HILLTOWN COMMUNITY HEALTH CENTERS, INC.Non-Profit

Finding No. 2023-002: Financial Reporting – Significant Deficiency, is also considered a finding under Federal Award Findings and Questioned Costs. This finding is applicable to all federal programs.

Finding No. 2023-003: Annual Audit Submission – Significant Deficiency Assistance Listing Program Title and Number: All Federal Agency: All Criteria As per the Code of Federal Regulations, Section 200.512 - Report Submission, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. The due date for the submission was September 30, 2024. Condition The audit and reporting package were not submitted by the due date September 30, 2024. Cause The Organization was not able to complete the financial statements and federal singleaudit by the extended due date. Effect The audit and federal reporting package were not filed on time. Questioned Costs None. Context The financial statements and federal single audit were not able to be completed by the due date. Recommendation We recommend that all necessary efforts be taken to ensure timely submission of the audit and financial reporting package. Management’s Response/View of Responsible Officials Management agrees with the auditors' findings. Management will meet timeliness standards in subsequent years.

DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) CFDA#: 93.224 Grant Number: H80CS00601 Grant Period: Year Ended December 31, 2020 Finding: 2020-001 Significant Deficiency Reporting Condition: The Organization could not provide the source documentation used to prepare the calendar year 2020 Universal Data System Report (UDS) filed with the Bureau of Primary Health Care (BPHC). In applying analytical procedures on the report submitted to BPHC, there were errors and omissions in financial and statistical information. Criteria: Internal controls should be in place to provide reasonable assurance that the UDS is prepared accurately and consistently. Cause: There are no formal internal written policies and procedures for completing the UDS template which would include the specific reports to be printed from medical, dental and financial accounting software reports where financial and statistical information is obtained to complete the UDS, as well as the methodology for allocating facility and administrative costs to programs reported in the UDS. Written procedures would also disclose where and how long the UDS and related supporting documentation should be retained by the Organization. Effect: The Organization filed the UDS with incorrect financial and statistical information, used an inconsistent method for allocating facility and administrative costs and did not retain the supporting documentation used to complete the template. Context: Auditors requested supporting documentation for specific line items and tables of the UDS in order to perform testing outlined in the OMB compliance supplement. The Organization was unable to provide the calculations used to prepare the UDS and had to recreate other reports. Repeat Finding: No. Auditors? Recommendation: The Organization should amend the 2020 UDS to appropriately reflect the financial and statistical information reported on calendar year 2020 health center activities and maintain documentation to support this information. Views of Responsible Officials and Planned Corrective Actions: Hilltown Community Health Centers, Inc. agrees with the finding and has updated and resubmitted a corrected UDS template to BPHC. Name of contact person: John Melehov, Chief Financial Officer Completion Date: May 14, 2021