Finding 1163218 (2024-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-12-01

AI Summary

  • Core Issue: The Organization's procurement policy was not consistently followed, leading to inadequate documentation of procedures and approvals.
  • Impacted Requirements: Non-compliance with 2 CFR Part 200 regarding procurement documentation and approval processes.
  • Recommended Follow-Up: Ensure adherence to the procurement policy and implement a system for documenting, reviewing, and approving procurement activities.

Finding Text

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: Unknown. Context: During our testing, we noted on 4 out of 5 of the samples tested there was no documentation of procurement procedures and on 5 out of 5 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. Repeat Finding: Yes. 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.

Corrective Action Plan

The Department of Health and Human Services/Centers for Disease Control and Prevention – Assistance Listing No. 93.495 Recommendation: We recommend that the Organization’s procurement policy is followed and that procurement procedures are documented, reviewed and approved. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are reviewing our current policies and procedures in these areas to determine if any changes should be implemented. Greater Health Now has increased trainings for staff members in terms of the documentation required to purchase goods and services with grant funds. Furthermore, to strengthen our oversight of sole-source contracts awarded with program and non-program funds, we will introduce stringent measures requiring thorough documentation of the vendor’s or contractor’s qualifications. Names of the contact persons responsible for corrective action: Jan Warren, Director of Finance & Amber Henderson, Chief Organization Excellence & Strategy Officer Planned completion date for corrective action plan: December 31, 2025

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Special Tests & Provisions

Other Findings in this Audit

  • 1163217 2024-002
    Material Weakness Repeat
  • 1163219 2024-004
    Material Weakness Repeat
  • 1163220 2024-005
    Material Weakness Repeat
  • 1163221 2024-006
    Material Weakness Repeat
  • 1163222 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.495 COMMUNITY HEALTH WORKERS FOR PUBLIC HEALTH RESPONSE AND RESILIENT $1.86M
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $694,987