Finding 1239336 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-09-30

AI Summary

  • Core Issue: A patient charge was not adjusted correctly according to the approved sliding fee discount schedule, leading to potential overcharging.
  • Impacted Requirements: Compliance with the sliding fee discount schedule under ALN 93.224 was not met, indicating a significant deficiency in internal controls.
  • Recommended Follow-Up: Implement a second-level review process for demographic and income data to ensure accurate sliding fee classifications and adjustments.

Finding Text

Finding 2025 – 001 Federal Agency: U.S Department of Health and Human Services Federal Program Name: Health Center Program Cluster Assistance Listing Number: 93.224 Award Period: 1/1/2025 – 12/31/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance Criteria or specific requirement: Under the compliance requirement for Special Tests and Provisions for ALN 93.224, “health centers must prepare and apply a sliding fee discount schedule (SFDS) so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay”. Condition: A charge did not receive the appropriate adjustment per the patient’s approved sliding fee discount level. Finding 2025 – 001 Federal Agency: U.S Department of Health and Human Services Federal Program Name: Health Center Program Cluster Assistance Listing Number: 93.224 Award Period: 1/1/2025 – 12/31/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance Criteria or specific requirement: Under the compliance requirement for Special Tests and Provisions for ALN 93.224, “health centers must prepare and apply a sliding fee discount schedule (SFDS) so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay”. Condition: A charge did not receive the appropriate adjustment per the patient’s approved sliding fee discount level. Context: During our testing of sliding fee discounts for health center patients qualifying for reduced charges, we identified one sample item which received the incorrect sliding fee discount. Cause: Internal control process and procedures were not followed resulting in a discount applied in the billing system that did not match the sliding fee determination per the approved patient application. Effect: Patient would receive an incorrect sliding fee discount. Recommendation: We recommend implementation of a second level independent review of the demographic data and income verification information entered into the patient billing system in order to ensure the sliding fee classification is correct and corresponding adjustment is appropriate. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. VVHC will perform routine sampling of demographic data and income verification entered into the billing systems to ensure sliding fee classification is correct, and the proper adjustment was given.

Corrective Action Plan

2025-001 Sliding Fee Discount Recommendation: VVHC should implement a second level independent review of the demographic data and income verification information entered in the patient billing system in order to ensure the sliding fee classification is correct and corresponding adjustment is appropriate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: VVHC will perform routine sampling of demographic data and income verification entered into the billing systems to ensure sliding fee classification is correct, and the proper adjustment was given. Name(s) of the contact person(s) responsible for corrective action: Holly Sliva, CFO Planned completion date for corrective action plan: September 30, 2026

Categories

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1239334 2025-001
    Material Weakness Repeat
  • 1239335 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $3.35M
93.224 HEALTH CENTER PROGRAM $201,054
93.800 ORGANIZED APPROACHES TO INCREASE COLORECTAL CANCER SCREENING $44,519
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $42,824
93.426 THE NATIONAL CARDIOVASCULAR HEALTH PROGRAM $14,424