Finding 1216493 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-03
Audit: 402985
Organization: La Clinica Tepeyac (CO)

AI Summary

  • Core Issue: Inconsistent application of sliding fee discounts due to clerical errors and missing documentation.
  • Impacted Requirements: Compliance with Title 42 Chapter 1 Subchapter D Section 51c303(f) regarding fee schedules and patient ability to pay.
  • Recommended Follow-Up: Review and strengthen internal controls for determining and documenting sliding fee discounts to ensure accuracy and compliance.

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 60 sliding fee discounts for health center patients qualifying for reduced charge visits, we identified one visit where a slide was provided, but there was no application on file to support the slide that was applied. We also noted two visits where a sliding fee was incorrectly given to a patient due to clerical errors. Effect Potential that a patient would not receive the appropriate sliding fee discount or may receive a discount when they have not applied for one. Questioned Costs None identified. Cause Clerical error in which either the sliding fee rate was miscalculated, the incorrect sliding fee rate was selected and applied, or the sliding fee application was not scanned into the patients file 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 all documentation supporting the sliding discount provided is retained. Views of Responsible Officials The Organization continues to make improvements to processes and procedures to ensure the accurate documentation and application of the sliding fee discounts. An improvement over the prior year's finding was realized, however more active internal audit checks and balances will need to be made to fully resolve these issues.

Corrective Action Plan

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 all documentation supporting the sliding discount provided is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization continues to make improvements to processes and procedures to ensure the accurate documentation and application of the sliding fee discounts. An improvement over the prior year's finding was realized, however more active internal audit checks and balances will need to be made to fully resolve these issues.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring

Other Findings in this Audit

  • 1216492 2025-001
    Material Weakness Repeat
  • 1216494 2025-002
    Material Weakness Repeat
  • 1216495 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Center, Affordable Care Act for New and Expanded Services $939,614
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $185,280
93.914 HIV Emergency Relief Project Grants $132,059
21.027 COVID-19: Coronavirus State and Local Fiscal Recovery Funds $130,339
93.566 Refugee and Entrant Assistance State/Replacement Designee Administered Programs $64,694
93.526 COVID-19: Health Center Infrastructure Support $34,355
93.744 PPHF: BREAST AND CERVICAL CANCER SCREENING OPPORTUNITIES FOR STATES, TRIBES AND TERRITORIES SOLELY FINANCED BY PREVENTION AND PUBLIC HEALTH FUNDS $18,423
93.185 IMMUNIZATION RESEARCH, DEMONSTRATION, PUBLIC INFORMATION AND EDUCATION TRAINING AND CLINICAL SKILLS IMPROVEMENT PROJECTS $142
93.527 Consolidated Health Center, Affordable Care Act for New and Expanded Services $0