EIN: 201944166
UEI: K6NDCGB9AL56
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 22, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by November 22, 2024 (642 days ago).
What is a management decision? →Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts. Questioned Costs: None Context/Sampling: For 4 of 48 patients selected for testing, incorrect discounts were provided. Two patients received an incorrect discount; one patient received a discount who did not qualify for a discount; and one patient who qualified for a discount was not provided a discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: May 31, 2024
Show full finding ▾Hide full finding ▴Finding: 2023-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts. Questioned Costs: None Context/Sampling: For 4 of 48 patients selected for testing, incorrect discounts were provided. Two patients received an incorrect discount; one patient received a discount who did not qualify for a discount; and one patient who qualified for a discount was not provided a discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: May 31, 2024
In Finding 2023-001, it was reported that the Organization did not properly substantiate that proper documentation was obtained and that proper sliding fee discounts were applied for certain patients for the year ended December 31, 2023. Employees will be properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. Sliding fee discounts will be reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. This review and training will be completed by May 31, 2024.
2022-001
Time/activity reports (time sheets) are not maintained for salaried employees Cause: The Organization’s policy does not require salaried employees to certify time and efforts that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that monthly time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Recommendation: Procedures should be established to maintain time and effort certifications by all salaried employees. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees certify time and effort that coincides with the Organization’s payroll cycle. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: May 31, 2024
Show full finding ▾Hide full finding ▴Finding: 2023-002 Monthly time/activity reports not maintained for salaried employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster CFDA 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees Cause: The Organization’s policy does not require salaried employees to certify time and efforts that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that monthly time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Recommendation: Procedures should be established to maintain time and effort certifications by all salaried employees. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees certify time and effort that coincides with the Organization’s payroll cycle. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: May 31, 2024
In Finding 2023-002, it was reported that time and activity report are not maintained for salaried employees. The Organization’s operating processes in place do not require salaried employees to certify time and efforts on a monthly basis. Procedures will be established to maintain time and effort certifications by all salaried employees. Procedures will be established to ensure that salaried employees certify time and effort that coincide with the Organization’s payroll cycle (at least on a monthly basis).
During the year, the Organization made one draw of federal funds that was not disbursed in a timely manner for program expenditures. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes. Cause: The Organization made a draw of federal grant funds in advance of making the qualifying expenditures. Effect: Although expenditures were made prior to December 31, 2023, the Organization did not minimize the time elapsing between transfer of funds from the United States Treasury and the disbursement for expenditures. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Efforts should be made to ensure advance draws of federal funds do not occur. Views of Responsible Officials: The Organization understands the requirements to disburse federal funds in a timely manner. Procedures will be established to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: May 31, 2024
Show full finding ▾Hide full finding ▴Finding: 2023-003 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Grants for Capital Development in Health Centers Assistance Listing No. 93.526 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made one draw of federal funds that was not disbursed in a timely manner for program expenditures. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes. Cause: The Organization made a draw of federal grant funds in advance of making the qualifying expenditures. Effect: Although expenditures were made prior to December 31, 2023, the Organization did not minimize the time elapsing between transfer of funds from the United States Treasury and the disbursement for expenditures. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Efforts should be made to ensure advance draws of federal funds do not occur. Views of Responsible Officials: The Organization understands the requirements to disburse federal funds in a timely manner. Procedures will be established to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: May 31, 2024
In Finding 2023-003, the Organization made one draw of federal funds that was not disbursed in a timely manner for program expenditures. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes. The Organization understands the requirements to disburse federal funds in a timely manner. Procedures will be established to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization.
FAC accepted this audit on May 30, 2023 — management decision was due November 30, 2023.
Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient?s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization?s policy. Cause: There were deficiencies in internal controls over the Organization?s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization?s sliding fee scale. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts. Questioned Costs: None. Context/Sampling: For 3 of 48 patients selected for testing, incorrect discounts were provided. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization?s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. These errors are a result of significant turnover within the Organization during the pandemic. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: July 31, 2023
Show full finding ▾Hide full finding ▴Finding: 2022-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient?s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization?s policy. Cause: There were deficiencies in internal controls over the Organization?s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization?s sliding fee scale. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts. Questioned Costs: None. Context/Sampling: For 3 of 48 patients selected for testing, incorrect discounts were provided. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization?s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. These errors are a result of significant turnover within the Organization during the pandemic. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: July 31, 2023
In Finding 2022-001, it was reported that the Organization did not properly substantiate that proper documentation was obtained and that proper sliding fee discounts were applied for certain patients for the year ended December 31, 2022. During the pandemic, the Organization has experienced significant turnover of staff, especially in those personnel who are responsible for obtaining documentation for sliding fee discounts and calculating the discounts. Employees will be given proper training to document and apply the sliding fee discounts, and the Organization will ensure that the sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. This review and training will be completed by July 31, 2023.
