Audit 391422

Finding 2025.001: Procurement, Suspension and Debarment - Significant Deficiency Name of Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Health Center Program Cluster Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless and Public Housing Primary Care) Grants for New and Expanded Services under the Health Center Program COVID-19 Grants for New and Expanded Services under the Health Center Program Federal Assistance Listing Numbers: 93.224 and 93.527 Federal Award Identification Number and Year: H8012843 - 2025 and 2024, H8L51743 - 2023 and H2E50081 2024 and 2023 Criteria In accordance with §200.213 and §180.300, nonfederal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition The Center did not have adequate evidence that they reviewed vendors for suspension and debarment in accordance with the Uniform Guidance requirements. Cause The Center did not have adequate internal controls in place to illustrate a review for suspended or debarred vendors. Effect or Potential Effect The Center may have vendors that have been suspended or debarred from doing business with the federal government. Questioned costs None. Context A selection of four vendors was made for suspension and debarment testing. For three of the vendors tested, management did not provide adequate supporting documentation for the review and approval of the vendors as to whether they have been suspended or debarred. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation The Center should establish a system of internal controls to review vendors in accordance with the Uniform Guidance requirements for suspension and debarment. These procedures should be reviewed with the appropriate staff to ensure compliance with requirements. Views of Responsible Officials Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.