Finding Text
Opioid STR
ALN No. 93.788
U.S. Department of Health and Human Services
Criteria or Specific Requirement – Procurement, Suspension and Debarment – 45 CFR 75.329, 2 CFR 180
Condition – For procurement testing, a sample of 1 procurement was selected from a population of 5 totaling $487,910. For suspension and department testing, a sample of 1 was selected from a population of 3 totaling $464,333. The samples were not, and are not intended to be, statistically valid. Of the samples tested, the following were determined to lack appropriate supporting documentation for compliance requirement:
• Procurement: 1 item totaling $59,791, including projected errors over the total population totaling $487,910
• Suspension and debarment: 1 item totaling $59,791, including projected errors over the total population totaling $464,333
Cause – The Organization did not comply with their procurement policy. In addition, the Organization does not include a review of the federal suspended and debarment party list as part of the Organization's procurement policy.
Effect or potential effect – Procurement methodology was not followed for vendor with expenses of over $10,000. In addition, that did not adhere to the federal government's suspension and debarment compliance requirements.
Questioned Costs – None
Context – The Organization did not have adequate policies and procedures to ensure procurement, suspension, and debarment requirements were met prior to the purchase of goods or services charged to federal awards. Upon further discussion with Tuerk House, Inc., no procurement, suspension and debarment procedures were performed on any vendors.
Identification as a repeat finding – Repeat finding (see 2022-004 and 2023-004)
Recommendation – We recommend management continue to ensure all personnel understand the procurement policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that vendors, especially those over $10,000, are selected and vetted in accordance with policy and Uniform Guidance. In addition, policies and procedures should be put in place to ensure all vendors are not included on the suspended and debarred listing.