FAC Explorer

Audit 46929

FY End
2022-06-30
Total Expended
$11.97M
Findings
4
Programs
10
Organization: The Chidlren's Clinic, Serving Children and Their Families (CA)
Year: 2022 Accepted: 2023-03-22
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45348 2022-003 Material Weakness - C
45349 2022-002 Significant Deficiency - ABL
621790 2022-003 Material Weakness - C
621791 2022-002 Significant Deficiency - ABL

Programs

ALN Program Spent Major Findings
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $4.31M Yes 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $4.09M Yes 0
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $850,000 Yes 1
93.498 Provider Relief Fund $500,504 Yes 1
93.217 Family Planning_services $200,802 - 0
93.224 Covid-19 - Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $121,874 Yes 0
14.267 Continuum of Care Program $100,429 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $75,310 - 0
93.958 Block Grants for Community Mental Health Services $31,320 - 0
93.569 Community Services Block Grant $26,000 - 0

Contacts

Name Title Type
TJU6YMJZM9V8 Eden Ballatan Auditee
5622644682 Christy Yoakum Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation 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 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. De Minimis Rate Used: N Rate Explanation: The Children's Clinic, "Serving Children and Their Families," d/b/a TCC Family Health, 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 awards (the Schedule) includes the federal award activity of The Childrens Clinic, "Serving Children and Their Families", d/b/a TCC Family Health, under programs of the federal government for the year ended June 30, 2022. 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 Childrens Clinic, "Serving Children and Their Families," d/b/a TCC Family Health, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of The Childrens Clinic, "Serving Children and Their Families," d/b/a TCC Family Health.
Title: Note 4: Federal Loan Programs 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 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. De Minimis Rate Used: N Rate Explanation: The Children's Clinic, "Serving Children and Their Families," d/b/a TCC Family Health, has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Childrens Clinic, "Serving Children and Their Families," d/b/a TCC Family Health, did not have any federal loan programs during the year ended June 30, 2022.
Title: Note 5: Personal Protective Equipment (PPE) (Unaudited) 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 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. De Minimis Rate Used: N Rate Explanation: The Children's Clinic, "Serving Children and Their Families," d/b/a TCC Family Health, has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Childrens Clinic, "Serving Children and Their Families," d/b/a TCC Family Health, did not receive donated PPE from a federal source during the year ended June 30, 2022.

