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Audit (A-05-10-00034)

Results of Limited Scope Review at Open Cities Health Center, Inc.

Executive Summary

Based on our assessment, open cities Health Center, Inc. (Open Cities) is financially viable, but certain trends for net assets and debt may undermine the grantee’s fiscal stability if not kept in check. Furthermore, Open Cities has the capacity to manage and account for Federal funds and the capacity to operate a community health center in accordance with Federal regulations. However, we noted weaknesses related to its fiscal status as well as a lack of written policies and procedures for accounting for property, Federal Deposit Insurance Corporation deposit limits, and Federal grant reporting. Under the American Recovery and Reinvestment Act of 2009, Open Cities had received approximately $1 million in Federal funding. We recommend that the Health Resources and Services Administration consider the information presented in this report in assessing Open Cities ability to operate a Community Health Center in accordance with Federal regulations.

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