Audit 402190

Opioid STR ALN No. 93.788 U.S. Department of Health and Human Services Criteria or Specific Requirement – Activities Allowed and Unallowed and Cost Principles – 2 CFR Part 200, Subpart E Condition – A sample of 80 expenditures were selected from ALN No. 93.788, which included the following populations: • Payroll expenditures - a total of 487 total items totaling $1,589,426. • Direct expenditures – a total of 284 total items totaling $310,843 The samples were not, and are not intended to be, statistically valid. Of the expenditures tested the following items were determined to lack appropriate supporting documentation to support being charged to the grant program: • Payroll expenditures - 40 items totaling $10,310 • Direct expenditures – 38 items totaling $872 The Organization did not have adequate supporting documentation demonstrating actual time and effort reporting. Cause – The Organization charged budgeted percentages to the grant programs without a system in place to monitor and track that actual time and effort was consistent with budgeted percentages. Effect or potential effect – Costs charged to the grant programs could have varied from actual time and effort. Questioned costs – $8,561. These questioned costs were determined by an allocation charged to both direct expenditures and payroll expenses greater than actual time consistent with usage related to the grant. Context – The Organization did not have a reasonable methodology of allocating costs to these grant programs. Identification as a repeat finding, if applicable – Repeat finding (see 2024-002 and 2023-003). Recommendation – Management should implement policies and procedures that strengthen internal control over compliance in relation to activities allowed and cost principles. The policy and procedure should be designed to ensure that a reasonable allocation methodology is implemented and followed or that time and effort is certified by the employee on a regular basis.

Opioid STR ALN No. 93.788 U.S. Department of Health and Human Services Criteria or Specific Requirement – Procurement, Suspension and Debarment – 45 CFR 75.329, 2 CFR 180 Condition – For procurement testing, a sample of 2 procurements were selected from a population of 5 totaling $209,643. For suspension and debarment testing, a sample of 1 was selected from a population of 4 totaling $192,737. The samples were not, and are not intended to be, statistically valid. Of the samples tested, the following were determined to lack appropriate supporting documentation for compliance report. • Procurement: 2 item totaling $115,229 • Suspension and debarment: 1 item totaling $80,974 Cause – The Organization did not comply with their procurement policy. In addition, the Organization does not include a review of the federal suspended and debarment party list as part of the Organization's procurement policy. Effect or potential effect – Procurement methodology was not followed for vendor with expenses of over $10,000. In addition, that did not adhere to the federal government's suspension and debarment compliance requirements. Questioned Costs – None Context – The Organization did not have adequate policies and procedures to ensure procurement, suspension, and debarment requirements were met prior to the purchase of goods or services charged to federal awards. Upon further discussion with Tuerk House, Inc., no procurement, suspension and debarment procedures were performed on any vendors. Identification as a repeat finding – Repeat finding (see 2024-003 and 2023-004) Recommendation – We recommend management continue to ensure all personnel understand the procurement policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that vendors, especially those over $10,000, are selected and vetted in accordance with policy and Uniform Guidance. In addition, policies and procedures should be put in place to ensure all vendors are not included on the suspended and debarred listing.