Finding Details

Finding 2022-003
Grants for Capital Development in Health Centers Assistance Listing No. 93.526 U.S Department of Health and Human Services Criteria or Specific Requirement ? Cash Management ? 45 CFR 75.305 Condition ? The Organization is required to ensure that funds are down as allowable costs are incurred within the parameters of the federal program. Questioned Costs ? None Context ? While the award received by the Organization did not specify a federal share percentage, grant draws should be completed in the same proportion as the grant is to total project costs. The Organization identified qualifying expenditures and drew 100 percent of the grant funds awarded as of December 31, 2021. However, this was in advance of the project being completed. Funds totaling $255,892 were returned and the Organization was able to then draw these funds again upon completion of the project. Effect ? Grant funds were drawn in full in advance of the completion of the project. Cause ? The Organization did not properly draw grant funds in the same proportion as the grant is to total project costs. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? The Organization should review grant terms for all applicable requirements for the federal program, including applicable cash management requirements. Views of Responsible Officials and Planned Corrective Actions ? Due to COVID-19, the completion of the capital project had been delayed several times beyond the original grant end date. The extension request was submitted before the end date of the grant ? December 31, 2021, however due to the year-end holiday season no response was received in a timely manner. Hence, the organization identified 100% of the grant expenditures and drew down the remaining funds. After receiving clear guidance from the HRSA program manager, some funds were returned as advised and drawn later upon completion of the project. Management will closely monitor cash management requirements specified by each grant. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 6/30/2023
Finding 2022-002
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing No. 93.498 U.S Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.324) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition ? The Health Center is required to report on the use of Provider Relief Fund (PRF) distributions received. This report is to be prepared using accurate financial information following the accrual basis of accounting and other guidance issued by the U.S. Department of Health and Human Services (HHS). Questioned Costs ? Unknown Context ? The Period 2 PRF report was tested. The Health Center selected option one to report lost revenues based on quarterly actuals. Of a total of 84 reporting attributes tested, 7 exceptions were noted in which the amounts reported did not agree to the underlying supporting documentation. In addition, certain patient service revenue components, including 340b pharmacy revenue, were omitted from the lost revenue calculation. Effect ? Errors were made in calculating quarterly revenue from patient care used in lost revenue reporting. Cause ? The Health Center did not include certain patient service revenue components when completing their lost revenue calculation and certain quarterly amounts included in the report did not agree back to supporting documentation. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be monitored to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions ? We agree there were errors in the calculation of lost revenue. The PRF guidance on reporting changed/updated several times over the course of 2 years and some requirements were missed right before the reporting was due. However, the organization?s eligibility did not change and the funded amount was fully supported by the actual loss of revenue calculation required by DHHS. Management will closely monitor future grant reporting. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 3/31/2023
Finding 2022-003
Grants for Capital Development in Health Centers Assistance Listing No. 93.526 U.S Department of Health and Human Services Criteria or Specific Requirement ? Cash Management ? 45 CFR 75.305 Condition ? The Organization is required to ensure that funds are down as allowable costs are incurred within the parameters of the federal program. Questioned Costs ? None Context ? While the award received by the Organization did not specify a federal share percentage, grant draws should be completed in the same proportion as the grant is to total project costs. The Organization identified qualifying expenditures and drew 100 percent of the grant funds awarded as of December 31, 2021. However, this was in advance of the project being completed. Funds totaling $255,892 were returned and the Organization was able to then draw these funds again upon completion of the project. Effect ? Grant funds were drawn in full in advance of the completion of the project. Cause ? The Organization did not properly draw grant funds in the same proportion as the grant is to total project costs. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? The Organization should review grant terms for all applicable requirements for the federal program, including applicable cash management requirements. Views of Responsible Officials and Planned Corrective Actions ? Due to COVID-19, the completion of the capital project had been delayed several times beyond the original grant end date. The extension request was submitted before the end date of the grant ? December 31, 2021, however due to the year-end holiday season no response was received in a timely manner. Hence, the organization identified 100% of the grant expenditures and drew down the remaining funds. After receiving clear guidance from the HRSA program manager, some funds were returned as advised and drawn later upon completion of the project. Management will closely monitor cash management requirements specified by each grant. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 6/30/2023
Finding 2022-002
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing No. 93.498 U.S Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.324) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition ? The Health Center is required to report on the use of Provider Relief Fund (PRF) distributions received. This report is to be prepared using accurate financial information following the accrual basis of accounting and other guidance issued by the U.S. Department of Health and Human Services (HHS). Questioned Costs ? Unknown Context ? The Period 2 PRF report was tested. The Health Center selected option one to report lost revenues based on quarterly actuals. Of a total of 84 reporting attributes tested, 7 exceptions were noted in which the amounts reported did not agree to the underlying supporting documentation. In addition, certain patient service revenue components, including 340b pharmacy revenue, were omitted from the lost revenue calculation. Effect ? Errors were made in calculating quarterly revenue from patient care used in lost revenue reporting. Cause ? The Health Center did not include certain patient service revenue components when completing their lost revenue calculation and certain quarterly amounts included in the report did not agree back to supporting documentation. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be monitored to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions ? We agree there were errors in the calculation of lost revenue. The PRF guidance on reporting changed/updated several times over the course of 2 years and some requirements were missed right before the reporting was due. However, the organization?s eligibility did not change and the funded amount was fully supported by the actual loss of revenue calculation required by DHHS. Management will closely monitor future grant reporting. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 3/31/2023