Finding 1074408 (2023-003)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-09-24

AI Summary

  • Core Issue: The Authority failed to maintain adequate documentation for vendor procurement, impacting compliance with procurement policies.
  • Impacted Requirements: Small purchase procedures require obtaining a reasonable number of quotes, which was not followed in three instances.
  • Recommended Follow-Up: Continue implementing the corrective action plan to ensure competitive pricing and proper documentation for future purchases.

Finding Text

2023-003 – PROCUREMENT, SUSPENSION, AND DEBARMENT Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing Program CRITERIA For any amounts above the Petty Cash ceiling, but not exceeding $250,000 in accordance with revisions to 2CFR 200.67 and 2 CFR 200.88, the NBHA may use small purchase procedures. Under small purchase procedures, the NBHA shall obtain a reasonable number of quotes (preferably three); however, for purchases of less than $10,000, per NDAA Section 806 also known as Micro Purchases, only one quote is required provided the quote is reasonable. CONDITION We identified 3 instances in which sufficient documentation was not maintained to support the procurement of a vendor. CAUSE The Authority was in the process of implementing their corrective action plan from the prior year. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Known Questioned Costs - $115,135, representing the aggregate payments to these four vendors. CONTEXT All purchases are required to be made in accordance with the Authority’s procurement policy. There were approximately 60 vendors paid in excess of the micro purchase threshold. We selected a sample of 11 vendors. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority continue with their corrective action plan from the prior year. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 497965 2023-002
    Material Weakness Repeat
  • 497966 2023-003
    Significant Deficiency Repeat
  • 1074407 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $8.77M
14.850 Public Housing Operating Fund $4.41M
14.872 Public Housing Capital Fund $1.82M
14.896 Family Self-Sufficiency Program $153,531
14.870 Resident Opportunity and Supportive Services - Service Coordinators $70,687