EIN: 300349221
UEI: JXQAJ5Z7NCC3
Data as of August 19, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 13, 2025. 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 September 13, 2025, which was (341 days ago).
What is a management decision? →Grants for Capital Development in Health Centers – ALN 93.526 U.S. Department of Health and Human Services Award No. 6 C8ECS44310-01-05, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-04, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-03, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-02, September 15, 2021-September 14, 2024 Award No. 6 C8ECS44310-01-01, September 15, 2021-September 14, 2024 Award No. 1 C8ECS44310-01-00, September 15, 2021-September 14, 2024 Criteria or Specific Requirement – Procurement – 45 CFR 75.329 Condition – Procurement procedure was not followed for use of vendor with costs greater than $250,000 for purchase of dental equipment. Questioned cost – None Context – A sample of 1 vendor was tested out of a population of 3 vendors. The sampling methodology used is not and is not intended to be statistically valid. For the vendor that was tested, it was found that selection of this vendor was inconsistent with the procurement policy. The client initially had intended to use the grant money for other purposes and had not intended to use federal funds to purchase dental equipment. Therefore, they did not go through the formal procurement processes to select the tested vendor. Effect – Procurement methodology was not followed for vendor with expenses of over $250,000. Cause – The Organization did not comply with their procurement policy. Identification as a repeat finding, if applicable – New finding Recommendation – We recommend management continue to ensure all personnel understand the procurement policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that vendors, especially those over $250,000, are selected and vetted in accordance with policy and Uniform Guidance.
View of Responsible Officials and Planned Corrective Actions: Payment to the vendor tested was originally going to use the Organization’s program income. Due to unforeseen circumstances, grant funds ended up being used for the equipment purchase. The Organization followed its procurement policies and procedures for the use of program income consistent with the original intent but this did not include a formal procurement process that is required when federal grant funds are utilized. Organization contact persons responsible for corrective action: Jonelle Hall – Chief Financial Officer Anticipated completion date: June 30, 2025
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 5, 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 August 5, 2024, which was (745 days ago).
What is a management decision? →Health Center Program Cluster – CFDA Nos. 93.224 and 93.527 U.S. Department of Health and Human Services Award No. 6 H80CS26561, February 1, 2023-January 31, 2024 Award No. 6 H80CS26561, February 1, 2022-January 31, 2023 Award No. 1 H8FCS41198, April 1, 2021-March 31, 2023 Award No. 6 C14CS39928, September 1, 2020-August 31, 2023 Award No. 1 H8HCS44996, September 1, 2021-August 31, 2022 Award No. 6 H8HCS44996, September 1, 2022-August 31, 2023 Award No. 6 H2ECS45563, May 1, 2022-April 30, 2023 Award No. 6 H2ECS45563, May 1, 2023-April 30, 2024 Criteria or Specific Requirement – Special Tests and Provisions: Sliding Fee Discounts (42 USC 254(k)(3)(g); 42 CFR sections 51c.303(g); and 42 CFR sections 56.303 (f)) Condition – Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Questioned cost – None Context – A sample of 40 patients were tested out of the total population of 23,865 encounters. The sampling methodology used is not and is not intended to be statistically valid. Two patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation. Effect – Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause – The Organization did not comply with their sliding fee policy. Identification as a repeat finding, if applicable – Is a repeat finding of 2022-002. Recommendation – We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Health Center Program Compliance Manual.
View of Responsible Officials and Planned Corrective Actions: During fiscal year 2023, we hired two Financial Counselors to assist with slide fee calculations. These financial counselors were not hired until halfway through the fiscal year; therefore, the majority of their time was spent in training. Additional financial counselors have since been hired so that there is one available in each HCC clinic. We also hired a Director of Finance who will oversee quarterly spot checks to ensure that the slide fee calculations are correct. Lastly, we are going to review our slide fee policy to ensure it can be easily followed and understood. Organization contact persons responsible for corrective action: Jonelle Hall – Chief Financial Officer Ryan Eastley – Director of Finance Anticipated completion date: June 30, 2024
2022-002
Grants for Capital Development in Health Centers – CFDA No. 93.526 U.S. Department of Health and Human Services Award No. 6 C8ECS44310-01-05 Program Year 2023 Criteria or Specific Requirement – Cash Management (45 CFR 75.305) Condition – The Organization’s internal controls over the grant budget and cash drawdown process were not operating effectively to ensure allowed expenditures were incurred prior to drawdown. Questioned cost – None Context – Grant funds were drawn down prior to disbursements of expenditures within the grant period for six draws during the fiscal year ended June 30, 2023. Effect – Grant funds were drawn down sooner than administratively necessary. The final six draws were not earned as of the end of the grant period and are reflected as deferred grant revenue. A budget modification was subsequently approved by the HRSA and the deferred grant revenues were subsequently obligated and expended. Cause – The Organization’s initial grant budget was not in compliance with the grant requirements and required a budget modification subsequent to when the Organization had already completed cash draws. Identification as a repeat finding, if applicable – Is not a repeat finding. Recommendation – The Organization should ensure procedures are followed to prevent cash draws from being drawn down sooner than three days prior to disbursement of allowable expenditures.
