FAC Explorer

Audit 6061

FY End
2023-03-31
Total Expended
$24.37M
Findings
8
Programs
11
Organization: Cherry Street Services, INC - Cherry Health (MI)
Year: 2023 Accepted: 2023-12-11
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3844 2023-002 Significant Deficiency - N
3845 2023-002 Significant Deficiency - N
3846 2023-002 Significant Deficiency - N
3847 2023-002 Significant Deficiency - N
580286 2023-002 Significant Deficiency - N
580287 2023-002 Significant Deficiency - N
580288 2023-002 Significant Deficiency - N
580289 2023-002 Significant Deficiency - 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) $6.70M Yes 1
93.498 Provider Relief Fund $5.04M Yes 0
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $1.06M Yes 0
10.766 Community Facilities Loans and Grants $887,837 Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $379,861 - 0
94.006 Americorps $303,968 - 0
93.926 Healthy Start Initiative $232,538 - 0
93.696 Certified Community Behavioral Health Clinic Expansion Grants $180,585 - 0
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $86,497 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $80,888 Yes 1
93.940 Hiv Prevention Activities_health Department Based $22,046 - 0

Contacts

Name Title Type
JFKSJFHNA2F1 Cynthia Duncanson Auditee
6167762122 Jessica Rolfe 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 the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Cherry Health and Related Entities has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Cherry Health and Related Entities under programs of the federal government for the year ended March 31, 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cherry Health and Related Entities, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cherry Health and Related Entities.
Title: Subrecipients 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 where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Cherry Health and Related Entities has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. No amounts were provided to subrecipients.
Title: Reconciliation to the Consolidated Financial Statements 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 where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Cherry Health and Related Entities has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal revenues are recorded as federal grant revenue on the Consolidated Statement of Operations as follows: Federal grant revenue per financial statements: $18,448,065; Provider relief fund (93.498) revenue in prior years, but recognized on schedule of expenditures of federal awards in current year: $5,032,417; Beginning loan balance (10.766) of agreement with U.S. Department of Agriculture: $887,837; Total expenditures of federal awards: $24,368,319.

Finding Details

Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.
Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.
Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.
Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.
Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.
Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.
Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.
Finding 2023-002
2023-002 – Significant Deficiency and Noncompliance – Special Tests – Sliding Fee Program information: AL # 93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services. Criteria: Health centers must obtain sliding fee applications so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. Condition: We tested 40 sliding fee encounters and noted that 4 of 40 sliding fee encounters were discounted the incorrect amount, 2 of 40 were missing sliding fee applications, and 1 or 40 had an incomplete application. In addition, we noted the sliding fee policy stated that a household should consist of immediate family members living in the same dwelling, however, applications included all individuals living in the household, whether immediate or not. Questioned Costs: None Cause and Effect: The Organization failed to verify sliding fee applications were obtained for all patients receiving discounts and may have incorrectly charged sliding fee discounts to charges. Recommendation: We recommend that sliding fee applications be completed for each sliding fee patient. Procedures should be implemented to verify applications are completed before the encounter is billed. Sliding fee discounts should be properly calculated and applied. The Organization should consider internal sampling throughout the year to verify sliding fee applications are obtained, completed, and agree to the discount applied. Lastly, sliding fee policy and applications should be modified to be consistent in the treatment of household members. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached correct plan.