Finding 42243 (2022-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-25

AI Summary

  • Core Issue: Eight percent of procurements did not follow the Authority's policy by failing to obtain required price quotations for small purchases.
  • Impacted Requirements: Non-compliance with 2 CFR 200 procurement standards and the Authority's own procurement policy.
  • Recommended Follow-Up: Review and align procurement practices with uniform guidance regulations and ensure adherence to established policies.

Finding Text

2 CFR 200.317 - 200.327 sets procurement standards for non-federal entities other than states. These non-federal entities must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. According to the Authority's Procurement Policy, for small purhcases from $3,501 to $50,000, no less than three offerors shall be solicited to submit price quotations, which may be obtained orally by telephone, or in writing, as allowed by State and local laws. Further, contracts shall not be awarded to debarred, suspended, or ineliglbe contracts. Due to deficiencies in the Authority's internal controls over compliance requireements, eight percent of the procurements tested did not follwo the Authority's policy in regards to procurement as they did not obtain and maintain price quotations for small purchases. The Authority should review the uniform guidance regulations over procurement and consider increasing their thresholds based on uniform guidiance guidelines. Further, the Authority should follow their policy and procedures for procurement.

Corrective Action Plan

The GMHA procurement policy will be updated to follow the current uniform guidance guidelines. The Housing Authority will increase the dollar amount thresholds within this policy to reflect the uniform guidelines. This policy will be revised by November 30, 2023.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 42244 2022-002
    Material Weakness
  • 42245 2022-003
    Material Weakness Repeat
  • 618685 2022-001
    Material Weakness
  • 618686 2022-002
    Material Weakness
  • 618687 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $770,021
14.871 Section 8 Housing Choice Vouchers $755,446
14.872 Public Housing Capital Fund $89,776