UNITED COMMUNITY HEALTH CENTER, INC.Non-Profit

2021-001 Federal Agency: United States Department of Health and Human Services Federal Program Title: Health Center Cluster CFDA Numbers: 93.224/93.527 Award Period: January 1, 2021, through December 31, 2021 Type of Finding: ? Compliance and Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per Title 42 Chapter 1 Subchapter D Section 51C303(f) and (g), "Health centers must have a schedule of fees or payments for the provision of their health services consistent with locally prevailing rates or charges and designed to cover their reasonable costs of operation. They are also required to have a corresponding schedule of discounts applied and adjusted on the basis of the patient's ability to pay." Condition: For 2 out of 25 sliding fee adjustments tested, the Center was not able to find a retained sliding fee application for the individual to support the adjustment provided. Context: For these individuals the sliding fee adjustment category was determined incorrectly, or insufficient documentation retained, but would have still been eligible for sliding fee adjustment under the policy. For the improperly calculated sliding fee application, the sliding fee adjustment would have ended up at a different amount. Cause: Manual errors by individuals filing the related forms. Effect: Patient potentially paying the incorrect amount for encounters as sliding fee adjustment has potentially been calculated incorrectly. Without sufficient supporting documentation retained, the Center is also not able to provide justification of proper sliding fee adjustment for certain encounters. No specific instances of noncompliance with grant requirements were identified, although there were instances of noncompliance with the Center's own policies. The lack of internal controls over these compliance requirements, however, provides an opportunity for noncompliance.

2019 ? 001 Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: It was identified that the Organization made a wire transfer payment to a fraudulent vendor. Criteria or specific requirement: Management is responsible for making proper payments to vendors. In the event of wire transfers all payment option requests should be verified with the vendor they are working with. Context: The payment through the fictitious vendor was identified by management after the wire transfer had taken place. Effect: As a result of the paying the fictitious vendor, the Organization would have lost a material amount of cash barring any potential proceeds from the insurance company. Cause: The actual hacking took place under the construction manager who United Community Health Center is working with on their expansion project. Once the hacker was able to gain access to the construction manager?s system they requested United Community Health Center to wire their payments to the hacker?s bank account. United Community Health Center sent the payment, without verifying the request, and realized subsequently they had transferred the funds to the hacker. The funds were eventually flagged by US Bank as part of the bank?s internal controls and were never released to the hacker. Subsequent to year end the funds were received back by the Organization. Repeat Finding: No Recommendation: We recommend that all wire transfers are verbally confirmed with the requesting entity. Views of responsible officials and planned corrective actions: Management is in the process of implementing procedures around enhancing their internal control processes related to wire transfers. The Organization is also evaluating ways to enhance their information technology security and increase awareness of their employees for potential information technology scams.