Finding Text
U.S. Department of Health and Human Services Federal Financial Assistance Listing Number 93.696, 1H79SM088927-01, September 29, 2024 and September 29, 2025 Certified Community Behavioral Health Clinic Expansion Grants Procurement and Suspension and Debarment Material Weakness in Internal Control over Compliance and Noncompliance Criteria The Uniform Guidance, Section 200.303 Internal Controls, requires the non‐federal entity must establish and maintain effective internal controls over federal awards that provide reasonable assurance that awards are being managed in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition The Organization entered into contracts with vendors for services without following their procurement policy. Cause There is a lack of controls over procurement, suspension and debarment as a whole. Effect Failure to follow a written procurement policy that was consistent with Federal, State, local, and tribal laws and regulations may result in disallowed costs. Questioned Costs $133,600 was paid during fiscal year 2025 to vendors without following the procurement policy. Context/Sampling EB reviewed the procurement, suspension and debarment policy. A nonstatistical sample of four vendors were selected for testing. Of these four, two did not follow appropriate procurement, suspension and debarment procedures. Repeat Finding from Prior Year(s) Yes, prior year finding 2024-007 Recommendation We recommend that management review and follow its policy prior to entering into any contracts with vendors. Views of Responsible Individuals Management agrees with the finding.