Audit 343024

Finding – Procurement Standards Information on the Federal Program: Federal Program: AL: 93.493 – Community Project Funding Pass-Through Entity: U.S. Department of Health and Human Services Award Number: N/A Compliance Requirement. Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients can use their own procurement procedures that reflect applicable state and local laws and regulations, as long as those procedures conform to the applicable U.S. Department of Health and Human Services regulations and the HHS Grants Policy Statement. Condition: For the year ended June 30, 2024, we noted that the Organization obtained services requiring the use of procurement standards related to the construction of property but did not have any standards of conduct, written procedures, or obtain multiple bids before receiving the services. Cause: Management did not have written policies and procedures regarding procurement. Additionally, management noted that as the construction contract price was approved by the grantor, they believed they were not required to obtain additional solicitations or proposals. Effect or Potential Effect: As a result, the Organization 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 they had engaged the construction and architecture firm in 2018 when they attempted to self-fund the project. When the Organization applied for the grant in 2022, they had submitted a detailed quote from the construction and architecture firm, including their plans and renderings, which were ultimately approved by the grantor. Management will ensure that procurement procedures are followed for all future expenditures as required.

Finding – Procurement Standards Information on the Federal Program: Federal Program: AL: 93.493 – Community Project Funding Pass-Through Entity: U.S. Department of Health and Human Services Award Number: N/A Compliance Requirement. Procurement, Suspension, and Debarment Type of Finding: Material Noncompliance Criteria: Program requirements state that recipients can use their own procurement procedures that reflect applicable state and local laws and regulations, as long as those procedures conform to the applicable U.S. Department of Health and Human Services regulations and the HHS Grants Policy Statement. Condition: For the year ended June 30, 2024, we noted that the Organization obtained services requiring the use of procurement standards related to the construction of property but did not have any standards of conduct, written procedures, or obtain multiple bids before receiving the services. Cause: Management did not have written policies and procedures regarding procurement. Additionally, management noted that as the construction contract price was approved by the grantor, they believed they were not required to obtain additional solicitations or proposals. Effect or Potential Effect: As a result, the Organization 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 they had engaged the construction and architecture firm in 2018 when they attempted to self-fund the project. When the Organization applied for the grant in 2022, they had submitted a detailed quote from the construction and architecture firm, including their plans and renderings, which were ultimately approved by the grantor. Management will ensure that procurement procedures are followed for all future expenditures as required.