Finding 402324 (2023-007)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-06-25
Audit: 309899
Organization: Family Health Centers, Inc. (SC)
Auditor: Terry Horne CPA

AI Summary

  • Core Issue: The Organization did not follow its own procurement policy by failing to obtain required quotes or bids for certain purchases.
  • Impacted Requirements: This finding relates to compliance with procurement regulations under 45 CFR 75.329 and 45 CFR 75.213.
  • Recommended Follow-Up: Implement stronger procurement controls and update policies to align with Uniform Guidance thresholds; training for employees is also necessary.

Finding Text

Finding: 2023-007 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Procurement 45 CFR 75.329 and 45 CFR 75.213 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 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 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: Dondre Wilson, CFO Anticipated Date of Completion: July 31, 2024

Corrective Action Plan

In Finding 2023-007, a condition was noted in which the Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization’s procurement policy. Management recognizes the importance of complying with procurement guidelines. In response to Finding 2023-007, procedures will be implemented to ensure bids are obtained and properly documented.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 402311 2023-004
    Material Weakness Repeat
  • 402312 2023-005
    Material Weakness
  • 402313 2023-005
    Material Weakness
  • 402314 2023-005
    Material Weakness
  • 402315 2023-005
    Material Weakness
  • 402316 2023-005
    Material Weakness
  • 402317 2023-005
    Material Weakness
  • 402318 2023-006
    Material Weakness
  • 402319 2023-006
    Material Weakness
  • 402320 2023-006
    Material Weakness
  • 402321 2023-006
    Material Weakness
  • 402322 2023-006
    Material Weakness
  • 402323 2023-006
    Material Weakness
  • 402325 2023-007
    Material Weakness
  • 402326 2023-007
    Material Weakness
  • 402327 2023-007
    Material Weakness
  • 402328 2023-007
    Material Weakness
  • 402329 2023-007
    Material Weakness
  • 402330 2023-008
    Material Weakness
  • 402331 2023-008
    Material Weakness
  • 402332 2023-008
    Material Weakness
  • 402333 2023-008
    Material Weakness
  • 402334 2023-008
    Material Weakness
  • 402335 2023-008
    Material Weakness
  • 978753 2023-004
    Material Weakness Repeat
  • 978754 2023-005
    Material Weakness
  • 978755 2023-005
    Material Weakness
  • 978756 2023-005
    Material Weakness
  • 978757 2023-005
    Material Weakness
  • 978758 2023-005
    Material Weakness
  • 978759 2023-005
    Material Weakness
  • 978760 2023-006
    Material Weakness
  • 978761 2023-006
    Material Weakness
  • 978762 2023-006
    Material Weakness
  • 978763 2023-006
    Material Weakness
  • 978764 2023-006
    Material Weakness
  • 978765 2023-006
    Material Weakness
  • 978766 2023-007
    Material Weakness
  • 978767 2023-007
    Material Weakness
  • 978768 2023-007
    Material Weakness
  • 978769 2023-007
    Material Weakness
  • 978770 2023-007
    Material Weakness
  • 978771 2023-007
    Material Weakness
  • 978772 2023-008
    Material Weakness
  • 978773 2023-008
    Material Weakness
  • 978774 2023-008
    Material Weakness
  • 978775 2023-008
    Material Weakness
  • 978776 2023-008
    Material Weakness
  • 978777 2023-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.359 Nurse Education, Practice Quality and Retention Grants $932,121
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $720,143
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $172,018
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $135,015
10.175 Farmers Market and Local Food Promotion Program (b) $99,354
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $29,162
93.155 Rural Health Research Centers $8,749