Finding 1179261 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-03-12
Audit: 391649

AI Summary

  • Core Issue: Four patient accounts had incorrect sliding fee adjustments due to lack of internal controls.
  • Impacted Requirements: Health centers must apply a sliding fee discount based on patients' ability to pay as per federal regulations.
  • Recommended Follow-Up: Establish 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, Federal Award No. 5 H80CS33656 for project period May 1, 2023 through April 30, 2024 and Federal Award No. 6 H80CS33656 for project period May 1, 2024 through April 30, 2025. 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 ((42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g)). Condition – During our review of the Center’s sliding fee calculations, we noted 4 patient accounts with incorrectly calculated sliding fee adjustments. Cause – The Center 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 106 patient accounts receiving sliding fee adjustments, a sample of 11 patient accounts were selected for testing, and 4 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 Center 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 incorrect calculation of sliding fee discount. Management will add an additional layer of review over the application of the sliding fee scale. Further, the Center 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 Center will implement a process to periodically review sliding fee adjustments throughout the year for accuracy. Anticipated Completion Date: December 31, 2025 Responsible Contact Person: Andreea Mera, Chief Executive Officer

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1179258 2024-002
    Material Weakness Repeat
  • 1179259 2024-003
    Material Weakness Repeat
  • 1179260 2024-002
    Material Weakness Repeat

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) $588,615
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $325,385
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $249,353
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $158,737
93.526 GRANTS FOR CAPITAL DEVELOPMENT IN HEALTH CENTERS $93,056
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $77,911