Finding Text
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 Significant Deficiency 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 to maintain records sufficient to detail the history of procurement. These records should include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition – This history of procurement was not always maintained. Cause – The Organization did not have adequate internal controls to ensure the history of procurement was maintained. Effect – Procurements may occur that are not in accordance with the procurement methods required by Federal regulations. Questioned Costs – None Context/Sampling – A nonstatistical sample of three from a population of three was selected for testing. Documentation for the method of procurement was not maintained for one item. Repeat Finding from Prior Year(s) – No Recommendation – We recommend the Organization enhance internal controls to ensure this history of procurement is maintained which includes the method of procurement, vendor/contractor selection reasoning, etc. Views of Responsible Officials – Management agrees with the finding.