Audit 405333

COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing No. 21.027 U.S. Department of Treasury Criteria or specific requirement – Procurement, Suspension and Debarment - 2 CFR 200.318-200.327 Condition – The Hospital does not have formal policies in place for the procurement of goods or services charged to federal awards or to review that vendors are not suspended or debarred. Cause – The Hospital does not have a procurement or suspension/debarment policy. Effect or potential effect – Vendor was not properly procured. Verification that vendor was not suspended or debarred was not performed by the Hospital. Questioned costs - Unknown Context – The sample selected for testing was nonstatistical and not designed to be statistically representative of the population. Accordingly, results of testing cannot be projected to the entire population. A sample of seven procurements were tested out of a population of 64. The sample selected for testing was non-statistical and not designated to be statistically representative of the population. Accordingly, results of the testing cannot be projected to the entire population. All of the samples tested were out of compliance due to the Hospital not having a formal policy for procurement or suspension and debarment that complies with Uniform Guidance requirements Identification as a repeat finding, if applicable – Not applicable Recommendation – The Hospital should create and approve a formal procurement policy and ensure that vendors are being procured according to the policy. In addition, the Hospital should include policies and procedures to verify vendors are not suspended or debarred from federal activities.