Finding 396724 (2022-013)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2022
Accepted
2024-05-15

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: Federal guidelines require competitive proposals from multiple qualified sources for expenditures exceeding $100,000.
  • Recommended Follow-Up: Implement advance planning for procurement actions and regularly review past purchases to identify opportunities for more efficient spending.

Finding Text

2022-013 HUD Procurement Policies Were Not Followed Federal Awards: 14-850 Public and Indian Housing Low Rent Program 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: Unknown. Effect: The Fayetteville Housing Authority did not ensure that Federal funds were expended in most efficient and economical way. Cause: Lack of oversight by prior Fayetteville Housing Authority Management. Recommendation: We recommend that the Fayetteville Housing Authority perform 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: A procurement policy aligned with Federal and State regulations has been approved by the Board. The Executive Director bears the responsibility of guaranteeing the adherence to correct procurement procedures. Additionally, a Capital Needs Assessment has been executed for Public Housing to aid in the identification of forthcoming procurement requirements and in developing the agency's five-year plan. In further commitment to maintaining procurement excellence, two Board Commissioners, the Executive Director, the Director of Finance, and the Executive Assistant have undergone comprehensive training provided by NAHRO in the field of procurement.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 396719 2022-008
    Material Weakness Repeat
  • 396720 2022-009
    Material Weakness Repeat
  • 396721 2022-010
    Material Weakness Repeat
  • 396722 2022-011
    Material Weakness Repeat
  • 396723 2022-012
    Material Weakness Repeat
  • 396725 2022-014
    Significant Deficiency Repeat
  • 396726 2022-015
    Material Weakness Repeat
  • 396727 2022-016
    Material Weakness Repeat
  • 396728 2022-017
    Significant Deficiency Repeat
  • 396729 2022-018
    Material Weakness Repeat
  • 396730 2022-019
    Material Weakness Repeat
  • 396731 2022-020
    Significant Deficiency Repeat
  • 396732 2022-021
    Significant Deficiency Repeat
  • 973161 2022-008
    Material Weakness Repeat
  • 973162 2022-009
    Material Weakness Repeat
  • 973163 2022-010
    Material Weakness Repeat
  • 973164 2022-011
    Material Weakness Repeat
  • 973165 2022-012
    Material Weakness Repeat
  • 973166 2022-013
    Significant Deficiency Repeat
  • 973167 2022-014
    Significant Deficiency Repeat
  • 973168 2022-015
    Material Weakness Repeat
  • 973169 2022-016
    Material Weakness Repeat
  • 973170 2022-017
    Significant Deficiency Repeat
  • 973171 2022-018
    Material Weakness Repeat
  • 973172 2022-019
    Material Weakness Repeat
  • 973173 2022-020
    Significant Deficiency Repeat
  • 973174 2022-021
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $686,857
14.U03 Component Unit- Blended $285,926
14.871 Section 8 Housing Choice Vouchers $72,983
14.U02 Tenant Based Rental Assistance $30,150
14.879 Mainstream Vouchers $7,872
14.U01 Esg- Covid $3,976
14.850 Public Housing Cares Act Fund $414
14.872 Public Housing Capital Fund $0