Program - AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds –
Suspension and Debarment
Grant Number & Year - 71667 Y3 – July 1, 2022, through June 30, 2023
Federal Grantor Agency - U.S. Department of Health and Human Services
Pass-Through Entity - Nebraska Department of Health and Human Services
Criteria - Title 45 of the U.S. Code of Federal Regulations (CFR) § 75.303 (October 1, 2022)
states the following, in relevant part:
The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that
provides reasonable assurance that the non-Federal entity is managing the Federal
award in compliance with Federal statutes, regulations, and the terms and conditions of
the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller
General of the United States or the “Internal Control Integrated Framework”, issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
45 CFR § 75.213 (October 1, 2022) states the following:
Non-Federal entities are subject to the non-procurement debarment and suspension
regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180 and 376.
These regulations restrict awards, subawards, and contracts with certain parties that
are debarred, suspended, or otherwise excluded from or ineligible for participation in
Federal assistance programs or activities.
2 CFR § 180.300 (January 1, 2023) requires non-Federal entities to verify that an entity
is not excluded or disqualified prior to entering into a covered transaction by “(a)
Checking SAM Exclusions; or (b) Collecting a certification from that . . . [entity]; or (c)
Adding a clause or condition to the covered transaction with that . . . [entity].”
A good internal control plan requires the Department to have proper procedures for
verifying that contractors paid with Federal funds are not suspended, debarred, or
otherwise excluded from or ineligible for participation in Federal programs or activities.
Condition - The Department could not provide documentation to support that it had implemented
effective internal controls to ensure that suspension and debarment requirements were
followed and adequately documented.
Repeat Finding - No
Questioned Costs - None
Statistical Sample - No
Context - The Department used Coronavirus State and Local Fiscal Recovery Funds to purchase a
building for $555,000. The Department failed to ensure that the vendor was not excluded
or disqualified prior to entering into this covered transaction.
Per SAM.gov, the vendor was not suspended, debarred, or otherwise excluded from
participation in Federal programs or activities as of the date testing was performed.
Cause - The Department was in the process of modifying its procurement policies and had not
previously made a similar purchase using Federal funds.
Effect - Without procedures to verify the status of contractors paid with Federal funds, there is
an increased risk of the Department entering into transactions with entities that are
suspended, debarred, or otherwise excluded from participation in Federal programs.
Recommendation - We recommend the Department implement procedures to ensure that its vendors are not
debarred, suspended, or otherwise excluded from participation in Federal programs.
View of Officials - SHDHD will add a clause to each Agreement covered by Federal funds, certifying that
the recipient of the funds is eligible to receive such funds.
SHDHD will also clarify the certification process in our Procurement Policy.
Program - AL 93.069 – Public Health Emergency Preparedness – Matching Grant Number & Year - 57142 Y3 – July 1, 2022, through June 30, 2023 Federal Grantor Agency - U.S. Department of Health and Human Services Pass-Through Entity - Nebraska Department of Health and Human Services Criteria - Per the grant agreement, the Department will make available non-Federal fund-based contributions in the amount of 10% of the award. The agreement refers to 45 CFR § 75.306 for match requirements, including descriptions of acceptable match resources. 45 CFR § 75.306(b) (October 1, 2022) states, in part, the following: For all Federal awards, any shared costs or matching funds and all contributions, including cash and third-party in-kind contributions, must be accepted as part of the non-Federal entity's cost sharing or matching when such contributions meet all of the following criteria: * * * * 5. Are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs[.] Condition - The Department did not meet the 10% matching requirements identified in the grant award. Repeat Finding - No Questioned Costs - None Statistical Sample - No Context - Based upon the Department’s Federal expenditures, the required match was $9,436; however, the Department recorded only $3,400 in match. In addition, the match for one of three transactions tested was not from an allowable source. The exception noted was matching expenditures that were recorded to a different Federal program, which is not allowable. In total, the Department recorded $841 in match that was paid by a different Federal program. Cause - It was the first year where a 10% match was included in the grant award. Effect - The Department was not in compliance with the grant award. Recommendation - We recommend the Department implement procedures to ensure matching requirements are met and that only allowable sources of match are used. View of Officials - SHDHD monitors matching fund levels for Federal subawards on a quarterly basis to determine whether the match amount is on track toward meeting the percentage required in each grant agreement. Regarding the PHEP award, in particular, the Department will ensure that the new Emergency Response Coordinator (hired in the middle of the grant period last year) is aware of the match requirements. SHDHD will also ensure that no Federal funds are used to pay for matching funds required in Federal subawards. The Department was not aware that this was not allowable.
