Finding 1080475 (2024-001)

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 – 45 CFR 75.329 Condition – The Hospital did not follow its policy governing procurement requirements for the purchase of goods or services charged to federal awards. In addition, the Hospital does not have formal policies and procedures in place to ensure vendors are not suspended or debarred from federal activities. Questioned Costs - Unknown Context – One procurement was tested out of a population of one. The Hospital did not procure a general contractor for its $16MM Radiation Oncology project. This project was funded through multiple sources, including contributions, internally generated funds, and local, state, and federal grants. Cause – The Hospital did not comply with their federal procurement policy to seek competitive bids from atleast three sources. Effect – Contractor was not procured according to Hospital’s policy. Verification that contractor was not suspended or debarred was not performed by the Hospital. Identification as a Repeat Finding - No Recommendation – The Hospital should review its procurement policy and ensure that vendors are being procured according to the policy. In addition, the Hospital should include procedures to verify vendors are not suspended or debarred from federal activities.