Finding 28746 (2022-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-28
Audit: 31947
Auditor: Terry Horne CPA

AI Summary

  • Core Issue: The Organization failed to follow its own procurement policy by not obtaining required quotes or bids for purchases.
  • Impacted Requirements: This finding violates the Uniform Guidance related to procurement, suspension, and debarment.
  • Recommended Follow-up: Implement stronger procurement controls and update policies to meet Uniform Guidance thresholds; training for employees is also necessary.

Finding Text

Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 28740 2022-003
    Material Weakness
  • 28741 2022-004
    Material Weakness
  • 28742 2022-003
    Material Weakness
  • 28743 2022-004
    Material Weakness
  • 28744 2022-003
    Material Weakness
  • 28745 2022-004
    Material Weakness
  • 28747 2022-004
    Material Weakness
  • 605182 2022-003
    Material Weakness
  • 605183 2022-004
    Material Weakness
  • 605184 2022-003
    Material Weakness
  • 605185 2022-004
    Material Weakness
  • 605186 2022-003
    Material Weakness
  • 605187 2022-004
    Material Weakness
  • 605188 2022-003
    Material Weakness
  • 605189 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.46M
93.224 Covid-19-Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.16M
93.498 Covid-19-Provider Relief Fund $936,837
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $305,883
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $234,862