Finding 1156682 (2024-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-09-30

Audit: 369051

Organization: Housing Authority of the City of Ellijay (GA)

Auditor: Malcolm Johnson Company P A

AI Summary

Core Issue: Deficiencies in procurement practices, including non-compliance with HUD regulations and internal policies.
Impacted Requirements: Contracts awarded and automobile purchases did not follow required procedures, leading to potential violations.
Recommended Follow-Up: Review and adhere to procurement policies and HUD guidelines to ensure compliance in future contracts.

Finding Text

2024-001 Condition: Deficiencies Noted in Procurement: During the review of Fiscal Year 2024 Procurement the following deficiencies were noted: (2) Contracts awarded lacked procurement in compliance with HUD regulations and Housing Authority policy. (2) Automobiles were purchased without quotes or estimates. Assistance Listing #: 14.872 Questioned Costs: Unknown Cause: The Authority did not have adequate internal controls to determine that they were not in compliance with regulations or their own policies. Effect: The Authority has not been in complete compliance with HUD requirements. Criteria: The Authority is required by regulation and their own administrative policies to perform certain procedures to ensure that the program is administered in accordance with HUD regulations. Recommendation: We recommend that the Authority review and follow their procurement policies and HUD guidelines in obtaining and signing contracts so that all contracts are in accordance with applicable HUD regulations.

Corrective Action Plan

2024-001 Condition: Deficiencies Noted in Procurement Steps to resolve: Management agrees with the audit finding and the auditor’s recommendation. Going forward we will review and follow our procurement policies and HUD guidelines in obtaining and signing contracts so that all contracts are in accordance with applicable HUD regulations. We will implement any needed procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit. Individual responsible for correction: Ms. Linda Dillard, Executive Director Timeframe: As of December 31, 2025

Other Findings in this Audit

1156683 2024-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.872	Public Housing Capital Fund	$764,141
14.850	Public and Indian Housing	$257,559