Finding 9146 (2023-001)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-01-19

AI Summary

  • Core Issue: Signal Behavioral Health Network lacks a documented procurement process and does not fully comply with state, local, and federal procurement laws.
  • Impacted Requirements: Failure to verify that contractors are not suspended or debarred violates compliance with 2 CFR part 200.
  • Recommended Follow-Up: Enhance the procurement policy to include all necessary elements, define oversight roles, and establish procedures for verifying contractor eligibility.

Finding Text

2023-001 Procurement and Suspension and Debarment – Significant Deficiency in Internal Control over Compliance Criteria and Condition: Signal Behavioral Health Network must document their procurement process in writing, comply with applicable state and local laws and regulations, and conform to applicable federal statutes and procurement requirements identified in 2 CFR part 200. In addition, Signal Behavioral Health Network is prohibited from contracting with parties that are suspended or debarred. Under the guidelines, before contracting with a non-federal entity, the grantee must verify that the non-federal entity is not suspended, debarred, or otherwise excluded from participating in the transaction. Recommendation: We recommended Signal Behavioral Health Network enhance their written procurement policy to include all required elements by Uniform Guidance. Procedures should be included that outline processes and control activities specifically defining oversight of contractors’ performance, which personnel are responsible for each step in the process and who is performing the review over the process, including conflicts of interest and who is responsible for ensuring vendors under covered transactions are not suspended, debarred, or otherwise disqualified.

Corrective Action Plan

View of Responsible Officials and Planned Corrective Actions: Management is reviewing their written procurement policy and will enhance it to include all elements required by Uniform Guidance including ensuring vendors and providers are not suspended, debarred, or otherwise disqualified.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9147 2023-001
    Significant Deficiency
  • 585588 2023-001
    Significant Deficiency
  • 585589 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $18.99M
93.788 Opioid Str $10.41M
21.027 Coronavirus State and Local Fiscal Recovery Funds $8.06M
93.958 Block Grants for Community Mental Health Services $1.27M
93.778 Medical Assistance Program $22,470