Finding Text
Finding No. 2022-009: Improper Procurement Processes and Controls – Material Weakness – Internal Control and Compliance Finding
ALN 93.136 – Injury Prevention and Control Research and State and Community Based Programs; Grant Number HAHSTA2020-000017; Grant Period: July 1, 2020 to August 31, 2022
ALN 93.834 – Capacity Building Assistance for High Impact HIV; Grant Number 5NU65PS923684-04-00; Grant Period: April 1, 2019 to March 31, 2024
Criteria
For acquisitions exceeding the micro-purchase threshold, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by HealthHIV. If the procurement is sole sourced, adequate written justification for noncompetitive procurement is required. In addition, HealthHIV should verify that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. This verification may be accomplished by checking the Excluded Parties List System maintained by the General Services Administration, collecting a certification from the entity, or adding a clause or condition to the covered transaction with the entity.
Condition and Context
HealthHIV did not have adequate internal controls in place over procurement. As a result, there was no documentation to support the rationale for selection of six vendors for ALN 93.136 and two vendors for ALN 93.834 during the year. In addition, the suspension and debarment checks for the six vendors for ALN 93.136 and two vendors for ALN 93.834 were also not performed before entering into contract with the vendors.
Cause
Employee turnover during the year resulted in documents being misplaced or not properly prepared.
Effect
HealthHIV did not fully adhere to federal laws and regulations.
Questioned Costs
None.
Repeat Finding
Yes. This was reported as Finding 2021-007.
Recommendation
We recommend that HealthHIV implement procedures and enhance internal controls to ensure appropriate and timely compliance with all applicable federal regulations.
Views of Responsible Officials and Planned Corrective Actions
See corrective action plan.