Finding 1105776 (2024-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-03-21

AI Summary

  • Core Issue: The Agency failed to document the justification for its procurement methods, specifically for sole source procurements.
  • Impacted Requirements: This violates the Uniform Guidance, which mandates proper documentation for procurement processes.
  • Recommended Follow-up: Implement an electronic system to maintain an audit trail for all procurement activities to ensure compliance.

Finding Text

2024-001 – Procurement Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number: IL1780LST172201 - 2023 IL1651L5Tl42204 - 2023 IL1780L5T172100 - 2022 IL0315LST142215 - 2023 IL1651L5T142103 - 2022 Award Periods: August 1, 2022 – July 31, 2023; August 1, 2023 – July 31, 2024; July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Under the Uniform Guidance, organizations are required to document the basis for their procurement. For the procurements tested, the Agency did not have documentation to support how these procurements met the requirements. Condition: While the Agency has a procurement policy in place that meets the requirements of Uniform Guidance, the Agency did not create and retain appropriate documentation for the method of procurement utilized. Questioned Costs: None Context: For one transaction selected for testing under assistance listing number (ALN) 14.267 the Agency utilized the sole source method of procurement but did not maintain documentation justifying why the use of this method was appropriate. Cause: Unknown Effect: Lack of following procurement procedures could result in the Agency engaging vendors who are not the most efficient or economical. Repeat Finding: This finding is not a repeat finding. Recommendation: CLA recommends the Agency maintain an audit trail for all procurements. This can be done electronically for efficiency. Views of Responsible Officials: There is no disagreement with this audit finding.

Categories

Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 529334 2024-001
    Significant Deficiency
  • 529335 2024-002
    Significant Deficiency
  • 1105777 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $797,523
93.959 Block Grants for Prevention and Treatment of Substance Abuse $366,576
93.276 Drug-Free Communities Support Program Grants $124,730
93.667 Social Services Block Grant $117,596
93.550 Transitional Living for Homeless Youth $62,320
93.569 Community Services Block Grant $55,378
14.218 Community Development Block Grants/entitlement Grants $13,610