Question

Case 1: Primary Care Financial Management The Health Center Program provides grants to nonprofit private and public entities that serve designated medically underserved populations and areas and vulnerable populations of migrant and seasonal farm workers, homeless individuals, and public housing residents. These grants are commonly referred to as “section 330 grants.” Under the American Recovery and Reinvestment Act of 2009, P.L. No. 111-5 (Recovery Act), enacted February 17, 2009, HRSA received $2.5 billion, $2 billion of which was to expand the Health Center Program by serving more patients, stimulating new jobs, and meeting the expected increase in demand for primary healthcare services among the Nation’s uninsured and underserved populations. HRSA awarded a number of grants using Recovery Act funding in support of the Health Center Program, including Health Information Technology Implementation (HIT), Capital Improvement Program (CIP), New Access Point (NAP), and Increased Demand for Services (IDS) grants. Neighborhood Care, is a nonprofit organization that operates community health centers in San Antonio, Texas, and the surrounding area. Neighborhood Care provides medical, dental, and mental health services and is funded primarily by patient service revenues and Federal grants. During fiscal years 2010 and 2011 (February 1, 2009, through January 31, 2011), Neighborhood Care received approximately $9.8 million (Federal share) in section 330 grant funding to supplement its health center operations. For project periods ranging from March 2009 through May 2012, HRSA awarded Neighborhood Care funding for five Recovery Act grants totaling $7,518,980: $4,024,697 under two HIT grants, $1,447,420 under a CIP grant, $1,300,000 under an NAP grant, and $746,863 under an IDS grant. OBJECTIVES Our objectives were to determine whether: (1) The costs that Neighborhood Care claimed were allowable and (2) Neighborhood Care had adequate controls over its financial management system. SUMMARY OF FINDINGS Of the $16,020,116 that we reviewed, $3,417,461 was allowable. We could not determine whether salary and fringe benefit costs totaling $12,543,068 that Neighborhood Care claimed were allowable because Neighborhood Care did not maintain personnel activity reports for employees who worked on its section 330, HIT, NAP, and IDS grants and because the accounting records for the section 330 and NAP grants did not separate expenditures related to the Federal grants from those related to other funding sources. Neighborhood Care recorded additional potentially unallowable costs of $50,240 for compensation increases and $9,347 for interest expense. Neighborhood Care did not have adequate controls over its financial management system. Specifically, Neighborhood Care did not draw down funds based on the cash needs for each project and did not prepare and complete bank statement reconciliations in a timely manner. Also, Neighborhood Care did not have adequate procurement procedures to ensure that it obtained reasonable pricing when procuring goods and services.

QUESTIONS: Provide 2 recommendations that Neighborhood Care should implement to tighten up the financial management of the practice?

Answer 1

Primary care health centre:

A wellbeing focus is an open or private element that gives extensive, top notch essential social insurance administrations. It is a non-benefit association. The wellbeing focus conquers geographic, social, semantic and financial obstructions and conveys composed and far reaching essential medicinal services administrations. This consideration accordingly results in a decrease of wellbeing abberations. With ceaseless and proficient wellbeing administration and training a wellbeing focus stretches out quality medicinal services to the under advantaged.

A wellbeing focus works with the accompanying standards:

• To give fantastic wellbeing administrations to the under special and denied.
• To give far reaching wellbeing administrations
• To guarantee that the wellbeing needs are met by offering medicinal services benefits as well as transportation, wellbeing training and all strong pre and post therapeutic consideration
• To keep up a reasonable rate for the administrations rendered and offer the administrations free of cost where required.
• To create frameworks of incorporated medicinal services that are tolerant arranged or patient focused.

Human services administrations are given to:

• Assigned therapeutically underserved populaces
• Powerless populaces of transients
• Powerless populaces of agrarian laborers
• Destitute people and families
• Open lodging inhabitants.
• Country's veterans
• It additionally gives
• Access to drug store administrations
• Substance manhandle scatter administrations
• Oral wellbeing administrations
• Mental and emotional wellness administrations

These administrations are offered in regions where social, financial and geographic conditions confine access to moderate human services.