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An Audit Report on Contract Management at the Department of State Health Services

October 2025

Overview

The Department of State Health Services (Department) established enhanced monitoring activities to assess the performance and quality of contract services that support the Newborn Screening Program for fiscal years 2023, 2024, and 2025. It also verified that invoices were accurate prior to payment and obtained required approvals prior to extending the contract’s term.

However, the Department should strengthen its enhanced monitoring so that it consistently performs certain activities required by the plan or identifies and follows up on instances of Contractor noncompliance.

MEDIUM

ENHANCED MONITORING ACTIVITIES

The Department performed enhanced monitoring of its contract for services and supplies for the Newborn Screening Program. However, it should strengthen its processes to ensure that its monitoring consistently identifies and assesses instances of Contractor noncompliance with contract requirements and that it follows up to verify and document that the Contractor addressed identified performance issues.

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LOW

CONTRACT PAYMENTS AND AMENDMENTS

The Department verified that invoices from the Contractor for laboratory services and supplies were accurate. In addition, the Department obtained required approvals from management to execute amendments to extend the contract term prior to the term's expiration dates as required.

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Email: auditor@sao.texas.gov
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