Arizona Department of Health Services—Procurement and Contract Monitoring—Department did not follow some procurement requirements and paid for some services without ensuring they were provided and contract requirements were met

The Department’s mission is to promote, protect, and improve the health and wellness of individuals and communities in Arizona. The Department reported that it administers over 300 programs, such as the Special Supplemental Nutrition Program for Women, Infants and Children (WIC); the Immunization Program; and the Medical Marijuana Program; and uses contracts and agreements to help fulfill its mission and carry out these programs. For example, in fiscal years 2017 and 2018, the Department spent an estimated $183 million and $193 million, respectively, on more than 1,100 contracts and agreements. However, we found that the Department did not follow some State procurement requirements for 22 of the 25 contracts we reviewed. In addition, the Department paid for some services without ensuring they were provided and contract requirements were met, and its payment processing does not consistently provide adequate oversight to ensure the appropriate use of public monies.