Finding Text
Type of Finding: Significant Deficiency and Noncompliance Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Consolidated Health Centers Assistance listing number: 93.224 Criteria: Requirements for procurement are contained in the OMB Uniform Guidance, federal awarding agency regulations, and terms of the award. Procurement transactions should be conducted in a manner providing full and open competition in according with the Center?s procurement policy. The Center?s procurement policy requires three quotes or more of any purchases over $10,000. Condition: The program made purchases in excess of $10,000 without obtaining three quotes. Questioned Costs: None. Context: Five out of twenty-five transactions tested. Cause and effect: Controls over procurement as documented in the Center?s procurement policy have not been followed. The Center was not in compliance with the procurement requirements. Auditor?s Recommendations: Enforce policies and procedures that will promote adequate monitoring of the procurement and bidding process. Management?s Response: In March of 2022, both the CFO and Accounting Manager terminated employment with Hunter Health. During the latter half of the fiscal year, Hunter Health contracted with a temporary CFO and Controller, both of whom had FQHC experience, for three months. The current CFO and Controller were onboarded late Q3/early Q4. During this time of transition, the procurement procedures were not maintained at the normal standard. With the new finance team in place, the Finance team has reviewed the procedures and retrained the leadership team to ensure compliance. Submittal of purchasing requests has been centralized within the Finance Department to ensure an extra level of oversight.