Finding Text
2025-002 — Procurement, Suspension, and Debarment – Significant Deficiency in Internal Controls Over Compliance and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Urban Indian Health Services ALN number: 93.193 Award years and number: 75H70921C00004 Criteria: In accordance with 2 CFR 200.319(a), it is required that “all procurement transactions under the federal award must be conducted in a manner that provides full and open competition and is consistent with the standards of this section and § 200.320.” Condition: Auditor reviewed one procurement sample. During our review, no documentation was provided to demonstrate that full and open competition was maintained in the procurement process, such as advertisement for bids, quotes obtained, evaluation of price, or basis for selecting the contractor. In addition, no documentation was provided indicating proper verification that the contractor was not debarred, suspended, or otherwise excluded. A subsequent check was conducted, indicating the contractor was not debarred, suspended or excluded. Questioned Costs: None. Cause: Although the Center maintains sufficient procurement policy, program personnel did not adequately follow the procurement policy. The inconsistency in the adherence to the procurement policy is attributed to the lack of monitoring. Effect: The failure to adhere to established procurement policy increases the risk of noncompliance with federal regulations. Auditor’s Recommendations: We recommend providing comprehensive training to all personnel involved in review and approval over procurement on the procurement process. Ensure all employees understand the importance of adhering to procurement policies and the benefits of a streamlined, centralized approach. Regular communication and updates on any changes in procurement procedures should be maintained. Management Response: All Nations will regularly review its purchasing policies with Finance and Leadership staff and members of its Board of Directors’ Audit and Finance Committee to ensure that proper procedures and documentation are followed and to update purchasing policies when changes are required.