Finding 497262 (2023-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-18

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance with the sliding fee discount schedule for health center services.
  • Impacted Requirements: The Center must ensure that sliding fee discounts are applied correctly based on patients' ability to pay, as outlined in 2 CFR 200 and the Uniform Guidance.
  • Recommended Follow-Up: Provide additional training for staff on sliding fee policies and establish regular monitoring to ensure compliance with the discount schedule.

Finding Text

Program AL# 93.224/93.527 Health Center Cluster Program - Special Tests and Provisions - Significant Deficiency in Internal Control over Compliance Criteria - Pursuant to 2 CFR 200 and the Uniform Guidance, and as noted in the compliance supplement. Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. The Center may establish a sliding fee discount schedule, approved by the governing board, provided certain criteria in the compliance supplement are met. The Center has established an appropriate policy and sliding fee scale. Condition - Pursuant to 2 CFR 200 and the Uniform Guidance, and as noted in the compliance supplement. Health Centers must prepare and apply a sliding fee discount schedule so that the amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. The Center may establish a sliding fee discount schedule, approved by the governing board, provided certain criteria in the compliance supplement are met. The Center has established an appropriate policy and sliding fee scale. Context - A non-statistical sample of 25 sliding fee encounters was selected. In our sample we noted two sliding fee encounters were not charged the proper sliding fee, one encounter did not have the appropriate slide asigned, and one encounter did not have an application on file. Effect - Sliding fee encounters that occur without the appropriate family size and annual income information could result in patients not being charged the appropriate fee and/or received an incorrect sliding fee discount. Questioned Costs - There were no questioned cost regarding this finding. Cause - Employees responsible for implementation and documentation of sliding fee discounts were not monitored to adequately verify processes were being performed as prescribed. Recommendation - Auditors recommend additional training for staff on sliding fee policies and procedures and management monitor and verify processes are being performed as prescribed on a reoccurring basis. Views of Responsible Officials - We concur with the audit finding. While the Center has a policy that meets the compliance requirements, management is responsible for the implementation and monitoring of those processes and procedures. Management believes staff turnover was a significant factor in causing this finding. Additional staff training on slide fee discounts is in place and monthly review and testing of compliance with Center sliding fee discount policy will be done.

Corrective Action Plan

Recommendation – Auditors recommend additional training for staff on sliding fee policies and procedures and management to monitor and verify that processes are being performed as prescribed. Action Taken – We concur with the audit finding. While the Center has a policy that meets the compliance requirements, management is responsible for the implementation and monitoring of those processes and procedures. Additional staff training on slide fee discounts is in place and monthly review and testing of compliance with Center sliding fee discount policy is ongoing.

Categories

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

Other Findings in this Audit

  • 497263 2023-001
    Material Weakness
  • 1073704 2023-001
    Material Weakness
  • 1073705 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $3.81M
93.498 Provider Relief Fund $1.68M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $628,744
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $336,987
93.110 Maternal and Child Health Federal Consolidated Programs $30,625