Finding 1160431 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-10-15

AI Summary

  • Core Issue: Incorrect sliding fee adjustments were found in 3 out of 25 patient accounts due to lack of internal controls.
  • Impacted Requirements: Health centers must apply a sliding fee discount schedule based on patients' ability to pay.
  • Recommended Follow-Up: Implement internal controls and regular reviews to ensure accurate sliding fee calculations.

Finding Text

Information on the federal program – Assistance Listing Number 93.224/93.527; Health Center Program Cluster; Department of Health and Human Services Criteria or specific requirement – 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 patient’s ability to pay. Condition – During our review of the Organization’s sliding fee calculations, we noted 3 patient accounts with incorrectly calculated sliding fee adjustments. Cause – The Organization did not have internal controls in place to ensure that the correct sliding fee adjustment was applied to patient accounts. Effect or potential effect – Patients received incorrect sliding fee adjustments resulting in an incorrect patient responsibility. Questioned costs – None Context – Out of a population of 43,633 patient accounts receiving sliding fee adjustments, a sample of 25 patient accounts were selected for testing, and 3 accounts had an incorrect sliding fee adjustment calculation. The sample was not statistically valid. Identification as a repeat finding, if applicable – Not a repeat finding. Recommendation – We recommend the Organization establish an internal control procedure to ensure that sliding fee adjustments are correctly calculated and reviewed. Views of responsible officials and planned corrective actions – Management acknowledged the sliding fee adjustment errors resulted from manual adjustments made within the electronic health record system. Management will add an additional layer of review over manual adjustments. Further, the Organization will implement a process to periodically review sliding fee adjustments throughout the year for accuracy.

Corrective Action Plan

Finding Number: 2024-003 Planned Corrective Action: Management acknowledged the sliding fee adjustment errors resulted from incorrect calculation of sliding fee discount. Management will add an additional layer of review over the application of the sliding fee scale. Further, the Organization will implement a process to periodically review sliding fee adjustments throughout the year for accuracy. Anticipated Completion Date: 12/31/2025 Responsible Contact Person: Tony Ricciardella, Interim Chief Financial Officer and Alison Roca, Controller

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160426 2024-002
    Material Weakness Repeat
  • 1160427 2024-002
    Material Weakness Repeat
  • 1160428 2024-002
    Material Weakness Repeat
  • 1160429 2024-003
    Material Weakness Repeat
  • 1160430 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Children Program $4.13M
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $1.41M
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.16M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $1.15M
93.526 Grants for Capital Development in Health Centers $734,681
93.310 Trans-Nih Research Support $485,422
93.778 Medical Assistance Program $447,254
93.788 Opioid Str $419,177
93.926 Healthy Start Initiative $351,010
93.217 Family Planning Services $103,477
93.185 Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects $99,765
93.994 Maternal and Child Health Services Block Grant to the States $90,437
93.527 Grants for New and Expanded Services Under the Health Center Program $74,833
93.236 Grants to States to Support Oral Health Workforce Activities $69,860
93.110 Maternal and Child Health Federal Consolidated Programs $61,810
93.426 The National Cardiovascular Health Program $38,659
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $24,533
93.268 Immunization Cooperative Agreements $23,658
16.588 Violence Against Women Formula Grants $19,250
93.504 Family to Family Health Information Centers $15,202
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $11,675