Finding Text
2025-001 – PROCUREMENT, SUSPENSION AND DEBARMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing CRITERIA Any small purchase or contract, greater than $15,000 ($2,000 if Davis-Bacon rules apply) but not exceeding $50,000, may be made in accordance with the small purchase procedures outlined in this section. WHA staff seeking prospective purchase, to be funded within the current year’s operating or capital budget they manage should solicit a minimum of two price quotes, oral or written, if available from prospective contractors, through a competitive Request for Proposal (RFP) process by phone, fax or email. Results of this process, including bid selection recommendation and related justification are then presented to the compliance officer who will make the award to the entity with the lowest acceptable bid and/or greatest value. CONDITION As a result of audit procedures, we identified following: > 1 instance where a vendor exceeding small purchase threshold was not competitively procured. > 3 instances where contract was approved without any other procurement file or documentation. > 2 instances of insufficient documentation retained in procurement file. CAUSE The Authority’s internal control over procurement was not effective at identifying the need for competitive procurement and procurement policy was not properly implemented. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS None identified. CONTEXT All purchases are required to be made in accordance with the Authority’s procurement policy. We selected a sample of 8 vendors. REPEAT FINDING Not a repeat finding RECOMMENDATION We recommend that the Authority develop and implement sufficient internal control policies and procedures to provide assurance for compliance with the Procurement, Suspension, and Debarment requirements of the Uniform Guidance. In addition, the Authority should provide proper training to the staff to ensure adherence to Authority’s Procurement policy. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.