Audit 360931

Finding Number: 2024-002 Assistance Listing, Federal Agency, and Program Name 93.912 Small Healthcare Provider Quality Improvement Program Federal Award Identification Number and Year HB147075 2022 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Federal regulations require entities receiving federal funds to maintain a written procurement policy that complies with federal, state, and local regulations and that covers the different procurement methods allowed under the 2 CFR 200 ("Uniform Guidance"). Recipients are also required to maintain internal controls to ensure procurement transactions are carried out in accordance with that written policy and the requirements of 2 CFR 200.318 through 327. Condition Prisma Health's written procurement policy and procedures are not compliant with the requirements of the Uniform Guidance, and Prisma does not have the internal controls in place to ensure that procurement decisions are made in accordance with the requirements contained in 2 CFR 200.318 through 327. Questioned Costs N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A Identification of How Questioned Costs Were Computed N/A Context Prisma Health did not have a written procurement policy that adhered to the requirements of 2 CFR 200.318 through 200.327 and did not have procedures in place to ensure procurement decisions were made in accordance with those requirements. Cause and Effect The absence of a Uniform Guidance compliant procurement policy or internal controls to ensure procurement funded with federal awards follow the requirements in 2 CFR 200.318 through 327 increases the risk that the organization may not use federal funds for the purchase of goods and services in accordance with the requirements of the Uniform Guidance, potentially leading to noncompliance and potential questioned costs. Recommendation Prisma Health should implement a subsection into the existing procurement policy that is fully compliant with the requirements of the Uniform Guidance. This should include details on the various procurement methods, applicable thresholds, required documentation, and measures to ensure full and open competition. Views of Responsible Officials and Corrective Action Plan Prisma Health acknowledges this finding and will develop and implement a Uniform Guidance compliant procurement policy within the next month. The policy will be reviewed and approved by the CFO, head of Procurement and representatives of the Grants team. Impacted individuals will be informed and trained.

Finding Number: 2024-002 Assistance Listing, Federal Agency, and Program Name 93.912 Small Healthcare Provider Quality Improvement Program Federal Award Identification Number and Year HB147075 2022 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Federal regulations require entities receiving federal funds to maintain a written procurement policy that complies with federal, state, and local regulations and that covers the different procurement methods allowed under the 2 CFR 200 ("Uniform Guidance"). Recipients are also required to maintain internal controls to ensure procurement transactions are carried out in accordance with that written policy and the requirements of 2 CFR 200.318 through 327. Condition Prisma Health's written procurement policy and procedures are not compliant with the requirements of the Uniform Guidance, and Prisma does not have the internal controls in place to ensure that procurement decisions are made in accordance with the requirements contained in 2 CFR 200.318 through 327. Questioned Costs N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A Identification of How Questioned Costs Were Computed N/A Context Prisma Health did not have a written procurement policy that adhered to the requirements of 2 CFR 200.318 through 200.327 and did not have procedures in place to ensure procurement decisions were made in accordance with those requirements. Cause and Effect The absence of a Uniform Guidance compliant procurement policy or internal controls to ensure procurement funded with federal awards follow the requirements in 2 CFR 200.318 through 327 increases the risk that the organization may not use federal funds for the purchase of goods and services in accordance with the requirements of the Uniform Guidance, potentially leading to noncompliance and potential questioned costs. Recommendation Prisma Health should implement a subsection into the existing procurement policy that is fully compliant with the requirements of the Uniform Guidance. This should include details on the various procurement methods, applicable thresholds, required documentation, and measures to ensure full and open competition. Views of Responsible Officials and Corrective Action Plan Prisma Health acknowledges this finding and will develop and implement a Uniform Guidance compliant procurement policy within the next month. The policy will be reviewed and approved by the CFO, head of Procurement and representatives of the Grants team. Impacted individuals will be informed and trained.