Finding Text
2025-002 Procurement Suspension and Debarment ALN: 93.224 Program: Community Health Center Cluster Agency: US Department of Health and Human Services Compliance Requirement: I Procurement Suspension and Debarment Repeat Finding: No Criteria: Per 45 CFR 75.327(i), a non-Federal entity who receives HHS awards must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Finding/Condition: During our testing of the Organization’s procurement transactions for federal purchases (25 samples), we noted the Organization could not provide a sufficient history of the procurement decisions including the method of procurement and contractor selection. Questioned Cost: None. Effect: The entity is not in compliance with 45 CFR 75.327 for procurement. Cause: The Organization did not have procedures in place for procurement in retaining the required documentation detailing the history of the procurement. Recommendation: We recommend the Organization develop procedures for procurement with federal funds. Views of Responsible Officials and Corrective Action Plan: The Organization will develop a system that maintains the required documentation for procurements in a centralized location. Please refer to the Corrective Action Plan on page 35.