Finding 500321 (2023-005)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to procurement practices.
  • Impacted Requirements: The organization failed to comply with 2 CFR Part 200, which mandates proper procurement procedures and documentation.
  • Recommended Follow-Up: Ensure adherence to the procurement policy and implement a system for documenting, reviewing, and approving all procurement transactions.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: The Department of Health and Human Services/Centers for Disease Control and Prevention Assistance Listing Number: 93.323 Federal Award Identification Number and Year: NU50CK000515 - 2021 Pass-Through Agency: State of Washington Department of Health Pass-Through Number: CBO28488-0 Award Period: July 1, 2023 through July 31, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance – Procurement • Material Noncompliance (Modified Opinion) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of procurement. Condition: The Organization has a procurement policy but the policy was not followed on all procurement transactions and documentation was not maintained of the procedures performed and approvals received for the procurement. Questioned costs: None. Context: During our testing, we noted on 2 out of 3 of the samples tested there was no documentation of procurement procedures and on 3 out of 3 of the samples tested there was no documentation of review and approval. Cause: Policies and procedures are not in place to ensure proper procurement is being followed. Effect: Incorrect procurement and documentation not maintained. Recommendation: We recommend that the Organization’s procurement policy is followed and that procurement procedures are documented, reviewed and approved. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend that the Organization’s procurement policy is followed and that procurement procedures are documented, reviewed and approved. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will review our current policies and procedures in these areas to determine if any changes should be implemented. We will ensure staff responsible for procurement of goods and services are familiar with applicable federal and state laws and policies for awarding and executing contracts. We are deeply committed to the continuous improvement of our purchasing policies and procedures to uphold the highest standards of transparency and accountability. In this regard, procurement policy will be updated to comply with the Uniform Guidance for federal awards. Furthermore, to strengthen our oversight of sole-source contracts awarded with program and non-program funds, we will introduce stringent measures requiring thorough documentation of the vendor’s or contractor’s qualifications. Name(s) of the contact person(s) responsible for corrective action: Department Head, Jan Warren/Amber Henderson (Compliance), Haydee Hill (CFO), Sharon Brown (CEO). Planned completion date for corrective action plan: 12/31/2024

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 500318 2023-002
    Significant Deficiency
  • 500319 2023-003
    Material Weakness
  • 500320 2023-004
    Material Weakness
  • 500322 2023-006
    Material Weakness
  • 1076760 2023-002
    Significant Deficiency
  • 1076761 2023-003
    Material Weakness
  • 1076762 2023-004
    Material Weakness
  • 1076763 2023-005
    Material Weakness
  • 1076764 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.16M