Finding 59073 (2022-001)

Finding 2022-001 Program Income: Control, Tracking, and Allocation Method U.S Department of Health and Human Services No. 93.153 ? Coordinated services and Access to Research for Women, Infants, Children and Youth No. 93.918 ? Provide Outpatient Early Intervention Services with Respect to HIV Disease Grant Period Year Ended June 30, 2022 Criteria: Program income for the Ryan White programs lacked controls. Program income was not being allocated or tracked separately amongst the Ryan White C and D programs. Condition and Context: All charges generated from the Ryan White programs were going to one fund instead of being separated for each Ryan White program. The 340B revenue was not allocated to Ryan White C. Effect: If the program income is not allocated to the respective Ryan White programs, the related earnings may not be used for respective program expenses. Cause: Program income controls and process were not implemented and routinely performed. Recommendation: Appropriate internal controls over the Ryan White program income should be established and documented. A new fund for each Ryan White program should be maintained to properly track program income within the fund. The 340B revenue should go to the Ryan White C fund. Management Response: Management agrees with the finding noted in the report as well as in the HRSA site visit report. Procedures were in the process of being implemented throughout the year and went into effect in June 2022 to properly allocate program income retrospectively throughout the year. Subsequent to year end, they implemented a new system that will track program income in more detail and to the respective Ryan White programs, see attached corrective action plan.