Material Weakness
Finding: 2023-003 Procurement, Suspension and Debarment
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
CFDA 93.224 and 93.527
Criteria: Uniform Guidance, Procurement, Suspension, and Debarment
Condition: The Organization’s procurement policies were not updated to conform to applicable standards under the Uniform Guidance, and the Organization did not obtain bids or quotes for purchases that require obtaining bids or quotes. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Cause: The Organization did not have proper procedures in place to ensure that procurement policies were updated to conform to the requirements identified in the Uniform Guidance, and the Organization did not follow its policy regarding debarment searches or its policy for obtaining bids and quotes.
Effect: The Organization’s procurement policy did not conform to applicable standards under the Uniform Guidance’s procurement limits for micro, small, and simplified purchases. The Organization also did not obtain bids or quotes as required. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that the Organization update its procurement policies to conform to the requirements identified in Uniform Guidance, and that procedures are established to ensure that the debarment policy is followed.
Views of Responsible Officials: Management concurs. Policies and procedures will be updated to reflect the Uniform Guidance procurement limits for micro, small, and simplified purchases. The Organization will also establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023
Material Weakness
Finding: 2023-003 Procurement, Suspension and Debarment
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
CFDA 93.224 and 93.527
Criteria: Uniform Guidance, Procurement, Suspension, and Debarment
Condition: The Organization’s procurement policies were not updated to conform to applicable standards under the Uniform Guidance, and the Organization did not obtain bids or quotes for purchases that require obtaining bids or quotes. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Cause: The Organization did not have proper procedures in place to ensure that procurement policies were updated to conform to the requirements identified in the Uniform Guidance, and the Organization did not follow its policy regarding debarment searches or its policy for obtaining bids and quotes.
Effect: The Organization’s procurement policy did not conform to applicable standards under the Uniform Guidance’s procurement limits for micro, small, and simplified purchases. The Organization also did not obtain bids or quotes as required. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that the Organization update its procurement policies to conform to the requirements identified in Uniform Guidance, and that procedures are established to ensure that the debarment policy is followed.
Views of Responsible Officials: Management concurs. Policies and procedures will be updated to reflect the Uniform Guidance procurement limits for micro, small, and simplified purchases. The Organization will also establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023
Material Weakness
Finding: 2023-003 Procurement, Suspension and Debarment
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
CFDA 93.224 and 93.527
Criteria: Uniform Guidance, Procurement, Suspension, and Debarment
Condition: The Organization’s procurement policies were not updated to conform to applicable standards under the Uniform Guidance, and the Organization did not obtain bids or quotes for purchases that require obtaining bids or quotes. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Cause: The Organization did not have proper procedures in place to ensure that procurement policies were updated to conform to the requirements identified in the Uniform Guidance, and the Organization did not follow its policy regarding debarment searches or its policy for obtaining bids and quotes.
Effect: The Organization’s procurement policy did not conform to applicable standards under the Uniform Guidance’s procurement limits for micro, small, and simplified purchases. The Organization also did not obtain bids or quotes as required. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that the Organization update its procurement policies to conform to the requirements identified in Uniform Guidance, and that procedures are established to ensure that the debarment policy is followed.
Views of Responsible Officials: Management concurs. Policies and procedures will be updated to reflect the Uniform Guidance procurement limits for micro, small, and simplified purchases. The Organization will also establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023
Material Weakness
Finding: 2023-004 Reporting
Federal Programs: Department of Health and Human Services
Provider Relief Fund
CFDA 93.498
Criteria: Uniform Guidance, Special Reporting
Condition: The Provider Relief Fund report submitted to the U.S. Department of Health and Human Services (DHHS) for Phase 4 funding contained incorrect data The expenditures for the funding were reporting in periods prior to the year ended May 31, 2022, when the funds were expended during the year ended May 31, 2022.
Cause: The exception resulted from errors in preparing the Provider Relief Fund special reporting.
Effect: The DHHS reviews the Provider Relief Fund data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: No
Recommendation: It is recommended that a system should be developed to ensure that reporting submitted to the DHHS is accurately completed.
