Finding 1141454 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-06-16
Audit: 358880
Organization: Lapeer County (MI)

AI Summary

  • Core Issue: The CMHSP failed to follow procurement rules for a contract, resulting in a repeat material weakness in internal controls.
  • Impacted Requirements: Non-compliance with 2 CFR section 200.318, which mandates documented procurement procedures aligned with federal and local laws.
  • Recommended Follow-Up: CMHSP should update procurement policies to ensure compliance with federal requirements for future contracts.

Finding Text

2024-001: PROCUREMENT (repeat comment) Type: Considered a material weakness in internal control over compliance/noncompliance Program: ALN 93.969 Certified Community Behavioral Health Clinics (CCBHC) Expansion Grants Criteria: Per 2 CFR section 200.318, the non-Federal entity, “…must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327.” Condition: During testing, it was noted that the CMHSP had not followed procurement requirements for the contract entered into for project evaluation and coordination services. This is the same contract that produced a material finding in the prior year single audit. Cause/Effect: Management oversight. Questioned Cost: $150,000 – the amount paid during the fiscal year pursuant to contract in question. Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that all federal requirements for procurements are followed for future contracts entered into with federal funds. Management’s Resp: Management is in agreement with this recommendation. Also, the grantor was notified of this finding and has notified the CMHSP that there is no elevated level of risk moving forward through the remainder of the grant cycle.

Categories

Questioned Costs Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 565012 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.21M
93.778 Medical Assistance Program $140,177
93.958 Block Grants for Community Mental Health Services $76,134