Finding 1079984 (2024-001)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2024-10-23
Audit: 325706
Organization: West Central Services, INC (NH)

AI Summary

  • Core Issue: West Central Services, Inc. failed to follow its procurement policy by not conducting a competitive bidding process for a vendor paid over $15,000.
  • Impacted Requirements: This non-compliance violates procurement requirements under 2 CFR Section 200 and internal controls related to grant expenditures.
  • Recommended Follow-Up: Implement a competitive bidding process for all grant-related expenses above $15,000, unless specific exceptions apply.

Finding Text

Criteria: Organizations that received the Certified Community Behavioral Health Clinic Expansion Grant must follow their procurement policy. Condition: West Central Services, Inc. did not follow its procurement policy which requires a bidding process for vendors paid in excess of $15,000 during selection of one vendor, in that they did not perform a competitive bid process. Cause: West Central Services, Inc. did not follow the proper controls in place to select in accordance with the provisions of the Certified Community Behavioral Clinic Expansion Grant. Effect: West Central Services, Inc. was not in compliance with the procurement requirements under 2 CFR Section 200 nor did they follow their internal controls over compliance as they relate to this process. Questioned Costs: $26,667 Context: The vendor was recommended by the State of New Hampshire because they were using the vendor and other agencies within the State were also utilizing this vendor. The agency is now aware that the recommendation wasn’t in accordance with the procurement requirements and will not vary from their procurement policy based on recommendations alone. Recommendation: We recommend that West Central Services, Inc. perform a competitive bidding process for all grant related expenses in excess of the thresholds on its procurement policy unless the Center can only receive required services from a specific source, a public exigency did not permit the delay, or after the solicitation of a number of sources it was determined that competition was inadequate. Management Response: West Central Services, Inc. is now aware that they should enter into a competitive bidding process for all grant related expenses in excess of $15,000

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 503542 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $912,325
93.276 Drug-Free Communities Support Program Grants $124,514
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $5,300