Finding 39333 (2022-001)

2022-1 Condition: Deficiencies Were Noted in Our Examination of Procurement During the review of the Lewis Walker Roofing contract the following deficiencies were noted: Contract lacked documentation cost analysis. Contract lacked documentation of performance and payment bonds. Contract piggyback was not performed in compliance with policy and HUD piggybacking requirements. CFDA Number: 14.872 Questioned Costs: None Cause: The Authority did not have adequate internal controls (monitoring) to determine that they were not in compliance with regulations or their own policies. Effect: The Authority has not been in complete compliance with HUD requirements. Criteria: The Authority is required by regulation and their own administrative policies to perform certain procedures to ensure that the program is administered in accordance with HUD regulations. Recommendation: We recommend that the Authority formulate, or review and update all its administrative policies to ensure that all contracts are in accordance with applicable HUD regulations. Reply: We concur with the Auditor?s recommendation. We will review and update all our Procurement Policies to ensure that all contracts are in compliance with HUD regulations.