Finding 1140942 (2023-007)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-06-11

AI Summary

  • Core Issue: NAIHC failed to keep a signed contract for one of the eight vendors tested, violating procurement documentation requirements.
  • Impacted Requirements: This finding relates to UG §200.318, which mandates detailed records of procurement processes.
  • Recommended Follow-Up: NAIHC should enhance its policies to ensure all signed contracts are retained with procurement documentation.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Compass Technical Assistance and Capacity Building Assistance Listing Number: 14.259 Federal Award Identification Number and Year: N-15-IT-TA-0001 Award Period: 03/17/16-09/12/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: UG §200.318 General Procurement Standards. (i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: For one of the eight procured vendors selected for testing, NAIHC did not retain a signed contract between the vendor and NAIHC. Context: A nonstatistical sample of eight out of thirty-seven procured vendors were selected for testing for the Community Compass Technical Assistance and Capacity Building program. The condition noted above was identified during our procedures over the Procurement compliance requirements. Effect: NAIHC did not properly retain required documentation of procurement details. Cause: NAIHC did not retain a signed contract. Recommendation: We recommend that NAIHC strengthen its current policies and procedures to ensure that a signed contract is retained with procurement documentation. Management’s View: See Separate Corrective Action Plan.

Categories

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 564500 2023-007
    Significant Deficiency
  • 564501 2023-008
    Significant Deficiency
  • 1140943 2023-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.259 Community Compass Technical Assistance and Capacity Building $57,120