FAC Explorer

Finding 24855 (2022-101)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-22
Audit: 26534
Organization: Chiricahua Community Health Center INC (AZ)
Auditor: Fester & Chapman PLLC

AI Summary

  • Core Issue: CCHCI reported incorrect lost revenue figures for the COVID-19 Provider Relief Fund due to discrepancies between reported Actuals and accounting records.
  • Impacted Requirements: Compliance with PRF reporting criteria, specifically the accurate calculation and documentation of lost revenue.
  • Recommended Follow-Up: Implement a review process where a management team member, not involved in report preparation, approves all reports before submission.

Finding Text

Section III - Federal Award Findings and Questioned Costs 2022-101 Reporting (Noncompliance, Significant deficiency) Federal Assisting Number and name: 93.498 COVID-19 Provider Relief Fund (PRF) Award numbers and years: N/A and 2020 Federal agency: U.S. Department of Health and Human Services Compliance requirements: Reporting Questioned Costs: Unknown Criteria: Provider Relief Fund requires the submission of the PRF Report. The calculation of Lost Revenue is one of the key line Items required to be tested from the PRF Report. CCHCI adopted to use actual revenue/net charges from patient care (the Actuals) for the calculation. Condition: The Actuals for the quarter ended March 2019 and June 2020 in the PRF Report were different from the CCHCI?s accounting system. In addition, CCHCI did not maintain proper supporting documentation to prove how the Actuals were calculated. Cause: CCHCI lacked proper internal control over preparing and reviewing the required reports. Effect: The lost of revenue was reported $178,340 less than what was calculated from the CCHCI?s accounting system. Recommendation: We recommend that reports are reviewed and approved by management team member who is not involved in the preparation.

Corrective Action Plan

CORRECTIVE ACTION PLAN December 2, 2022 We have prepared the following corrective action plan as required by the standards applicable to financial audits contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Specifically, for each finding we are providing you with the names of the contact people responsible for corrective action, the corrective action planned, and the anticipated completion date. 2022-101 Reporting (Noncompliance, Significant deficiency) Recommendation: We recommend that reports are reviewed and approved by management team member who is not involved in the preparation. Action Taken: CCHCI will have a member of the management team who is not involved in the preparation of federal reports review and approve prior to submission. Contract person: Gary McPherran Completion date: December 31, 2022

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 601297 2022-101
    Significant Deficiency

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) $3.20M
93.498 Provider Relief Fund $2.80M
93.217 Family Planning_services $531,342
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $138,818
21.027 Coronavirus State and Local Fiscal Recovery Funds $112,548
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $62,733