Finding 1147757 (2024-004)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-07-15
Audit: 362266
Organization: Summitstone Health Partners (CO)

AI Summary

  • Core Issue: The Organization failed to provide documentation supporting vendor selection and did not conduct suspension or debarment checks as required.
  • Impacted Requirements: Non-compliance with 2 CFR 200 procurement standards, leading to inadequate internal controls and questioned costs of $148,737.
  • Recommended Follow-Up: Adhere to procurement procedures, update policies to include suspension and debarment checks, and ensure proper documentation is maintained.

Finding Text

Finding: Procurement and Suspension & Debarment Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Year: 2024 Award Number: G757HMWE8ET8 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 Organization's procurement policy requires for purchases in excess of $5,000 to obtain three competitive bids before purchase order is placed. In addition, it states that CFR 200's procurement standards are the guiding legislation. Condition: During testing of procurement and suspension & debarment, it was noted: a. Client could not provide support to show why the particular vendor was chosen. b. No mention of suspension or debarment checks are contained in the policies and no support for checks is maintained. Questioned Costs: $148,737; based on one item below that was tested for procurement and suspension & debarment. Context: One small purchase procurement vendor was selected which used CSLFRF funds during fiscal year 2024 in the amount of $148,737 and noted the above issues. A non-statistical sampling methodology was used to select the sample. Cause: The Organization did not have adequate documentation to support the Organizations procurement decisions. Effect: The Organization did not have adequate internal controls in place which resulted in a purchase without adherence to the Organization's own procurement policies and the Uniform Guidance. 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. We also recommend updating the policies to include guidance for suspension and debarment checks as well as establishing ways to maintain documentation of those checks. 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

  • 571315 2024-004
    Material Weakness
  • 571316 2024-004
    Material Weakness
  • 1147758 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.03M
93.958 Block Grants for Community Mental Health Services $590,014
21.027 Coronavirus State and Local Fiscal Recovery Funds $553,071
93.959 Block Grants for Prevention and Treatment of Substance Abuse $371,559
93.788 Opioid Str $162,400
14.267 Continuum of Care Program $55,912