Finding 399052 (2023-003)

U.S. Department of Health and Human Services Section 223 Demonstration Programs to Improve Community Mental Health Services, Assistance Listing #93.829 Procurement and Suspension and Debarment Material Weakness in Internal Control over Compliance and Material Non‐Compliance - Grant Award Number 6H79SM083045‐01M004 Criteria - The OMB Compliance Supplement requires that entities receiving federal funding have a documented policy for procurement and for assessing suspension and debarment. Condition - Wallowa Valley Center for Wellness does not have a formally documented procurement policy nor does the organization have written procedures for assessing suspension and debarment. Cause - Wallowa Valley Center for Wellness did not have adequate internal controls to ensure a formally documented procurement policy with provisions for assessing suspension and debarment existed. Effect - There are not stated processes and policies for ensuring compliance with procurement and suspension and debarment. Questioned Costs - None Repeat Finding from Prior Year - No Recommendation - We recommend Wallowa Valley Center for Wellness formalize a procurement policy that contains provisions for purchasing thresholds and for assessing suspension and debarment as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Views of Responsible Officials - Management agrees with the finding.