Finding 32958 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-10-01
Audit: 37864
Organization: N.e.w. Community Clinic, Ltd. (WI)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Four out of 40 eligibility determinations for sliding fee discounts lacked proper internal control review, leading to potential incorrect charges.
  • Impacted Requirements: Compliance with 42 CFR Sections 51c.303 and Uniform Guidance on internal controls over eligibility determinations.
  • Recommended Follow-Up: Review and enhance the internal approval process for sliding fee calculations to ensure accurate data entry and compliance.

Finding Text

Program Affected: Direct Award - Department of Health and Human Services: Health Center Program Cluster (Health Center Program CFDA No. 93.224 and Grants for New and Expanded Services under the Health Center Program CFDA No. 93.527). Grant No. H80CS00035, with grant periods February 1, 2021 through January 31, 2022, and February 1, 2022 through January 31, 2023. Questioned Costs: None Condition: The Organization?s sliding fee scale policy provides for the application of discounts to eligible patients based on the ability to pay. The Organization has designed an internal control to provide a review and approval of eligibility determinations within the established sliding fee scale based on income and family size. During our testing of participants, it was noted that 4 out of the 40 individuals sampled and tested did not have evidence that the internal control designed had been applied to the determination of eligibility within the sliding fee scale framework, leading to incorrect determinations of appropriate application of the sliding fee scale. Criteria: 42 CFR Sections 51c.303(e), (f), and (g) require a health center to apply sliding fee discounts to patients consistent with its sliding fee discount schedule. The Uniform Guidance requires grantees to design and implement internal controls over compliance to prevent, or detect and correct noncompliance with compliance requirements. Cause: The Organization?s monitoring and approval process did not appropriately detect errors in applications for four individuals. Effect: The internal control did not operate effectively, and that failure created a risk that individuals could be charged incorrectly. Recommendation: Wipfli LLP recommends the Organization to review its internal process for approval of the sliding fee scale calculation and determine that the review is performed to prevent, or detect and correct errors in data entry. Views of responsible officials: We agree with the finding have had already implemented corrective action during the current fiscal year.

Categories

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32957 2022-001
    Significant Deficiency
  • 32959 2022-001
    Significant Deficiency
  • 32960 2022-001
    Significant Deficiency
  • 609399 2022-001
    Significant Deficiency
  • 609400 2022-001
    Significant Deficiency
  • 609401 2022-001
    Significant Deficiency
  • 609402 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $2.52M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.00M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $73,501
10.572 Wic Farmers' Market Nutrition Program (fmnp) $10,247