Audit 318603

FY End
2024-05-31
Total Expended
$5.42M
Findings
12
Programs
7
Organization: Mountain Famly Health Centers (CO)
Year: 2024 Accepted: 2024-09-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
485762 2024-001 Material Weakness - M
485763 2024-001 Material Weakness - M
485764 2024-002 Significant Deficiency - I
485765 2024-002 Significant Deficiency - I
485766 2024-001 Material Weakness - M
485767 2024-002 Significant Deficiency - I
1062204 2024-001 Material Weakness - M
1062205 2024-001 Material Weakness - M
1062206 2024-002 Significant Deficiency - I
1062207 2024-002 Significant Deficiency - I
1062208 2024-001 Material Weakness - M
1062209 2024-002 Significant Deficiency - I

Contacts

Name Title Type
XNLLWNLEXGU5 Steven Leazer Auditee
9709452840 James Mann Auditor
No contacts on file

Notes to SEFA

Accounting Policies: This note is included to meet the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requirement that the schedule of expenditures of federal awards (the Schedule) include notes that describe the significant accounting policies used in preparing the Schedule. The accompanying schedule is prepared on the accrual basis of accounting and includes the federal award activity of the Organization under programs of the federal government for the year ended May 31, 2024. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: N/A

Finding Details

Criteria or specific requirement: According to §200.331 Requirements for pass-through entities of two CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: During our testing, we noted the Organization did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. Questioned costs: N/A Cause: The Organization was unaware of the subrecipient monitoring requirements. Also, the Organization lacks established internal controls and procedures for monitoring pass-through funds to subrecipients to ensure compliance with applicable compliance requirements. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible subrecipients or that the grant funds are not used for authorized purposes or in line with the grant terms and conditions. Recommendation: We recommend that the Organization create an internal policy over sub-grant recipient procedures and create effective internal controls and procedures over subrecipient monitoring and tracking that allow for compliance with all applicable Federal laws, regulations, and compliance requirements of various Federal grants Management Response: Management has accepted the recommendation and will add language to the existing Grant Funds Tracking Policy and Procedure outlining the Organization’s responsibilities for establishing effective internal controls and procedures over subrecipient monitoring. The updated policy will also include reference to the Information to Provide to Every Subrecipient for Each Subaward form. This form outlines details of the pass-through grant, and subrecipient responsibilities, and will be signed by each subrecipient prior to any pass-through fund disbursement. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: According to §200.331 Requirements for pass-through entities of two CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: During our testing, we noted the Organization did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. Questioned costs: N/A Cause: The Organization was unaware of the subrecipient monitoring requirements. Also, the Organization lacks established internal controls and procedures for monitoring pass-through funds to subrecipients to ensure compliance with applicable compliance requirements. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible subrecipients or that the grant funds are not used for authorized purposes or in line with the grant terms and conditions. Recommendation: We recommend that the Organization create an internal policy over sub-grant recipient procedures and create effective internal controls and procedures over subrecipient monitoring and tracking that allow for compliance with all applicable Federal laws, regulations, and compliance requirements of various Federal grants Management Response: Management has accepted the recommendation and will add language to the existing Grant Funds Tracking Policy and Procedure outlining the Organization’s responsibilities for establishing effective internal controls and procedures over subrecipient monitoring. The updated policy will also include reference to the Information to Provide to Every Subrecipient for Each Subaward form. This form outlines details of the pass-through grant, and subrecipient responsibilities, and will be signed by each subrecipient prior to any pass-through fund disbursement. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement and suspension and debarment. The Organization should have internal controls designed to ensure compliance with these provisions. Condition and Context: During our testing, we noted an instance where the Organization was unable to locate the procurement files to support sole source justification for procurement transactions. Questioned costs: N/A Cause: The Organization lacks established internal controls and procedures over financial grant management. The Organization did not maintain files related to the procurement process of expenditures being allocated to a federal grant. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible vendors. Recommendation: We recommend that the Organization create an internal policy over the documentation of sole source/non-competitive bid justification prior to contracting with a vendor using federal funds. Management Response: Management has accepted the recommendation and will add language to the existing Purchasing and Procurement Guidance Policy and Procedure outlining the requirement for documentation of sole source/noncompetitive bid justification. In instances where the item or service is only available from one source or competition is deemed inadequate, the Organization will keep written documentation of justification for sole source. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement and suspension and debarment. The Organization should have internal controls designed to ensure compliance with these provisions. Condition and Context: During our testing, we noted an instance where the Organization was unable to locate the procurement files to support sole source justification for procurement transactions. Questioned costs: N/A Cause: The Organization lacks established internal controls and procedures over financial grant management. The Organization did not maintain files related to the procurement process of expenditures being allocated to a federal grant. