Finding 394655 (2020-006)

Material Weakness
Requirement
I
Questioned Costs
$1
Year
2020
Accepted
2024-04-25

AI Summary

  • Core Issue: Fayetteville Housing Authority did not follow HUD Procurement policies by soliciting proposals from only one contractor for services over $100,000.
  • Impacted Requirements: Competitive proposals are required for purchases exceeding $100,000 to ensure efficient use of Federal funds.
  • Recommended Follow-up: Implement advance planning and regular reviews of procurement actions to improve efficiency and compliance.

Finding Text

2020-006 HUD Procurement Policies Were Not Followed Criteria: In accordance with HUD Procurement policies, competitive proposals are used to purchase professional services where the total cost will exceed $100,000. The grantee must solicit proposals from an adequate number of qualified sources. Condition: We noted on several instances that the Fayetteville Housing Authority solicited proposal from a single contractor for services over the $100,000. Questioned Costs: In excess of $3.5 million dollars. Effect: The Fayetteville Housing Authority did not ensure that Federal funds were expended in most efficient and economical way. Cause: Lack of management oversight. Recommendation: We recommend that the Fayetteville Housing Authority do advance planning to provide the Fayetteville Housing Authority with adequate time to accomplish its procurement actions. The Fayetteville Housing Authority should periodically review its records of prior purchases, as well as future needs, to find patterns of procurement actions that could be performed more efficiently or economically.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Fayetteville Housing Authority management and staff will closely monitor and follow the agency procurement policy and applicable state and federal procurement requirements and thresholds. All housing authority staff with procurement/ purchasing authority will receive and review the agency procurement at least annually and immediately following approval of updates or edits. Board Commissioners will receive and review agency procurement at least annually. FHA Board of Commissioners will complete all modules of the HUD Financial Management Training by March 31, 2022. All new commissioners will complete all modules of the HUD Financial Management Training within 60 days of approval of board nomination. Finance and management staff will hold or obtain procurement and section 3 certifications within 6 months. Responsible Parties: Audra Butler, Interim Deputy Director and FHA Board of Commissioners Finance Committee. Timeline: Training- June 17, 2022 Ongoing- Compliance reviews beginning January 2022.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 394650 2020-001
    Material Weakness
  • 394651 2020-002
    Material Weakness
  • 394652 2020-003
    Material Weakness
  • 394653 2020-004
    Material Weakness
  • 394654 2020-005
    Material Weakness
  • 394656 2020-007
    Material Weakness
  • 394657 2020-008
    Material Weakness
  • 394658 2020-009
    Material Weakness
  • 394659 2020-010
    Material Weakness
  • 394660 2020-011
    Material Weakness
  • 394661 2020-012
    Material Weakness
  • 394662 2020-013
    Material Weakness
  • 394663 2020-014
    Material Weakness
  • 394664 2020-015
    Material Weakness
  • 394665 2020-016
    Material Weakness
  • 394666 2020-017
    Material Weakness
  • 394667 2020-018
    Material Weakness
  • 971092 2020-001
    Material Weakness
  • 971093 2020-002
    Material Weakness
  • 971094 2020-003
    Material Weakness
  • 971095 2020-004
    Material Weakness
  • 971096 2020-005
    Material Weakness
  • 971097 2020-006
    Material Weakness
  • 971098 2020-007
    Material Weakness
  • 971099 2020-008
    Material Weakness
  • 971100 2020-009
    Material Weakness
  • 971101 2020-010
    Material Weakness
  • 971102 2020-011
    Material Weakness
  • 971103 2020-012
    Material Weakness
  • 971104 2020-013
    Material Weakness
  • 971105 2020-014
    Material Weakness
  • 971106 2020-015
    Material Weakness
  • 971107 2020-016
    Material Weakness
  • 971108 2020-017
    Material Weakness
  • 971109 2020-018
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.89M
14.850 Public and Indian Housing $81,392
14.871 Section 8 Housing Choice Vouchers $20,347