2021-002
FAC accepted this audit on August 1, 2022 — management decision was due February 1, 2023.
Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient?s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization?s policy. Cause: There were deficiencies in internal controls over the Organization?s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization?s sliding fee scale. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts. Questioned Costs: None. Context/Sampling: For 2 of 20 patients selected for testing, documentation provided by the Organization did not include all necessary elements required by the Organization?s sliding fee policy. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization?s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. These errors are a result of significant turnover within the Organization during the pandemic. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: September 30, 2022
Show full finding ▾Hide full finding ▴Finding: 2021-002 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient?s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization?s policy. Cause: There were deficiencies in internal controls over the Organization?s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization?s sliding fee scale. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts. Questioned Costs: None. Context/Sampling: For 2 of 20 patients selected for testing, documentation provided by the Organization did not include all necessary elements required by the Organization?s sliding fee policy. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization?s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. These errors are a result of significant turnover within the Organization during the pandemic. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: September 30, 2022
In Finding 2021-002, it was reported that the Organization did not properly substantiate that proper documentation was obtained and that proper sliding fee discounts were applied for certain patients for the year ended December 31, 2021. During the pandemic, the Organization has experienced significant turnover of staff, especially in those personnel who are responsible for obtaining documentation for sliding fee discounts and calculating the discounts. Employees will be given proper training to document and apply the sliding fee discounts, and the Organization will ensure that the sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. This review and training will be completed by September 30, 2022.
FAC accepted this audit on October 28, 2021 — management decision was due April 28, 2022.
The Uniform Data System report submitted to DHHS for the year ended December 31, 2020 contained incorrect data for patient revenue. Tables 8E and 9D did not include accurate financial results. The expenses on Table 8E of the UDS report were overstated by approximately $460,000. The charges reported on Table 9D were understated by approximately $961,000 and adjustments were understated by approximately $376,000. Cause: The above exception resulted from errors in preparing the Uniform Data System report. Effect: The Department of Health and Human Services reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None. Context/Sampling: The finding appears to be systemic. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure that accurate expenses, charges, and adjustments are reported and reconciled to the UDS report. HRSA should be informed of the error and the 2020 Tables 8E and 9D should be revised and resubmitted, if requested. Auditee?s Response and Corrective Action Plan: Management concurs. Efforts will be made to ensure that the revenue recorded is reconciled to the revenue on the UDS report. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: December 31, 2021
Show full finding ▾Hide full finding ▴Finding: 2020-003 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Condition: The Uniform Data System report submitted to DHHS for the year ended December 31, 2020 contained incorrect data for patient revenue. Tables 8E and 9D did not include accurate financial results. The expenses on Table 8E of the UDS report were overstated by approximately $460,000. The charges reported on Table 9D were understated by approximately $961,000 and adjustments were understated by approximately $376,000. Cause: The above exception resulted from errors in preparing the Uniform Data System report. Effect: The Department of Health and Human Services reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None. Context/Sampling: The finding appears to be systemic. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that a system should be developed to ensure that accurate expenses, charges, and adjustments are reported and reconciled to the UDS report. HRSA should be informed of the error and the 2020 Tables 8E and 9D should be revised and resubmitted, if requested. Auditee?s Response and Corrective Action Plan: Management concurs. Efforts will be made to ensure that the revenue recorded is reconciled to the revenue on the UDS report. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: December 31, 2021
In Finding 2020-003, it was reported that the Organization?s Uniform Data System report submitted to DHHS for the year ended December 31, 2020 contained incorrect data for patient revenue. The expenses on Table 8E of the UDS report were overstated by approximately $460,000. The charges reported on Table 9D were understated by approximately $961,000 and adjustments were understated by approximately $376,000. Management recognizes the importance of complying with grant guidelines. In response to Finding 2020-002, efforts will be made to ensure that all revenue sources recorded on the billing systems and all expenses in the Organization?s general ledger are reconciled to the UDS report. These procedures will be completed by December 31, 2021.
