Finding 1175843 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-03-02

AI Summary

  • Core Issue: There were errors in applying the sliding fee scale discounts for 10 out of 40 patients, leading to incorrect discounts.
  • Impacted Requirements: The Health Center must follow the sliding fee scale based on patient income and family size to comply with federal guidelines.
  • Recommended Follow-Up: Review and improve procedures to ensure accurate application of sliding fee discounts for eligible patients.

Finding Text

MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.224 2024-002: Improper Application of the Sliding Fee Scale Compliance Requirement: Special Tests and Provisions Criteria – The Health Center should apply the sliding fee scale based on patient income and family size for qualifying individuals. Condition – Based on the 40 patients selected for Single Audit compliance testing, we noted 10 errors. In each instance, we noted that the wrong class was selected when applying the sliding fee discount to patient balances based on the patient’s individual incomes and family size of their respective households, resulting in the wrong discount being applied. Cause – The cause of this deficiency was an error in the application of the effective sliding fee discount schedule based on the verified income and household size of each respective patient. Effect – The effect was an improper sliding fee discount being applied to various patient accounts based on the effective sliding fee discount schedule and policy. Recommendation – We recommend that the Health Center review procedures to ensure that sliding fee discounts are properly applied and posted to patient accounts for eligible encounters. Management’s Response – We recognize the needs for proper internal control processes and procedures to ensure that sliding fee discounts are properly applied and posted to patient accounts for eligible encounters.

Corrective Action Plan

CORRECTIVE ACTION PLAN February 24, 2026 U.S. Department of Health and Human Services Park DuValle Community Health Center, Inc. respectively submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Blue & Co., LLC 2650 Eastpoint Pkwy., Suite 300 Louisville, Kentucky 40223 Audit period: December 31, 2024. The findings from the schedule of findings and questioned costs for the year ended December 31, 2024, are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule. FINDINGS - FINANCIAL STATEMENT AUDIT 2024-001 Condition: During our audit procedures, we noted that multiple accounts were not properly reconciled as part of close procedures. The result was multiple audit adjustments that totaled a material adjustment to the financial statements. Action: Management will implement policies and procedures by June 30, 2026, to ensure proper reconciliation of trial balance accounts are properly reconciled. FINDINGS – FEDERAL AWARD PROGRAM AUDITS 2024-002 Condition: Sliding fee scale: There were several instances noted where the incorrect sliding fee discount was given to patients based on their verified incomes and household sizes. Action: Management will implement internal control procedures by June 30, 2026, to ensure that sliding fee discounts are properly applied and posted to patient accounts for eligible encounters. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Dr. Swannie Jett, CEO, at (502) 774-4401. Sincerely, Dr. Swannie Jett, Chief Executive Officer Park DuValle Community Health Center, Inc.

Categories

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $5.47M
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $131,204
10.558 CHILD AND ADULT CARE FOOD PROGRAM $80,480
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $35,124