Finding 507902 (2023-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-11-14

Audit: 328436

Organization: Community Health Center Dba Alluvion Health, Inc. (MT)

Auditor: Withumsmith+brown PC

AI Summary

Core Issue: The Organization did not follow procurement guidelines, lacking documentation for 2 out of 10 non-payroll expenditures.
Impacted Requirements: Compliance with the Health Center Program Compliance Manual, which mandates proper procurement controls for non-payroll purchases.
Recommended Follow-Up: Review and improve procurement processes, ensuring staff are trained and engaged in compliance efforts.

Finding Text

Lack of Procurement Support – Procurement, Suspension and Debarment - Assistance Listing Numbers: 93.224 and 93.527 Consolidated Health Center Cluster Type of Finding: Significant Deficiency over Compliance and Compliance Finding Condition: The Organization did not properly follow certain procurement guidelines during the fiscal year under audit, including maintaining documentation of a completed procurement checklist or solicitation efforts. Context: Testing detected 2 out of 10 non-payroll related expenditures selected lacked adequate supporting documentation that proper solicitation efforts were made in accordance with the Organization’s procurement policies. Criteria: According to Health Center Program Compliance Manual, a health center is required to have operating controls in place for the procurement of non-payroll purchases associated with running the programs. Effect: The procurement policies and procedures are in place to ensure appropriate internal controls are followed and ensure the Organization is properly implementing procedures for purchases to support the major programs. No material noncompliance or questioned costs were noted in the period under audit. Cause: Due to staffing constraints in the Organization, there was a lack of application of approved policies and procedures. Recommendation: We recommend the Organization review its processes and procedures for procurement and ensure the appropriate personnel are trained and involved in the process.

Corrective Action Plan

Lack of Procurement Support As a result of staffing limitations and employee turnover, there was insufficient understanding and implementation of the organization's procurement policy. The Organization welcomed new financial leadership in June 2023 and November 2023. Looking ahead, the financial leadership team is updating the procurement policy to enhance clarity and comprehension. Additonally, the procurement checklist is being modified to ensure that sufficient supporting documentation is obtained and maintained for certain procurement transactions. Responsible Party: Brenda Ries, CFO Estimated Completion Date: October 31, 2024

Other Findings in this Audit

507898 2023-002

Material Weakness Repeat
507899 2023-002

Material Weakness Repeat
507900 2023-002

Material Weakness Repeat
507901 2023-002

Material Weakness Repeat
507903 2023-003

Significant Deficiency
507904 2023-003

Significant Deficiency
507905 2023-003

Significant Deficiency
1084340 2023-002

Material Weakness Repeat
1084341 2023-002

Material Weakness Repeat
1084342 2023-002

Material Weakness Repeat
1084343 2023-002

Material Weakness Repeat
1084344 2023-003

Significant Deficiency
1084345 2023-003

Significant Deficiency
1084346 2023-003

Significant Deficiency
1084347 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.224	Community Health Centers	$1.04M
66.818	Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements	$336,956
93.217	Family Planning Services	$318,928
93.526	Fip Verification	$185,269
93.527	Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program	$121,699
93.639	State Planning Grants for Qualifying Community-Based Mobile	$16,223