Finding Text
Finding #2025-002 – Significant Deficiency and Other Noncompliance. U. S. Department of Treasury, Passed through Harris County Public Health, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: 220163, Contract period: 08/23/22 – 03/13/25. Criteria: Procurement – In accordance with 2 CFR 200 Uniform Administrative Requirements, Costs Principles, and Audit Requirement for Federal Awards (the Uniform Guidance) recipients of federal funds must maintain and use documented procedures for procurements. 2 CFR Part 180 restricts making federal awards, subawards, and contracts with parties that are disbarred, suspended or otherwise excluded from receiving or participating in federal awards. Condition and context: In testing 1 out of 6 vendors subject to procurement, NBHP had not verified and documented that the Houston Health Department was not suspended or disbarred. Cause: NBHP’s procurement policy does not require verification of lack of suspension or disbarment for recipients of subawards or contracts. Effect: Failure to verify suspension and disbarment status could result in unallowable costs if a contract is entered into with a suspended or disbarred person or organization. Recommendation: Amend the procurement policy to require verification that person or organization is not suspended or disbarred. Views of responsible officials and planned corrective actions: Management agrees with finding. See corrective action plan.