FAC Explorer

Audit 8436

FY End
2023-03-31
Total Expended
$9.51M
Findings
8
Programs
13
Organization: Hamilton Health Center, Inc. (PA)
Year: 2023 Accepted: 2023-12-26
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6484 2023-002 Material Weakness Yes L
6485 2023-003 Significant Deficiency - B
6486 2023-002 Material Weakness Yes L
6487 2023-003 Significant Deficiency - B
582926 2023-002 Material Weakness Yes L
582927 2023-003 Significant Deficiency - B
582928 2023-002 Material Weakness Yes L
582929 2023-003 Significant Deficiency - B

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) $3.79M Yes 2
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.81M Yes 2
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.29M - 0
93.926 Healthy Start Initiative $1.25M Yes 0
93.268 Immunization Cooperative Agreements $614,874 - 0
93.217 Family Planning_services $210,803 - 0
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $180,684 - 0
93.788 Opioid Str $153,250 - 0
93.994 Maternal and Child Health Services Block Grant to the States $80,838 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $44,016 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $42,083 - 0
93.667 Social Services Block Grant $30,683 - 0
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $3,468 - 0

Contacts

Name Title Type
PNLNCXKS1CH6 Frackson Sakala Auditee
7172329971 Debra Bowes 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. Negative amounts shown on the Schedule (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% 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 Hamilton Health Center, Inc. (the Center) and subsidiaries (the Organization) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Organization.
Title: Summary of Significant Accounting Policies 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 (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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 (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable.
Title: Indirect Costs 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 (where applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit twenty-five reports during its fiscal year ended March 31, 2023, which comprised four financial reports and twenty-one performance reports. Eight of the performance reports were not filed timely. Furthermore, two of the eight late filings were not submitted yet as of the end of the fiscal year. This is a late submission rate of 32% overall, and 38% on performance reports only. Reports that were filed late ranged from being four days late up to fifty-one days late. Effect: The Organization did not comply with the reporting requirements for the submission of its performance reports for the fiscal year ending March 31, 2023. Cause: The Organization did not file these reports timely due to an oversight by management and turnover within the accounting department during the fiscal year. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The accounting staff were not trained in HRSA grant reporting and this led to missing the grant reporting due dates. The new Chief Financial Officer is experienced in HRSA grants reporting and has put in place a tracking system for all grants including HRSA Federal grants so that lapses in grants reporting do not happen again. This finding has since been resolved and there will never be a reoccurrence in future.
Finding 2023-003
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $13,486 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period June 2022 through March 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $13,486 in excess of what was allowed during the year ended March 31, 2023. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The Chief Financial Officer who left the health center was the only one who was handling and administering the indirect cost rate to Federal grants but when he left the accounting staff had no clue that the new indirect cost rate needed to be administered. The new Chief Financial Officer has experience in the use and application of indirect cost rates and has cross trained the Controller in the use and application of indirect cost rates. This finding will never reoccur in future.
Finding 2023-002
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit twenty-five reports during its fiscal year ended March 31, 2023, which comprised four financial reports and twenty-one performance reports. Eight of the performance reports were not filed timely. Furthermore, two of the eight late filings were not submitted yet as of the end of the fiscal year. This is a late submission rate of 32% overall, and 38% on performance reports only. Reports that were filed late ranged from being four days late up to fifty-one days late. Effect: The Organization did not comply with the reporting requirements for the submission of its performance reports for the fiscal year ending March 31, 2023. Cause: The Organization did not file these reports timely due to an oversight by management and turnover within the accounting department during the fiscal year. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The accounting staff were not trained in HRSA grant reporting and this led to missing the grant reporting due dates. The new Chief Financial Officer is experienced in HRSA grants reporting and has put in place a tracking system for all grants including HRSA Federal grants so that lapses in grants reporting do not happen again. This finding has since been resolved and there will never be a reoccurrence in future.
Finding 2023-003
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $13,486 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period June 2022 through March 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $13,486 in excess of what was allowed during the year ended March 31, 2023. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The Chief Financial Officer who left the health center was the only one who was handling and administering the indirect cost rate to Federal grants but when he left the accounting staff had no clue that the new indirect cost rate needed to be administered. The new Chief Financial Officer has experience in the use and application of indirect cost rates and has cross trained the Controller in the use and application of indirect cost rates. This finding will never reoccur in future.
Finding 2023-002
