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.