Finding 1208252 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-04-21

AI Summary

  • Core Issue: The CMHSP failed to verify vendor status on sam.gov for suspension or debarment before entering into a contract.
  • Impacted Requirements: Compliance with 2 CFR sections 200.214 and 180.300, and 48 CFR section 52.209-6 regarding vendor eligibility.
  • Recommended Follow-Up: Update policies and procedures to ensure proper verification of vendor status is conducted prior to contract agreements.

Finding Text

2025-003: PROCUREMENT - SUSPENSION AND DEBARMENT Type: Considered a significant deficiency in internal control over compliance Program: ALN 93.696 Certified Community Behavioral Health Clinics Expansion (CCBHC) Grants Criteria: Per 2 CFR section 200.214 and section 180.300; 48 CFR section 52.209-6, when entering into a covered transaction, a nonfederal entity must verify that the person with whom they intend to do business is not suspended, debarred, or otherwise excluded or disqualified. Condition: The CMHSP did not perform a review of sam.gov to ensure that the vendor was not suspended or debarred prior to entering into an agreement with them. A subsequent review of sam.gov was conducted showing that the vendor was not suspended or debarred. Cause/Effect: Management oversight. Questioned Cost: None. Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that verification of suspension, debarment or exclusion is conducted prior to entering into a contract. Management’s Resp: Management is in agreement with this recommendation.

Corrective Action Plan

Condition: The CMHSP did not perform a reveiw of sam.gov to ensure that the vendor was not suspended or debarred prior to entering into an agreement with them. A subsequent review of sam.gov was conducted showing that the vendor was not suspended or debarred. Corrective Action: Those involved in managing the grant will ensure that a suspension and debarment review is conducted for any vendor with whom an agreement is established prior to any work being conducted utilizing grant funding. Staff responsible: Kristyn Kostelec, Grant Manager and Kelly Jenkins, Chief Operating Officer Anticipated completion date: immediate, as new contracts occur.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1208250 2025-001
    Material Weakness Repeat
  • 1208251 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $2.17M
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $996,190
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $407,790
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $68,000
93.788 OPIOID STR $52,929
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $37,755
93.778 GRANTS TO STATES FOR MEDICAID $18,652
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $15,237