Finding Text
Procurement Federal Agency: Department of Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing Number: 14.251 Award Period: February 5, 2024 – August 31, 2031 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: 2 CFR §§200.318–200.326 require entities to maintain records supporting the procurement method, vendor selection, and basis for price. Condition: Of four procurement transactions tested, one lacked sufficient documentation to demonstrate compliance with Uniform Guidance procurement requirements. Questioned costs: None. Context: We tested four procurement transactions within the major program; one transaction did not include sufficient supporting documentation to demonstrate compliance. Cause: Controls over procurement documentation and review were not consistently applied. Effect: Noncompliance occurred for the transaction tested, increasing the risk of undetected noncompliance and questioned costs. Repeat finding: No. Recommendation: We recommend the Organization strengthen controls to ensure procurement documentation is consistently obtained, retained, and reviewed for compliance. View of responsible officials: There is no disagreement with the audit finding.