Type of Finding: Significant Deficiency and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Provider Relief Fund, Consolidated Health Centers Assistance listing number: 93.498, 93.224 Criteria: The Provider Relief Fund (PRF) indicates the providers who received funds exceeding $10,000 in the aggregate are required to report on their use of funds. The Consolidated Health Centers program is required to submit the financial information to the funding agency using standard financial reporting forms. These reports are to be submitted by the required due date and be accurately completed and supported by the underlying accounting records. Condition: During testing, the PRF report was filed late in 2023 for the Period 2 funding. We were unable to agree the Consolidated Health Center?s Federal Financial Report (FFR) to supporting documentation or to amounts reported in prior periods. Additionally, the report was submitted late. Questioned Costs: N/A Context: One of the reports was unavailable to test for completion. The other FFR report tested was inaccurate and did not agree with the prior period amount or supporting documentation. Cause: Internal controls were not adequate to ensure timely and accurate filing of required financial reports. Effect: The Center did not comply with reporting requirements for both programs. Auditor?s Recommendations: Ensure financial reports are properly completed and submitted to the granting agency by the required due dates by implementing monitoring and other appropriate internal control procedures. Documentation substantiating compliance with reporting requirements should be maintained. Management?s Response: In March of 2022, both the CFO and Accounting Manager terminated employment with Hunter Health. During the latter half of the fiscal year, Hunter Health contracted with a temporary CFO and Controller, both of whom had FQHC experience, for three months. The current CFO and Controller were onboarded late Q3/early Q4. During this time of transition, there was not a transfer of knowledge of the PRF funding ($20,340.39) or the portal access. The portal was accessed by the current accounting team and the appropriate documentation was filed timely but not during the testing period. PRF funding has ended, and no future action is needed. The timely filing of the FFR report and maintenance of reporting is also attributable to this unusual turnover situation in the Finance department. The current CFO began June 26th and the referenced FFR was due June 30th. The FFR was filed July 28th due to knowledge transfer timing. FFR reports are now being tracked and saved in an accessible and secure location based on internal control procedures.
Type of Finding: Significant Deficiency and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Consolidated Health Centers Assistance listing number: 93.224 Criteria: Requirements for procurement are contained in the OMB Uniform Guidance, federal awarding agency regulations, and terms of the award. Procurement transactions should be conducted in a manner providing full and open competition in according with the Center?s procurement policy. The Center?s procurement policy requires three quotes or more of any purchases over $10,000. Condition: The program made purchases in excess of $10,000 without obtaining three quotes. Questioned Costs: None. Context: Five out of twenty-five transactions tested. Cause and effect: Controls over procurement as documented in the Center?s procurement policy have not been followed. The Center was not in compliance with the procurement requirements. Auditor?s Recommendations: Enforce policies and procedures that will promote adequate monitoring of the procurement and bidding process. Management?s Response: In March of 2022, both the CFO and Accounting Manager terminated employment with Hunter Health. During the latter half of the fiscal year, Hunter Health contracted with a temporary CFO and Controller, both of whom had FQHC experience, for three months. The current CFO and Controller were onboarded late Q3/early Q4. During this time of transition, the procurement procedures were not maintained at the normal standard. With the new finance team in place, the Finance team has reviewed the procedures and retrained the leadership team to ensure compliance. Submittal of purchasing requests has been centralized within the Finance Department to ensure an extra level of oversight.
Type of Finding: Significant Deficiency and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Provider Relief Fund, Consolidated Health Centers Assistance listing number: 93.498, 93.224 Criteria: The Provider Relief Fund (PRF) indicates the providers who received funds exceeding $10,000 in the aggregate are required to report on their use of funds. The Consolidated Health Centers program is required to submit the financial information to the funding agency using standard financial reporting forms. These reports are to be submitted by the required due date and be accurately completed and supported by the underlying accounting records. Condition: During testing, the PRF report was filed late in 2023 for the Period 2 funding. We were unable to agree the Consolidated Health Center?s Federal Financial Report (FFR) to supporting documentation or to amounts reported in prior periods. Additionally, the report was submitted late. Questioned Costs: N/A Context: One of the reports was unavailable to test for completion. The other FFR report tested was inaccurate and did not agree with the prior period amount or supporting documentation. Cause: Internal controls were not adequate to ensure timely and accurate filing of required financial reports. Effect: The Center did not comply with reporting requirements for both programs. Auditor?s Recommendations: Ensure financial reports are properly completed and submitted to the granting agency by the required due dates by implementing monitoring and other appropriate internal control procedures. Documentation substantiating compliance with reporting requirements should be maintained. Management?s Response: In March of 2022, both the CFO and Accounting Manager terminated employment with Hunter Health. During the latter half of the fiscal year, Hunter Health contracted with a temporary CFO and Controller, both of whom had FQHC experience, for three months. The current CFO and Controller were onboarded late Q3/early Q4. During this time of transition, there was not a transfer of knowledge of the PRF funding ($20,340.39) or the portal access. The portal was accessed by the current accounting team and the appropriate documentation was filed timely but not during the testing period. PRF funding has ended, and no future action is needed. The timely filing of the FFR report and maintenance of reporting is also attributable to this unusual turnover situation in the Finance department. The current CFO began June 26th and the referenced FFR was due June 30th. The FFR was filed July 28th due to knowledge transfer timing. FFR reports are now being tracked and saved in an accessible and secure location based on internal control procedures.
