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HFSC posts FY24 financial review; audit finds procurement public-notice lapse
Summary
CFO David Leach presented FY24 results showing federal ARPA and grant funding that temporarily boosted capacity; the independent audit gave an unqualified opinion but flagged a procurement public-notice omission for an ARPA-funded training contract.
David Leach, HFSC chief financial officer, told the board HFSC’s fiscal year 2024 revenues increased in part because of grants and American Rescue Plan Act (ARPA) funds allocated to address forensic biology backlogs and training.
Leach said the organization received roughly $5 million in ARPA funds over the last two years that were used for training, outsourcing and capital items; he noted one-time increases in grant revenue and a $6.6 million one-time increase specifically to handle forensic biology backlogs. HFSC’s headcount was reported at about 208 employees with open positions and turnover improving from pandemic-era highs.
On the independent audit, Leach reported Blazeak & Veteran (auditor named in the packet) issued an unqualified opinion on both financial statements and grant audits — the result auditors and management prefer. The audit did include a single finding: when HFSC procured specialized training funded by ARPA, it did not publish the public notice required under HFSC procurement policy and federal uniform guidance for procurements above the organization’s simplified acquisition threshold (HFSC’s policy threshold: $150,000). Leach said HFSC did approach multiple potential providers, conducted a selection process, and has since reinforced public posting procedures and listed solicitations on a public site.
Leach told the board the finding did not reflect a deficiency in vendor selection but rather an omission of the public-notice step; the board was advised the organization has already taken corrective actions to align procurement steps with federal and internal requirements.
No board action on financial statements was required beyond presentation, per counsel, though members discussed oversight and transparency steps moving forward.
