Finding Text
Finding 2022-002 ? Procurement Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Grants for New and Expanded Services Under the Health Center Program Assistance Listing Number: 93.224/93.527 Federal Award Identification Number: L1CCS39368-01-00; L2CCS42352-01-00 Award Periods: July 1, 2020 ? June 30, 2021; July 1, 2021 ? June 30, 2023 respectively Type of Finding: Significant deficiency in internal control over compliance Criteria: 2 CFR section 200.320(c)(1) - (3) outlines the circumstances in which noncompetitive procurement can be used. Furthermore, the organization's procurement policy permits the use of noncompetitive procurement but requires the reason justifying a sole source procurement, together with a description of the supplies or services, to be documented in the appropriate file. Condition: Legacy did not document their rationale for the use of noncompetitive procurements. Questioned Costs: None. Context: Four (4) of Five (5) procurement transactions tested. Cause: Legacy did not create and maintain documentation for its rationale related to choosing the noncompetitive procurement method. Effect: Legacy may inadvertently select vendors without regard to fair competition and cost analysis. Repeat Finding: No. Recommendation: We recommend the organization consistently follow its established policies and procedures related to the maintaining of necessary documentation to support the rationale for using noncompetitive procurement, when applicable. Legacy may also consider qualifying multiple vendors for particular goods/service and then utilizing an approved vendors list. Views of Responsible Officials: There is no disagreement with the audit finding.