Report on Selected Community Health Center Grantee Audit Findings

This final report summarizes the results of our review of 212 nonfederal audit reports pertaining to 171 or 33 percent of the 520 community health center (CHC) grantees. The review disclosed that about 46 percent of the CHCs have inadequate internal controls to prevent fraud, waste and abuse; about 50 percent have inadequate accounting records and procedures; about 36 percent have inadequate patient billing and collection procedures; about 20 percent have poor cash management practices; about 6 percent were delinquent in payroll tax payments; about 27 percent prepared inaccurate financial statements and reports; and about 6 percent of the CHCs were in noncompliance with statutory requirements. The Public Health Service concurred with our recommendations calling for the Health Resources and Services Administration to strengthen its monitoring of the CHC program.