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible vendors. Recommendation: We recommend that the Organization create an internal policy over the documentation of sole source/non-competitive bid justification prior to contracting with a vendor using federal funds. Management Response: Management has accepted the recommendation and will add language to the existing Purchasing and Procurement Guidance Policy and Procedure outlining the requirement for documentation of sole source/noncompetitive bid justification. In instances where the item or service is only available from one source or competition is deemed inadequate, the Organization will keep written documentation of justification for sole source. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: According to §200.331 Requirements for pass-through entities of two CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: During our testing, we noted the Organization did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. Questioned costs: N/A Cause: The Organization was unaware of the subrecipient monitoring requirements. Also, the Organization lacks established internal controls and procedures for monitoring pass-through funds to subrecipients to ensure compliance with applicable compliance requirements. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible subrecipients or that the grant funds are not used for authorized purposes or in line with the grant terms and conditions. Recommendation: We recommend that the Organization create an internal policy over sub-grant recipient procedures and create effective internal controls and procedures over subrecipient monitoring and tracking that allow for compliance with all applicable Federal laws, regulations, and compliance requirements of various Federal grants Management Response: Management has accepted the recommendation and will add language to the existing Grant Funds Tracking Policy and Procedure outlining the Organization’s responsibilities for establishing effective internal controls and procedures over subrecipient monitoring. The updated policy will also include reference to the Information to Provide to Every Subrecipient for Each Subaward form. This form outlines details of the pass-through grant, and subrecipient responsibilities, and will be signed by each subrecipient prior to any pass-through fund disbursement. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement and suspension and debarment. The Organization should have internal controls designed to ensure compliance with these provisions. Condition and Context: During our testing, we noted an instance where the Organization was unable to locate the procurement files to support sole source justification for procurement transactions. Questioned costs: N/A Cause: The Organization lacks established internal controls and procedures over financial grant management. The Organization did not maintain files related to the procurement process of expenditures being allocated to a federal grant. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible vendors. Recommendation: We recommend that the Organization create an internal policy over the documentation of sole source/non-competitive bid justification prior to contracting with a vendor using federal funds. Management Response: Management has accepted the recommendation and will add language to the existing Purchasing and Procurement Guidance Policy and Procedure outlining the requirement for documentation of sole source/noncompetitive bid justification. In instances where the item or service is only available from one source or competition is deemed inadequate, the Organization will keep written documentation of justification for sole source. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: According to §200.331 Requirements for pass-through entities of two CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: During our testing, we noted the Organization did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. Questioned costs: N/A Cause: The Organization was unaware of the subrecipient monitoring requirements. Also, the Organization lacks established internal controls and procedures for monitoring pass-through funds to subrecipients to ensure compliance with applicable compliance requirements. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible subrecipients or that the grant funds are not used for authorized purposes or in line with the grant terms and conditions. Recommendation: We recommend that the Organization create an internal policy over sub-grant recipient procedures and create effective internal controls and procedures over subrecipient monitoring and tracking that allow for compliance with all applicable Federal laws, regulations, and compliance requirements of various Federal grants Management Response: Management has accepted the recommendation and will add language to the existing Grant Funds Tracking Policy and Procedure outlining the Organization’s responsibilities for establishing effective internal controls and procedures over subrecipient monitoring. The updated policy will also include reference to the Information to Provide to Every Subrecipient for Each Subaward form. This form outlines details of the pass-through grant, and subrecipient responsibilities, and will be signed by each subrecipient prior to any pass-through fund disbursement. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: According to §200.331 Requirements for pass-through entities of two CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: During our testing, we noted the Organization did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. Questioned costs: N/A Cause: The Organization was unaware of the subrecipient monitoring requirements. Also, the Organization lacks established internal controls and procedures for monitoring pass-through funds to subrecipients to ensure compliance with applicable compliance requirements. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible subrecipients or that the grant funds are not used for authorized purposes or in line with the grant terms and conditions. Recommendation: We recommend that the Organization create an internal policy over sub-grant recipient procedures and create effective internal controls and procedures over subrecipient monitoring and tracking that allow for compliance with all applicable Federal laws, regulations, and compliance requirements of various Federal grants Management Response: Management has accepted the recommendation and will add language to the existing Grant Funds Tracking Policy and Procedure outlining the Organization’s responsibilities for establishing effective internal controls and procedures over subrecipient monitoring. The updated policy will also include reference to the Information to Provide to Every Subrecipient for Each Subaward form. This form outlines details of the pass-through grant, and subrecipient responsibilities, and will be signed by each subrecipient prior to any pass-through fund disbursement. