Finding Text
Federal agency: U.S. Department of Health and Human Services
Federal program title: Health Centers Cluster
Assistance Listing Number: 93.224/93.527
Pass-Through Agency: n/a
Pass-Through Number(s): n/a
Award Period: 6/1/21-5/31/22 & 6/1/22-5/31/23
Type of Finding: Material Noncompliance and Material Weakness in Internal Control over Compliance
Criteria or specific requirement: § 200.214 Suspension and debarment. Non-Federal entities are
subject to the non-procurement debarment and suspension regulations implementing Executive Orders
12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and
contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for
participation in Federal assistance programs or activities.
Condition: The Organization could not provide documentation that vendors were verified as not being
suspended or debarred prior to entering into the transaction.
Questioned costs: $133,105
Context: Two of two vendors selected for testing suspension and debarment, did not have
documentation showing that suspension and debarment had been checked prior to entering into a
contract.
Cause: Management turnover
Effect: The Organization could enter into transactions using federal dollars with vendors that are
suspended or debarred.
Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding
number was 2021-006.
Recommendation: We recommend that the Organization verify that vendors are not suspended or
debarred prior to signing contracts or create an approved vendor list.
Views of responsible officials: There is no disagreement with the audit finding.