2019-002
Health Centers receiving funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient?s ability to pay. During compliance testing, it was determined that the Organization did not properly apply the sliding fee discounts for 3 patients out of a sample of 20 patients for the year ended December 31, 2020. In addition, it was determined that the Organization did not appropriately implement its updated sliding fee scale for several months after it was approved by the Board. Cause: There were deficiencies in internal controls to ensure that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization?s sliding fee scale. The sliding fee scale file was not properly utilized in the application of discounts provided to patients. Effect: Discounts were not properly applied to patient accounts. Questioned Costs: None. Context/Sampling: For 3 of 20 patients selected for testing, the account had an incorrect discount applied. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to apply the sliding fee discounts, and that the sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Management should ensure that changes to the Organization?s policies, including its sliding fee scale, are appropriately implemented when approved by the Board. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: December 31, 2021
Show full finding ▾Hide full finding ▴Finding: 2020-004 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health Centers receiving funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient?s ability to pay. During compliance testing, it was determined that the Organization did not properly apply the sliding fee discounts for 3 patients out of a sample of 20 patients for the year ended December 31, 2020. In addition, it was determined that the Organization did not appropriately implement its updated sliding fee scale for several months after it was approved by the Board. Cause: There were deficiencies in internal controls to ensure that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization?s sliding fee scale. The sliding fee scale file was not properly utilized in the application of discounts provided to patients. Effect: Discounts were not properly applied to patient accounts. Questioned Costs: None. Context/Sampling: For 3 of 20 patients selected for testing, the account had an incorrect discount applied. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to apply the sliding fee discounts, and that the sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Management should ensure that changes to the Organization?s policies, including its sliding fee scale, are appropriately implemented when approved by the Board. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: December 31, 2021
In Finding 2020-004, it was reported that the Organization did not properly apply the sliding fee discounts for certain patients for the year ended December 31, 2020. In addition, it was determined that the Organization did not appropriately implement its updated sliding fee scale for several months after it was approved by the Board. Employees will be given proper training, and the Organization will ensure that the sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Management should ensure that changes to the Organization?s policies, including its sliding fee scale, are appropriately implemented when approved by the Board.
During the year, the Organization drew federal funds without reconciling program expenses to ensure that valid expenditures were made prior to the draws. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. During the audit of grant revenue and related receivables, it was noted that federal grant revenue and the related receivables were understated by approximately $15,000. Cause: The Organization did not identify qualifying expenditures prior to drawing down grant funds. Effect: Federal grant revenue and federal grant receivable were understated by $15,000. Questioned Costs: None Context/Sampling: The finding appears to be systemic. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the grant revenue and receivable reported on the general ledger be reconciled to the grant activity report on a monthly basis, and all unreconciled balances investigated on a timely basis. Auditee?s Response and Corrective Action Plan: Management concurs. Management will reconcile all grant activity reports and grant revenue and related receivable on the general ledger to the year-to-date grant activity reports and investigate any unreconciled differences. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: December 31, 2021
Show full finding ▾Hide full finding ▴Finding: 2020-005 Cash Management Federal Programs: Department of Health and Human Services Health Center Cluster, CFDA 93.527 and 93.224 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization drew federal funds without reconciling program expenses to ensure that valid expenditures were made prior to the draws. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. During the audit of grant revenue and related receivables, it was noted that federal grant revenue and the related receivables were understated by approximately $15,000. Cause: The Organization did not identify qualifying expenditures prior to drawing down grant funds. Effect: Federal grant revenue and federal grant receivable were understated by $15,000. Questioned Costs: None Context/Sampling: The finding appears to be systemic. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the grant revenue and receivable reported on the general ledger be reconciled to the grant activity report on a monthly basis, and all unreconciled balances investigated on a timely basis. Auditee?s Response and Corrective Action Plan: Management concurs. Management will reconcile all grant activity reports and grant revenue and related receivable on the general ledger to the year-to-date grant activity reports and investigate any unreconciled differences. Contact Person: Jennifer Dittes, CEO Anticipated Date of Completion: December 31, 2021
In Finding 2020-005, it was reported that the Organization drew federal funds without reconciling program expenses to ensure that valid expenditures were made prior to the draws. As a result, federal grant revenue and the related receivables were understated by approximately $15,000. Management will reconcile all grant activity reports and grant receivable on the general ledger to the year-to-date grant activity reports and investigate any unreconciled differences.
2019-003
FAC accepted this audit on December 16, 2020 — management decision was due June 16, 2021.
