Finding 1173936 (2023-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2026-02-17
Audit: 387535
Organization: National Indian Health Board (DC)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: Missing documentation for procurement processes, specifically for four out of thirteen items tested, indicating a significant deficiency in compliance with federal requirements.
  • Impacted Requirements: Non-compliance with Uniform Guidance 2 CFR 200.318 regarding bidding processes and verification of contractor suspension or debarment.
  • Recommended Follow-Up: Establish a centralized documentation system for federal awards and create a clear procurement process to ensure compliance and accessibility of records.

Finding Text

Missing documentation for procurement, suspension and debarment 93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security 93.421 Strengthening Public Health Systems and Services Criteria: Per Uniform Guidance 2 CFR 200.318, any contracts procured with federal funds for over $10,000 should be obtained via a bidding process or documentation is required to show that the contractor is the sole source for the services. In addition, the Organization should keep documentation to show that they have verified that contractors are not suspended or debarred. Condition: Bid or sole source documentation was missing for four out of thirteen items tested (30.8%). We consider this condition to be a significant deficiency for Procurement Suspension & Debarment compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2022 004. Statistical sampling was not used in making sample selections. Questioned costs: None Effect: As a result, the Organization was missing documentation relating to the requirements for procurement, suspension and debarment. Cause: This is due to ineffective controls over the procurement process resulting from staff turnover. Recommendation: Auditors recommend that the Organization maintain all federal award documentation in a location where all authorized personnel have access in order to ensure that it can always be located. We also recommend that management create a process for procurement, including how bids are obtained and maintained for proof of compliance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan

