Finding 537239 (2024-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-03-26

AI Summary

  • Core Issue: The Center did not verify vendor status before purchasing goods over $25,000, despite the requirement to check for exclusions from federal contracts.
  • Impacted Requirements: Federal compliance mandates that vendors be checked for suspension or debarment prior to disbursements exceeding $25,000.
  • Recommended Follow-Up: Ensure all future vendor checks are conducted using the System for Award Management (SAM) and maintain documentation of these verifications.

Finding Text

Federal Program: U.S. Department of Health and Human Services passed through Missouri Department of Health and Senior Services: Epidemiology and Laboratory Capacity for Infectious Diseases (#93:323). Criteria: When a sub-recipient of federal awards uses federal money to acquire goods and services expected to cost more than $25,000, the sub-recipient must determine if the vendor is suspended, debarred, or otherwise excluded from doing business with the federal government. Condition: The Center purchased goods from two vendors totaling greater than $25,000 that required the Center to determine the vendor's status with the federal government. The vendors were, in fact, not excluded parties, but that determination was not made prior to making the disbursements. Cause: The Center was unaware of the requirement because most of the Center's grants are for payroll costs and the Center rarely makes a disbursement with grant funds that would exceed $25,000. Effect: The Center did comply with the federal compliance requirements. However, internal controls were such that noncompliance could occur and go undetected. Questioned Costs: None. Context: Actual expenditures of the program were $282,810 during the fiscal year ended December 31, 2024. Repeat Finding: No. Recommendation: We recommend the Center verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000 and to keep supporting documentation of the verification of the vendor's status. Views of Responsible Officials: The Center will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000 and keep all supporting documentation.

Corrective Action Plan

Name of Contact Person: Autumn Grim, Director. Recommendation: We recommend the Center verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000 and to keep all supporting documentation of the verification of the vendor's status. Corrective Action: We will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000. Proposed Completion Date: Immediately.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 537240 2024-001
    Material Weakness
  • 1113681 2024-001
    Material Weakness
  • 1113682 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $227,238
93.917 Hiv Care Formula Grants $154,712
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $111,210
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $99,010
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $76,387
93.967 Cdc's Collaboration with Academia to Strengthen Public Health $70,086
93.940 Hiv Prevention Activities_health Department Based $65,380
93.069 Public Health Emergency Preparedness $23,071
93.136 Injury Prevention and Control Research and State and Community Based Programs $16,837
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $13,701
93.994 Maternal and Child Health Services Block Grant to the States $8,543
93.008 Medical Reserve Corps Small Grant Program $8,443
93.767 Children's Health Insurance Program $6,001
93.268 Immunization Cooperative Agreements $5,058
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $1,131
10.559 Summer Food Service Program for Children $1,050
93.575 Child Care and Development Block Grant $1,020
93.778 Medical Assistance Program $838
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $783