Finding 1088506 (2023-001)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-11-25

AI Summary

  • Core Issue: The Organization failed to obtain required price quotes for a $193,378 purchase, violating procurement policies.
  • Impacted Requirements: This non-compliance breaches 2 CFR 200.318 and the Organization's own procurement procedures for small purchases.
  • Recommended Follow-Up: Ensure adherence to procurement procedures for future acquisitions to maintain compliance with federal guidelines.

Finding Text

Finding: Procurement Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds U.S. Department of The Treasury pass through from Jefferson County and Signal Behavioral Health Network Award Year: 2023 Award Number: Not Provided 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 Organizations procurement policy requires for Small purchases between $10,000 and $250,000. Competitive price quotes must be obtained to allow for full and open competition. a. A written solicitation including specs will be prepared and prices (might also include quality, delivery, geographical preference) obtained from multiple sources (preferably three or more) either by providing specs to the vendors or researching vendor prices (ex. internet search, vendor pricing list, verbal quotes). b. The price quotes will remain confidential before the award. c. Quotes will be evaluated by the business office and awarded based on price and the factors identified in the original request for quotes. d. Ensure all vendors receive the same information about the products or services and any special need that could affect the price. e. Check vendors for federal disbarment or suspension. Condition: During our procurement testing, we identified that the Organization did not obtain price quotes related to the purchase of $193,378 which fell within the small purchases threshold. Questioned Costs: $193,378 Context: We tested the Organizations one small purchase procurement which occurred during fiscal year 2023 in the amount of $193,978 and noted the above issue. A nonstatistical sampling methodology was used to select the sample. Effect: The Organization was not in compliance with its procurement policies and the Uniform Guidance. Cause: The Organization did not have adequate documentation to support the Organizations procurement decisions. 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. Views of responsible officials: The Organization agrees with the finding. See separate report for planned corrective actions.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 512063 2023-001
    Material Weakness
  • 512064 2023-001
    Material Weakness
  • 1088505 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $832,554
93.696 Certified Community Behavioral Health Clinic Expansion Grants $570,467
93.958 Block Grants for Community Mental Health Services $469,179
93.788 Opioid Str $341,225
21.027 Coronavirus State and Local Fiscal Recovery Funds $325,996
93.575 Child Care and Development Block Grant $220,946
14.218 Community Development Block Grants/entitlement Grants $190,000
14.871 Section 8 Housing Choice Vouchers $167,403
14.267 Continuum of Care Program $124,709
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $37,690
14.181 Supportive Housing for Persons with Disabilities $27,410
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $17,594
93.991 Preventive Health and Health Services Block Grant $12,450
93.069 Public Health Emergency Preparedness $7,500