Finding 1076214 (2023-001)

Finding Number: 2023-001 Repeat Finding: No Program Name/Title: Rural Health Outreach and Rural Network Development Program Federal Assistance Listing Number: 93.912 Federal Agency: U.S. Department of Health and Human Services Federal Award Number: N/A Type of Finding: Significant Deficiency Compliance Requirement: Procurement and Suspension and Debarment Questioned Cost: No Criteria: Under 2 CFR sections 180.220 and 200.318 through 200.326, 45 CFR 75.327 through 75.334 and 45 CFR 75 Part E, the Organization is required to implement certain written Procurement and Suspension and Debarment policies and procedures that adhere to the minimum Federal Procurement standards. The Organization must use its own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements outlined in Uniform Guidance and maintain sufficient records to detail the history of procurements. Condition: The Organization did not maintain a written procurement policy, the Organization did not have adequate procurement policies in place to meet the minimum federal requirements for procurement standards. Cause: The Organizations did not meet all of the minimum federal requirements under Uniform Guidance. The Organization could not provide support to demonstrate that it performed all of the necessary procurement steps and did not have a written procurement policy. Effect: The Organization was not in compliance with federal regulations. Recommendation: The Organization should put in place a procurement policy to meet the minimum federal requirements and ensure procurement policies are being followed for all procurement levels with written documentation. View of Responsible Officials: Management agrees with the finding and will work to develop a procurement policy.