Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Grants for New and Expanded Services Under the Health Center Program
Assistance Listing Number: 93.224/93.527
Federal Award Identification
Number: L2C42352-01-00;
Award Periods: July 1, 2021 – June 30, 2023;
Type of Finding: Material weakness in internal control over compliance
Criteria:
2 CFR section 200.320 outlines the acceptable methods of procurement. Purchases below the simplified acquisition threshold, but above the micro-purchase threshold, require price or rate quotations to be obtained from an adequate number of qualified sources. Noncompetitive procurement can be used in certain circumstances however the non-Federal entity is to maintain appropriate documentation justifying the use of sole source procurement consistent with 2 CFR 200.320(c).
Condition:
Legacy did not maintain appropriate documentation to support the procurement method utilized for procurements selected for testing.
Questioned Costs:
Unknown.
Context:
Five (5) of five (5) procurement transactions selected for testing.
Cause:
Legacy did not maintain appropriate documentation based on the method of procurement utilized.
Effect:
Legacy may inadvertently select vendors without regard to fair competition and cost analysis.
Repeat Finding:
Yes.
Prior Year Finding:
2022-002.
Recommendation:
We recommend Legacy consistently follow its established policies and procedures related to maintaining necessary documentation to support the method of procurement utilized. Legacy may also consider qualifying multiple vendors for particular goods/service and then utilizing an approved vendors list.
Views of Responsible Officials:
There is no disagreement with the audit finding.