Finding 391647 (2023-006)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-04-01

AI Summary

  • Core Issue: The organization failed to keep proper documentation for the procurement methods used in selected contracts.
  • Impacted Requirements: This raises concerns about compliance with 2 CFR section 200.320, which mandates adequate documentation for procurement processes.
  • Recommended Follow-Up: Ensure adherence to procurement policies by maintaining necessary documentation and consider qualifying multiple vendors for better compliance.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Infrastructure Support Assistance Listing Number: 93.526 Federal Award Identification Number: C8ECS43959-01 Award Periods: September 15, 2021 – September 14, 2024 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 that price or rate quotations be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Furthermore, the Organization's procurement policies require the maintaining of records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price Condition: The organization did not maintain appropriate documentation to support the procurement method utilized for contracts selected for testing. Questioned Costs: None. Context: Three of three transactions selected for testing. Cause: The Center did not create and maintain appropriate documentation to support the method of procurement utilized. Effect: Potential noncompliance with 2 CFR section 200.320(c)(1) - (3). Repeat Finding: No. Recommendation: We recommend the Organization consistently follow its established policies and procedures related to the maintaining of necessary documentation to support the method of procurement utilized. The Organization 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.

Corrective Action Plan

Action taken in response to finding: Management will create a process for creating and maintaining an approved vendor list as suggested. Name(s) of the contact person(s) responsible for corrective action: Christopher Dons, Chief Financial Officer Planned completion date for corrective action plan: September 30, 2024

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 391644 2023-003
    Significant Deficiency
  • 391645 2023-004
    Significant Deficiency
  • 391646 2023-005
    Significant Deficiency
  • 391648 2023-007
    Significant Deficiency
  • 391649 2023-007
    Significant Deficiency
  • 968086 2023-003
    Significant Deficiency
  • 968087 2023-004
    Significant Deficiency
  • 968088 2023-005
    Significant Deficiency
  • 968089 2023-006
    Material Weakness
  • 968090 2023-007
    Significant Deficiency
  • 968091 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $5.28M
93.788 Opioid Str $1.30M
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $584,813
93.527 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $564,238
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $309,600
93.667 Social Services Block Grant $171,829
14.218 Community Development Block Grants/entitlement Grants $171,759
93.926 Healthy Start Initiative $140,725
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $91,192
93.940 Hiv Prevention Activities_health Department Based $47,970
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $17,516
93.498 Provider Relief Fund $4,254