Finding Text
Information on the federal program – Assistance Listing Number 93.224/93.527, Health Center Program Cluster from the U.S. Department of Health and Human Services, Federal Award No. 6 H80CS00581-22-01 for project period March 1, 2023 through February 29, 2024
Criteria or specific requirement – Health Centers must comply with federal procurement standards.
Condition – The Organization did not comply with its procurement policy which was designed to conform with federal procurement standards.
Questioned costs – Not applicable
Context – Out of a population of 15 procurement transactions which exceeded the federal micro-purchase threshold, a sample of 2 procurement transactions were tested, and 1 was not in compliance with the Organization’s policy. A non-statistical sampling methodology was used to select the sample.
Effect – Federal procurement standards were not appropriately followed.
Cause – A lack of sufficient supervisory review of procurement procedures was followed for purchases using federal funding.
Identification as a repeat finding, if applicable – Not a repeat finding.
Recommendation – We recommend that the Organization implement additional internal controls surrounding purchase procedures when utilizing federal funding.
Views of responsible officials and planned corrective actions – To ensure compliance with the Organization’s procurement policy going forward, the Organization will require that all invoices and purchase orders relating to federal procurements be approved and signed by the CFO. The CFO will ensure that all necessary procurement actions have been performed and the history of procurement is documented prior to approval of the invoice or purchase order.