Audit 65450

FY End
2022-06-30
Total Expended
$4.60M
Findings
18
Programs
4
Organization: Operation Samahan, Inc. (CA)
Year: 2022 Accepted: 2023-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
71661 2022-003 Material Weakness Yes L
71662 2022-004 Material Weakness - N
71663 2022-005 Significant Deficiency - B
71664 2022-003 Material Weakness Yes L
71665 2022-004 Material Weakness - N
71666 2022-005 Significant Deficiency - B
71667 2022-003 Material Weakness Yes L
71668 2022-004 Material Weakness - N
71669 2022-005 Significant Deficiency - B
648103 2022-003 Material Weakness Yes L
648104 2022-004 Material Weakness - N
648105 2022-005 Significant Deficiency - B
648106 2022-003 Material Weakness Yes L
648107 2022-004 Material Weakness - N
648108 2022-005 Significant Deficiency - B
648109 2022-003 Material Weakness Yes L
648110 2022-004 Material Weakness - N
648111 2022-005 Significant Deficiency - B

Contacts

Name Title Type
DYCWD2XGWRV1 Elizabeth David Auditee
8442002426 Shaun Johnson 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of Operation Samahan, Inc. doing business as OPSAM Health (the Organization) underprograms of the federal government for the year ended June 30, 2022. Amounts reported on theSchedule for Assistance Listing Number 93.498 Provider Relief Fund and American Rescue Plan(ARP) Rural Distributions are based upon the December 31, 2021 and June 30, 2022, Provider ReliefFund reports. The information in this Schedule is presented in accordance with the requirements ofTitle 2 U.S. CFR Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the Organization, it is not intended to and does not present the financialposition, changes in net assets, or cash flows of the Organization.

Finding Details

2022-003 Reporting (repeat of Finding 2021-003) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart D requires the Organization to retain adequate records and other supporting documentation for reports submitted to awarding agencies under the compliance requirements for reporting. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition The Organization did not maintain sufficient supporting records for the information reported in its calendar year 2021 Uniform Data System (UDS) report. Context This finding appears to be a systemic problem. Cause The Organization?s internal controls over compliance did not include adequate controls over the retention of supporting documentation for UDS reports submitted to awarding agencies. Effect The Organization submitted UDS reports for federal awards that may lack supporting documentation. Questioned Costs None identified Recommendation We recommend the Organization maintain documentation supporting reports filed with awarding agencies. Views of responsible officials and planned corrective action Management agrees with this finding. Management is working on improving controls and procedures to ensure appropriate records and supporting documentations. The UDS reporting is made accurate by using not only ECW reporting capabilities, but also by getting an i2i population health data tool as a secondary verification platform for UDS data. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-004 Special Tests and Provisions Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 4, Compliance Requirement N, Special Tests and Provisions states, ?Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patients ability to pay.? [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition During our testing of sliding fee discounts for health center patients qualifying for reduced charge visits, we identified several incidents in which the sliding fee applied was not consistent with the entities policies based on the patient?s level of income. Context This finding appears to be a systemic problem. A sample size of 25 patients included 10 who did not have the correct sliding fee applied. In addition, 7 of the 10 misapplied sliding fees were due to lack of application on file. Cause Due to turnover in the billing and admitting staff, there was lack of appropriate training relating to the requirements of the sliding fee system to properly administer the sliding fee program. Effect Patients may have been granted the incorrect sliding fee adjustment. Questioned Costs None identified. Recommendation We recommend continued effort in training personnel on applying the appropriate sliding fee discount based on the Organization?s approved policy and in compliance with the OMB Compliance Supplement requirements. An appropriate level of review should be conducted on patient accounts to ensure proper document retention, application of sliding fee discounts, and third-party insurance billing. Views of responsible officials and planned corrective action Management agrees with this finding. Management has already taken steps and has updated the clinic?s Sliding Fee Discount Program, the clinic?s fee schedule, and retraining of staff. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-005 Allowable Costs Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Entities receiving Health Center Program funds must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. [ ] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Condition During our testing of payroll expenditures, it was noted several employees were paid at rates in excess of the approved rate of pay per the respective employee?s personnel file. Context This finding appears to be a systemic problem. A sample size of 34 employees included 7 that were paid at a rate greater than the most recent approved rate per the employee?s personnel file and 2 additional employees who did not have documentation of the approved rate in their personnel file. Cause Due to high turnover in all departments, the human resources department was not able to properly file and retrieve all required documentation relating to the approved rates of pay for new hires and rate increases approved by management and the Board during the year. Effect Rates of pay being paid to employees are not supportable by the Organization?s personnel files. Questioned Costs None identified. Recommendation We recommend each employee?s personnel file be complete and kept up to date to include all rate increases whether due to performance or cost of living increases in order to support the amounts being paid to employees. Views of responsible officials and planned corrective action HR is keeping track and documenting all salary raises and as part of procedure, filling out form (Personnel Action Form) prepared by HR and signed by the CEO every time a raise is given. The form will be put in the employee file. