Finding Text
FINDING 2020-006
Lack of Adequate Documentation to Support that Services Provided to Patients were an
Allowable Activity
FEDERAL PROGRAM
Health Centers Program (Health Centers Cluster)
CFDA NUMBER AND TITLE:
93.224 - Consolidated Health Centers (community health centers, migrant health centers,
health care for the homeless, and public housing primary care centers)
93.527 - Affordable Care Act (ACA) grants for new and expanded services under the health
center program.
FINDING TYPE
Noncompliance, material weakness in internal control over compliance.
Criteria
QCHC is required to maintain adequate patient service and billings records to document
patients are receiving services that are allowable under grant guidelines.
CONDITION AND CONTEXT
During the audit of the financial statements for the fiscal year ended July 31, 2020, QCHC
was unable to provide adequate documentation to support the nature of services provided to
patients.
CAUSE
In February 2020, the Organization was victim of a database breach which corrupted the
Organization’s servers and resulted in the loss of general ledger and patient service data
dating through February 2020. QCHC was unable to recover adequate documentation to
support patient services.
EFFECT OR POTENTIAL EFFECT
By not retaining patient records and charges documentation, patients may have received
services that are unallowed or may have not been charged the proper amount for the
services received. This finding is a material weakness in internal control over compliance
and noncompliance with the Uniform Guidance.
RECOMMENDATION
We recommend management improve their documentation retention processes to support to
services provided to individuals.
Views of Responsible Officials and Planned Corrective Action
See the attached response and corrective action plan.