Finding 1161383 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-10-24

AI Summary

  • Core Issue: Incorrect sliding fee discounts were applied to patients, leading to potential overcharges.
  • Impacted Requirements: Compliance with Title 42 Chapter 1 Subchapter D Section 51c303(f) regarding fee schedules and discounts based on patient ability to pay.
  • Recommended Follow-Up: Review and strengthen internal controls for determining and monitoring sliding fee discounts to ensure accuracy and proper documentation.

Finding Text

Criteria or Specific Requirement Per Title 42 Chapter 1 Subchapter D Section 51c303(f), “Health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted on the basis of the patient’s ability to pay.” Condition and Context During our testing of sixty sliding fee discounts for health center patients qualifying for reduced charge visits, we identified seven visits that either received the incorrect sliding fee discount or received a sliding fee discount in error. Effect Potential that a patient would not receive the appropriate sliding fee discount. Questioned Costs None identified. Cause Clerical error in which the incorrect discount was applied due to lack of an oversight process in place. Recommendation We recommend the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter and that the support for the sliding fee discounts is retained. Views of Responsible Officials The Organization has recognized the deficiency of internal controls regarding this determination, recording, and monitoring of the sliding fee process from application through making the adjustment. The Organization has implemented a comprehensive input and verification process that applies to both the initial application and the subsequent adjustment phases. This includes enhanced checks to ensure accuracy in data entry and calculation, as well as verification of application information. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Tricia Lippert, Comptroller at 970-327-0537.

Corrective Action Plan

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommended the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter and that the support for the sliding fee discounts is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization has recognized the deficiency of internal controls regarding this determination, recording, and monitoring of the sliding fee process from application through making the adjustment. The Organization has implemented a comprehensive input and verification process that applies to both the initial application and the subsequent adjustment phases. This includes enhanced checks to ensure accuracy in data entry and calculation, as well as verification of application information. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Tricia Lippert, Comptroller at 970-327-0537.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs

Other Findings in this Audit

  • 1161381 2025-001
    Material Weakness Repeat
  • 1161382 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Health Center Program, Grants for New and Expanded Services $1.57M
93.744 PPHF: BREAST AND CERVICAL CANCER SCREENING OPPORTUNITIES FOR STATES, TRIBES AND TERRITORIES SOLELY FINANCED BY PREVENTION AND PUBLIC HEALTH FUNDS Financed By Prevention And Public Health Funds $36,108
93.527 COVID-19: FY 2023 Bridge Access Program $15,483
93.800 Cancer Screening $8,445
93.527 Health Center Program, Grants for New and Expanded Services $0