Finding 1221239 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-06-30

AI Summary

  • Core Issue: The vendor for the Supportive Housing Program was not checked for suspension and debarment before the contract was signed.
  • Impacted Requirements: This violates 2 CFR 200.214 and 2 CFR part 180, which mandate checks against debarred or suspended parties.
  • Recommended Follow-Up: Ensure checks are documented before contract execution or update contracts to include vendor certification of eligibility.

Finding Text

2025-001 – Suspension and Debarment Finding Type: Significant Deficiency in Internal Control over Compliance/Noncompliance Program: ALN 14.267 – Supportive Housing Program • Grant number MI0265L5F182316 • Grant number MI0265L5F182417 Criteria: As required by 2 CFR 200.214, Non-Federal entities are subject to the debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The vendor used for this grant was not checked for suspension and debarment prior to execution of the contract. Also, the contract did not include certification that the vendor was not suspended or debarred. Cause: Management oversight. Questioned Cost: None. Recommendation: We recommend that the CMHSP either document the check for suspension and debarment prior to execution of the contract or update contract language to include certification that vendor is not suspended or debarred. View of Responsible Official: Management is in agreement with this recommendation

Corrective Action Plan

Community Mental Health Services of Livingston County Single Audit Report: Corrective Action Plan Year ended September 30, 2025 Finding 2025-001- Suspension and Debarment Requirement: As required by 2 CFR 200.214, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The vendor used for this grant was not checked for suspension and debarment prior to execution of the contract. Also, the contract did not include certification that vendor was not suspended or debarred. Questioned Cost: None. Recommendation: We recommend that the CMHSP update contract language to include certification that vendor is not suspended or debarred. Corrective Action Plan LCCMHA will address the concern raised by RPC and agrees with the above recommendation. The Accounting Manager and Associate Director of Finance and Contracts will work with the Contract Manager to modify existing contract language to include certification that vendors are not suspended or debarred. This change will be implemented for fiscal year 2027 commencing 10/01/26. Responsible Party: Jim Kubus, Accounting Manager Anticipated completion date: September 30, 2026

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility Significant Deficiency

Other Findings in this Audit

  • 1221238 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 GRANTS TO STATES FOR MEDICAID $104,940
14.267 CONTINUUM OF CARE PROGRAM $53,136
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $49,536
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $47,734
93.788 OPIOID STR $7,624