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement and suspension and debarment. The Organization should have internal controls designed to ensure compliance with these provisions. Condition and Context: During our testing, we noted an instance where the Organization was unable to locate the procurement files to support sole source justification for procurement transactions. Questioned costs: N/A Cause: The Organization lacks established internal controls and procedures over financial grant management. The Organization did not maintain files related to the procurement process of expenditures being allocated to a federal grant. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible vendors. Recommendation: We recommend that the Organization create an internal policy over the documentation of sole source/non-competitive bid justification prior to contracting with a vendor using federal funds. Management Response: Management has accepted the recommendation and will add language to the existing Purchasing and Procurement Guidance Policy and Procedure outlining the requirement for documentation of sole source/noncompetitive bid justification. In instances where the item or service is only available from one source or competition is deemed inadequate, the Organization will keep written documentation of justification for sole source. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement and suspension and debarment. The Organization should have internal controls designed to ensure compliance with these provisions. Condition and Context: During our testing, we noted an instance where the Organization was unable to locate the procurement files to support sole source justification for procurement transactions. Questioned costs: N/A Cause: The Organization lacks established internal controls and procedures over financial grant management. The Organization did not maintain files related to the procurement process of expenditures being allocated to a federal grant. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible vendors. Recommendation: We recommend that the Organization create an internal policy over the documentation of sole source/non-competitive bid justification prior to contracting with a vendor using federal funds. Management Response: Management has accepted the recommendation and will add language to the existing Purchasing and Procurement Guidance Policy and Procedure outlining the requirement for documentation of sole source/noncompetitive bid justification. In instances where the item or service is only available from one source or competition is deemed inadequate, the Organization will keep written documentation of justification for sole source. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: According to §200.331 Requirements for pass-through entities of two CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition and Context: During our testing, we noted the Organization did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. Questioned costs: N/A Cause: The Organization was unaware of the subrecipient monitoring requirements. Also, the Organization lacks established internal controls and procedures for monitoring pass-through funds to subrecipients to ensure compliance with applicable compliance requirements. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible subrecipients or that the grant funds are not used for authorized purposes or in line with the grant terms and conditions. Recommendation: We recommend that the Organization create an internal policy over sub-grant recipient procedures and create effective internal controls and procedures over subrecipient monitoring and tracking that allow for compliance with all applicable Federal laws, regulations, and compliance requirements of various Federal grants Management Response: Management has accepted the recommendation and will add language to the existing Grant Funds Tracking Policy and Procedure outlining the Organization’s responsibilities for establishing effective internal controls and procedures over subrecipient monitoring. The updated policy will also include reference to the Information to Provide to Every Subrecipient for Each Subaward form. This form outlines details of the pass-through grant, and subrecipient responsibilities, and will be signed by each subrecipient prior to any pass-through fund disbursement. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement and suspension and debarment. The Organization should have internal controls designed to ensure compliance with these provisions. Condition and Context: During our testing, we noted an instance where the Organization was unable to locate the procurement files to support sole source justification for procurement transactions. Questioned costs: N/A Cause: The Organization lacks established internal controls and procedures over financial grant management. The Organization did not maintain files related to the procurement process of expenditures being allocated to a federal grant. Effect: The lack of internal controls over this compliance requirement provides an opportunity for noncompliance. The auditor noted instances of material noncompliance. Noncompliance results in possible Federal funds provided to ineligible vendors. Recommendation: We recommend that the Organization create an internal policy over the documentation of sole source/non-competitive bid justification prior to contracting with a vendor using federal funds. Management Response: Management has accepted the recommendation and will add language to the existing Purchasing and Procurement Guidance Policy and Procedure outlining the requirement for documentation of sole source/noncompetitive bid justification. In instances where the item or service is only available from one source or competition is deemed inadequate, the Organization will keep written documentation of justification for sole source. Also, the Organization will educate supervisors on this policy update at an upcoming training meeting no later than October 31, 2024.