HPM Foundation, Inc., Did Not Always Comply With Federal Requirements Related to Its Affordable Care Act-Funded Community Health Center Fund Grant

HPM Foundation, Inc. (HPM), operating in San Juan, Puerto Rico, did not comply with all applicable Federal requirements and grant terms related to its Affordable Care Act-funded capital development grant. Specifically, HPM claimed unallowable construction consulting costs totaling $35,000. In addition, HPM did not (1) comply with procurement standards, (2) separately account for grant funds, (3) properly maintain and track equipment purchased with grant funds, and (4) provide the Health Resources and Services Administration (HRSA) reliable data on the number of patients served.

This occurred because HPM lacked an understanding of Federal grant policies that led to inadequate financial, property management, and procurement controls over grant funds. In addition, HPM did not have adequate procedures in place to ensure that it reported reliable data to HRSA.

We recommended that HRSA (1) require HPM to refund $35,000 to the Federal Government for unallowable construction consulting costs; (2) work with HPM to ensure that it strengthens its financial, property management, and procurement controls over grant funds; and (3) ensure that HPM strengthens its procedures for reporting reliable data on the number of patients served. HPM generally agreed with four of our five findings and all of our recommendations. HRSA concurred with our recommendations.