Criteria QCHC is required to maintain sufficient patient records to support that federal funds were spent only on qualifying services. Condition and Context During the audit of the financial statements for the fiscal year ended July 31, 2021, QCHC was unable to provide adequate documentation to support the nature of services provided to patients. Recommendation We recommend management improve their documentation retention processes to support the services provided to individuals. Views of Responsible Officials and Planned Corrective Actions QCHC acknowledges the finding and has implemented the following corrective actions: 1. QCHC has implemented Policy 317 - Record Retention, which requires a minimum seven-year retention of medical records and lab results. 2. QCHC has established the Systems Monitoring Policy requiring regular performance evaluations, feedback, and documentation of all monitoring activities including chart reviews to assess 3. QCHC has implemented the Sliding Fee Discount Program Policy which requires evaluation of forms used to ensure they are current and applicable, collection of utilization data, and patient satisfaction surveys. 4. QCHC has established a system to maintain sufficient patient records to support that federal funds were spent only on qualifying services. 5. QCHC has implemented the Inventory Control Policy requiring all incoming medical, dental, and facility supplies inventory orders to be checked against invoices.