Finding Text
Finding 2025-004 – Procurement Deficiencies – Procurement and Suspension and Debarment – ALN 14.850 Low Rent Public Housing, ALN 14.872 Capital Fund Program – Noncompliance and Material Weakness Condition & Cause: We reviewed a sample of three vendor contracts and payments over the Housing Authority’s $40,000 small purchase threshold. For two large purchases, we have determined that the Housing Authority has not shown compliance with its procurement policy or federal procurement requirements. • The Authority purchased three vehicles from Gary Yeomans Ford for a total of $127,434. We found no evidence that the purchases were solicited or advertised, no documentation that other vehicle suppliers were solicited or considered, and no sole-source justification on file supporting a noncompetitive procurement. • The Authority paid Epp-lectric $214,269 for a metering project. This was documented and procured as a small purchase (three quotes obtained) instead of a formal sealed bid, even though the dollar amount required formal bidding. The deficiencies can be attributed to a lack of oversight over procurement during the audit period. Criteria: Procurement Standards outlined in 2 CFR 200 require full and open competition once purchases exceed an entity’s small purchase threshold and lay out specific methods for meeting that requirement. The Authority’s own policy sets that threshold at $40,000. Effect: Without proper competition and documentation, the Authority can’t show these purchases were reasonable or the best use of federal funds. Recommendation: The Authority should strengthen its procurement procedures to ensure staff use the correct method and require documented review and approval before a purchase is made. All parties involved with procurement should also receive training in procurement requirements. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.