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-003 Reporting (repeat of Finding 2021-003) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart D requires the Organization to retain adequate records and other supporting documentation for reports submitted to awarding agencies under the compliance requirements for reporting. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition The Organization did not maintain sufficient supporting records for the information reported in its calendar year 2021 Uniform Data System (UDS) report. Context This finding appears to be a systemic problem. Cause The Organization?s internal controls over compliance did not include adequate controls over the retention of supporting documentation for UDS reports submitted to awarding agencies. Effect The Organization submitted UDS reports for federal awards that may lack supporting documentation. Questioned Costs None identified Recommendation We recommend the Organization maintain documentation supporting reports filed with awarding agencies. Views of responsible officials and planned corrective action Management agrees with this finding. Management is working on improving controls and procedures to ensure appropriate records and supporting documentations. The UDS reporting is made accurate by using not only ECW reporting capabilities, but also by getting an i2i population health data tool as a secondary verification platform for UDS data. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-004 Special Tests and Provisions Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 4, Compliance Requirement N, Special Tests and Provisions states, ?Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patients ability to pay.? [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition During our testing of sliding fee discounts for health center patients qualifying for reduced charge visits, we identified several incidents in which the sliding fee applied was not consistent with the entities policies based on the patient?s level of income. Context This finding appears to be a systemic problem. A sample size of 25 patients included 10 who did not have the correct sliding fee applied. In addition, 7 of the 10 misapplied sliding fees were due to lack of application on file. Cause Due to turnover in the billing and admitting staff, there was lack of appropriate training relating to the requirements of the sliding fee system to properly administer the sliding fee program. Effect Patients may have been granted the incorrect sliding fee adjustment. Questioned Costs None identified. Recommendation We recommend continued effort in training personnel on applying the appropriate sliding fee discount based on the Organization?s approved policy and in compliance with the OMB Compliance Supplement requirements. An appropriate level of review should be conducted on patient accounts to ensure proper document retention, application of sliding fee discounts, and third-party insurance billing. Views of responsible officials and planned corrective action Management agrees with this finding. Management has already taken steps and has updated the clinic?s Sliding Fee Discount Program, the clinic?s fee schedule, and retraining of staff. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-005 Allowable Costs Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Entities receiving Health Center Program funds must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. [ ] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Condition During our testing of payroll expenditures, it was noted several employees were paid at rates in excess of the approved rate of pay per the respective employee?s personnel file. Context This finding appears to be a systemic problem. A sample size of 34 employees included 7 that were paid at a rate greater than the most recent approved rate per the employee?s personnel file and 2 additional employees who did not have documentation of the approved rate in their personnel file. Cause Due to high turnover in all departments, the human resources department was not able to properly file and retrieve all required documentation relating to the approved rates of pay for new hires and rate increases approved by management and the Board during the year. Effect Rates of pay being paid to employees are not supportable by the Organization?s personnel files. Questioned Costs None identified. Recommendation We recommend each employee?s personnel file be complete and kept up to date to include all rate increases whether due to performance or cost of living increases in order to support the amounts being paid to employees. Views of responsible officials and planned corrective action HR is keeping track and documenting all salary raises and as part of procedure, filling out form (Personnel Action Form) prepared by HR and signed by the CEO every time a raise is given. The form will be put in the employee file. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-003 Reporting (repeat of Finding 2021-003) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart D requires the Organization to retain adequate records and other supporting documentation for reports submitted to awarding agencies under the compliance requirements for reporting. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition The Organization did not maintain sufficient supporting records for the information reported in its calendar year 2021 Uniform Data System (UDS) report. Context This finding appears to be a systemic problem. Cause The Organization?s internal controls over compliance did not include adequate controls over the retention of supporting documentation for UDS reports submitted to awarding agencies. Effect The Organization submitted UDS reports for federal awards that may lack supporting documentation. Questioned Costs None identified Recommendation We recommend the Organization maintain documentation supporting reports filed with awarding agencies. Views of responsible officials and planned corrective action Management agrees with this finding. Management is working on improving controls and procedures to ensure appropriate records and supporting documentations. The UDS reporting is made accurate by using not only ECW reporting capabilities, but also by getting an i2i population health data tool as a secondary verification platform for UDS data. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-004 Special Tests and Provisions Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 4, Compliance Requirement N, Special Tests and Provisions states, ?Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patients ability to pay.? [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition During our testing of sliding fee discounts for health center patients qualifying for reduced charge visits, we identified several incidents in which the sliding fee applied was not consistent with the entities policies based on the patient?s level of income. Context This finding appears to be a systemic problem. A sample size of 25 patients included 10 who did not have the correct sliding fee applied. In addition, 7 of the 10 misapplied sliding fees were due to lack of application on file. Cause Due to turnover in the billing and admitting staff, there was lack of appropriate training relating to the requirements of the sliding fee system to properly administer the sliding fee program. Effect Patients may have been granted the incorrect sliding fee adjustment. Questioned Costs None identified. Recommendation We recommend continued effort in training personnel on applying the appropriate sliding fee discount based on the Organization?s approved policy and in compliance with the OMB Compliance Supplement requirements. An appropriate level of review should be conducted on patient accounts to ensure proper document retention, application of sliding fee discounts, and third-party insurance billing. Views of responsible officials and planned corrective action Management agrees with this finding. Management has already taken steps and has updated the clinic?s Sliding Fee Discount Program, the clinic?s fee schedule, and retraining of staff. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-005 Allowable Costs Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Entities receiving Health Center Program funds must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. [ ] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Condition During our testing of payroll expenditures, it was noted several employees were paid at rates in excess of the approved rate of pay per the respective employee?s personnel file. Context This finding appears to be a systemic problem. A sample size of 34 employees included 7 that were paid at a rate greater than the most recent approved rate per the employee?s personnel file and 2 additional employees who did not have documentation of the approved rate in their personnel file. Cause Due to high turnover in all departments, the human resources department was not able to properly file and retrieve all required documentation relating to the approved rates of pay for new hires and rate increases approved by management and the Board during the year. Effect Rates of pay being paid to employees are not supportable by the Organization?s personnel files. Questioned Costs None identified. Recommendation We recommend each employee?s personnel file be complete and kept up to date to include all rate increases whether due to performance or cost of living increases in order to support the amounts being paid to employees. Views of responsible officials and planned corrective action HR is keeping track and documenting all salary raises and as part of procedure, filling out form (Personnel Action Form) prepared by HR and signed by the CEO every time a raise is given. The form will be put in the employee file. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-003 Reporting (repeat of Finding 2021-003) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart D requires the Organization to retain adequate records and other supporting documentation for reports submitted to awarding agencies under the compliance requirements for reporting. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition The Organization did not maintain sufficient supporting records for the information reported in its calendar year 2021 Uniform Data System (UDS) report. Context This finding appears to be a systemic problem. Cause The Organization?s internal controls over compliance did not include adequate controls over the retention of supporting documentation for UDS reports submitted to awarding agencies. Effect The Organization submitted UDS reports for federal awards that may lack supporting documentation. Questioned Costs None identified Recommendation We recommend the Organization maintain documentation supporting reports filed with awarding agencies. Views of responsible officials and planned corrective action Management agrees with this finding. Management is working on improving controls and procedures to ensure appropriate records and supporting documentations. The UDS reporting is made accurate by using not only ECW reporting capabilities, but also by getting an i2i population health data tool as a secondary verification platform for UDS data. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-004 Special Tests and Provisions Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 4, Compliance Requirement N, Special Tests and Provisions states, ?Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patients ability to pay.? [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition During our testing of sliding fee discounts for health center patients qualifying for reduced charge visits, we identified several incidents in which the sliding fee applied was not consistent with the entities policies based on the patient?s level of income. Context This finding appears to be a systemic problem. A sample size of 25 patients included 10 who did not have the correct sliding fee applied. In addition, 7 of the 10 misapplied sliding fees were due to lack of application on file. Cause Due to turnover in the billing and admitting staff, there was lack of appropriate training relating to the requirements of the sliding fee system to properly administer the sliding fee program. Effect Patients may have been granted the incorrect sliding fee adjustment. Questioned Costs None identified. Recommendation We recommend continued effort in training personnel on applying the appropriate sliding fee discount based on the Organization?s approved policy and in compliance with the OMB Compliance Supplement requirements. An appropriate level of review should be conducted on patient accounts to ensure proper document retention, application of sliding fee discounts, and third-party insurance billing. Views of responsible officials and planned corrective action Management agrees with this finding. Management has already taken steps and has updated the clinic?s Sliding Fee Discount Program, the clinic?s fee schedule, and retraining of staff. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-005 Allowable Costs Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Entities receiving Health Center Program funds must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. [ ] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Condition During our testing of payroll expenditures, it was noted several employees were paid at rates in excess of the approved rate of pay per the respective employee?s personnel file. Context This finding appears to be a systemic problem. A sample size of 34 employees included 7 that were paid at a rate greater than the most recent approved rate per the employee?s personnel file and 2 additional employees who did not have documentation of the approved rate in their personnel file. Cause Due to high turnover in all departments, the human resources department was not able to properly file and retrieve all required documentation relating to the approved rates of pay for new hires and rate increases approved by management and the Board during the year. Effect Rates of pay being paid to employees are not supportable by the Organization?s personnel files. Questioned Costs None identified. Recommendation We recommend each employee?s personnel file be complete and kept up to date to include all rate increases whether due to performance or cost of living increases in order to support the amounts being paid to employees. Views of responsible officials and planned corrective action HR is keeping track and documenting all salary raises and as part of procedure, filling out form (Personnel Action Form) prepared by HR and signed by the CEO every time a raise is given. The form will be put in the employee file. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-003 Reporting (repeat of Finding 2021-003) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart D requires the Organization to retain adequate records and other supporting documentation for reports submitted to awarding agencies under the compliance requirements for reporting. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition The Organization did not maintain sufficient supporting records for the information reported in its calendar year 2021 Uniform Data System (UDS) report. Context This finding appears to be a systemic problem. Cause The Organization?s internal controls over compliance did not include adequate controls over the retention of supporting documentation for UDS reports submitted to awarding agencies. Effect The Organization submitted UDS reports for federal awards that may lack supporting documentation. Questioned Costs None identified Recommendation We recommend the Organization maintain documentation supporting reports filed with awarding agencies. Views of responsible officials and planned corrective action Management agrees with this finding. Management is working on improving controls and procedures to ensure appropriate records and supporting documentations. The UDS reporting is made accurate by using not only ECW reporting capabilities, but also by getting an i2i population health data tool as a secondary verification platform for UDS data. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-004 Special Tests and Provisions Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 4, Compliance Requirement N, Special Tests and Provisions states, ?Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patients ability to pay.? [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition During our testing of sliding fee discounts for health center patients qualifying for reduced charge visits, we identified several incidents in which the sliding fee applied was not consistent with the entities policies based on the patient?s level of income. Context This finding appears to be a systemic problem. A sample size of 25 patients included 10 who did not have the correct sliding fee applied. In addition, 7 of the 10 misapplied sliding fees were due to lack of application on file. Cause Due to turnover in the billing and admitting staff, there was lack of appropriate training relating to the requirements of the sliding fee system to properly administer the sliding fee program. Effect Patients may have been granted the incorrect sliding fee adjustment. Questioned Costs None identified. Recommendation We recommend continued effort in training personnel on applying the appropriate sliding fee discount based on the Organization?s approved policy and in compliance with the OMB Compliance Supplement requirements. An appropriate level of review should be conducted on patient accounts to ensure proper document retention, application of sliding fee discounts, and third-party insurance billing. Views of responsible officials and planned corrective action Management agrees with this finding. Management has already taken steps and has updated the clinic?s Sliding Fee Discount Program, the clinic?s fee schedule, and retraining of staff. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-005 Allowable Costs Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Entities receiving Health Center Program funds must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. [ ] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Condition During our testing of payroll expenditures, it was noted several employees were paid at rates in excess of the approved rate of pay per the respective employee?s personnel file. Context This finding appears to be a systemic problem. A sample size of 34 employees included 7 that were paid at a rate greater than the most recent approved rate per the employee?s personnel file and 2 additional employees who did not have documentation of the approved rate in their personnel file. Cause Due to high turnover in all departments, the human resources department was not able to properly file and retrieve all required documentation relating to the approved rates of pay for new hires and rate increases approved by management and the Board during the year. Effect Rates of pay being paid to employees are not supportable by the Organization?s personnel files. Questioned Costs None identified. Recommendation We recommend each employee?s personnel file be complete and kept up to date to include all rate increases whether due to performance or cost of living increases in order to support the amounts being paid to employees. Views of responsible officials and planned corrective action HR is keeping track and documenting all salary raises and as part of procedure, filling out form (Personnel Action Form) prepared by HR and signed by the CEO every time a raise is given. The form will be put in the employee file. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-003 Reporting (repeat of Finding 2021-003) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Based on the standards of documentation of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart D requires the Organization to retain adequate records and other supporting documentation for reports submitted to awarding agencies under the compliance requirements for reporting. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition The Organization did not maintain sufficient supporting records for the information reported in its calendar year 2021 Uniform Data System (UDS) report. Context This finding appears to be a systemic problem. Cause The Organization?s internal controls over compliance did not include adequate controls over the retention of supporting documentation for UDS reports submitted to awarding agencies. Effect The Organization submitted UDS reports for federal awards that may lack supporting documentation. Questioned Costs None identified Recommendation We recommend the Organization maintain documentation supporting reports filed with awarding agencies. Views of responsible officials and planned corrective action Management agrees with this finding. Management is working on improving controls and procedures to ensure appropriate records and supporting documentations. The UDS reporting is made accurate by using not only ECW reporting capabilities, but also by getting an i2i population health data tool as a secondary verification platform for UDS data. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-004 Special Tests and Provisions Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 4, Compliance Requirement N, Special Tests and Provisions states, ?Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patients ability to pay.? [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition During our testing of sliding fee discounts for health center patients qualifying for reduced charge visits, we identified several incidents in which the sliding fee applied was not consistent with the entities policies based on the patient?s level of income. Context This finding appears to be a systemic problem. A sample size of 25 patients included 10 who did not have the correct sliding fee applied. In addition, 7 of the 10 misapplied sliding fees were due to lack of application on file. Cause Due to turnover in the billing and admitting staff, there was lack of appropriate training relating to the requirements of the sliding fee system to properly administer the sliding fee program. Effect Patients may have been granted the incorrect sliding fee adjustment. Questioned Costs None identified. Recommendation We recommend continued effort in training personnel on applying the appropriate sliding fee discount based on the Organization?s approved policy and in compliance with the OMB Compliance Supplement requirements. An appropriate level of review should be conducted on patient accounts to ensure proper document retention, application of sliding fee discounts, and third-party insurance billing. Views of responsible officials and planned corrective action Management agrees with this finding. Management has already taken steps and has updated the clinic?s Sliding Fee Discount Program, the clinic?s fee schedule, and retraining of staff. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.
2022-005 Allowable Costs Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS26623, H8FCS41667, H8DCS35811, H8HCS45016, C8ECS44852, C14CS39779 Criteria Entities receiving Health Center Program funds must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. [ ] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Condition During our testing of payroll expenditures, it was noted several employees were paid at rates in excess of the approved rate of pay per the respective employee?s personnel file. Context This finding appears to be a systemic problem. A sample size of 34 employees included 7 that were paid at a rate greater than the most recent approved rate per the employee?s personnel file and 2 additional employees who did not have documentation of the approved rate in their personnel file. Cause Due to high turnover in all departments, the human resources department was not able to properly file and retrieve all required documentation relating to the approved rates of pay for new hires and rate increases approved by management and the Board during the year. Effect Rates of pay being paid to employees are not supportable by the Organization?s personnel files. Questioned Costs None identified. Recommendation We recommend each employee?s personnel file be complete and kept up to date to include all rate increases whether due to performance or cost of living increases in order to support the amounts being paid to employees. Views of responsible officials and planned corrective action HR is keeping track and documenting all salary raises and as part of procedure, filling out form (Personnel Action Form) prepared by HR and signed by the CEO every time a raise is given. The form will be put in the employee file. See planned corrective actions in the next section of the Schedule of Audit Findings and Questioned Costs.