Type of Finding: Significant Deficiency and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Provider Relief Fund, Consolidated Health Centers Assistance listing number: 93.498, 93.224 Criteria: The Provider Relief Fund (PRF) indicates the providers who received funds exceeding $10,000 in the aggregate are required to report on their use of funds. The Consolidated Health Centers program is required to submit the financial information to the funding agency using standard financial reporting forms. These reports are to be submitted by the required due date and be accurately completed and supported by the underlying accounting records. Condition: During testing, the PRF report was filed late in 2023 for the Period 2 funding. We were unable to agree the Consolidated Health Center?s Federal Financial Report (FFR) to supporting documentation or to amounts reported in prior periods. Additionally, the report was submitted late. Questioned Costs: N/A Context: One of the reports was unavailable to test for completion. The other FFR report tested was inaccurate and did not agree with the prior period amount or supporting documentation. Cause: Internal controls were not adequate to ensure timely and accurate filing of required financial reports. Effect: The Center did not comply with reporting requirements for both programs. Auditor?s Recommendations: Ensure financial reports are properly completed and submitted to the granting agency by the required due dates by implementing monitoring and other appropriate internal control procedures. Documentation substantiating compliance with reporting requirements should be maintained. Management?s Response: In March of 2022, both the CFO and Accounting Manager terminated employment with Hunter Health. During the latter half of the fiscal year, Hunter Health contracted with a temporary CFO and Controller, both of whom had FQHC experience, for three months. The current CFO and Controller were onboarded late Q3/early Q4. During this time of transition, there was not a transfer of knowledge of the PRF funding ($20,340.39) or the portal access. The portal was accessed by the current accounting team and the appropriate documentation was filed timely but not during the testing period. PRF funding has ended, and no future action is needed. The timely filing of the FFR report and maintenance of reporting is also attributable to this unusual turnover situation in the Finance department. The current CFO began June 26th and the referenced FFR was due June 30th. The FFR was filed July 28th due to knowledge transfer timing. FFR reports are now being tracked and saved in an accessible and secure location based on internal control procedures.
Type of Finding: Significant Deficiency and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Consolidated Health Centers Assistance listing number: 93.224 Criteria: Requirements for procurement are contained in the OMB Uniform Guidance, federal awarding agency regulations, and terms of the award. Procurement transactions should be conducted in a manner providing full and open competition in according with the Center?s procurement policy. The Center?s procurement policy requires three quotes or more of any purchases over $10,000. Condition: The program made purchases in excess of $10,000 without obtaining three quotes. Questioned Costs: None. Context: Five out of twenty-five transactions tested. Cause and effect: Controls over procurement as documented in the Center?s procurement policy have not been followed. The Center was not in compliance with the procurement requirements. Auditor?s Recommendations: Enforce policies and procedures that will promote adequate monitoring of the procurement and bidding process. Management?s Response: In March of 2022, both the CFO and Accounting Manager terminated employment with Hunter Health. During the latter half of the fiscal year, Hunter Health contracted with a temporary CFO and Controller, both of whom had FQHC experience, for three months. The current CFO and Controller were onboarded late Q3/early Q4. During this time of transition, the procurement procedures were not maintained at the normal standard. With the new finance team in place, the Finance team has reviewed the procedures and retrained the leadership team to ensure compliance. Submittal of purchasing requests has been centralized within the Finance Department to ensure an extra level of oversight.
Type of Finding: Significant Deficiency and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Provider Relief Fund, Consolidated Health Centers Assistance listing number: 93.498, 93.224 Criteria: The Provider Relief Fund (PRF) indicates the providers who received funds exceeding $10,000 in the aggregate are required to report on their use of funds. The Consolidated Health Centers program is required to submit the financial information to the funding agency using standard financial reporting forms. These reports are to be submitted by the required due date and be accurately completed and supported by the underlying accounting records. Condition: During testing, the PRF report was filed late in 2023 for the Period 2 funding. We were unable to agree the Consolidated Health Center?s Federal Financial Report (FFR) to supporting documentation or to amounts reported in prior periods. Additionally, the report was submitted late. Questioned Costs: N/A Context: One of the reports was unavailable to test for completion. The other FFR report tested was inaccurate and did not agree with the prior period amount or supporting documentation. Cause: Internal controls were not adequate to ensure timely and accurate filing of required financial reports. Effect: The Center did not comply with reporting requirements for both programs. Auditor?s Recommendations: Ensure financial reports are properly completed and submitted to the granting agency by the required due dates by implementing monitoring and other appropriate internal control procedures. Documentation substantiating compliance with reporting requirements should be maintained. Management?s Response: In March of 2022, both the CFO and Accounting Manager terminated employment with Hunter Health. During the latter half of the fiscal year, Hunter Health contracted with a temporary CFO and Controller, both of whom had FQHC experience, for three months. The current CFO and Controller were onboarded late Q3/early Q4. During this time of transition, there was not a transfer of knowledge of the PRF funding ($20,340.39) or the portal access. The portal was accessed by the current accounting team and the appropriate documentation was filed timely but not during the testing period. PRF funding has ended, and no future action is needed. The timely filing of the FFR report and maintenance of reporting is also attributable to this unusual turnover situation in the Finance department. The current CFO began June 26th and the referenced FFR was due June 30th. The FFR was filed July 28th due to knowledge transfer timing. FFR reports are now being tracked and saved in an accessible and secure location based on internal control procedures.