Finding 1216543 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-04

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance regarding the sliding fee discount process for health center patients.
  • Impacted Requirements: Health centers must maintain a schedule of fees and discounts based on patients' ability to pay, as outlined in Title 42 Chapter 1 Subchapter D Section 51c303(f).
  • Recommended Follow-Up: Review and strengthen internal controls for determining and monitoring sliding fee discounts to ensure accuracy and compliance.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program: Consolidated Health Centers Grant AL Numbers: 93.224 and 93.527 Award Period: 1/1/25 - 12/31/25 Type of Finding: Material Weakness in Internal Control over Compliance and Compliance 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 40 sliding fee discounts for health center patients qualifying for reduced charge visits, we identified three visits where the sliding fee discount provided did not agree with the discount that should have been received per the application due to clerical error. Effect Potential that a patient would not receive the appropriate sliding fee discount. Questioned Costs None identified. Cause Clerical error in which the incorrect sliding fee rate was selected and applied 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. Views of Responsible Officials We have found that our electronic medical record (eCW) is automatically classifying the federal poverty level (FPL) for all patients no matter if we have their insurance or household income inputted into the system. This has led to some inaccuracies in the rating of their FPL in eCW. We are actively manually overriding this setting, so we will have full control when to run the FPL after patient information is collected.

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. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have found that our electronic medical record (eCW) is automatically classifying the federal poverty level (FPL) for all patients no matter if we have their insurance or household income inputted into the system. This has led to some inaccuracies in the rating of their FPL in eCW. We are actively manually overriding this setting, so we will have full control when to run the FPL after patient information is collected.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 1216541 2025-003
    Material Weakness Repeat
  • 1216542 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $2.65M
93.224 FY 2024 Behavioral Health Service Expansion $560,657
93.526 Health Center Infrastructure Support $521,269
93.527 Fiscal Year 2025 Expanded Hours $354,463
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $38,353
93.217 Family Planning Services: Title X Services $19,616