Finding Text
2024-003 Condition: Deficiencies Noted in Procurement During the review of the contracts selected for audit, it was noted that in all contracts, small purchases, and sealed bids the Authority did not follow their procurement policy. Assistance Listing #: 14.867 Questioned Costs: Undetermined Cause: The Authority's deficiency in procurement and contracts stems from a lack of certain controls concerning HUD requirements and procedures. Effect: The Authority has not been in complete compliance with the above HUD requirements. Criteria: HUD Regulation regarding 24 CFR 85.36 Recommendation: We recommend that all contracts have the same level of documentation of procurement for small purchases contracts and that the Authority add additional support for contracts where only one bid for services was available. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.