Finding 1160512 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2024
Accepted
2025-10-15
Audit: 370873

AI Summary

  • Core Issue: GMHA failed to verify if vendors were suspended or debarred before engaging in transactions, leading to noncompliance.
  • Impacted Requirements: This finding violates 2 CFR section 180.300, which mandates verification of vendor eligibility through SAM.gov or other means.
  • Recommended Follow-up: GMHA should enhance monitoring procedures and maintain proper documentation to ensure compliance with federal requirements.

Finding Text

Finding No.: 2024-001 Federal Agency: U.S. Department of Treasury AL Program: COVID-19 21.027 Coronavirus State and Local Fiscal Recovery Funds Requirement: Suspension & Debarment Questioned Costs: $900,093 Criteria: 2 CFR section 180.300 requires entities that enter into a covered transaction must verify that the entity or person with whom they intend to do business is not excluded or disqualified by: (a) Checking SAM.gov Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. Condition: For all 7 procurements tested, GMHA did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Cause: GMHA lacked effective monitoring to ensure that vendors and entities that are debarred, suspended, or excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Effect: GMHA is in noncompliance with the applicable requirement. Identification as a Repeat Finding: Finding 2023-003 Recommendation: GMHA should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: Refer to GMHA’s corrective action plan.

Corrective Action Plan

Views of Auditee and Planned Corrective Actions: Starting in April 2024, GMHA incorporated the Certificate Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion for Covered Contracts and Grants in all of its Invitation for Bids and Request for Proposals. Proposed Completion Date: Completed. Name of Contact Person: Yukari Hechanova, Chief Financial Officer

Categories

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 1160513 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.45M
93.889 National Bioterrorism Hospital Preparedness Program $299,411
94.006 Americorps State and National 94.006 $26,269
15.875 Economic, Social, and Political Development of the Territories $9,090