Corrective Action Plan

In response to noted deficiencies in procurement, suspension, and debarment documentation, the Organization has developed a comprehensive Grant Cycle Standard Operating Procedure aligned with the OMB Uniform Guidance to ensure compliance going forward. This procedure reinforces the existing Procurement policy, which ensures staff receive targeted training on relevant requirements, and incorporates additional review measures, including during the onboarding process for new hires. Furthermore, the Grants Director must review all invoices and ensure procurement support is provided prior to approval. The Organization also implemented a new management platform to manage purchase orders, maintain sourcing documentation, and verify contractors are not suspended or debarred, thereby ensuring full compliance with federal requirements and promoting transparency in contractor eligibility and competitive bidding. In addition, prior to contract execution or payment, staff are required to perform and document a SAM.gov suspension and debarment verification for all vendors exceeding the micro-purchase threshold. Documentation of the veri􀀁ication is maintained in the procurement 􀀁ile and must be present prior to invoice approval. Payments cannot be processed without this documentation.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1173851 2023-005
    Material Weakness Repeat
  • 1173852 2023-006
    Material Weakness Repeat
  • 1173853 2023-007
    Material Weakness Repeat
  • 1173854 2023-008
    Material Weakness Repeat
  • 1173855 2023-004
    Material Weakness Repeat
  • 1173856 2023-005
    Material Weakness Repeat
  • 1173857 2023-006
    Material Weakness Repeat
  • 1173858 2023-007
    Material Weakness Repeat
  • 1173859 2023-008
    Material Weakness Repeat
  • 1173860 2023-004
    Material Weakness Repeat
  • 1173861 2023-005
    Material Weakness Repeat
  • 1173862 2023-006
    Material Weakness Repeat
  • 1173863 2023-007
    Material Weakness Repeat
  • 1173864 2023-008
    Material Weakness Repeat
  • 1173865 2023-004
    Material Weakness Repeat
  • 1173866 2023-005
    Material Weakness Repeat
  • 1173867 2023-006
    Material Weakness Repeat
  • 1173868 2023-007
    Material Weakness Repeat
  • 1173869 2023-008
    Material Weakness Repeat
  • 1173870 2023-004
    Material Weakness Repeat
  • 1173871 2023-005
    Material Weakness Repeat
  • 1173872 2023-006
    Material Weakness Repeat
  • 1173873 2023-007
    Material Weakness Repeat
  • 1173874 2023-008
    Material Weakness Repeat
  • 1173875 2023-004
    Material Weakness Repeat
  • 1173876 2023-005
    Material Weakness Repeat
  • 1173877 2023-006
    Material Weakness Repeat
  • 1173878 2023-007
    Material Weakness Repeat
  • 1173879 2023-008
    Material Weakness Repeat
  • 1173880 2023-004
    Material Weakness Repeat
  • 1173881 2023-005
    Material Weakness Repeat
  • 1173882 2023-006
    Material Weakness Repeat
  • 1173883 2023-007
    Material Weakness Repeat
  • 1173884 2023-008
    Material Weakness Repeat
  • 1173885 2023-004
    Material Weakness Repeat
  • 1173886 2023-005
    Material Weakness Repeat
  • 1173887 2023-006
    Material Weakness Repeat
  • 1173888 2023-007
    Material Weakness Repeat
  • 1173889 2023-008
    Material Weakness Repeat
  • 1173890 2023-004
    Material Weakness Repeat
  • 1173891 2023-005
    Material Weakness Repeat
  • 1173892 2023-006
    Material Weakness Repeat
  • 1173893 2023-007
    Material Weakness Repeat
  • 1173894 2023-008
    Material Weakness Repeat
  • 1173895 2023-004
    Material Weakness Repeat
  • 1173896 2023-005
    Material Weakness Repeat
  • 1173897 2023-006
    Material Weakness Repeat
  • 1173898 2023-007
    Material Weakness Repeat
  • 1173899 2023-008
    Material Weakness Repeat
  • 1173900 2023-004
    Material Weakness Repeat
  • 1173901 2023-005
    Material Weakness Repeat
  • 1173902 2023-006
    Material Weakness Repeat
  • 1173903 2023-007
    Material Weakness Repeat
  • 1173904 2023-008
    Material Weakness Repeat
  • 1173905 2023-004
    Material Weakness Repeat
  • 1173906 2023-005
    Material Weakness Repeat
  • 1173907 2023-006
    Material Weakness Repeat
  • 1173908 2023-007
    Material Weakness Repeat
  • 1173909 2023-008
    Material Weakness Repeat
  • 1173910 2023-004
    Material Weakness Repeat
  • 1173911 2023-005
    Material Weakness Repeat
  • 1173912 2023-006
    Material Weakness Repeat
  • 1173913 2023-007
    Material Weakness Repeat
  • 1173914 2023-008
    Material Weakness Repeat
  • 1173915 2023-004
    Material Weakness Repeat
  • 1173916 2023-005
    Material Weakness Repeat
  • 1173917 2023-006
    Material Weakness Repeat
  • 1173918 2023-007
    Material Weakness Repeat
  • 1173919 2023-008
    Material Weakness Repeat
  • 1173920 2023-005
    Material Weakness Repeat
  • 1173921 2023-006
    Material Weakness Repeat
  • 1173922 2023-008
    Material Weakness Repeat
  • 1173923 2023-005
    Material Weakness Repeat
  • 1173924 2023-006
    Material Weakness Repeat
  • 1173925 2023-008
    Material Weakness Repeat
  • 1173926 2023-004
    Material Weakness Repeat
  • 1173927 2023-005
    Material Weakness Repeat
  • 1173928 2023-006
    Material Weakness Repeat
  • 1173929 2023-007
    Material Weakness Repeat
  • 1173930 2023-008
    Material Weakness Repeat
  • 1173931 2023-004
    Material Weakness Repeat
  • 1173932 2023-005
    Material Weakness Repeat
  • 1173933 2023-006
    Material Weakness Repeat
  • 1173934 2023-007
    Material Weakness Repeat
  • 1173935 2023-008
    Material Weakness Repeat
  • 1173937 2023-005
    Material Weakness Repeat
  • 1173938 2023-006
    Material Weakness Repeat
  • 1173939 2023-007
    Material Weakness Repeat
  • 1173940 2023-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.341 ANALYSES, RESEARCH AND STUDIES TO ADDRESS THE IMPACT OF CMS’ PROGRAMS ON AMERICAN INDIAN/ALASKA NATIVE (AI/AN) BENEFICIARIES AND THE HEALTH CARE SYSTEM SERVING THESE BENEFICIARIES $804,408
93.011 NATIONAL ORGANIZATIONS FOR STATE AND LOCAL OFFICIALS $498,838
66.309 SURVEYS, STUDIES, INVESTIGATIONS, TRAINING AND SPECIAL PURPOSE ACTIVITIES RELATING TO ENVIRONMENTAL JUSTICE $467,089
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION’S HEALTH $101,462
93.318 PROTECTING AND IMPROVING HEALTH GLOBALLY: BUILDING AND STRENGTHENING PUBLIC HEALTH IMPACT, SYSTEMS, CAPACITY AND SECURITY $100,994
93.933 DEMONSTRATION PROJECTS FOR INDIAN HEALTH $83,041