Finding 1161616 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-10-29
Audit: 371474
Organization: Rural Health Services, Inc. (SC)
Auditor: TERRY HORNE CPA

AI Summary

  • Core Issue: Most board members or their families are not using health center services, violating compliance rules.
  • Impacted Requirements: Over 50% of board members must use the health center as their main source of care to provide effective input.
  • Recommended Follow-Up: Implement procedures to ensure compliance by having more than half of board members actively use the health center.

Finding Text

Finding: 2025-001-Board Member Compliance Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Health Center Program Compliance Manual Condition: A majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Cause: The above exception resulted from the failure to follow established procedures requiring board members or their immediate families to be active users of the health center. Effect: This non-compliance with federal grant requirements could result in a reduction of grant funds or additional grant restrictions. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procedures be established to ensure that more than fifty percent of board members are active users of the health center. Views of Responsible Officials: Management concurs. The Organization has reestablished compliance, and as of the date of the audit, more than fiftytuiy percent of the board members are users of the health center. Contact Person: Kyle Herbert, CFO Anticipated Date of Completion: October 3, 2025

Corrective Action Plan

In Finding 2025-001, a condition was noted that a majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Management recognizes the importance of complying with board member compliance guidelines. In response to Finding 2025-001, procedures have been established to ensure that more than 50 percent of the board members are users of the health center, and compliance is now achieved as of the date of this corrective action plan.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1161613 2025-001
    Material Weakness Repeat
  • 1161614 2025-001
    Material Weakness Repeat
  • 1161615 2025-001
    Material Weakness Repeat
  • 1161617 2025-002
    Material Weakness Repeat
  • 1161618 2025-002
    Material Weakness Repeat
  • 1161619 2025-002
    Material Weakness Repeat
  • 1161620 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.977 PREVENTIVE HEALTH SERVICES_SEXUALLY TRANSMITTED DISEASES CONTROL GRANTS $190,967
93.493 CONGRESSIONAL DIRECTIVES $174,267
93.224 CONSOLIDATED HEALTH CENTERS (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $172,798
93.332 COOPERATIVE AGREEMENT TO SUPPORT NAVIGATORS IN FEDERALLY-FACILITATED AND STATE PARTNERSHIP MARKETPLACES $55,370
93.145 AIDS EDUCATION AND TRAINING CENTERS $27,806
93.527 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $11,149
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $0