Audit 290024

2022-003: Suspension & Debarment Federal agency: Department of Health and Human Services Federal program: Substance Abuse and Mental Health Services Administration (SAMHSA) – Health Clinic (CCBHC) Expansion Assistance Listing Numbers: 93.829 Federal Award Identification Number and Year: 5H79SM085197-02 Award Period: January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Compliance - Other Matter Criteria or specific requirement: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.beta.sam.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). In addition, 2 CFR 200.303 in the federal regulations cover internal controls over compliance. Condition: We identified two of the four vendors sampled that lacked documentation supporting the vendor was not suspended or debarred prior to entering into a covered transaction. Questioned costs: None Context: Of the four covered transactions tested, two lacked documentation supporting the Organization verified the vendor was not suspended or debarred prior to entering into a covered transaction. Cause: Management did not retain evidence demonstrating they verified the vendors were not suspended or debarred prior to entering into the covered transaction. Effect: By not retaining evidence that management verified vendors were not suspended or debarred, management may erroneously enter into a covered transaction with vendors that were suspended or debarred. Repeat finding: No Recommendation: We recommend management adopt a policy to ensure evidence of compliance to suspension and debarment regulations are maintained. This can include maintaining evidence that management reviewed the GSA website, maintaining a certification from the vendor, or including a clause in a contract with vendors that they are not suspended or debarred. Views of responsible officials: Management did request and receive pre-approval from the federal granting agency to use the two specified vendors, but agree that we did not also retain explicit suspension and debarment documentation of those vendors at that time. We did subsequently verify they were not suspended or debarred.

2022-003: Suspension & Debarment Federal agency: Department of Health and Human Services Federal program: Substance Abuse and Mental Health Services Administration (SAMHSA) – Health Clinic (CCBHC) Expansion Assistance Listing Numbers: 93.829 Federal Award Identification Number and Year: 5H79SM085197-02 Award Period: January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Compliance - Other Matter Criteria or specific requirement: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at https://www.beta.sam.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). In addition, 2 CFR 200.303 in the federal regulations cover internal controls over compliance. Condition: We identified two of the four vendors sampled that lacked documentation supporting the vendor was not suspended or debarred prior to entering into a covered transaction. Questioned costs: None Context: Of the four covered transactions tested, two lacked documentation supporting the Organization verified the vendor was not suspended or debarred prior to entering into a covered transaction. Cause: Management did not retain evidence demonstrating they verified the vendors were not suspended or debarred prior to entering into the covered transaction. Effect: By not retaining evidence that management verified vendors were not suspended or debarred, management may erroneously enter into a covered transaction with vendors that were suspended or debarred. Repeat finding: No Recommendation: We recommend management adopt a policy to ensure evidence of compliance to suspension and debarment regulations are maintained. This can include maintaining evidence that management reviewed the GSA website, maintaining a certification from the vendor, or including a clause in a contract with vendors that they are not suspended or debarred. Views of responsible officials: Management did request and receive pre-approval from the federal granting agency to use the two specified vendors, but agree that we did not also retain explicit suspension and debarment documentation of those vendors at that time. We did subsequently verify they were not suspended or debarred.