Finding 559254 (2024-002)

Section III – Findings and Questioned Costs – Major Federal Programs 2024-002 Federal Agency: Department of Health and Human Services Federal Program Name: Healthy Start Communities Assistance Listing Number: 93.926 Federal Award Identification Number and Year: H4900052 Award Period: 4/1/2023-6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. EveryStep should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted EveryStep did not have adequate internal controls designed to ensure vendors were not suspended or debarred. Questioned costs: None Context: During our testing, it was noted that EveryStep was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: EveryStep was unaware the contractors were not being reviewed to ensure they were not suspended or debarred. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend EveryStep design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred. Views of responsible officials: There is no disagreement with the audit finding.