Finding Text
Health Center Program Cluster – ALN Nos. 93.224 and 93.527 U.S. Department of Health and Human Services Award No. 6 H80CS00075, April 1, 2025 - March 31, 2026 Award No. 6 H80CS00075, April 1, 2024 - March 31, 2025 Criteria or Specific Requirement – Reporting (45 CFR 75.342) Condition – The Organization incorrectly classified certain adjustments for pharmacy purchases as sliding fee discounts on the Uniform Data System (UDS) report. Additionally, the Organization double counted certain facility and non-clinical support services costs on the UDS Report. Cause – The Organization’s pharmacy practice management software was incorrectly set up to classify certain adjustments as sliding fee discounts and a manual correction was not made during the preparation of the UDS report. In addition, the Organization’s supporting schedules had formula errors that causes certain costs to be duplicated. Effect or potential effect– The Organization overstated sliding fee discounts and overstated the total costs for facility and non-clinical support services. Questioned costs – None Context – A sample of 2 reports were tested out of the total population of 6 reports. The sampling methodology used is not and is not intended to be statistically valid. Certain amounts on the UDS Report were not accurately reported. Identification as a repeat finding, if applicable – 2024-002 Recommendation – Management should review the required reports for accuracy prior to submission to ensure the documentation supports the amounts in the report. View of Responsible Officials and Planned Corrective Actions – Management agrees with the auditors’ recommendations. In the upcoming year it is expected that new accounting leadership and Grant Management will work together to ensure the accuracy of the UDS Report. Organization’s contact persons responsible for corrective action: Michele Sarrett, Chief Financial Officer Anticipated completion date: 2/15/2026