Finding 626723 (2022-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-02-26
Audit: 53786
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Hospital failed to verify that vendors were not suspended or debarred before making purchases with federal funds.
  • Impacted Requirements: This violates the Hospital's own policy and federal regulations regarding suspended and debarred vendors.
  • Recommended Follow-Up: The Hospital should educate staff on the policy and conduct an annual review to align with Uniform Guidance.

Finding Text

Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement Federal Assistance Listing No. 93.912 U.S. Department of Health and Human Services Award No. 1 G29RH43316-01-00 Program Year 2022 Criteria or Specific Requirement ? Suspension and Debarment ? 2 CFR 180 Condition ? The Hospital did not follow its policy governing suspended and debarment requirements for the purchase of goods or services charged to federal awards. Specifically, the Hospital did not verify that vendors were not suspended, debarred, or otherwise excluded. Questioned Costs ? None Context ? A sample of one procurement was tested out of a population of seven procurements totaling $512,220. The sample was not, and is not intended to be, statistically valid. For the procurement tested, totaling $264,830, it was determined the Hospital did not follow it?s procurement policy for vendor selection, specifically it did not ensure vendors were not suspended, debarred, or otherwise excluded. Effect ? Purchases were made that did not adhere to the Hospital?s suspended and debarment policy. Cause ? The Hospital did not comply with their federal suspended and debarment policy. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? The Hospital should review its suspended and debarment policy and ensure proper staff education on the policy is established. In addition, the Hospital should review the policy on an annual basis to ensure it is consistent with the Uniform Guidance.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 50281 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $14.40M
93.697 Covid-19 Testing for Rural Health Clinics $1.09M
93.461 Covid-19 Testing for the Uninsured $844,453
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $841,529