Identification of Major Programs Affected: This finding relates to all major programs Criteria: Title 2, U.S. Code of Federal Regulations (CFR), Part 200 establishes procurement requirements applicable to purchases made with Federal awards. 2 CFR § 200.318(i) requires the School to maintain records sufficient to detail the history of procurement transactions. Such records should include, as applicable, the rationale for the method of procurement, selection of the contractor, reasons for contractor selection or rejection, and the basis for the contract price. Additionally, 2 CFR § 200.214 requires compliance with the suspension and debarment requirements contained in 2 CFR Part 180. Under 2 CFR § 180.300, prior to entering into an applicable covered transaction, the School is required to verify that the prospective contractor or vendor is not excluded or disqualified from participation in Federal programs. Verification may be accomplished by reviewing the System for Award Management (SAM.gov), obtaining an appropriate certification from the vendor, or including an applicable clause or condition in the transaction. According to 2 CFR section 200.319, all procurement transactions for acquiring property or services required under a Federal award must be conducted with full and open competition. This ensures fairness and transparency in the procurement process, consistent with the standards outlined in this section and § 200.320. Condition: During our testing of procurement transactions charged to the Federal program, we noted that the School did not maintain sufficient documentation to demonstrate that suspension and debarment verification was performed at the time applicable contracts or covered transactions were entered into. In addition, for certain noncompetitive procurements, the School was unable to provide documentation supporting the sole-source justification or demonstrating that an allowable condition for noncompetitive procurement was met. Cause: The School did not have adequate procedures in place to ensure that suspension and debarment verification and documentation supporting sole-source procurements were completed and retained prior to entering into federally funded contracts. Effect: Noncompliance with procurement requirements under Uniform Guidance and School procurement policy. The lack of adequate procurement documentation increases the risk that purchases made with Federal funds may not comply with Federal procurement requirements or may not be obtained through appropriate competition. Additionally, failure to document suspension and debarment verification increases the risk that the School could enter into a covered transaction with a vendor that is suspended, debarred, or otherwise excluded from participation in Federal programs. Auditor's Recommendations: The School should strengthen its vendor selection procedures and ensure adherence to procurement policies to minimize risks and enhance efficiency. Noncompetitive or sole-source procurements should include written documentation supporting the applicable allowable circumstance under 2 CFR § 200.320. The rationale for the procurement method, vendor selection, and basis for the contract price should be retained in the procurement file. Suspension and debarment status is verified prior to entering into applicable covered transactions using one of the methods permitted under 2 CFR Part 180, and evidence of such verification is retained.
Identification of Major Programs Affected: This finding relates to all major programs. The matter was identified through follow-up of prior-year Finding 2022-001 and remained unresolved during the current year audit. Criteria or Specific Requirement: The Indian Child Protection and Family Violence Prevention Act requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment in a position that involves regular contact with, or control over, Indian children. In addition, background investigations must be completed every five years and adjudicated by an adjudicating official with proper training and credentials. The adjudicator must have a current adjudicated background check on file. Condition: The School did not maintain sufficient documentation to demonstrate that required background investigations were properly completed for certain employees. For the employees tested, the documentation provided was incomplete and did not adequately support that the required background investigation and related review procedures had been performed. Cause: Oversight of background checks was not being performed to ensure the School complied with applicable requirements. The HR Director is in charge of the process but there is no oversight of the background system. Effect: The School is not in compliance with the Indian School Equalization Program or the Indian Child Protection and Family Violence Prevention Act. Auditor's Recommendations: We recommend the School implement an independent review of the employee background files at least annually to ensure background check files are being properly completed, updated and maintained.
Identification of Major Programs Affected: This finding relates to all major programs. Criteria or Specific Requirement: The Uniform Guidance 2 CFR 200.512(a) requires the audit package and data collection form be submitted 30 days after receipt of the auditor's report or 9 months after the end of the fiscal year, whichever comes first. Condition: The School did not complete its audit package and data collection form within the nine months after June 30, 2023. Cause: The School was unable to furnish the necessary audit documentation to ensure timely and accurate reporting. Effect: The School is not in compliance with Uniform Guidance 2 CFR 200.512(a). Auditor's Recommendations: We recommend the School obtain necessary resources to allow for completion of the annual financial report on a timely basis.
Funding Agency U.S. Department of Health and Human Services Criteria: Title Substance Abuse and Mental Health Services Projects of Regional and National Significance Federal Assistance Listing Number: 93.243 Under 2 CFR § 200.332, a pass-through entity is required to clearly identify Federal awards to subrecipients at the time of the subaward and communicate all applicable Federal award information, terms, and conditions through the subaward agreement. The pass-through entity is also responsible for evaluating each subrecipient’s risk of noncompliance and monitoring subrecipient activities to ensure that Federal funds are used for authorized purposes, in compliance with applicable Federal statutes, regulations, and the terms and conditions of the subaward, and that program performance objectives are achieved. Accordingly, the pass-through entity should maintain adequate documentation supporting its subrecipient relationships, including properly executed subrecipient agreements, applicable amendments, approved budgets when required by the agreement, and other relevant monitoring documentation. Such documentation should be current, executed in a timely manner, and retained for the period during which Federal funds are provided to and administered by the subrecipient. Condition: During our testing of five subrecipients for the fiscal year ended June 30, 2023, we noted the following deficiencies: Three of five subrecipient agreements were executed after the fiscal year end. Therefore, the agreements were not timely executed during the period in which the subrecipients were carrying out activities under the Federal awards. For the remaining two of five subrecipients, amendments applicable to the current fiscal year were not available for audit examination. Accordingly, we were unable to verify the current-year terms, funding amounts, periods of performance, and other applicable provisions of the subaward arrangements. Approved budgets required under the applicable subrecipient agreements were not provided for audit examination. As a result, we were unable to verify that subrecipient expenditures were incurred in accordance with the approved budgets and the terms and conditions of the respective agreements. As a result, the School did not maintain sufficient supporting documentation demonstrating that complete and current subaward agreements, amendments, and required approved budgets were in place and available for monitoring purposes during the fiscal year. Cause: The School did not have adequate procedures in place to ensure that subrecipient agreements and amendments were executed timely and that all required supporting documentation, including approved budgets, was obtained, retained, and available as part of the subrecipient monitoring process. Effect: The School is not in compliance with federal requirements related to subrecipient monitoring. Auditor's Recommendations: We recommend that the School establish and implement formal procedures to ensure that: Subrecipient agreements are fully executed before subrecipients begin performing activities or incurring expenditures under the applicable Federal award; Amendments are prepared and executed timely whenever funding amounts, periods of performance, budgets, or other terms of the agreement change; Approved budgets required by the subrecipient agreements are obtained, formally approved, and retained for each applicable fiscal year; Subrecipient expenditures are periodically compared to the approved budgets as part of the School's monitoring procedures; and All executed agreements, amendments, approved budgets, and other monitoring documentation are centrally maintained and readily available for audit examination.