LIFELONG MEDICAL CARE

Finding 2025-001 – Special Tests and Provisions – Significant Deficiency in Internal Control over Compliance Federal Program: U.S. Department of Health and Human Services Health Center Program Cluster (Federal Assistance Listing # 93.224/93.527) Federal Agency: U.S. Department of Health and Human Services Award Year: 2024-2025 Criteria: The recipient is required to comply with specific federal regulations and provisions outlined in 2 CFR Part 200, particularly those related to special tests and provisions for the Health Center Program Cluster. This includes maintaining an effective internal control environment to ensure sliding fee discounts are applied to patient charges consistent with the recipients sliding fee discount schedule. Condition/Cause: During the audit, it was identified that LifeLong did not retain underlying data in accordance with policy to support the sliding fee scal…

Corrective action: 2025-001 Special Tests and Provisions - Significant deficiency in Internal Control over Compliance Name of Contact Person: Daphne Chan, Interim Head of Finance Corrective Action: Management implemented staff training and periodic internal reviews in response to the prior year finding related to the Sliding Fee Discount Program. While these actions improved awareness of requirements, management identified the need for additional controls to ensure consistent application and documentation going forward. To address the remaining gaps, management will implement the following actions: - Strengthen intake and documentation controls by reinforcing procedures to ensure proof of income documentation …

Finding 2025-002 – Inadequate Documentation of Timesheet Approval for Payroll Costs Charged to the Grant – Significant Deficiency in Internal Control over Compliance Federal Program: U.S. Department of Health and Human Services Health Center Program Cluster (Federal Assistance Listing # 93.224/93.527) and Substance Abuse and Mental Health Services Projects of Regional and National Significance (Federal Assistance Listing # 93.243) Federal Agency: U.S. Department of Health and Human Services Award Year: 2024-2025 Criteria: Per 2 CFR 200.430(i) and LifeLong’s internal timekeeping policies, charges to federal awards must be supported by records that accurately reflect the work performed and must be reviewed and approved by an appropriate supervisor to ensure allowability, allocability, and reasonableness of labor costs. Condition: During our allowability testing of payroll costs charged t…

Corrective action: 2025-002 Inadequate Documentation of Timesheet Approval for Payroll Costs Charged to the Grant - Significant deficiency in Internal Control over Compliance Name of Contact Person: Daphne Chan, Interim Head of Finance Corrective Action: Lifelong Medical Care will: - Continue to update configuration of the newly implemented payroll system to adequately support processes - Revise the payroll and timekeeping policy to clearly require electronic or manual supervisory approval for all hourly timesheets before payroll processing. - Provide refresher training to supervisors on federal grant requirements related to allowable payroll costs and the necessity of timely timesheet approval. - Implement a …

Finding 2024-001 – Special Tests and Provisions – Significant deficiency in Internal Control over Compliance Federal Program: U.S. Department of Health and Human Services Health Center Program Cluster (Federal Assistance Listing # 93.224/93.527) Federal Agency: U.S. Department of Health and Human Services Award Year: 2023-2024 Criteria: The recipient is required to comply with specific federal regulations and provisions outlined in 2 CFR Part 200, particularly those related to special tests and provisions for the Health Center Program Cluster. This includes maintaining an effective internal control environment to ensure sliding fee discounts are applied to patient charges consistent with the recipients sliding fee discount schedule. Condition/Cause: During the audit, it was identified that LifeLong did not retain underlying data in accordance with policy to support the sliding fee scale …

Corrective action: 12/11/2024 LifeLong Medical Care Corrective Action Plan For the year ended June 30, 2024 2024-001 Special Tests and Provisions - Significant deficiency in Internal Control over Compliance Name of Contact Person: Brent Copen, CFO Corrective Action: LifeLong Medical Care will: - Immediately retrain staff involved in Sliding Fee Discount Program (SFDP) on program requirements and proper implementation of sliding fee determination and billing. - Train all new staff at new hire orientations, conduct an internal audit, and retrain current staff based on outcome as needed. - Perform periodic audits of sliding fee transactions. Proposed Completion Date: June 30, 2025

2022-001 Sliding Fee Discount Determination ALN: 93.224 Program: Community Health Center Cluster Agency: US Department of Health and Human Services Compliance Requirement: N- Special Tests and Provisions Repeat Finding: No Criteria: Federal grant compliance provisions require that LifeLong correctly identify a patient's ability to pay and that the rates for services be adjusted accordingly based on the sliding fee schedule. LifeLong is required to follow its sliding fee policy when providing discounts to eligible patients. Finding/ Condition: In our sample of 40 tested items, patient information was inadequate to determine the proper sliding fee discount or the patient was given incorrect discounts based on information provided. Questioned Cost: None. Effect: Lack of strict enforcement of the policy of sliding fee eligibility determination and …

Corrective action: 2022-001 Sliding Fee Discount Determination Name of Contact Person: Brent Copen, CFO Corrective Action: LifeLong Medical Care will: - Immediately retrain staff involved in Sliding Fee Discount Program (SFDP) on program requirements and proper implementation of sliding fee determination and billing. - Train all new staff at new hire orientations, conduct an internal audit, and retrain current staff based on outcome as needed. - Perform periodic audits of sliding fee transactions Proposed Completion Date: January 31, 2023