Audit 320712

Finding 2023 – 002: Procurement Policy and Documentation on Procurement CFDA 14.867 – Indian Housing Block Grant Material Weakness Condition: During our review of procurement, suspension and debarment, we reviewed one transaction that met the capitalization threshold. It was determined that there were no bids obtained and there was not a search for suspension and debarment performed. Criteria: In accordance with 2 CFR Section 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner provided full and open competition consistent with the standards of this section and Section 200.320. Questioned Costs: None. Effect: Lack of adherence to policies and procedures consistent with Uniform Guidance procurement standards for the whole fiscal year could result in the Authority being non-compliant on purchases made with federal funds. Cause: The Authority did adopt a new procurement policy addressing 2 CFR Section 200.319 in June of 2023. Due to the timing of the adoption of the updated policy, it was not implemented during the whole fiscal year under audit. Recommendation: We recommend the Authority adhere to their policy and that all documentation related to procurement decisions be kept for all purchases according to the dollar threshold requirements and that all staff be trained in these procedures. Response: See the corrective action plan that accompanies the schedule of findings and questioned costs.

Finding 2023 – 003: Single Audit Report Filed Late Condition: The audited financial statements were not submitted to the Federal Clearinghouse by the due date of June 30, 2024. Criteria: In accordance with 2 CFR Section 200.512, an entity expending more than $750,000 of federal funds within an fiscal year must submit the data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the year end of the audit period. Questioned Costs: None. Effect: The Authority was not in compliance with Uniform Guidance, which could lead to sanctions by the funding agencies. Cause: The general ledger was not ready for audit as significant accounts were not reconciled in a timely manner. Recommendation: We recommend the Authority should establish a timely process to ensure completion of the audit by June 30 of each year. Response: See the corrective action plan that accompanies the schedule of findings and questioned costs.

Finding 2023 – 002: Procurement Policy and Documentation on Procurement CFDA 14.867 – Indian Housing Block Grant Material Weakness Condition: During our review of procurement, suspension and debarment, we reviewed one transaction that met the capitalization threshold. It was determined that there were no bids obtained and there was not a search for suspension and debarment performed. Criteria: In accordance with 2 CFR Section 200.319, all procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner provided full and open competition consistent with the standards of this section and Section 200.320. Questioned Costs: None. Effect: Lack of adherence to policies and procedures consistent with Uniform Guidance procurement standards for the whole fiscal year could result in the Authority being non-compliant on purchases made with federal funds. Cause: The Authority did adopt a new procurement policy addressing 2 CFR Section 200.319 in June of 2023. Due to the timing of the adoption of the updated policy, it was not implemented during the whole fiscal year under audit. Recommendation: We recommend the Authority adhere to their policy and that all documentation related to procurement decisions be kept for all purchases according to the dollar threshold requirements and that all staff be trained in these procedures. Response: See the corrective action plan that accompanies the schedule of findings and questioned costs.

Finding 2023 – 003: Single Audit Report Filed Late Condition: The audited financial statements were not submitted to the Federal Clearinghouse by the due date of June 30, 2024. Criteria: In accordance with 2 CFR Section 200.512, an entity expending more than $750,000 of federal funds within an fiscal year must submit the data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the year end of the audit period. Questioned Costs: None. Effect: The Authority was not in compliance with Uniform Guidance, which could lead to sanctions by the funding agencies. Cause: The general ledger was not ready for audit as significant accounts were not reconciled in a timely manner. Recommendation: We recommend the Authority should establish a timely process to ensure completion of the audit by June 30 of each year. Response: See the corrective action plan that accompanies the schedule of findings and questioned costs.