Finding Text
Federal Assistance Listing Nos. 93.224 and 93.527
U.S. Department of Health and Human Services
Award No. 4 H8FCS40875-01-02
Program Year 2023
Criteria or Specific Requirement – Procurement, Suspension, & Debarment – 45 CFR 75.329
Condition – The Organization’s procurement policy established a threshold of $10,000 for small purchase procurements. This policy was not properly applied.
Questioned Costs – Unknown
Context – A sample of two procurements were tested out of a population of eleven transactions subject to procurement requirements. The population sampled represented $957,817 in Federal expenditures. The sample was not, and is not intended to be, statistically valid. Of the two procurements tested, one procurement for $54,684 was not completed in compliance with the Organization’s policy and procedures.
Effect – A purchase was made without fully adhering to Federal procurement requirements.
Cause – The Organization did not apply its procurement policy to a transaction that met the small purchases threshold.
Identification as a Repeat Finding – Not a repeat finding.
Recommendation – The Organization should review its policies and procedures to ensure all purchases using Federal grant dollars are completed in accordance with Federal procurement requirements.