VIRGINIA GARCIA MEMORIAL HEALTH CENTER

Finding 2025-001 Federal Award Finding Significant Deficiency in Internal Control over Compliance Noncompliance over Special Tests and Provisions (Sliding Fee Discount Schedule) Assistance Listing Numbers 93.224 & 93.527 - Health Center Program Cluster Criteria / Requirement: Under Section 330 of the Public Health Service Act, health centers must prepare and apply a sliding fee discount schedule (SFDS) to ensure that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient's ability to pay. This requirement is intended to ensure access to care for underserved populations. Condition / Context: During testing of 40 encounters, we identified 5 instances of noncompliance with the SFDS compliance requirements, which resulted in patients being undercharged and indicate control deficiencies in the process to apply the SFDS, as follows: • …

Corrective action: Summary of finding: Five out of 40 charts reviewed by the auditors’ showed exceptions to the Sliding Fee Discount Schedule (SFDS) that are not supported by policy or documentation. Findings were identified in three primary categories: inconsistent collection and scanning of documents at registration, Electronic Health Records (EHR) not operating as expected for one line of the SFDS and error not caught and corrected, and a significant process change from percentage to fixed fee SFDS causing inconsistent application during transition and training period. Planned corrective action: System Configuration:  Leaders for all service lines and Billing Department will work with EHR Support Team an…

Section 3 - Federal Award Findings and Questioned Costs Finding 2019-001 93.224 and 93.527 - Health Center Program Cluster Cash Management Department of Health and Human Services CRITERIA: The funding received by the Center is governed by the principles described in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under 2 CFR 200.305(b) of the Uniform Guidance, a non-Federal entity must minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement by the non- Federal entity. The non-Federal entity must maintain or demonstrate the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet t…

Corrective action: Virginia Garcia Memorial Health Center Corrective Action Plan Related to March 31, 2019 Audit Finding No. 2019-001 ? Cash Management Summary of finding: Due to unexpected delays in the timing of work that was anticipated and when the drawdowns were initiated, the Center had drawn down approximately $21,000 in federal funding which was not needed for immediate expenditure as of March 31, 2019. Planned corrective action: The Center will review and revise its cash management policy and procedures to minimize the time between when the federal drawdowns take place and the expenditures are made. Contact person: Araceli Gaytan, CFO Completion date for action: August 31, 2019