Finding 1076763 (2023-005)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to procurement practices.
  • Impacted Requirements: The organization failed to comply with 2 CFR Part 200, which mandates proper procurement procedures and documentation.
  • Recommended Follow-Up: Ensure adherence to the procurement policy and implement a system for documenting, reviewing, and approving all procurement transactions.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: The Department of Health and Human Services/Centers for Disease Control and Prevention Assistance Listing Number: 93.323 Federal Award Identification Number and Year: NU50CK000515 - 2021 Pass-Through Agency: State of Washington Department of Health Pass-Through Number: CBO28488-0 Award Period: July 1, 2023 through July 31, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance – Procurement • Material Noncompliance (Modified Opinion) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement. Condition: The Organization has a procurement policy but the policy was not followed on all procurement transactions and documentation was not maintained of the procedures performed and approvals received for the procurement. Questioned costs: None. Context: During our testing, we noted on 2 out of 3 of the samples tested there was no documentation of procurement procedures and on 3 out of 3 of the samples tested there was no documentation of review and approval. Cause: Policies and procedures are not in place to ensure proper procurement is being followed. Effect: Incorrect procurement and documentation not maintained. Recommendation: We recommend that the Organization’s procurement policy is followed and that procurement procedures are documented, reviewed and approved. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 500318 2023-002
    Significant Deficiency
  • 500319 2023-003
    Material Weakness
  • 500320 2023-004
    Material Weakness
  • 500321 2023-005
    Material Weakness
  • 500322 2023-006
    Material Weakness
  • 1076760 2023-002
    Significant Deficiency
  • 1076761 2023-003
    Material Weakness
  • 1076762 2023-004
    Material Weakness
  • 1076764 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.16M