Finding Text
Identification of the federal program:
Federal Agencies: U.S. Department of Health and Human Services
Pass-Through Entities: Ohio Department of Health
Assistance Listing No: 93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, 93.493 Congressional Directives, and 21.027 COVID-19 Coronavirus State and Local Recovery Funds
Award Period: 2023
Criteria or specific requirement (including statutory, regulatory or other citation):
Section 200.303 of the Uniform Guidance states the following regarding internal control:
“The non-Federal entity must:
a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”
Section 200.318(i) of the Uniform Guidance states the following regarding general procurement standards: “The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.”
Section 200.320(a)(1)(iii) of the Uniform Guidance states the following regarding formal procurement methods to be followed: “The non-Federal entity is responsible for determining and documenting an appropriate micro-purchase threshold based on internal controls, an evaluation of risk, and its documented procurement procedures.”
Section 200.320(a)(2)(i) refers to small purchases as: “The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.”
Condition:
For most of 2023, Akron Children’s Procurement Policy for Federal Grant Agreements and Contracts did not align with the Uniform Guidance requirements within Section 200.320 in that the requirements for price or rate quotations from an adequate number of sources for small purchases between the micro purchase and simplified acquisition thresholds are not defined. Akron Children’s updated the procurement policy to align with the Uniform Guidance requirements in November 2023.
Cause:
The small purchase procurement threshold within Akron Children’s Procurement Policy for Federal Grant Agreements and Contracts did not align with the procurement thresholds established under Uniform Guidance Section 200.320, until the policy was updated in November 2023.
Effect or potential effect:
Akron Children’s procurement policies were not designed in accordance with Section 2.00.320(a). As such, Akron Children’s purchases may not have been in accordance with the Uniform Guidance procurement standards.
Questioned costs:
None
Context:
Akron Children’s updated its procurement policy in November 2023. Procurements prior to this date may not have followed the required Uniform Guidance.
Total Federal expenditures for the programs were $10,888,195 for the year ended December 31, 2023.
Identification as a repeat finding, if applicable:
The finding is a repeat finding from the prior year – 2022-001, as it relates to 93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response.
Recommendation:
Akron Children’s should review and update its federal procurement policies to align with the procurement standards.
Views of responsible officials:
Akron Children's remediated this finding in November 2023 with the update and issuance of a modified Procurement Policy for Federal Grant Agreements and Contracts that aligns with the standards of Uniform Guidance.