Audit 291044

Finding – Procurement Standards Information on the Federal Program: Federal Program: 93.526 – Grants for Capital Development in Health Centers Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients and subrecipients must perform the following: 1) Non-federal entities must maintain written standards of conduct governing actions of employee engagement in procurement activities 2) non-federal entities must maintain written procedures for procurement transactions 3) when value of procurement for property or services is over the simplified acquisitions threshold ($25,000) formal procurement methods are required under sealed bid or proposal procurement methods. Condition: During the year ended June 30, 2023, we noted that the Center obtained services requiring the use of procurement standards related to the construction of property; however, formal procurement methods such as sealed bid or proposals were not performed. Cause: Management did not follow its written policies and procedures as the contract prices were deemed suitable to not require additional solicitations or proposals. Effect or Potential Effect: As a result, the Center did not meet the required standards related to procurement. Recommendation: We recommend that management follow their written guidance for all expenditures that require procurement standards to be followed to ensure there are no issues in compliance with the standard. Views of Responsible Official: Management concurs with the audit finding; however, management notes that the contract prices were determined reasonable to not require further solicitations. Management compared the costs to a recent project completed by the Center and its experience with the vendors utilized for that project. Management will ensure that procurement procedures are followed for all future expenditures as required.

Finding – Procurement Standards Information on the Federal Program: Federal Program: 93.526 – Grants for Capital Development in Health Centers Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients and subrecipients must perform the following: 1) Non-federal entities must maintain written standards of conduct governing actions of employee engagement in procurement activities 2) non-federal entities must maintain written procedures for procurement transactions 3) when value of procurement for property or services is over the simplified acquisitions threshold ($25,000) formal procurement methods are required under sealed bid or proposal procurement methods. Condition: During the year ended June 30, 2023, we noted that the Center obtained services requiring the use of procurement standards related to the construction of property; however, formal procurement methods such as sealed bid or proposals were not performed. Cause: Management did not follow its written policies and procedures as the contract prices were deemed suitable to not require additional solicitations or proposals. Effect or Potential Effect: As a result, the Center did not meet the required standards related to procurement. Recommendation: We recommend that management follow their written guidance for all expenditures that require procurement standards to be followed to ensure there are no issues in compliance with the standard. Views of Responsible Official: Management concurs with the audit finding; however, management notes that the contract prices were determined reasonable to not require further solicitations. Management compared the costs to a recent project completed by the Center and its experience with the vendors utilized for that project. Management will ensure that procurement procedures are followed for all future expenditures as required.