Finding Text
Rural Healthcare Services Programs Assistance Listing Number 93.912 U.S. Department of Health and Human Services Award No. 6 UK9RH43497-03-02, September 1, 2023 – August 31, 2024 Award No. 6 UK9RH43497-04-05, September 1, 2024 – August 31, 2025 Award No. 6 HB1RH47071-02-02, September 30, 2023 – August 31, 2024 Award No. 4 HB1RH47071-03-02, September 1, 2024 – August 31, 2026 Criteria or specific requirement – Procurement (45 CFR 75.329) Condition – Procurement records were not maintained according to Uniform Guidance. Questioned costs – Unknown Context – A sample of three procurements totaling $365,941 were tested out of a population of 21 procurements. Samples were not, and were not intended to be, statistically valid. For the three vendors tested, the Organization’s procurement records were insufficient in accordance with the requirements of the Organization’s procurement policy and Uniform Guidance. Effect – Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance requirements. Cause – The Organization did not comply with its procurement policy. Identification as a repeat finding, if applicable – See Finding 2024-005. Recommendation – The Organization should develop a process for maintaining documentation required by its procurement policy. Views of responsible officials and planned corrective actions – Issues identified during the audit were indicative of an overall lack of controls and processes due to the change in Finance Department staff and loss of knowledge. Based on the finding, a review and training for the Organization on procurement has been implemented. Additionally, with the new CFO and Finance staff, additional controls and processes to prevent this from occurring again. The Organization’s CEO, a former CFO of the organization, will continue to provide oversight for the Finance Department to ensure controls and processes are implemented.