University of Kansas School of Medicine-Wichita Medical Practice AssociationNon-Profit

U.S Department of Housing and Urban Development No. 14.241 – Housing Opportunities for Person with AIDS Grant Period Year Ended June 30, 2025 Criteria: While the housing opportunity program implemented further segregation of duties over the program participants' eligibility, rent and utility assistance calculation and program reporting during the year, the internal controls were lacking in verifying the participant’s utility assistance calculations. Condition and Context: We noted an incorrect utility assistance calculation, which internal control processes did not identify. Effect: While testing a sample of forty program transactions, one client utility assistance expense was calculated incorrectly. The payment was reviewed and approved which resulted in an overpayment of $340. Cause: The established internal controls failed to detect an incorrect utility payment. Recommendation: Internal control processes should include recalculating the amount being paid for each utility assistance and how many weeks the payment covers. During the year, additional staff were hired to improve controls and mitigate the risk. We noted improvement as the year progressed. Management Response: Management agrees with the finding. Procedures are being implemented to ensure appropriate internal controls are established and followed, see attached corrective action plan.

Criteria: The housing opportunity program lacks segregation of duties over the program participants' eligibility, rent and utility assistance calculation and program reporting. Condition and Context: Internal controls were lacking with verifying the participant’s eligibility, rent and utility assistance calculations and complying with the reporting guidelines. Effect: While testing a sample of forty program transactions, no issues of noncompliance were noted. However, the lack of segregation of duties and related internal controls over the program could lead to misappropriation of assets and/or noncompliance with the program requirements. The annual performance and evaluation report was filed timely by the preparer without a reviewer’s approval. Cause: Segregation of duties and control procedures were not implemented and regularly maintained. Recommendation: Internal control processes could be implemented with another level of review over the program activities, including rent/utility calculations, participants' eligibility, and reporting. Management Response: Management agrees with the finding. Procedures are being implemented to ensure appropriate segregation of duties and related controls are established and followed, see attached corrective action plan.

Criteria: Program income for the Ryan White programs lacked controls. Program income was not being allocated or tracked separately amongst the Ryan White C and D programs. Condition and Context: All charges generated from the Ryan White programs were going to one fund instead of being separated for each Ryan White program. The 340B revenue was not allocated to Ryan White C. Effect: If the program income is not allocated to the respective Ryan White programs, the related earnings may not be used for respective program expenses. Cause: Program income controls and process were not implemented and routinely performed. Recommendation: Appropriate internal controls over the Ryan White program income should be established and documented. A new fund for each Ryan White program should be maintained to properly track program income within the fund. The 340B revenue should go to the Ryan White C fund. Current Year Status: While management has made multiple improvements to the program income processes, patient payments included in program income for the Ryan White programs lacked control over the allocation of the payments and a finding was issued in the current year. A new fund was established for Ryan White programs, and expenses were tracked through the new funds. All of the 340B revenue was properly allocated to Ryan White C fund.

Finding 2022-001 Program Income: Control, Tracking, and Allocation Method U.S Department of Health and Human Services No. 93.153 ? Coordinated services and Access to Research for Women, Infants, Children and Youth No. 93.918 ? Provide Outpatient Early Intervention Services with Respect to HIV Disease Grant Period Year Ended June 30, 2022 Criteria: Program income for the Ryan White programs lacked controls. Program income was not being allocated or tracked separately amongst the Ryan White C and D programs. Condition and Context: All charges generated from the Ryan White programs were going to one fund instead of being separated for each Ryan White program. The 340B revenue was not allocated to Ryan White C. Effect: If the program income is not allocated to the respective Ryan White programs, the related earnings may not be used for respective program expenses. Cause: Program income controls and process were not implemented and routinely performed. Recommendation: Appropriate internal controls over the Ryan White program income should be established and documented. A new fund for each Ryan White program should be maintained to properly track program income within the fund. The 340B revenue should go to the Ryan White C fund. Management Response: Management agrees with the finding noted in the report as well as in the HRSA site visit report. Procedures were in the process of being implemented throughout the year and went into effect in June 2022 to properly allocate program income retrospectively throughout the year. Subsequent to year end, they implemented a new system that will track program income in more detail and to the respective Ryan White programs, see attached corrective action plan.

Finding 2021-001 Segregation of Duties / Review Procedures U.S Department of Housing and Urban Development No. 14.241 ? Housing Opportunities for Person with AIDS Grant Period Year Ended June 30, 2021 Criteria: The housing opportunity program lacks segregation of duties over the invoice approval, program participants' eligibility, and program reporting. Condition and Context: Internal controls were not established to verify the participant?s eligibility in the housing opportunity program. The program manager was the only person approving invoices, determining eligibility, and complying with the reporting guidelines. Effect: While testing a sample of program transactions, no issues of noncompliance were noted. However, the lack of segregation of duties and related internal controls over the program could lead to misappropriation of assets and/or noncompliance with the program requirements. Cause: Segregation of duties and control procedures were not implemented and regularly maintained. Recommendation: Internal control processes could be implemented with another level of review over the program activities, including invoice approval, rent/utility calculations, participants' eligibility, and reporting. Management Response: Management agrees with the finding. Procedures are being implemented to ensure appropriate segregation of duties and related controls are established and followed, see attached corrective action plan.

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