Finding 1155299 (2023-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-09-25
Audit: 367551
Organization: The City of Frederick, Maryland (MD)
Auditor: Brown Plus

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over patient billing, leading to improper application of sliding fee discounts.
  • Impacted Requirements: Noncompliance with federal regulations due to inconsistent training and oversight, affecting patient charges for 11 out of 60 tested cases.
  • Recommended Follow-Up: Implement proper training for staff, maintain accurate documentation in Allscripts, and ensure billing staff review patient data for correct adjustments before processing bills.

Finding Text

Federal Agency: Department of Health and Human Services Federal Program: 93.224 Health Center Program Identification Numbers: H80CS29007 H8DCS36329 H8ECS38904 H8FCS41132-01-00 Requirement: Special Tests and Provisions Type of Finding: Significant deficiency in internal control over major program; Noncompliance Criteria: Patient charges are adjusted based on income and family size by applying the Health Center’s sliding fee discount schedule. Condition: Sliding fee discounts are not applied appropriately for all patients. Cause: There is no management oversight in this area. Also, employees have not been properly trained and are not consistently utilizing the software that maintains patient data. Effect: The Health Center is not compliant with federal regulations which could result in the federal government imposing additional requirements or withholding, disallowing or suspending grant funds. Context: Out of the 60 patients selected for testing, 11 were charged less than they should have been, 4 patients were charged more than they should have been and 1 patient was unable to be tested due to a lack of documentation. The Health Center’s sliding fee policy calculates fees based on gross monthly pay. For 2 patients selected for testing, the calculation was based on their monthly net pay. Repeat Finding: This finding was reported for the years ended June 30, 2022 and 2021 as 2022-004 and 2021-006, respectively. Recommendation: All elements required for the sliding fee discount should be properly maintained in Allscripts, including documentation of zero household income. Employees should be properly trained on the software, and a user manual should be created related to patient intake so patient records are consistent and documented appropriately. The sliding fee discount noted in the patient data software should correspond to the co-pay amount listed on patient billings. Health Center staff in charge of billing should review the patient data to ensure the correct adjustment was made and patients were charged the correct co-pay amount. Any discrepancies should be brought to the attention of Health Center management before bills are processed. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.

Corrective Action Plan

Client intakes are now being updated within the fiscal year, ensuring that client information is accurate and timely. Additionally, the Department's new EHR will prompt providers to update proof of income on an annual basis.

Categories

Internal Control / Segregation of Duties Special Tests & Provisions Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 1155297 2023-003
    Material Weakness Repeat
  • 1155298 2023-004
    Material Weakness Repeat
  • 1155300 2023-006
    Material Weakness Repeat
  • 1155301 2023-007
    Material Weakness Repeat
  • 1155302 2023-008
    Material Weakness Repeat
  • 1155303 2023-009
    Material Weakness Repeat
  • 1155304 2023-010
    Material Weakness Repeat
  • 1155305 2023-011
    Material Weakness Repeat
  • 1155306 2023-012
    Material Weakness Repeat
  • 1155307 2023-013
    Material Weakness Repeat
  • 1155308 2023-014
    Material Weakness Repeat
  • 1155309 2023-015
    Material Weakness Repeat
  • 1155310 2023-016
    Material Weakness Repeat
  • 1155311 2023-017
    Material Weakness Repeat
  • 1155312 2023-018
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $4.30M
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $2.21M
93.137 Community Programs to Improve Minority Health $2.07M
14.231 Emergency Solutions Grant Program $1.03M
10.558 Child and Adult Care Food Program $996,154
93.568 Low-Income Home Energy Assistance $960,360
21.027 Coronavirus State and Local Fiscal Recovery Funds $786,960
93.569 Community Services Block Grant $452,538
14.218 Community Development Block Grants/entitlement Grants $271,995
14.267 Continuum of Care Program $184,808
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $94,827
21.026 Homeowner Assistance Fund $85,771
93.150 Projects for Assistance in Transition From Homelessness (path) $74,103
81.042 Weatherization Assistance for Low-Income Persons $62,520
16.753 Congressionally Recommended Awards $41,550
16.738 Edward Byrne Memorial Justice Assistance Grant Program $26,732
10.559 Summer Food Service Program for Children $26,497
93.499 Low Income Household Water Assistance Program $18,086
97.067 Homeland Security Grant Program $14,280
20.600 State and Community Highway Safety $14,003
95.001 High Intensity Drug Trafficking Areas Program $13,275
66.466 Geographic Programs - Chesapeake Bay Program $11,325
20.616 National Priority Safety Programs $8,554
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $2,487