Finding 1097455 (2022-005)

Material Weakness
Requirement
FI
Questioned Costs
-
Year
2022
Accepted
2025-02-02

AI Summary

  • Core Issue: Recovery Connections of Central Florida, Inc. lacks essential written policies for procurement and debarment, leading to a material weakness in internal controls.
  • Impacted Requirements: Federal guidelines mandate organizations to have documented procedures for procurement, conflict of interest, and verification of vendor eligibility.
  • Recommended Follow-Up: Develop and implement a suspension and debarment policy, ensuring proper documentation for all purchases and vendor evaluations.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: State Opioid Response Discretionary Grant Assistance Listing Number: 93.788 Pass-Through Agency: Central Florida Cares Health System, Inc (CFCHS) Pass-Through Number: RCC24 Award Periods: 7/1/2021 - 6/30/2022, 7/1/2022 - 6/30/2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: When accepting federal funds, Organizations are required to have a procurement policy meeting certain requirements, written standards for conflict of interest and governing the performance of its employees engaged in the selection, award, and administration of contracts, and procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Condition: Recovery Connections of Central Florida, Inc. does not have written policies or procedures covering procurement, suspension, or debarment. No documentation of evaluation and approval for purchase of equipment. Questioned costs: None Context: Out of the sample of 5 vendors and purchases of equipment purchased under federal award, 5 exceptions noted where documentation of assessment and approval of purchase, including procurement, suspension and debarment procedures were not provided. Cause: Recovery Connections of Central Florida, Inc. was in the start-up stage and had a limited number of employees. Effect: Recovery Connections of Central Florida, Inc. could enter into a covered transaction with an entity that is debarred, suspended, or otherwise excluded. Repeat Finding: No Recommendation: We recommend Recovery Connections of Central Florida, Inc. create a suspension and debarment policy and maintain documentation of verification and purchase approval. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 521012 2022-004
    Material Weakness
  • 521013 2022-005
    Material Weakness
  • 521014 2022-006
    Material Weakness
  • 1097454 2022-004
    Material Weakness
  • 1097456 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $923,115
93.959 Block Grants for Prevention and Treatment of Substance Abuse $123,628