Finding 1221488 (2023-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2026-06-30
Audit: 405779
Organization: Baltimore Medical System, Inc. (MD)

AI Summary

  • Core Issue: The organization failed to follow its own procurement policy for federal awards, leading to potential non-compliance with competitive bidding requirements.
  • Impacted Requirements: Non-compliance with 2 CFR 200.320 regarding procurement, suspension, and debarment, specifically in maintaining support for bids.
  • Recommended Follow-Up: Ensure all bids and procurement documentation are maintained and communicated to staff; implement reminders and require quotes at the time of purchase order submission by December 31, 2026.

Finding Text

Health Center Program Cluster ALN Nos. 93.224 and 93.527 U.S. Department of Health and Human Services Award No. 2 H80CS00800, June 1, 2023 - May 31, 2024 Award No. 5 H80CS00800, June 1, 2022 - May 31, 2023 Award No. 2 H8FCS41036, April 1, 2023 - March 31, 2023 Criteria or Specific Requirement – Procurement, Suspension & Debarment – 2 CFR 200.320 Condition – The Organization did not comply with their policy governing procurement requirements for the purchase of goods and services charged to federal awards. Cause – Support was not maintained for the procurement policy being followed including bids that were required to be obtained. Effect or potential effect – A competitive bidding process may not have been followed within the guidelines or the procurement policy. Questioned cost – Unknown Context – A sample of two procurements were tested out of the total population of 17 procurements. The sampling methodology used is not and is not intended to be statistically valid. One procurement tested did not maintain proper support that the procurement process was followed. Identification as a repeat finding, if applicable – Repeat finding, see 2022-005 Recommendation – We recommend management maintains support for all bids obtained and the conclusions reached as part of the procurement process. Views of responsible officials and planned corrective actions - Management agrees with the recommendation to maintain support for all bids obtained and the conclusions reached as part of the procurement process. The procurement audit sample contained expenses incurred by a Provider Staffing Agency. We were unable to provide support that we obtained multiple bids from staffing agencies. Going forward we will confirm rates via email and maintain the documentation supporting the fact that we are obtaining quotations from an adequate number of qualified sources. In addition, the following actions are being taken: • The Procurement Policy is being sent out to all relevant personnel to remind them of the procedures that must be followed before making purchases greater than $25,000. • Personnel will be required to send in the quotes from the qualified sources at the time the purchase order is submitted. Anticipated date of completion: December 31, 2026

Corrective Action Plan

Management agrees with the recommendation to maintain support for all bids obtained and the conclusions reached as part of the procurement process. The procurement audit sample contained expenses incurred by a Provider Staffing Agency. We were unable to provide support that we obtained multiple bids from staffing agencies. Going forward we will confirm rates via email and maintain the documentation supporting the fact that we are obtaining quotations from an adequate number of qualified sources. In addition, the following actions are being taken: • The Procurement Policy is being sent out to all relevant personnel to remind them of the procedures that must be followed before making purchases greater than $25,000. • Personnel will be required to send in the quotes from the qualified sources at the time the purchase order is submitted. Anticipated date of completion: December 31, 2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1221486 2023-003
    Material Weakness Repeat
  • 1221487 2023-003
    Material Weakness Repeat
  • 1221489 2023-004
    Material Weakness Repeat
  • 1221490 2023-004
    Material Weakness Repeat
  • 1221491 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $2.22M
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $623,170
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $341,367
93.940 VIRAL HEPATITIS PREVENTION AND CONTROL $197,485
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $95,000
93.137 COMMUNITY PROGRAMS TO IMPROVE MINORITY HEALTH $79,570
93.297 TEENAGE PREGNANCY PREVENTION PROGRAM $65,206
93.217 FAMILY PLANNING SERVICES $50,000
93.800 ORGANIZED APPROACHES TO INCREASE COLORECTAL CANCER SCREENING $48,422