Neighborhood Health Services CorporationNon-Profit

2025-001 - Untimely Federal Reporting and Audit Submission Program/Cluster: Health Center Program Cluster Grant#: H80CS00645-23-00/H8LCS50547-01-00 Grant Period: Year Ended June 30, 2025 Federal Agency: U.S. Department of Health and Human Services Criteria: Per the requirements contained in 2 CFR 200.512 (a), the auditee is responsible for submitting the data collection form and the reporting package, including the auditor’s reports, within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period to the Federal Audit Clearinghouse (“FAC”). Condition: The Organization did not maintain effective controls to ensure required Federal reporting was submitted timely. Specifically, the Organization did not submit its Single Audit reporting package to the Federal Audit Clearinghouse by the required deadline. Cause: The Organization lacked sufficiently designed and/or operating controls over Federal reporting deadlines, including timely monitoring of due dates, assignment of responsibility, and supervisory review to ensure completion and submission of required reports and the Single Audit reporting package within required timeframes. Effect: Failure to submit the FAC reporting package timely constitutes noncompliance with Federal reporting requirements and increases the risk that Federal agencies, pass-through entities, and other users do not receive required information on a timely basis for oversight and funding decisions. Repeated or systemic untimely reporting may also subject the Organization to increased oversight or other grantor follow-up. Questioned Costs: No questioned costs identified. Context: The Organization was subject to the Single Audit requirements for the year ended June 30, 2025 because it expended federal awards in excess of the Uniform Guidance threshold. Submission of the reporting package to the FAC is a required element of the Organization’s federal reporting responsibilities and is necessary for federal agencies and pass-through entities to access the audit results and monitor corrective action. This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend management design and implement controls over Federal reporting submissions including assigning a responsible individual for FAC submissions, maintaining a compliance calendar with the statutory due date and intermediate milestones, requiring documented supervisory review of the completed data collection form and applicable reporting package before submission, and retaining evidence of timely submission and acceptance by the FAC and awarding agency. Views of Responsible Officials: See management corrective action plan attached.

2021-004 - U.S. Department of Health and Human Services ? Health Resources and Service Administration Health Center Cluster - CFDA No.: 93.224, 93.527; Grant No. H80CS00645; Grant period ? Year ended June 30, 2021. Material Noncompliance Questioned costs: $0 Context: It was noted that certain documentation supporting patient claims could not be located during our audit. Intake forms, signed consent forms, and proof of service in the physical patient file, as well as photo identification and proof of insurance were missing from certain patient files. Out of 65 patient files tested, 13 exceptions were noted. Condition: Due to deficiencies in the monitoring of patient services billing procedures and client chart records during the period under audit, it was noted during our procedures that various required documentation was missing from patient files. A similar finding is included in the 2020 single audit report as item 2020-004. Criteria: Management should select and develop control activities that mitigate risks to patient services billing procedures and client chart records; which include ensuring that monitoring procedures to assess the quality of the Center?s system of internal control are effectively implemented. Although the Center has established procedures related to the review patient services billing and client chart records, we found that these procedures and controls were not effective. Cause: Procedures are in place for periodic monitoring of patient services billings and client chart records including supervisory review. However, these procedures were not periodically monitored during the period under audit. Effect: Failure to monitor patient services billing procedures and client chart records can result in loss of revenue, jeopardize the Center?s ability to maintain or improve its financial condition and achieve its mission.

