Finding 620433 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-27
Audit: 49891

AI Summary

  • Core Issue: Missing documentation for 6 out of 17 procurement items due to CFO turnover, impacting compliance with federal guidelines.
  • Impacted Requirements: Non-compliance with procurement methods and cost analysis as outlined in 2 CFR Sections 200.320 and 200.323.
  • Recommended Follow-Up: Ensure all procurement documentation is maintained and conduct cost analyses for vendor selections to meet compliance standards.

Finding Text

Federal Assistance Listing Number: 93.224 - Health Center Program Cluster [including COVID-19 funds] Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers in Cluster: 5 H80CS12855-12-00, 5 H80CS12855-12-02, 5 H80CS12855-13-00, 6-H80CS12855-11-03,1 H8ECS37915-01-00, 6 H80CS12855-10-02, 1 H8DCS36386-01-00, 1 H8FCS40527-01-00 Federal Award Year in Cluster: April 1, 2021 - March 31, 2022 Pass-Through Entity: None Criteria: Under Uniform Guidance purchases must be in compliance with procurement methods using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. The Center must perform a cost or price analysis in connection with all procurement actions exceeding the simplified acquisition threshold, including contract modifications, and that this analysis supported the procurement action (2 CFR Section 200.323 and 48 CFR Section 15.404-3) Condition: During 2022, there was turnover in the Chief Financial Officer position, who was responsible for the bidding process at the Center, and in the transition the bidding and price analysis documentation could not be located and provided for 6 out of the 17 items sampled. Context: During our testing of procurement of expenditures, it was noted that 6 out of a sample of 17 proper documentation of the bids received and the price analysis in connection with the purchases could not be located by the Center. This is not a statistically valid sample. Effect: There is no supporting documentation to ensure that the vendors selected were incompliance with guidance of the Uniform Guidance and Center's policies. Questioned Cost: None Recommendation: The Center should maintain all support and documentation in regards to grant purchases using appropriate dollar amounts and conditions specified in 2 CFR Section 200.320 and in compliance with the Center's policy. This should include a cost or price analysis to document and support decisions made around vendor selection.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 43990 2022-001
    Significant Deficiency
  • 43991 2022-001
    Significant Deficiency
  • 620432 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $2.08M
93.498 Provider Relief Fund $189,758
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $184,811