April 4, 2023, Betty Jean Kerr- People's Health Centers respectfully submits the following corrective action plan for the year ended May 31, 2022. CohnReznick, LLP 350 Church Street Hartford, CT 06103 Audit Period: May 31, 2022 Section II- Financial Statement Findings: Item 2022-001- Financial Repor...
April 4, 2023, Betty Jean Kerr- People's Health Centers respectfully submits the following corrective action plan for the year ended May 31, 2022. CohnReznick, LLP 350 Church Street Hartford, CT 06103 Audit Period: May 31, 2022 Section II- Financial Statement Findings: Item 2022-001- Financial Reporting Recommendation We recommend that the Center ensure that the monthly financial statement close process is being performed in a timely and accurate manner. Action Taken: 1. Review Monthly Closing checklist to it is complete and save as Master Monthly Closing Listing on Shared Drive and is shared electronically and by paper to all accounting team members. The Closing listing will address all the activities before closing accounting records for the month. The focus should be: - ensure whether maintain a "Manual GL Entry List" to list down those commonly recurring GL entries together with preparer and reviewer. - determining what supporting files are required, and responsibility of related teams (billing, management, etc). - determining suggested completion day to ensure the completeness of GL entry during closing. 2. The closing checklist reviewed will be shared by Finance Controller and/or delegated role in a timely manner no later than 7 days before month end. Responsible Party: Director of Finance Completion Date: June 30,2022. Prior year audit FY2021 (06/01/2020 - 05/31/2021) was completed late by BKD, in May of 2022, the corrective action plan was implemented in June of 2022. Therefore, this finding was required for in FY2022 (06/01/2021- 05/31/2022} as well. Section Ill- Federal Award Findings and Questioned Costs U.S. Department of Health and Human Services, COVID-19 - Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Item 2022-002 - Special Tests and Provisions Recommendation The Center should ensure that internal controls are in place to effectively ensure that patients receive the correct sliding fee discount. Action Taken: 1. To fix the system, so that the co-pay will roll up to the encounter and not by line item. 2. To implement at least twice an annual review to check & confirm the sliding fees in current program and billing system are consistent. 3. To implement a monthly sliding fee review, based on a sample selected to ensure the sliding fee was appropriately applied and it is according to the policy. Until we hire a Sliding Fee Specialist, the RCM Director will conduct the monthly review. And, following staff hiring, RCM Director will do routine samplings to ensure accuracy. 4. To update the Sliding Fee Guidelines document and communicate/re-train all employees involved in the process. 5. For the sliding fee patients with date of service 6.1.2020 to 12.31.2021, a report was run to capture all those patients, the billing department is working a special project to review and adjust if needed any encounter showing more than one co-pay per visit. This report is being monitored closely. Responsible Party: RCM Director Target Completion Date: June 30, 2022. Prior year audit FY2021 (06/01/2020 - 05/31/2021) was completed late by BKD, in May of 2022, the corrective action plan was implemented in June of 2022. Therefore, this finding was required for in FY2022 {06/01/2021- 05/31/2022) as well. If the Cognizant or Oversight Agency for the Audit has questions regarding this plan, please call: Rebecca Mankin, CFO at (660) 223-6212. Rebecca Mankin Chief Financial Officer