Finding Text
Federal Agency: Department of Health and Human Services Federal Program Name: Healthy Start Communities Assistance Listing Number: 93.926 Federal Award Identification Number and Year: H4900052 Award Period: 5/1/24-3/31/25 and 4/1/25-3/31/26 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR section 200.320 outlines the acceptable methods of procurement. Purchases below the simplified acquisition threshold, but above the micro-purchase threshold, require that price or rate quotations be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Furthermore, the Organization's procurement policies require the maintaining of records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: CLA identified vendors with expenditures charged to the program over $10k which did not have documentation to support the level of procurement utilized. Questioned costs: None Context: This condition impacted six vendors selected for testing. Each of the vendors provided services that are in accordance with the grant project, however finding results from lack of documentation. Cause: The entity implemented an updated procurement policy during the year and did not consider vendors which had been procured in prior years. Effect: The Organization could potentially use federal funds in a manner which is not the most efficient or economical. Repeat Finding: Yes. Recommendation: We recommend the organization follow its newly established procurement policy related to the maintaining of necessary documentation to support the method of procurement utilized. The Organization may also consider qualifying multiple vendors for particular goods/service and then utilizing an approved vendors list. Views of responsible officials: There is no disagreement with the audit finding.