Finding 1856 (2023-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-15
Audit: 3234
Auditor: Terry Horne CPA

AI Summary

  • Core Issue: Most board members or their families are not using health center services, violating compliance requirements.
  • Impacted Requirements: Over 50% of board members must utilize the health center for effective input on strategic direction.
  • Recommended Follow-Up: Implement procedures to ensure compliance by having more than 50% of board members as active users by July 31, 2023.

Finding Text

Finding: 2023-001-Board Member Compliance Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Health Center Program Compliance Manual Condition: A majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Cause: The above exception resulted from the failure to follow established procedures requiring board members or their immediate families to be active users of the health center. Effect: This non-compliance with federal grant requirements could result in a reduction of grant funds or additional grant restrictions. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procedures be established to ensure that more than fifty percent of board members are active users of the health center. Views of Responsible Officials: Management concurs with the audit finding. Procedures will be established to ensure that more than 50 percent of the board members are users of the health center. Contact Person: Clifton Rodgers, CEO Anticipated Date of Completion: July 31, 2023

Corrective Action Plan

In Finding 2023-001, a condition was noted that a majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Management recognizes the importance of complying with board member compliance guidelines. In response to Finding 2023-001, procedures will be established to ensure that more than 50 percent of the board members are users of the health center. This will be completed by the Chief Executive Officer by July 31, 2023.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1857 2023-001
    Material Weakness
  • 1858 2023-001
    Material Weakness
  • 1859 2023-001
    Material Weakness
  • 578298 2023-001
    Material Weakness
  • 578299 2023-001
    Material Weakness
  • 578300 2023-001
    Material Weakness
  • 578301 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.02M
93.217 Family Planning_services $320,000
93.498 Provider Relief Fund $68,902
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $54,538
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $6,100
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $925