Finding Text
Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-003-Procurement Policy Not Followed- Procurement Criteria and Specific Requirement The Authority should follow its Procurement Policy, federal and state regulations. Condition Found For purchases or expenditures that exceed $1,001 but are less than $100,000, the Authority should follow small purchase procedures. These procedures require the Authority to obtain a reasonable number of quotes, but preferably at least three. We noted a minimum of eighteen disbursements, that ranged from $1,663 to $14,600. The total reviewed for these was $95,813. We were not able to review any quotes for these. Cause The cause is unknown. We do note that the Executive Director did not begin until May 25, 2022. Effect Documentation is not as strong as needed to show the best price and quality was obtained. Recommendation The Authority should make every effort to follow its Procurement Policy. Management needs to obtain a Proof of Insurance from the proposers. When it is not possible to obtain written quotes, telephone calls and/or e-mails should be utilized. The date, person, and amount quoted, and any other relevant factors should be noted in written notes. When it appears impossible to obtain multiple quotes, we suggest a contractor in a nearby town be contacted. Inquire as to what they charge for that locality, with knowledge that travel costs will likely price them out of the Authority?s area. Even when only one quote is obtained, management must always make sure the amount is reasonable. Origination Date and Prior Year Reference The finding originated in the prior year ended September 30, 2021. View of Responsible Official We will comply with the auditor?s recommendation.