Finding 1149726 (2020-005)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2020
Accepted
2025-08-11
Audit: 364071
Organization: Richmond Housing Authority (CA)

AI Summary

  • Core Issue: The Housing Authority failed to document that four vendors were not suspended or debarred before awarding contracts.
  • Impacted Requirements: This violates the verification requirements outlined in 24 CFR part 180 for federal awards.
  • Recommended Follow-Up: Ensure that documentation, such as screenshots, is consistently retained to verify vendor suspension and debarment status before contract awards.

Finding Text

Finding SA2020-005: Lack of Documented Suspension and Debarment Verification for Vendors AL number: 14.850 AL Title: Public and Indian Housing Name of Federal Agency: Department of Housing and Urban Development Federal Award Identification number and year: CA010 (2020) Criteria: 24 CFR parts 180 required non-federal entities including Public Housing Authorities (PHA) must verify that vendors and contractors are not suspended or debarred prior to entering into a contract. Condition: During our audit, we noted four vendors have no documentation to proof that vendors were not suspended or debated. Cause: We understand that the staff overseeing the federal awards during fiscal year 2020 are no longer with the Authority, and therefore, the staff overseeing the federal awards subsequent to the fiscal year were unable to provide the supporting documents. Effect: The Housing Authority is not compliance with the suspension and debarment requirements as stated in 24 CFR part 180. Recommendation: The Housing Authority should retain documentation that vendors are not suspended or debarred prior to awarding federally funded contracts. Management Response: The Authority understands and accepts the recommendation that documentation of vendor suspension or debarment status must be retained. The Authority staff has followed the City’s process in verifying this information, but there was no proof retained. It has been inquired on the sufficient requirement and the understanding is that a screenshot will suffice. Staff will proceed with retaining a screenshot of vendor verification.

Categories

Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

  • 573280 2020-001
    Material Weakness Repeat
  • 573281 2020-002
    Material Weakness
  • 573282 2020-003
    Material Weakness Repeat
  • 573283 2020-004
    Material Weakness Repeat
  • 573284 2020-005
    Material Weakness
  • 573285 2020-006
    Material Weakness
  • 573286 2020-007
    Material Weakness
  • 573287 2020-007
    Material Weakness
  • 573288 2020-008
    Material Weakness
  • 1149722 2020-001
    Material Weakness Repeat
  • 1149723 2020-002
    Material Weakness
  • 1149724 2020-003
    Material Weakness Repeat
  • 1149725 2020-004
    Material Weakness Repeat
  • 1149727 2020-006
    Material Weakness
  • 1149728 2020-007
    Material Weakness
  • 1149729 2020-007
    Material Weakness
  • 1149730 2020-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $1.86M
14.872 Public Housing Capital Fund $1.42M