Finding Text
2022-008: Procurement – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020-2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, under 2 CFR Section 200.320, the Organization must have and use documented procurement procedures for acquisition of property and services under a federal award or a sub‐award.
Condition: The Organization does have approved policies and procedures over procurement that meet the requirements of the Uniform Guidance. However, the Organization is not following its prescribed policies and procedures. The Organization lacked supporting documentation verifying procurement policies and procedures were followed. Due to lack of supporting documentation, procurement could not be verified. Of the sixty (60) transactions examined, thirty three (33) lacked supporting documentation for review of procurement.
Effect: Not following procurement policies and procedures may result in funds to be returned back to grantor and/or impact future funding.
Cause: Supporting procurement documentation for acquisition of property and services were not properly maintained in part due to several changes in personnel within the accounting area and overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $980 and likely questioned costs of $5,791 for Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure procurement is adequately documented that goods and services are purchased in accordance with Uniform Guidance and other federal guidelines.