Finding 500114 (2023-001)

Finding 2023-001 - Procurement (Compliance) Repeat of Prior Audit Finding 2022-003 ALN No.: 93.829 - Section 223 Demonstration Programs to Improve Community Mental Health Services Award Year: January 1, 2023 - December 31, 2023 Federal Agency: United States Department of Health and Human Services Pass Through Entity: Not applicable Criteria: Under 2 CFR Part 200.318(a) of the Uniform Guidance the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in 2 CFR Part 200.317 through 200.327. Condition/Context: South Shore’s documented procurement procedures are not fully in accordance with Uniform guidance standards. Cause: South Shore did implement a documented procurement policy as a result of finding 2022-003 in the prior year. The policy was not fully compliant with the requirements of the Uniform Guidance. Effect: South Shore has not complied with the specific requirements for procurement as described in the Uniform Guidance. Questioned Costs: None. Recommendation: South Shore should further develop a documented procurement policy that is fully in accordance with the Uniform Guidance. Views of Responsible Officials: Management agrees with the recommendation and plans to improve upon the formal procurement policy.