Finding 5615 (2023-003)

Material Weakness Finding: 2023-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization’s procurement policies were not updated to conform to applicable standards under the Uniform Guidance, and the Organization did not obtain bids or quotes for purchases that require obtaining bids or quotes. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not have proper procedures in place to ensure that procurement policies were updated to conform to the requirements identified in the Uniform Guidance, and the Organization did not follow its policy regarding debarment searches or its policy for obtaining bids and quotes. Effect: The Organization’s procurement policy did not conform to applicable standards under the Uniform Guidance’s procurement limits for micro, small, and simplified purchases. The Organization also did not obtain bids or quotes as required. In addition, the Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the Organization update its procurement policies to conform to the requirements identified in Uniform Guidance, and that procedures are established to ensure that the debarment policy is followed. Views of Responsible Officials: Management concurs. Policies and procedures will be updated to reflect the Uniform Guidance procurement limits for micro, small, and simplified purchases. The Organization will also establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them. Contact Person: Maurishka Williams, CFO Anticipated Date of Completion: December 31, 2023