Audit 362266

FY End

2024-06-30

Total Expended

$2.80M

Findings

4

Programs

6

Organization: Summitstone Health Partners (CO)

Year: 2024 Accepted: 2025-07-15

Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
571315	2024-004	Material Weakness	-	I
571316	2024-004	Material Weakness	-	I
1147757	2024-004	Material Weakness	-	I
1147758	2024-004	Material Weakness	-	I

ALN	Program	Spent	Major	Findings
93.696	Certified Community Behavioral Health Clinic Expansion Grants	$1.03M	Yes	0
93.958	Block Grants for Community Mental Health Services	$590,014	-	0
21.027	Coronavirus State and Local Fiscal Recovery Funds	$553,071	Yes	1
93.959	Block Grants for Prevention and Treatment of Substance Abuse	$371,559	-	0
93.788	Opioid Str	$162,400	-	0
14.267	Continuum of Care Program	$55,912	-	0

Contacts

Name	Title	Type
Y5UMVHEBMJC7	John Dowling	Auditee
9708190485	Tammy J. Rivera	Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: SummitStone has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of SummitStone Health Partners (SummitStone) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of SummitStone, it is not intended to and does not present the statements of financial position, changes in net assets or cash flows of SummitStone.

Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: SummitStone has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Note 3: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: SummitStone has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. SummitStone has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-004

Finding: Procurement and Suspension & Debarment Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2024 Award Number: G757HMWE8ET8 Criteria: In accordance with 2 CFR 200.318, non-Federal entities must have and use documented procurement procedures, consistent with State and local regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. The Organization's procurement policy requires for purchases in excess of $5,000 to obtain three competitive bids before purchase order is placed. In addition, it states that CFR 200's procurement standards are the guiding legislation. Condition: During testing of procurement and suspension & debarment, it was noted: a. Client could not provide support to show why the particular vendor was chosen. b. No mention of suspension or debarment checks are contained in the policies and no support for checks is maintained. Questioned Costs: $148,737; based on one item below that was tested for procurement and suspension & debarment. Context: One small purchase procurement vendor was selected which used CSLFRF funds during fiscal year 2024 in the amount of $148,737 and noted the above issues. A non-statistical sampling methodology was used to select the sample. Cause: The Organization did not have adequate documentation to support the Organizations procurement decisions. Effect: The Organization did not have adequate internal controls in place which resulted in a purchase without adherence to the Organization's own procurement policies and the Uniform Guidance. Identification as a repeat finding: Not a repeat finding. Recommendation: We recommend that the Organization follow its procurement procedures for the acquisition of property or services as required under a Federal award or sub-award. We also recommend updating the policies to include guidance for suspension and debarment checks as well as establishing ways to maintain documentation of those checks. Views of responsible officials: The Organization agrees with the finding. See separate report for planned corrective actions.

Finding 2024-004

Finding: Procurement and Suspension & Debarment Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2024 Award Number: G757HMWE8ET8 Criteria: In accordance with 2 CFR 200.318, non-Federal entities must have and use documented procurement procedures, consistent with State and local regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. The Organization's procurement policy requires for purchases in excess of $5,000 to obtain three competitive bids before purchase order is placed. In addition, it states that CFR 200's procurement standards are the guiding legislation. Condition: During testing of procurement and suspension & debarment, it was noted: a. Client could not provide support to show why the particular vendor was chosen. b. No mention of suspension or debarment checks are contained in the policies and no support for checks is maintained. Questioned Costs: $148,737; based on one item below that was tested for procurement and suspension & debarment. Context: One small purchase procurement vendor was selected which used CSLFRF funds during fiscal year 2024 in the amount of $148,737 and noted the above issues. A non-statistical sampling methodology was used to select the sample. Cause: The Organization did not have adequate documentation to support the Organizations procurement decisions. Effect: The Organization did not have adequate internal controls in place which resulted in a purchase without adherence to the Organization's own procurement policies and the Uniform Guidance. Identification as a repeat finding: Not a repeat finding. Recommendation: We recommend that the Organization follow its procurement procedures for the acquisition of property or services as required under a Federal award or sub-award. We also recommend updating the policies to include guidance for suspension and debarment checks as well as establishing ways to maintain documentation of those checks. Views of responsible officials: The Organization agrees with the finding. See separate report for planned corrective actions.

Finding 2024-004

Finding: Procurement and Suspension & Debarment Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2024 Award Number: G757HMWE8ET8 Criteria: In accordance with 2 CFR 200.318, non-Federal entities must have and use documented procurement procedures, consistent with State and local regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. The Organization's procurement policy requires for purchases in excess of $5,000 to obtain three competitive bids before purchase order is placed. In addition, it states that CFR 200's procurement standards are the guiding legislation. Condition: During testing of procurement and suspension & debarment, it was noted: a. Client could not provide support to show why the particular vendor was chosen. b. No mention of suspension or debarment checks are contained in the policies and no support for checks is maintained. Questioned Costs: $148,737; based on one item below that was tested for procurement and suspension & debarment. Context: One small purchase procurement vendor was selected which used CSLFRF funds during fiscal year 2024 in the amount of $148,737 and noted the above issues. A non-statistical sampling methodology was used to select the sample. Cause: The Organization did not have adequate documentation to support the Organizations procurement decisions. Effect: The Organization did not have adequate internal controls in place which resulted in a purchase without adherence to the Organization's own procurement policies and the Uniform Guidance. Identification as a repeat finding: Not a repeat finding. Recommendation: We recommend that the Organization follow its procurement procedures for the acquisition of property or services as required under a Federal award or sub-award. We also recommend updating the policies to include guidance for suspension and debarment checks as well as establishing ways to maintain documentation of those checks. Views of responsible officials: The Organization agrees with the finding. See separate report for planned corrective actions.

Finding 2024-004

Finding: Procurement and Suspension & Debarment Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2024 Award Number: G757HMWE8ET8 Criteria: In accordance with 2 CFR 200.318, non-Federal entities must have and use documented procurement procedures, consistent with State and local regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR 200.317 through 200.327. The Organization's procurement policy requires for purchases in excess of $5,000 to obtain three competitive bids before purchase order is placed. In addition, it states that CFR 200's procurement standards are the guiding legislation. Condition: During testing of procurement and suspension & debarment, it was noted: a. Client could not provide support to show why the particular vendor was chosen. b. No mention of suspension or debarment checks are contained in the policies and no support for checks is maintained. Questioned Costs: $148,737; based on one item below that was tested for procurement and suspension & debarment. Context: One small purchase procurement vendor was selected which used CSLFRF funds during fiscal year 2024 in the amount of $148,737 and noted the above issues. A non-statistical sampling methodology was used to select the sample. Cause: The Organization did not have adequate documentation to support the Organizations procurement decisions. Effect: The Organization did not have adequate internal controls in place which resulted in a purchase without adherence to the Organization's own procurement policies and the Uniform Guidance. Identification as a repeat finding: Not a repeat finding. Recommendation: We recommend that the Organization follow its procurement procedures for the acquisition of property or services as required under a Federal award or sub-award. We also recommend updating the policies to include guidance for suspension and debarment checks as well as establishing ways to maintain documentation of those checks. Views of responsible officials: The Organization agrees with the finding. See separate report for planned corrective actions.