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Results of Limited Scope Review of Charles Drew Health Center, Inc.

We reviewed the financial condition of Charles Drew Health Center, Inc. (CDHC), as part of a nationwide series of reviews of community health centers that have received funding under the American Recovery and Reinvestment Act of 2009 (Recovery Act).

Based on our assessment, we believe that CDHC is financially viable, has the capacity to manage and account for Federal funds, and is capable of operating its health center in accordance with Federal regulations. However, we identified several weaknesses in CDHC’s financial management: deteriorating cash position, untimely bank account reconciliations, absence of written policies and procedures for adherence to Federal Deposit Insurance Corporation limits, inadequate segregation of duties, non-performance of fixed asset inventory counts, and an improper documentation of sliding fee discounts.

Filed under: Health Resources and Services Administration