Finding 1174823 (2024-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-02-20

AI Summary

  • Core Issue: PCRI failed to provide documentation of multiple bids for a rehabilitation transaction, violating procurement standards.
  • Impacted Requirements: This lack of documentation undermines compliance with Uniform Guidance, specifically regarding cost reasonableness and competitive procurement.
  • Recommended Follow-Up: Implement controls for maintaining procurement records and provide training to staff to prevent future documentation gaps due to turnover.

Finding Text

Criteria: In accordance with Uniform Guidance procurement standards, rehabilitation activities must include documented inspections, a clearly defined scope of work approved and signed by the homeowner, evidence of competitive procurement (such as multiple bids) to support cost reasonableness, engagement of properly licensed contractors, and completion of required environmental clearances. Condition: There was one instance where PCRI could not locate documentation of multiple bids for a transaction. Cause: The lack of documentation was attributed to staff turnover involving the employee responsible for maintaining procurement and bid records. Effect: The absence of multiple bids limits assurance that the costs incurred were reasonable and in compliance with Uniform Guidance procurement requirements. Recommendation: We recommend that PCRI implements controls to ensure procurement records, including bid documentation, are maintained and readily accessible. In addition, PCRI should provide training and cross coverage for procurement responsibilities to mitigate the risk of future documentation gaps resulting from employee turnover.

Corrective Action Plan

While PCRI does have systems in place to adequately ensure procurement requirements are followed, the controls around these systems were negatively impacted due to the deficiencies outlined in Finding 2024-001 regarding staff turnover in the fiscal department, as well as staff turnover in the specific program area that incurred this finding and, while evidence that bids were sought could be located, inadequate transition of documentation led to the referenced bids being inaccessible. PCRI is taking steps to ensure centralized document management in the programs department as well as reinforcing controls around procurement via its outsourced accounting firm’s processes.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1174812 2024-002
    Material Weakness Repeat
  • 1174813 2024-003
    Material Weakness Repeat
  • 1174814 2024-004
    Material Weakness Repeat
  • 1174815 2024-002
    Material Weakness Repeat
  • 1174816 2024-003
    Material Weakness Repeat
  • 1174817 2024-004
    Material Weakness Repeat
  • 1174818 2024-002
    Material Weakness Repeat
  • 1174819 2024-003
    Material Weakness Repeat
  • 1174820 2024-004
    Material Weakness Repeat
  • 1174821 2024-002
    Material Weakness Repeat
  • 1174822 2024-003
    Material Weakness Repeat
  • 1174824 2024-002
    Material Weakness Repeat
  • 1174825 2024-003
    Material Weakness Repeat
  • 1174826 2024-002
    Material Weakness Repeat
  • 1174827 2024-003
    Material Weakness Repeat
  • 1174828 2024-002
    Material Weakness Repeat
  • 1174829 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.38M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.26M
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $35,670
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $5,621