The Children's Clinic, "Serving Children and Their Families," d/b/a TCC Family HealthNon-Profit

Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing No. 93.498 U.S Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.324) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition ? The Health Center is required to report on the use of Provider Relief Fund (PRF) distributions received. This report is to be prepared using accurate financial information following the accrual basis of accounting and other guidance issued by the U.S. Department of Health and Human Services (HHS). Questioned Costs ? Unknown Context ? The Period 2 PRF report was tested. The Health Center selected option one to report lost revenues based on quarterly actuals. Of a total of 84 reporting attributes tested, 7 exceptions were noted in which the amounts reported did not agree to the underlying supporting documentation. In addition, certain patient service revenue components, including 340b pharmacy revenue, were omitted from the lost revenue calculation. Effect ? Errors were made in calculating quarterly revenue from patient care used in lost revenue reporting. Cause ? The Health Center did not include certain patient service revenue components when completing their lost revenue calculation and certain quarterly amounts included in the report did not agree back to supporting documentation. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be monitored to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions ? We agree there were errors in the calculation of lost revenue. The PRF guidance on reporting changed/updated several times over the course of 2 years and some requirements were missed right before the reporting was due. However, the organization?s eligibility did not change and the funded amount was fully supported by the actual loss of revenue calculation required by DHHS. Management will closely monitor future grant reporting. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 3/31/2023

Grants for Capital Development in Health Centers Assistance Listing No. 93.526 U.S Department of Health and Human Services Criteria or Specific Requirement ? Cash Management ? 45 CFR 75.305 Condition ? The Organization is required to ensure that funds are down as allowable costs are incurred within the parameters of the federal program. Questioned Costs ? None Context ? While the award received by the Organization did not specify a federal share percentage, grant draws should be completed in the same proportion as the grant is to total project costs. The Organization identified qualifying expenditures and drew 100 percent of the grant funds awarded as of December 31, 2021. However, this was in advance of the project being completed. Funds totaling $255,892 were returned and the Organization was able to then draw these funds again upon completion of the project. Effect ? Grant funds were drawn in full in advance of the completion of the project. Cause ? The Organization did not properly draw grant funds in the same proportion as the grant is to total project costs. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? The Organization should review grant terms for all applicable requirements for the federal program, including applicable cash management requirements. Views of Responsible Officials and Planned Corrective Actions ? Due to COVID-19, the completion of the capital project had been delayed several times beyond the original grant end date. The extension request was submitted before the end date of the grant ? December 31, 2021, however due to the year-end holiday season no response was received in a timely manner. Hence, the organization identified 100% of the grant expenditures and drew down the remaining funds. After receiving clear guidance from the HRSA program manager, some funds were returned as advised and drawn later upon completion of the project. Management will closely monitor cash management requirements specified by each grant. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 6/30/2023

GSA_MIGRATION