Views of Responsible Officials: Management concurs. Efforts will be made to ensure that reporting submitted to the DHHS is accurately completed.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023
Material Weakness
Finding: 2023-003 Procurement, Suspension and Debarment
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
CFDA 93.224 and 93.527
Criteria: Uniform Guidance, Procurement, Suspension, and Debarment
Condition: The Organization’s procurement policies were not updated to conform to applicable standards under the Uniform Guidance, and the Organization did not obtain bids or quotes for purchases that require obtaining bids or quotes. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Cause: The Organization did not have proper procedures in place to ensure that procurement policies were updated to conform to the requirements identified in the Uniform Guidance, and the Organization did not follow its policy regarding debarment searches or its policy for obtaining bids and quotes.
Effect: The Organization’s procurement policy did not conform to applicable standards under the Uniform Guidance’s procurement limits for micro, small, and simplified purchases. The Organization also did not obtain bids or quotes as required. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that the Organization update its procurement policies to conform to the requirements identified in Uniform Guidance, and that procedures are established to ensure that the debarment policy is followed.
Views of Responsible Officials: Management concurs. Policies and procedures will be updated to reflect the Uniform Guidance procurement limits for micro, small, and simplified purchases. The Organization will also establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023
Material Weakness
Finding: 2023-003 Procurement, Suspension and Debarment
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
CFDA 93.224 and 93.527
Criteria: Uniform Guidance, Procurement, Suspension, and Debarment
Condition: The Organization’s procurement policies were not updated to conform to applicable standards under the Uniform Guidance, and the Organization did not obtain bids or quotes for purchases that require obtaining bids or quotes. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Cause: The Organization did not have proper procedures in place to ensure that procurement policies were updated to conform to the requirements identified in the Uniform Guidance, and the Organization did not follow its policy regarding debarment searches or its policy for obtaining bids and quotes.
Effect: The Organization’s procurement policy did not conform to applicable standards under the Uniform Guidance’s procurement limits for micro, small, and simplified purchases. The Organization also did not obtain bids or quotes as required. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that the Organization update its procurement policies to conform to the requirements identified in Uniform Guidance, and that procedures are established to ensure that the debarment policy is followed.
Views of Responsible Officials: Management concurs. Policies and procedures will be updated to reflect the Uniform Guidance procurement limits for micro, small, and simplified purchases. The Organization will also establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023
Material Weakness
Finding: 2023-003 Procurement, Suspension and Debarment
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
CFDA 93.224 and 93.527
Criteria: Uniform Guidance, Procurement, Suspension, and Debarment
Condition: The Organization’s procurement policies were not updated to conform to applicable standards under the Uniform Guidance, and the Organization did not obtain bids or quotes for purchases that require obtaining bids or quotes. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Cause: The Organization did not have proper procedures in place to ensure that procurement policies were updated to conform to the requirements identified in the Uniform Guidance, and the Organization did not follow its policy regarding debarment searches or its policy for obtaining bids and quotes.
Effect: The Organization’s procurement policy did not conform to applicable standards under the Uniform Guidance’s procurement limits for micro, small, and simplified purchases. The Organization also did not obtain bids or quotes as required. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that the Organization update its procurement policies to conform to the requirements identified in Uniform Guidance, and that procedures are established to ensure that the debarment policy is followed.
Views of Responsible Officials: Management concurs. Policies and procedures will be updated to reflect the Uniform Guidance procurement limits for micro, small, and simplified purchases. The Organization will also establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023
Material Weakness
Finding: 2023-004 Reporting
Federal Programs: Department of Health and Human Services
Provider Relief Fund
CFDA 93.498
Criteria: Uniform Guidance, Special Reporting
Condition: The Provider Relief Fund report submitted to the U.S. Department of Health and Human Services (DHHS) for Phase 4 funding contained incorrect data The expenditures for the funding were reporting in periods prior to the year ended May 31, 2022, when the funds were expended during the year ended May 31, 2022.
Cause: The exception resulted from errors in preparing the Provider Relief Fund special reporting.
Effect: The DHHS reviews the Provider Relief Fund data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: No
Recommendation: It is recommended that a system should be developed to ensure that reporting submitted to the DHHS is accurately completed.
Views of Responsible Officials: Management concurs. Efforts will be made to ensure that reporting submitted to the DHHS is accurately completed.
Contact Person: Maurishka Williams, CFO
Anticipated Date of Completion: December 31, 2023