Audit 371474

Finding: 2025-001-Board Member Compliance Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Health Center Program Compliance Manual Condition: A majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Cause: The above exception resulted from the failure to follow established procedures requiring board members or their immediate families to be active users of the health center. Effect: This non-compliance with federal grant requirements could result in a reduction of grant funds or additional grant restrictions. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procedures be established to ensure that more than fifty percent of board members are active users of the health center. Views of Responsible Officials: Management concurs. The Organization has reestablished compliance, and as of the date of the audit, more than fiftytuiy percent of the board members are users of the health center. Contact Person: Kyle Herbert, CFO Anticipated Date of Completion: October 3, 2025

Finding: 2025-002 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health Centers receiving funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not properly apply the sliding fee discount for five sliding fee patients tested. In addition, one patient who qualified for a discount did not receive a discount. Cause: There were deficiencies in the internal controls related to the application of the sliding fee discounts in accordance with the Organization’s sliding fee policy and sliding fee scale. Effect: Discounts were not properly applied to certain patient accounts. Questioned Costs: None reported. Context/Sampling: For 6 of 48 sliding fee patients selected for testing, the account had an incorrect discount applied. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that proper training be given to employees and that the sliding fee discounts be reviewed by a supervisor on a periodic basis to ensure compliance with the Organization’s sliding fee scale and policy. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Kyle Herbert, CFO Anticipated Date of Completion: November 30, 2025