2020-004 - U.S. Department of Health and Human Services ? Health Resources and Service Administration Health Center Cluster - CFDA No.: 93.224, 93.527; Grant No. H80CS00645; Grant period ? Year ended June 30, 2020. Material Noncompliance Questioned costs: $0 Context: It was noted that certain documentation supporting patient claims could not be located during our audit. Intake forms, signed consent forms, and proof of service in the physical patient file, as well as photo identification and proof of insurance were missing from certain patient files. Out of 65 patient files tested, 10 exceptions were noted. Condition: Due to deficiencies in the monitoring of patient services billing procedures and client chart records during the period under audit, it was noted during our procedures that various required documentation was missing from patient files. A similar finding is included in the 2019 single audit report as item 2019-006. Criteria: Management should select and develop control activities that mitigate risks to patient services billing procedures and client chart records; which include ensuring that monitoring procedures to assess the quality of the Center?s system of internal control are effectively implemented. Although the Center has established procedures related to the review patient services billing and client chart records, we found that these procedures and controls were not effective. Cause: Procedures are in place for periodic monitoring of patient services billings and client chart records including supervisory review. However, these procedures were not periodically monitored during the period under audit. Effect: Failure to monitor patient services billing procedures and client chart records can result in loss of revenue, jeopardize the Center?s ability to maintain or improve its financial condition and achieve its mission. Recommendation: Steps should be taken to strengthen the existing operating procedures related to patient services billings and client chart records and ensure that billing and documentation issues are addressed within a reasonable period of time after services are provided. Views of Responsible Officials and Planned Corrective Action: Neighborhood Health Services Corporation agrees with the finding and procedures are being implemented to remedy the condition with the amount of exceptions being reduced by more than half from fiscal year 2019 to fiscal year 2020.

2019-006 - U.S. Department of Health and Human Services ? Health Resources and Service Administration Health Center Cluster - CFDA No.: 93.224, 93.527; Grant No. H80CS00645; Grant period ? Year ended June 30, 2019. Material Noncompliance Questioned costs: $0 Context: It was noted that certain documentation supporting patient claims could not be located during our audit. Intake forms, signed consent forms, and proof of service in the physical patient file, as well as photo identification and proof of insurance were missing from certain patient files. Out of 65 patient files tested, 22 exceptions were noted. Condition: Due to deficiencies in the monitoring of patient services billing procedures and client chart records during the period under audit, it was noted during our procedures that various required documentation was missing from patient files. A similar finding is included in the 2018 single audit report as item 2018-007. Criteria: Management should select and develop control activities that mitigate risks to patient services billing procedures and client chart records; which include ensuring that monitoring procedures to assess the quality of the Center?s system of internal control are effectively implemented. Although the Center has established procedures related to the review patient services billing and client chart records, we found that these procedures and controls were not effective. Cause: Procedures are in place for periodic monitoring of patient services billings and client chart records including supervisory review. However, these procedures were not periodically monitored during the period under audit. Effect: Failure to monitor patient services billing procedures and client chart records can result in loss of revenue, jeopardize the Center?s ability to maintain or improve its financial condition and achieve its mission. Recommendation: Steps should be taken to strengthen the existing operating procedures related to patient services billings and client chart records and ensure that billing and documentation issues are addressed within a reasonable period of time after services are provided. Views of Responsible Officials and Planned Corrective Action: Neighborhood Health Services Corporation agrees with the finding and procedures are being implemented to remedy the condition.

2019-007 ? U.S. Department of Health and Human Services ? Health Resources and Service Administration Health Center Cluster - CFDA No.: 93.224, 93.527; Grant No. H80CS00645; Grant period ? Year ended June 30, 2019. L - Reporting Material Noncompliance Questioned costs: $0 Context: The deadline for submission of the Center?s Single Audit reporting package for the year ended June 30, 2018 was due March 31, 2019. No extension was granted from the awarding agency. The audited financial statements were not available for issuance until April 22, 2019. Hence, the filing was not done in a timely manner. No sampling was performed. Condition: Recipients who expend $750,000 or more in federal awards during a fiscal year and have met the audit requirements of the Uniform Guidance are required to submit a Data Collection Form and audited financial statements the earlier of 30 days after the audited financial statements has been issued and 9 months after year end. Criteria: The Data Collection Form and audited financial statements should be filed by the required deadline. Cause: The financial statement audit was not scheduled until after the Data Collection Form filing deadline. Effect: Financial statement audit and financial statements were not submitted to the Federal Audit Clearinghouse by the required deadline. Recommendation: The financial statement audit should be scheduled and completed with sufficient time to file the Data Collection Form by the required deadline. Views of Responsible Officials and Planned Corrective Action: Neighborhood Health Services Corporation agrees with the finding and procedures are being implemented to remedy the condition.

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION