Finding 1179880 (2023-005)

Department of Health and Human Services Federal Financial Assistance Listing #93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance Criteria – Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a non-Federal entity must use its own documented procurement procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal law and standards. Condition – Written procurement policies were not updated to conform to applicable standards under Uniform Guidance. Cause – The Organization did not have proper procedures to ensure its written procurement policies were updated to conform to the requirements identified in Uniform Guidance. Effect – The Organization did not have proper procedures to ensure its written procurement policies were updated to conform to the requirements identified in Uniform Guidance. Questioned Costs – None reported. Context/Sampling – No sampling was performed as the procurement policy was examined in its entirety. Repeat Finding from Prior Year(s) – No Recommendation – We recommend the Organization ensure its written procurement policies are updated to conform to the requirements identified in Uniform Guidance. Views of Responsible Officials – Management agrees with the finding.