The Uniform Data System report submitted to DHHS for the year ended December 31, 2019 contained incorrect data for patient revenue. The Table 9D did not include the pharmacy information. Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Context: The pharmacy charges, adjustments and payments were not included on Table D of the UDS report. The charges were understated by approximately $3,500,000, adjustments were understated by approximately $2,200,000 and payments were understated by approximately $1,300,000. Cause: The above exception resulted from an error in preparing table 9D of the Uniform Data System report. Effect: The Department of Health and Human Services reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Recommendation: It is recommended that a system should be developed to ensure actual charges and adjustments from all sources are reported and reconciled to the UDS report. HRSA should be informed of the error and the 2019 Table 9D should be revised and resubmitted if requested. Auditee?s Response and Corrective Action Plan: Management concurs. Efforts will be made to ensure that the revenue recorded is reconciled to the revenue on the UDS report. Contact Person: Jenny Dittes, CEO Anticipated Date of Completion: January 31, 2021 Questioned Costs: None Reported
Show full finding ▾Hide full finding ▴Finding: 2019-002 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.527 Grant No. H80CS 24109 Condition: The Uniform Data System report submitted to DHHS for the year ended December 31, 2019 contained incorrect data for patient revenue. The Table 9D did not include the pharmacy information. Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Context: The pharmacy charges, adjustments and payments were not included on Table D of the UDS report. The charges were understated by approximately $3,500,000, adjustments were understated by approximately $2,200,000 and payments were understated by approximately $1,300,000. Cause: The above exception resulted from an error in preparing table 9D of the Uniform Data System report. Effect: The Department of Health and Human Services reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Recommendation: It is recommended that a system should be developed to ensure actual charges and adjustments from all sources are reported and reconciled to the UDS report. HRSA should be informed of the error and the 2019 Table 9D should be revised and resubmitted if requested. Auditee?s Response and Corrective Action Plan: Management concurs. Efforts will be made to ensure that the revenue recorded is reconciled to the revenue on the UDS report. Contact Person: Jenny Dittes, CEO Anticipated Date of Completion: January 31, 2021 Questioned Costs: None Reported
In Finding 2019-002, The Uniform Data System report submitted to DHHS for the year ended December 31, 2019 contained incorrect data for patient revenue. The Table 9D did not include the pharmacy information. Management recognizes the importance of complying with grant guidelines. In response to Finding 2019-002, efforts will be made to ensure that all revenue sources recorded on the billing systems are reconciled to the revenue on the UDS report. These procedures will be completed by January 31, 2021.
During the year, the Organization drew federal funds that were not disbursed for program expenses. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. Context: One cash draw made by the Organization during the fiscal year was determined to an be advanced draw. Cause: The Organization did not identify qualifying expenditures prior to drawing down grant draws. Effect: Grant funds were drawn in advance of qualifying expenditures. The grant draws included supplementary funds that were not earned as of the end of the grant period and are reflected as unearned grant revenue. Portions of these funds were eligible for carry forward based on the grant terms. Recommendation: Efforts should be made to ensure advance draws of federal funds do not occur. Auditee?s Response and Corrective Action Plan: Finance staff understands the requirements to draw funds for qualifying expenditures only. Procedures will be established to ensure that draws are not made in excess of the allowable expenditures of the Organization. Contact Person: Jenny Dittes, CEO Anticipated Date of Completion: January 31, 2021 Questioned Costs: Cash Management CFDA 93.527 $ 26,997
Show full finding ▾Hide full finding ▴Finding: 2019-003 Cash Management Federal Programs: Department of Health and Human Services Health Center Cluster, CFDA 93.527 Grant No. H80CS 24109 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization drew federal funds that were not disbursed for program expenses. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. Context: One cash draw made by the Organization during the fiscal year was determined to an be advanced draw. Cause: The Organization did not identify qualifying expenditures prior to drawing down grant draws. Effect: Grant funds were drawn in advance of qualifying expenditures. The grant draws included supplementary funds that were not earned as of the end of the grant period and are reflected as unearned grant revenue. Portions of these funds were eligible for carry forward based on the grant terms. Recommendation: Efforts should be made to ensure advance draws of federal funds do not occur. Auditee?s Response and Corrective Action Plan: Finance staff understands the requirements to draw funds for qualifying expenditures only. Procedures will be established to ensure that draws are not made in excess of the allowable expenditures of the Organization. Contact Person: Jenny Dittes, CEO Anticipated Date of Completion: January 31, 2021 Questioned Costs: Cash Management CFDA 93.527 $ 26,997
In Finding 2019-003, The Organization drew federal funds that were not disbursed for program expenses. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. Management recognizes the importance of complying with grant guidelines. In response to Finding 2019-002, Finance staff understands the requirements to draw funds for qualifying expenditures only. Procedures will be established to ensure that draws are not made in excess of the allowable expenditures of the Organization. The updated procedure will be completed by January 31, 2021.
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