Finding 51981 (2022-005)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-05-17
Audit: 51662
Organization: Hillcrest Family Services, INC (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The organization lacks a written procurement policy that aligns with federal, state, and local regulations.
  • Impacted Requirements: This deficiency violates the Uniform Guidance, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Management should create and regularly review a compliant procurement policy to prevent potential disallowed costs.

Finding Text

U.S. Department of Health and Human Services Federal Financial Assistance Listing/CFDA Number 93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services - 6H79SM083306-01M002 Procurement and Suspension and Debarment Significant Deficiency in Internal Control over Compliance 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. The non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, 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 ?? 200.318 through 200.327. Condition The Organization did not have a written procurement policy that was consistent with Federal, State, local, and tribal laws and regulations. Cause There is a lack of controls over the written procurement, suspension and debarment policy. Effect Failure to maintain a written procurement policy that was consistent with Federal, State, local, and tribal laws and regulations may result in disallowed costs. Questioned Costs None. Context/Sampling EB reviewed the procurement, suspension and debarment policy. Repeat Finding from No. Prior Year(s) Recommendation We recommend that management implement a written review procurement, suspension and debarment policy Federal, State, local, and tribal laws and regulations. We also recommend that management review this policy regularly to confirm that it meets the requirements. Views of Responsible Management agrees with the finding. Individuals

Corrective Action Plan

Finding 2022-005 Procurement and Suspension and Debarment Federal Agency Name: U.S. Department of Health and Human Services Program Name: Section 223 Demonstration Programs to Improve Community Mental Health Services CFDA: 93.829 Finding Summary: The Organization did not have a written procurement policy that was consistent with Federal, State, local, and tribal laws and regulations. Responsible Individuals: Michael Luedtke, Chief Financial Officer Corrective Action Plan: Management agrees with the finding. Management will implement a written procurement, suspension and debarment policy that meets Federal, State, local, and tribal laws and regulations. We also recommend that management review this policy regularly to confirm that it meets the requirements. Anticipated Completion Date: May 15, 2023

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 51979 2022-003
    Significant Deficiency Repeat
  • 51980 2022-004
    Significant Deficiency
  • 628421 2022-003
    Significant Deficiency Repeat
  • 628422 2022-004
    Significant Deficiency
  • 628423 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $2.15M
93.498 Covid-19 Provider Relief Fund (prf) and American Rescue Plan (arp) Rural Distribution $481,738
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $164,117
93.958 Block Grants for Community Mental Health Services $145,470
93.917 Hiv Care Formula Grants $130,113
93.150 Projects for Assistance in Transition From Homelessness (path) $61,183
93.658 Foster Care Title IV-E $51,492
93.994 Maternal and Child Health Services Block Grant to the States $46,719
93.558 Temporary Assistance for Needy Families $42,923
21.019 Covid-19 Coronavirus Relief Funds $41,511
93.778 Medical Assistance Program $40,530