Finding 1098538 (2023-002)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-02-05
Audit: 341310
Auditor: Terry Horne CPA

AI Summary

  • Core Issue: The Organization failed to verify that employees and vendors were not suspended or debarred from federal programs before transactions.
  • Impacted Requirements: This violates procurement criteria outlined in 45 CFR 75.329 and 45 CFR 75.213.
  • Recommended Follow-Up: Establish and document policies and procedures for conducting debarment searches to comply with procurement regulations.

Finding Text

Finding: 2023-002 Procurement, Suspension, and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.527 & 93.224 Criteria: Procurement 45 CFR 75.329 and 45 CFR 75.213 Condition: The Organization did not verify that employees and certain vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not have proper procedures in place to ensure debarment searches were obtained as required. Effect: The Organization did not verify that employees and certain vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that the Organization establish policies and procedures to ensure that the procurement policy is followed and that debarment searches are performed and documented as required. Views of Responsible Officials: Management concurs. Management will establish policies and procedures to ensure that employees and vendors are not suspended, debarred or otherwise excluded from participating in federal programs. Contact Person: Suzanne Freeman, CEO Anticipated Date of Completion: February 28, 2025

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 522094 2023-002
    Material Weakness
  • 522095 2023-002
    Material Weakness
  • 522096 2023-002
    Material Weakness
  • 522097 2023-003
    Material Weakness
  • 522098 2023-003
    Material Weakness
  • 522099 2023-003
    Material Weakness
  • 522100 2023-004
    Material Weakness
  • 522101 2023-004
    Material Weakness
  • 522102 2023-004
    Material Weakness
  • 522103 2023-005
    Material Weakness
  • 522104 2023-005
    Material Weakness
  • 522105 2023-005
    Material Weakness
  • 1098536 2023-002
    Material Weakness
  • 1098537 2023-002
    Material Weakness
  • 1098539 2023-003
    Material Weakness
  • 1098540 2023-003
    Material Weakness
  • 1098541 2023-003
    Material Weakness
  • 1098542 2023-004
    Material Weakness
  • 1098543 2023-004
    Material Weakness
  • 1098544 2023-004
    Material Weakness
  • 1098545 2023-005
    Material Weakness
  • 1098546 2023-005
    Material Weakness
  • 1098547 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.34M
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $293,184
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $113,645
93.959 Block Grants for Prevention and Treatment of Substance Abuse $110,734
16.838 Comprehensive Opioid Abuse Site-Based Program $50,478