View of Responsible Officials and Planned Corrective Actions: When the grant was awarded in August of 2021, it was budgeted for the renovation and equipment for the new clinic in Carrollton. HCC Network had previously received another capital award that was also budgeted for renovation of the same project. Expenses were incurred on the project and draws were made according to policy. In September of 2023, it was identified that we could not use both capital grants on the same project, and we were advised by HRSA to change the project of the grant to equipment only. Due to the fact that the equipment was purchased after construction, it made the draw downs appear to be out of policy as they were drawn when the construction invoices were paid. In the future, HCC Network will work with HRSA to get clarification on any restrictions on grants prior to drawing funds. Organization contact persons responsible for corrective action: Jonelle Hall – Chief Financial Officer Lori Wyse – Grants Manager Anticipated completion date: June 30, 2024
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 5, 2023. 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 July 5, 2023, which was (1142 days ago).
What is a management decision? →Health Center Program Cluster Assistance Listing Numbers 93.224 and 93.527 U.S. Department of Health and Human Services Award No. 6 H80CS26561, February 1, 2022-January 31, 2023 Award No. 6 H80CS26561, February 1, 2021-January 31, 2022 Award No. 1 H8FCS41198, April 1, 2021-March 31, 2023 Award No. 6 C14CS39928, September 1, 2020-August 31, 2023 Award No. 1 H8HCS44996, September 1, 2021-August 31, 2022 Criteria or Specific Requirement ? Special Tests and Provisions: Sliding Fee Discounts (42 USC 254(k)(3)(g); 42 CFR sections 51c.303(g); and 42 CFR sections 56.303 (f)) Condition ? Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization?s policy. Questioned cost ? None Context ? A sample of 25 patients were tested out of the total population of 24,697 encounters. The sampling methodology used is not and is not intended to be statistically valid. Two patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation. Effect ? Sliding fee discounts were given to patients that were inconsistent with the Organization?s sliding fee discount policy. Cause ? The Organization did not comply with their sliding fee policy. Identification as a repeat finding, if applicable ? Is not a repeat finding. Recommendation ? We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Health Center Program Compliance Manual. Views of Responsible Officials and Planned Corrective Actions ? We are working on hiring Financial Counselors in each of the clinics to assist with slide fee calculations. We are also working on some internal spot checks to ensure that the slide fee calculations are correct. Organization contact persons responsible for corrective action: Lori Wyse, Outgoing Chief Financial Officer, Grants Manager Jonelle Hall, Chief Financial Officer Anticipated completion date: End of fiscal year 2023.
Views of Responsible Officials and Planned Corrective Actions ? We are working on hiring Financial Counselors in each of the clinics to assist with slide fee calculations. We are also working on some internal spot checks to ensure that the slide fee calculations are correct. Organization contact persons responsible for corrective action: Lori Wyse, Outgoing Chief Financial Officer, Grants Manager Jonelle Hall, Chief Financial Officer Anticipated completion date: End of fiscal year 2023.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 15, 2022. 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 March 15, 2023, which was (1254 days ago).
What is a management decision? →Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement - Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition - The Organization is required to prepare and submit period one provider relief fund (PRF) reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned costs - Unknown Context - In the period one report, the Health Center obligated the provider relief funds received utilizing expenditures incurred to maintain health care service delivery following initial provider relief fund reporting guidelines. However, some of these expenditures were determined to not meet the updated definition of qualifying expenditures as clarified in later reporting guidelines issued by the Department of Health and Human Services. In addition, the Organization did not meet the requirement to utilize option II as clarified in later reporting guidelines issued by the Department of Health and Human Services. Effect - Errors were made in reporting other PRF expenses and lost revenues. Cause - The Organization did not properly apply the revised guidance regarding allowable expenditures and the requirement for option II. Identification as a repeat finding - Not a repeat finding. Recommendation - Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions -
2021-001 View of Responsible Officials and Planned Corrective Actions ? At the time our Provider Relief Reporting was due, our financial audit had not yet been issued by our auditing firm and therefore we were not using a final trial balance. HCC worked with HRSA to re-open the Provider Relief Reporting portal once the financial audit for FYE 06.30.21 was complete. We revised our lost revenue calculation so that it more accurately reflected the loss we incurred related to our dental services using Option III. The everchanging landscape for the PRF funds made it very difficult to keep up with the changes. Once expenses were incurred and recorded in the general ledger system it became very cumbersome to change those expenses that were allowed at one point and then became disallowed with future more detailed guidance. Being a small rural organization, our accounting department simply struggled with keeping up with all that was happening related to the COVID Pandemic. HCC has been able to increase our accounting staff in the new fiscal year and will be able to follow future guidance related to special funding more closely. Organization contacts responsible for corrective action: Lori Wyse, Outgoing Chief financial Officer, Grants Manager Jonelle Hall, Incoming Chief Financial Officer Anticipated completion date: Updated reporting was completed in April 2022. Monitoring of grant guidance will be ongoing.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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