Finding 8802 (2021-011)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2021
Accepted
2024-01-17

AI Summary

  • Core Issue: The Organization lacks a formal policy for verifying suspension and debarment, despite complying with requirements.
  • Impacted Requirements: Compliance with 2 CFR Section 200.303(a) and 2 CFR part 180 regarding internal controls and vendor verification.
  • Recommended Follow-Up: Strengthen policies for procurement and suspension/debarment documentation; verify vendor compliance using sam.gov and keep records.

Finding Text

Federal Program Information: Funding Agency: U.S Department of Health and Human Services FALN: 93.926 Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01 Pass Through Entity: State of Georgia Department of Human Services Award Year: 2020‐2024 Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Under 2 CFR part 180, the Organization is required to verify suspension or debarment from the excluded parties list system regarding compliance. Condition: Under 2 CFR part 180, the Organization is required to verify suspension or debarment from the excluded parties list system regarding compliance. Though the Organization did not have a policy for suspension and debarment, the Organization complied with the requirements. Effect: Not having a suspension and debarment policy may result in funds to be returned back to grantor and/or impact future funding. Cause: Supporting suspension and debarment documentation for acquisition of property and services were not properly established in part due to several changes in personnel within the accounting area and overall limited number of personnel for certain functions and lack of board oversight. Questioned Costs: None Recommendation: We recommend the Organization strengthen its policies and procedures to ensure procurement and suspension and debarment is adequately documented for that goods and services purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the Organization should verify that all vendors under covered transactions are not listed on the excluded parties list system by performing a search on sam.gov and maintaining the results of such search in the vendor’s file.

Corrective Action Plan

We concur with this finding and have implemented measures to mitigate the repetition or additional occurrences. We implemented an electronic system to more efficiently collect and store expenditures and supporting documentation, eliminating a paper filing system. We updated our fiscal policies and procedures in 2022 to include procurement, suspension and debarment procedures and implemented a procedure for ensuring compliance with obtaining required bids, etc. Responsible person(s): Jemea Dorsey, CEO and Jeanetta Johnson, Fiscal Manager Anticipated Completion Date: FY 2022

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 8798 2021-007
    Significant Deficiency Repeat
  • 8799 2021-008
    Significant Deficiency Repeat
  • 8800 2021-009
    Material Weakness Repeat
  • 8801 2021-010
    Significant Deficiency Repeat
  • 8803 2021-007
    Significant Deficiency Repeat
  • 8804 2021-008
    Significant Deficiency Repeat
  • 8805 2021-009
    Material Weakness Repeat
  • 8806 2021-010
    Significant Deficiency Repeat
  • 8807 2021-011
    Material Weakness Repeat
  • 585240 2021-007
    Significant Deficiency Repeat
  • 585241 2021-008
    Significant Deficiency Repeat
  • 585242 2021-009
    Material Weakness Repeat
  • 585243 2021-010
    Significant Deficiency Repeat
  • 585244 2021-011
    Material Weakness Repeat
  • 585245 2021-007
    Significant Deficiency Repeat
  • 585246 2021-008
    Significant Deficiency Repeat
  • 585247 2021-009
    Material Weakness Repeat
  • 585248 2021-010
    Significant Deficiency Repeat
  • 585249 2021-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.926 Healthy Start Initiative $983,498
93.110 Maternal and Child Health Federal Consolidated Programs $143,358
14.218 Community Development Block Grants/entitlement Grants $51,105
93.310 Trans-Nih Research Support $32,475
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $22,767
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $22,350
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $3,658