Finding Text
2023-005 Procurement Program Information Federal Organization Federal Communications Commission Assistance Listing Numbers 32.006 COVID-19 Telehealth Program Award Numbers CA2067511 Criteria [ ] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Entities receiving federal awards must have documented policies and procedures that comply with the procurement standards set out at 2 CFR 200.318 through 200.327. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements also conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition The Hospital did not have a documented procurement policy in place that complied with the Uniform Guidance requirements. Cause Management had not researched and implemented the procurement policy requirements prescribed by the Uniform Guidance, resulting in the Hospital not having a documented procurement policy in place. Effect The absence of a documented procurement policy that complies with Uniform Guidance increases the risk of noncompliance with federal procurement requirements and may result in questioned costs or disallowed expenditures. Questioned Costs None. Context During our testing of procurement compliance, we reviewed the Hospital’s policies and procedures to determine compliance with Uniform Guidance requirements. We noted that the Hospital had not adopted a documented procurement policy addressing the procurement standard required. Recommendation We recommend that management develop, adopt, and implement a documented procurement policy that complies with Uniform Guidance requirements. Management should also establish procedures to ensure procurement transactions are documented and performed in accordance with federal requirements. Views of responsible officials and planned corrective action Management is in agreement with this finding and will implement the suggested actions as outlined in the corrective action plan.