Finding Text
Item 2024-001 - Procurement, Suspension and Debarment - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Notice of Award Number 6 H80CS00849-22-07, 6 H8NCS53876-01-01, 6 H8FCS40693-01-04 and 1 H8LCS51735-01- 00 - (Material Weakness) Criteria: Recipients and subrecipients are subject to the procurement, suspension and debarment regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. The U.S. Department of Health and Human Services Grants Policy Statement indicates that charges made to HHS grants for the salary of individuals who have been debarred, suspended or declared ineligible or who have been voluntarily excluded from covered transactions are unallowable. Statement of condition: During our audit, we noted that there is no evidence that any exclusion search was conducted in 2024 for all sample employees tested. Cause: The Project's employee who was responsible for conducting exclusion searches was unable to consistently perform the procedures and the employee's supervisor was also unable to monitor the completion of the said task Effect: Failure in conducting exclusion searches raises the risk that salaries of employees who are suspended or debarred may be charged to federally-funded programs which is not allowed. Questioned costs: None Context: Although the Project did not have policies and procedures in place to conduct exclusion searches for employees whose salaries are charged to federally-funded program, none of the forty samples tested were found to be suspended or debarred. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Project train its employees in relation to their policies and procedures on conducting exclusion screening and on proper documentation thereof. Management response: Management agrees with the finding and will be conducting training for its personnel to help ensure the accuracy, completeness and timeliness of exclusion searches.