Finding 45838 (2022-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-05-24

AI Summary

  • Core Issue: There is a material weakness in internal controls over documentation for sliding fee payments, with insufficient evidence for 6 out of 40 tested cases.
  • Impacted Requirements: The Organization must charge sliding fees based on accurate household income and resident counts, which were not adequately verified.
  • Recommended Follow-Up: Implement stronger controls to ensure all necessary documentation is collected and retained before services are provided.

Finding Text

Finding 2022-001 ? Material Weakness and Nonmaterial Noncompliance in Internal Control over Retention of Supporting Documentation Relating to Sliding Fee Test. Condition: During the audit, 40 sliding fee payments were selected for testing; however, insufficient supporting evidence was provided for six sample items which did not substantiate patient household income and number of residents who resided within the household. Criteria: The Organization is responsible for charging a sliding fee based on household income and number of residents that reside within the patient?s household. Cause: The Organization did not have fully operating controls in place to ensure required documentation was received and/or maintained for some patients who received services. Effect: The audit team was unable to verify or validate that participants were appropriately charged due to the inability to review sufficient supporting documentation. Therefore, the audit team is unable to conclude that the Organization is compliant with the requirement to charge patients the appropriate sliding fee. Recommendation: We recommend controls and procedures be implemented to ensure all supporting documentation substantiating all patient household income and the number of residents who reside within their household is obtained and verified before services are provided. It should then be retained as supporting documentation that this compliance test has been completed and validated. Management?s Response: Management agrees with the finding and is in the process of developing and implementing a comprehensive plan to ensure that appropriate documentation regarding household income and number of residents who reside within the individual?s household is obtained and retained prior to any services being provided to a patient.

Categories

Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 45837 2022-001
    Material Weakness Repeat
  • 45839 2022-001
    Material Weakness Repeat
  • 622279 2022-001
    Material Weakness Repeat
  • 622280 2022-001
    Material Weakness Repeat
  • 622281 2022-001
    Material Weakness Repeat

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) $1.61M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $692,957