PEOPLES COMMUNITY CLINIC

Federal Assistance Listing Nos. 93.224 and 93.527 U.S. Department of Health and Human Services Award No. 4 H8FCS40875-01-02 Program Year 2023

Criteria or Specific Requirement – Procurement, Suspension, & Debarment – 45 CFR 75.329

Condition – The Organization’s procurement policy established a threshold of $10,000 for small purchase procurements. This policy was not properly applied.

Questioned Costs – Unknown

Context – A sample of two procurements were tested out of a population of eleven transactions subject to procurement requirements. The population sampled represented $957,817 in Federal expenditures. The sample was not, and is not intended to be, statistically valid. Of the two procurements tested, one procurement for $54,684 was not completed in compliance with the Organization’s policy and procedures.

Effect – A purchase was made without fully adhering to Federal procurement requirements.

Cause – The Organization did not apply its procurement policy to a transaction that met the small purchases threshold.

Identification as a Repeat Finding – Not a repeat finding.

Recommendation – The Organization should review its policies and procedures to ensure all purchases using Federal grant dollars are completed in accordance with Federal procurement requirements.

Federal Assistance Listing Nos. 93.224 and 93.527 U.S. Department of Health and Human Services Award No. 5 H80CS24150-12-00 Program Year 2023

Criteria or Specific Requirement – Reporting – 45 CFR 75.342

Condition – The Organization is required to prepare and submit an annual Federal Financial Report (FFR) for each grant year. These reports are to be prepared using accurate financial information.

Questioned Costs – None

Context – The Organization was required to file one FFR and one Uniform Data Set (UDS) report during 2023. Each report was selected for testing with specific data from each report identified for testing. The sampling methodology is not, and was not intended to be, statistically valid. Of the twenty-five inputs tested, three exceptions were noted related to the FFR.

Effect – Potential errors were made on the FFR.

Cause – The Organization indicated the FFR was prepared on the accrual basis but did not accurately reflect the accruals for the final two months of the grant budget period. As a result, the Federal share of expenditures and unobligated balance of Federal funds were misstated.

Identification as a Repeat Finding – Not a repeat finding.

Recommendation – The Organization should revise its policies and procedures over Federal reporting to ensure reports are prepared using accurate information.