Finding 33558 (2022-002)

2022-2 Condition: Procurement During the review of two (2) contracts selected for audit, the following conditions were noted: 2 of 2 files lacked documentation of preliminary cost analysis for scope of work to be performed. 2 of 2 files lacked documentation of lowest responsible bidder being selected as required by policy 2 of 2 files lacked documentation of bid advertisement 2 of 2 files lacked procurement in compliance with policy CFDA Number: 14.867 CARES, 14.862 CARES 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 Regulations regarding 24 CFR 85.36 and CARES funding guidance 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.