar days after receipt of the Auditors’ report(s), or nine months after the end of the audit period. Context: The DCF for the year ended February 28, 2023 was not timely filed during the year ended February 29, 2024. At the time of completion of the audit for the year ended February 29, 2024, the deadline for submission of November 28, 2024, was passed and the DCF is considered not timely filed. Cause: The late submission was due to delays in finalizing the audits. Effect: Failure to submit the DCF timely may delay Federal Agencies’ access to audit results and could impact the Organization’s eligibility for future funding. Additionally, an untimely filed DCF results in high risk auditee status. Recommendation: We recommend the Organization implement procedures to ensure timely submission of the DCF and reporting packing, including establishing internal deadlines ahead of the federal due date for audit completion. Management Response: See Corrective Action Plan.
#2024-002: Grant Program: Department of Health and Human Services Health Centers Cluster – Assistance Listing #93.224 and 93.527 Condition: As a result of our audit procedures, we noted an instance where no appropriate supporting documentation or income verification were maintained by Heart of Kansas Family Healthcare, Inc. (the Organization) to substantiate eligibility for the sliding-fee discount the patient received. Criteria: The sliding-fee scale is based on patient income and demographic information. Controls should be in place to ensure the sliding fee scale is consistently applied for each patient. Context: The Organization did not maintain an eligibility application and income verification for 1 out of 40 patients tested. Cause: The Organization did not ensure that all required documentation, including the sliding fee application and income verification, was obtained and retained in the patient file. Effect: The absence of required documentation may result in patients receiving sliding fee discounts without proper eligibility verification, potentially leading to noncompliance with program requirements and expose the Organization to reputational risks. Continued noncompliance could result in loss of funding. Recommendation: We recommend that management reinforce training for all relevant personnel on the sliding fee policy and documentation requirements. Procedures should be strengthened to ensure that all patient files include complete and accurate documentation of eligibility for sliding fee scale adjustments, including the application and income verification. Additionally, a secondary review of the applications and system input could be conducted to ensure proper documentation is verified to support eligibility. Management Response: See Corrective Action Plan.
#2024-003: Grant Program: All Programs Included in the Schedule of Expenditures of Federal Awards – Assistance Listing # – Various Condition: The Organization did not submit the Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe for both fiscal years ended February 29, 2024, and February 28, 2023. Criteria: Per 2 CFR §200.512(b), the Organization must submit the completed DCF and the reporting package to FAC within the earlier of 30 calendar days after receipt of the Auditors’ report(s), or nine months after the end of the audit period. Context: The DCF for the year ended February 28, 2023 was not timely filed during the year ended February 29, 2024. At the time of completion of the audit for the year ended February 29, 2024, the deadline for submission of November 28, 2024, was passed and the DCF is considered not timely filed. Cause: The late submission was due to delays in finalizing the audits. Effect: Failure to submit the DCF timely may delay Federal Agencies’ access to audit results and could impact the Organization’s eligibility for future funding. Additionally, an untimely filed DCF results in high risk auditee status. Recommendation: We recommend the Organization implement procedures to ensure timely submission of the DCF and reporting packing, including establishing internal deadlines ahead of the federal due date for audit completion. Management Response: See Corrective Action Plan.
#2024-003: Grant Program: All Programs Included in the Schedule of Expenditures of Federal Awards – Assistance Listing # – Various Condition: The Organization did not submit the Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the required timeframe for both fiscal years ended February 29, 2024, and February 28, 2023. Criteria: Per 2 CFR §200.512(b), the Organization must submit the completed DCF and the reporting package to FAC within the earlier of 30 calendar days after receipt of the Auditors’ report(s), or nine months after the end of the audit period. Context: The DCF for the year ended February 28, 2023 was not timely filed during the year ended February 29, 2024. At the time of completion of the audit for the year ended February 29, 2024, the deadline for submission of November 28, 2024, was passed and the DCF is considered not timely filed. Cause: The late submission was due to delays in finalizing the audits. Effect: Failure to submit the DCF timely may delay Federal Agencies’ access to audit results and could impact the Organization’s eligibility for future funding. Additionally, an untimely filed DCF results in high risk auditee status. Recommendation: We recommend the Organization implement procedures to ensure timely submission of the DCF and reporting packing, including establishing internal deadlines ahead of the federal due date for audit completion. Management Response: See Corrective Action Plan.