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit twenty-five reports during its fiscal year ended March 31, 2023, which comprised four financial reports and twenty-one performance reports. Eight of the performance reports were not filed timely. Furthermore, two of the eight late filings were not submitted yet as of the end of the fiscal year. This is a late submission rate of 32% overall, and 38% on performance reports only. Reports that were filed late ranged from being four days late up to fifty-one days late. Effect: The Organization did not comply with the reporting requirements for the submission of its performance reports for the fiscal year ending March 31, 2023. Cause: The Organization did not file these reports timely due to an oversight by management and turnover within the accounting department during the fiscal year. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The accounting staff were not trained in HRSA grant reporting and this led to missing the grant reporting due dates. The new Chief Financial Officer is experienced in HRSA grants reporting and has put in place a tracking system for all grants including HRSA Federal grants so that lapses in grants reporting do not happen again. This finding has since been resolved and there will never be a reoccurrence in future.
Finding 2023-003
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $13,486 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period June 2022 through March 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $13,486 in excess of what was allowed during the year ended March 31, 2023. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The Chief Financial Officer who left the health center was the only one who was handling and administering the indirect cost rate to Federal grants but when he left the accounting staff had no clue that the new indirect cost rate needed to be administered. The new Chief Financial Officer has experience in the use and application of indirect cost rates and has cross trained the Controller in the use and application of indirect cost rates. This finding will never reoccur in future.
Finding 2023-002
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Reporting Questioned Costs: There are no questioned costs associated with this finding. Criteria: The Organization is required to submit quarterly Federal Cash Transaction Reports within 30 days of the end of each calendar quarter. The Organization also has requirements to submit various reports for performance and special reporting throughout the year. Performance and special reporting deadlines vary by grant, as some require a one time submission, while others may have semi-annual or quarterly reporting requirements. Condition and Context: The Organization was required to submit twenty-five reports during its fiscal year ended March 31, 2023, which comprised four financial reports and twenty-one performance reports. Eight of the performance reports were not filed timely. Furthermore, two of the eight late filings were not submitted yet as of the end of the fiscal year. This is a late submission rate of 32% overall, and 38% on performance reports only. Reports that were filed late ranged from being four days late up to fifty-one days late. Effect: The Organization did not comply with the reporting requirements for the submission of its performance reports for the fiscal year ending March 31, 2023. Cause: The Organization did not file these reports timely due to an oversight by management and turnover within the accounting department during the fiscal year. Recommendation: The Organization should implement procedures to identify and ensure compliance with all reporting requirements for each project. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The accounting staff were not trained in HRSA grant reporting and this led to missing the grant reporting due dates. The new Chief Financial Officer is experienced in HRSA grants reporting and has put in place a tracking system for all grants including HRSA Federal grants so that lapses in grants reporting do not happen again. This finding has since been resolved and there will never be a reoccurrence in future.
Finding 2023-003
Federal Program: Health Centers Program Cluster Assistance Listing Number: 93.224/93.527 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2023 Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: $13,486 Criteria: The Organization has a negotiated indirect cost rate agreement with the federal government for indirect costs. In accordance with 2 CFR Part 200, Appendix IV, indirect cost rate proposals are used to establish predetermined rates, fixed rates with carry-forward provision, provisional or final rates. A provision rate or billing rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement and reporting of indirect costs pending establishment of a final rate for the period. An organization cannot charge indirect costs to a federal program in excess of its negotiated indirect cost rate agreement. Condition and Context: The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period June 2022 through March 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Effect: The Organization charged indirect costs of $13,486 in excess of what was allowed during the year ended March 31, 2023. Cause: The Organization used the incorrect indirect cost rate due to oversight by management. Recommendation: The Organization should implement procedures to ensure indirect costs are being charged to programs using the most recent indirect cost rate agreement in place. Views of Responsible Officials and Planned Correction: In September of 2022, the Chief Financial Officer left the health center, and a replacement was not hired until February 20, 2023, a month before the end of the fiscal year on March 31, 2023. While the accounting staff have been with the health center for more than three years, they lacked guidance while the search for a replacement Chief Financial Officer was going on. The Chief Financial Officer who left the health center was the only one who was handling and administering the indirect cost rate to Federal grants but when he left the accounting staff had no clue that the new indirect cost rate needed to be administered. The new Chief Financial Officer has experience in the use and application of indirect cost rates and has cross trained the Controller in the use and application of indirect cost rates. This finding will never reoccur in future.