FAC Explorer

Audit 5123

FY End
2023-02-28
Total Expended
$2.24M
Findings
2
Programs
2
Organization: Health Opportunities for the People of East Texas, Inc. (TX)
Year: 2023 Accepted: 2023-12-04
Auditor: Scott Singleton Fincher & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3142 2023-001 - Yes N
579584 2023-001 - Yes N

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) $840,985 Yes 0
93.461 Covid-19 Testing for the Uninsured $43,436 - 0

Contacts

Name Title Type
ZLN4LEVBJHF3 Jolene Busby Auditee
9365918380 Melissa Lynch Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in 0MB Circular A-122, Cost Principles for NonProfit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Health Opportunities for the People of East Texas, Inc. has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award activity of Health Opportunities for the People of East Texas, Inc., (the Center) under programs of the federal government for the year ended February 28, 2023. 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 (Unifonn Guidance). Because the schedule presents only a selected portion of the operations of Health Opportunities for the People of East Texas, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Health Opportunities for the People of East Texas, Inc.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in 0MB Circular A-122, Cost Principles for NonProfit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Health Opportunities for the People of East Texas, Inc. has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Federal financial assistance programs are reported in the Center's basic financial statements as support. Total federal financial assistance per the accompanying schedule of expenditures of federal awards does not include monies received as cost reimbursement for services provided to Medicaid and Medicare eligile recipients.
Title: PROGRAM OR AWARD AMOUNTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in 0MB Circular A-122, Cost Principles for NonProfit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Health Opportunities for the People of East Texas, Inc. has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Amounts include contract/award amounts plus any additional reimbursement monies received in fiscal year 2023.

Finding Details

Finding 2023-001
Item 2023-001: Compliance with Client Placement on the Sliding Fee Scale for the Health Center Cluster Program Major Program: Health Center Cluster - Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) - ALN/CFDA 93.224 and Grants for New and Expanded Services under the Health Center Program -ALN/CFDA 93.527 Criteria: The Health Center Cluster requires the Organization to perform a financial assessment on consumers in order to place them on a sliding fee scale. The sliding fee scale must be based on the cun-ent Federal Poverty Guidelines at the time of assessment. Condition: Consumers are not always placed correctly on the sliding fee scale based on their household size and income level. Questioned Costs: None Context: We tested 40 consumer files for proper placement on the sliding fee scale. During this test we found one (1) consumer file which placement on the sliding scale B was determined by using an out of date income supporting documentation to verify income in accordance with Center policy. The sliding fee discount schedule is used to determine eligibility for patient discounts adjusted on the basis of the patient's ability to pay. This schedule is based on the most recent Federal Poverty Guidelines. Effect: Consumer was not appropriately placed on the sliding fee scale. Cause: The Organization's controls over placement of consumers on the sliding fee scale necessary for financial assessment of consumers are not operating effectively. Recommendation: The Organization should review procedures and training regarding the sliding fee scale calculation and placement. Views of Responsible Officials: See management's corrective action plan.
Finding 2023-001
Item 2023-001: Compliance with Client Placement on the Sliding Fee Scale for the Health Center Cluster Program Major Program: Health Center Cluster - Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) - ALN/CFDA 93.224 and Grants for New and Expanded Services under the Health Center Program -ALN/CFDA 93.527 Criteria: The Health Center Cluster requires the Organization to perform a financial assessment on consumers in order to place them on a sliding fee scale. The sliding fee scale must be based on the cun-ent Federal Poverty Guidelines at the time of assessment. Condition: Consumers are not always placed correctly on the sliding fee scale based on their household size and income level. Questioned Costs: None Context: We tested 40 consumer files for proper placement on the sliding fee scale. During this test we found one (1) consumer file which placement on the sliding scale B was determined by using an out of date income supporting documentation to verify income in accordance with Center policy. The sliding fee discount schedule is used to determine eligibility for patient discounts adjusted on the basis of the patient's ability to pay. This schedule is based on the most recent Federal Poverty Guidelines. Effect: Consumer was not appropriately placed on the sliding fee scale. Cause: The Organization's controls over placement of consumers on the sliding fee scale necessary for financial assessment of consumers are not operating effectively. Recommendation: The Organization should review procedures and training regarding the sliding fee scale calculation and placement. Views of Responsible Officials: See management's corrective action plan.