Program - AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds –
Suspension and Debarment
Grant Number & Year - 71667 Y3 – July 1, 2022, through June 30, 2023
Federal Grantor Agency - U.S. Department of Health and Human Services
Pass-Through Entity - Nebraska Department of Health and Human Services
Criteria - Title 45 of the U.S. Code of Federal Regulations (CFR) § 75.303 (October 1, 2022)
states the following, in relevant part:
The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that
provides reasonable assurance that the non-Federal entity is managing the Federal
award in compliance with Federal statutes, regulations, and the terms and conditions of
the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller
General of the United States or the “Internal Control Integrated Framework”, issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
45 CFR § 75.213 (October 1, 2022) states the following:
Non-Federal entities are subject to the non-procurement debarment and suspension
regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180 and 376.
These regulations restrict awards, subawards, and contracts with certain parties that
are debarred, suspended, or otherwise excluded from or ineligible for participation in
Federal assistance programs or activities.
2 CFR § 180.300 (January 1, 2023) requires non-Federal entities to verify that an entity
is not excluded or disqualified prior to entering into a covered transaction by “(a)
Checking SAM Exclusions; or (b) Collecting a certification from that . . . [entity]; or (c)
Adding a clause or condition to the covered transaction with that . . . [entity].”
A good internal control plan requires the Department to have proper procedures for
verifying that contractors paid with Federal funds are not suspended, debarred, or
otherwise excluded from or ineligible for participation in Federal programs or activities.
Condition - The Department could not provide documentation to support that it had implemented
effective internal controls to ensure that suspension and debarment requirements were
followed and adequately documented.
Repeat Finding - No
Questioned Costs - None
Statistical Sample - No
Context - The Department used Coronavirus State and Local Fiscal Recovery Funds to purchase a
building for $555,000. The Department failed to ensure that the vendor was not excluded
or disqualified prior to entering into this covered transaction.
Per SAM.gov, the vendor was not suspended, debarred, or otherwise excluded from
participation in Federal programs or activities as of the date testing was performed.
Cause - The Department was in the process of modifying its procurement policies and had not
previously made a similar purchase using Federal funds.
Effect - Without procedures to verify the status of contractors paid with Federal funds, there is
an increased risk of the Department entering into transactions with entities that are
suspended, debarred, or otherwise excluded from participation in Federal programs.
Recommendation - We recommend the Department implement procedures to ensure that its vendors are not
debarred, suspended, or otherwise excluded from participation in Federal programs.
View of Officials - SHDHD will add a clause to each Agreement covered by Federal funds, certifying that
the recipient of the funds is eligible to receive such funds.
SHDHD will also clarify the certification process in our Procurement Policy.
Program - AL 93.069 – Public Health Emergency Preparedness – Matching Grant Number & Year - 57142 Y3 – July 1, 2022, through June 30, 2023 Federal Grantor Agency - U.S. Department of Health and Human Services Pass-Through Entity - Nebraska Department of Health and Human Services Criteria - Per the grant agreement, the Department will make available non-Federal fund-based contributions in the amount of 10% of the award. The agreement refers to 45 CFR § 75.306 for match requirements, including descriptions of acceptable match resources. 45 CFR § 75.306(b) (October 1, 2022) states, in part, the following: For all Federal awards, any shared costs or matching funds and all contributions, including cash and third-party in-kind contributions, must be accepted as part of the non-Federal entity's cost sharing or matching when such contributions meet all of the following criteria: * * * * 5. Are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs[.] Condition - The Department did not meet the 10% matching requirements identified in the grant award. Repeat Finding - No Questioned Costs - None Statistical Sample - No Context - Based upon the Department’s Federal expenditures, the required match was $9,436; however, the Department recorded only $3,400 in match. In addition, the match for one of three transactions tested was not from an allowable source. The exception noted was matching expenditures that were recorded to a different Federal program, which is not allowable. In total, the Department recorded $841 in match that was paid by a different Federal program. Cause - It was the first year where a 10% match was included in the grant award. Effect - The Department was not in compliance with the grant award. Recommendation - We recommend the Department implement procedures to ensure matching requirements are met and that only allowable sources of match are used. View of Officials - SHDHD monitors matching fund levels for Federal subawards on a quarterly basis to determine whether the match amount is on track toward meeting the percentage required in each grant agreement. Regarding the PHEP award, in particular, the Department will ensure that the new Emergency Response Coordinator (hired in the middle of the grant period last year) is aware of the match requirements. SHDHD will also ensure that no Federal funds are used to pay for matching funds required in Federal subawards. The Department was not aware that this was not allowable.