Finding Text
FINDING 2025-004 FEDERAL PROGRAM CHILD CARE AND DEVELOPMENT BLOCK GRANT (93.575) FEDERAL AGENCY U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES COMPLIANCE PROCUREMENT TYPE OF FINDING SIGNIFICANT DEFICIENCY- INSTANCE OF NON COMPLIANCE CONDITIONS During our disbursements test, we identified six (6) purchases that were awarded based on a single quote, without following standard competitive procurement procedures. Each purchase was accompanied by a certification indicating that the purchase was urgently needed, but it was not documented what this urgency consisted of. CRITERIA According to 2 CFR §200.319(a), all procurement transactions must be conducted in a manner providing full and open competition. Additionally, 2 CFR §200.320(a)(2) requires that small purchase procedures obtain quotes from an adequate number of qualified sources unless an exception applies. CAUSE The Program does not have proper internal control over procurement and non compliance with policies and procedures for acquisitions and with the funds delegation agreement. EFFECT The lack of competition increases the risk that goods or services may not have been acquired at the most reasonable cost, and non-compliance with regulatory requirements. RECOMMENDATION We recommend that management strengthen internal controls over procurement to ensure compliance with 2 CFR Part 200. Specifically: 1. Require the solicitation and documentation of multiple quotes for all applicable purchases. 2. Document and approve exceptions in cases where only a single quote is obtained, with justification. 3. Monitor compliance regularly to ensure all procurement activities follow federal regulations and internal policies. QUESTIONED COST: None PRIOR YEAR Not Applicable MANAGEMENT RESPONSE We concur with the finding RESPONSIBLE OFFICIALS Mrs. María Ortiz Martinez, Finance Department Director