Finding 1223001 (2025-003)

Finding #2025-003 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Contract Year: 02/15/24 – 08/31/31. Condition and context: During our testing of a sample of 3 expenditures requiring procurement, we identified one vendor exceeding $350,000 for which proper procurement procedures were not followed as Target Hunger did not issue a public notice. Additionally, Target Hunger's procurement policy does not address formal procurement methods for purchases exceeding the Simplified Acquisition Threshold. Recommendation: Revise Target Hunger’s procurement policy to include procedures for formal procurement for purchases exceeding the Simplified Acquisition Threshold in accordance with the Uniform Guidance. Planned corrective action: Target Hunger is revising its procurement policy to include procedures for formal procurement for purchases exceeding the Simplified Acquisition Threshold in accordance with the Uniform Guidance that includes the issuance of a public notice. While a public notice was not issued for this procurement, Target Hunger undertook efforts intended to obtain fair and competitive proposals. These efforts included soliciting referrals from its Capital Spending and Facilities Committee and issuing requests for proposals to multiple (six) general contractors identified through committee members and the project manager. Target Hunger also sought clarification regarding procurement requirements from the U. S. Department of Housing and Urban Development; however, no response was received. The corrective actions described above are intended to address this deficiency and ensure future procurements are conducted in full compliance with applicable federal requirements. Responsible officer: Sandra Wicoff, Chief Executive Officer. Estimated completion date: July 2026.