Finding Text
2025-003 Procurement Program Information Federal Organizations U.S Department of Health and Human Services U.S Department of Agriculture (passed through California Department of Public Health) Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster 10.557 WIC Special Supplemental Nutrition Program for Women, Infants, and Children Award Numbers H80CS00540-23, H8GCS48292, H8LCS51370, 22-10237 A05 Criteria Entities receiving federal awards must have and use their documented procurement policies. Title 2 CFR 200.320 outlines the acceptable methods of procurement and establishes the maximum thresholds allowed. Purchases below the simplified acquisition threshold, but above the micro-purchase threshold, require price or rate quotations to be obtained from an adequate number of qualified sources. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Condition The Organization did not maintain documentation that competitive price quotations or bids performed, as required by policy and the Uniform Guidance for purchases above the micro purchase threshold. This finding appears to be a systemic issue. Cause Management did not follow its established procurement policy and documentation was not maintained evidencing its compliance with the policy. Effect The Organization may overpay for goods and services due to selecting vendors without appropriate consideration of the competitive bids and cost analysis. Questioned Costs $0. Although the auditee did not retain documentation of required competition (such as bids or price quotes) for contracts, as required under the entity’s written procurement procedures and the Uniform Guidance procurement standards in 2 CFR part 200, our testing indicated that the costs charged to the federal program under this contract were otherwise allowable under the applicable cost principles, adequately supported by other documentation, and reasonable in amount. Context We tested procurement transactions from each program. Of these transactions, four of thirteen tested under assistance listing numbers 93.224 and 93.527, and six of twenty-five tested under assistance listing number 10.557, were missing evidence of proper competitive procurement procedures being performed. Recommendation We recommend the Organization retain supporting documentation of competitive procurement for all transactions greater than the micro-purchase threshold when the expenditures will be charged to a federal award. Views of responsible officials and planned corrective action Management is in agreement with this finding and will take corrective action as outlined below.