FAC Explorer

Finding 547937 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351868
Organization: New River Health Association, Inc. (WV)
Auditor: Forvis Mazars LLP

AI Summary

  • Core Issue: The Organization misclassified pharmacy purchase adjustments as sliding fee discounts and double counted costs on the UDS report.
  • Impacted Requirements: Reporting standards under 45 CFR 75.342 were not met, leading to inaccuracies in financial reporting.
  • Recommended Follow-Up: Management should verify report accuracy before submission and ensure collaboration between accounting and grant management for future reports.

Finding Text

Health Center Program Cluster – ALN Nos. 93.224 and 93.527 U.S. Department of Health and Human Services Award No. 6 H80CS00075, April 1, 2024 - March 31, 2025 Award No. 2 H80CS00075, April 1, 2023 - March 31, 2024 Award No. 4 H8FCS41116, April 1, 2021 - March 31, 2024 Award No. 4 H8GCS48805, December 1, 2022 – June 30, 2024 Award No. 1 H8LCS51581, September 1, 2023 – December 31, 2024 Criteria or Specific Requirement – Reporting (45 CFR 75.342) Condition – The Organization incorrectly classified certain adjustments for pharmacy purchases as sliding fee discounts on the Uniform Data System (UDS) report. Additionally, the Organization double counted certain facility and non-clinical support services costs on the UDS Report. Cause – The Organization’s pharmacy practice management software was incorrectly set up to classify certain adjustments as sliding fee discounts and a manual correction was not made during the preparation of the UDS report. In addition, the Organization’s supporting schedules had formula errors that causes certain costs to be duplicated. Effect or potential effect– The Organization overstated sliding fee discounts and overstated the total costs for facility and non-clinical support services. Questioned costs – None Context – A sample of 2 reports were tested out of the total population of 3 reports. The sampling methodology used is not and is not intended to be statistically valid. Certain amounts on the UDS Report were not accurately reported. Identification as a repeat finding, if applicable – N/A Recommendation – Management should review the required reports for accuracy prior to submission to ensure the documentation supports the amounts in the report. View of Responsible Officials and Planned Corrective Actions – Management agrees with the auditors’ recommendations. The UDS formulas were updated and the issues corrected for the 2024 UDS report. In the upcoming year it is expected that new accounting leadership and Grant Management will work together to ensure the accuracy of the UDS Report. Organization’s contact persons responsible for corrective action: Michele Sarrett Anticipated completion date: 12/31/2025

Corrective Action Plan

Management agrees with the auditors' recommendations. The UDS formulas were updated and the issues corrected for the 2024 UDS report. In the upcoming year it is expected that new accounting leadership and Grant Management will work together to ensure the accuracy of the UDS Report. Organization contact persons responsible for corrective action: Michele Sarrett Anticipated completion date: 12/31/2025

Categories

Procurement, Suspension & Debarment HUD Housing Programs Reporting

Other Findings in this Audit

  • 547938 2024-002
    Significant Deficiency
  • 547939 2024-002
    Significant Deficiency
  • 547940 2024-003
    Significant Deficiency
  • 547941 2024-003
    Significant Deficiency
  • 547942 2024-003
    Significant Deficiency
  • 1124379 2024-002
    Significant Deficiency
  • 1124380 2024-002
    Significant Deficiency
  • 1124381 2024-002
    Significant Deficiency
  • 1124382 2024-003
    Significant Deficiency
  • 1124383 2024-003
    Significant Deficiency
  • 1124384 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $701,678
93.493 Congressional Directives $322,398
93.965 Coal Miners Respiratory Impairment Treatment Clinics and Services $223,000
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $212,500
93.527 Grants for New and Expanded Services Under the Health Center Program $169,822
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $97,500
93.994 Maternal and Child Health Services Block Grant to the States $86,000
93.800 Organized Approaches to Increase Colorectal Cancer Screening $43,087
93.859 Biomedical Research and Research Training $40,000
93.590 Community-Based Child Abuse Prevention Grants $2,006