Finding 502538 (2024-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-10-11
Audit: 324529
Organization: Rural Health Services, Inc. (SC)
Auditor: Terry Horne CPA

AI Summary

  • Core Issue: The Organization did not follow procurement rules for purchases over $10,000.
  • Impacted Requirements: Violations of Uniform Guidance procurement criteria (45 CFR 75.329 and 45 CFR 75.213).
  • Recommended Follow-Up: Implement procurement controls and update policies to ensure compliance by October 31, 2024.

Finding Text

Finding: 2024-002 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 Uniform Guidance procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain capital expenditures over $10,000 as required by Uniform Guidance. Effect: Purchases were made that did not adhere to the Uniform Guidance requirements. 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 Uniform Guidance. 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: Donald Branum, CEO Anticipated Date of Completion: October 31, 2024

Corrective Action Plan

In Finding 2024-002, a condition was noted in which the Organization did not obtain quotes or bids for certain expenditures as required by Uniform Guidance procurement requirements. Management recognizes the importance of complying with procurement guidelines. In response to Finding 2024-002, procedures will be implemented to ensure bids are obtained and properly documented as required by Uniform Guidance.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 502533 2024-001
    Material Weakness
  • 502534 2024-001
    Material Weakness
  • 502535 2024-001
    Material Weakness
  • 502536 2024-001
    Material Weakness
  • 502537 2024-001
    Material Weakness
  • 502539 2024-002
    Material Weakness
  • 502540 2024-002
    Material Weakness
  • 502541 2024-002
    Material Weakness
  • 502542 2024-002
    Material Weakness
  • 1078975 2024-001
    Material Weakness
  • 1078976 2024-001
    Material Weakness
  • 1078977 2024-001
    Material Weakness
  • 1078978 2024-001
    Material Weakness
  • 1078979 2024-001
    Material Weakness
  • 1078980 2024-002
    Material Weakness
  • 1078981 2024-002
    Material Weakness
  • 1078982 2024-002
    Material Weakness
  • 1078983 2024-002
    Material Weakness
  • 1078984 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.493 Congressional Directives $179,677
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $178,529
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $103,037
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $96,476
14.218 Community Development Block Grants/entitlement Grants $61,784
93.145 Aids Education and Training Centers $26,112
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $17,100