FAC Explorer

Finding 46813 (2022-002)

- Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2022-12-06
Audit: 50737
Organization: Housing and Redevelopment Authority of Albert Lea (MN)
Auditor: Bergankdv LTD

AI Summary

  • Core Issue: HRA did not provide documentation showing compliance with federal procurement requirements.
  • Impacted Requirements: Failure to obtain multiple quotes or bids violates procurement regulations.
  • Recommended Follow-Up: HRA should establish internal controls to ensure future compliance with procurement processes.

Finding Text

Audit Finding 2022-002 ? Procurement Requirements Criteria or Specific Requirement: According to compliance requirements, HRA procurements under federal awards must be made in compliance with applicable federal regulations and other procurement requirements specific to an award or subaward. Condition: During testing, we noted supporting documentation was not available that showed that procurements were made in accordance with compliance requirements. Vendors appeared to be selected without the HRA obtaining more than one quote or bid. Context: This finding impacts HRA?s compliance with the procurement requirements. Questioned Costs: None. Effect or Potential Effect: The lack of proper quotes or bids is not in accordance with compliance requirements. Cause: The HRA appears to not be appropriately securing procurements. Recommendation: We recommend the HRA design and implement internal controls to ensure compliance with procurement compliance requirements.

Corrective Action Plan

2022-002 ? Procurement Requirements CORRECTIVE ACTION PLAN (CAP): 1.Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2.Actions Planned in Response to Finding: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented. 3.Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4.Planned Completion Date for CAP: The planned completion date is March 31, 2023. 5.Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 46812 2022-001
    Material Weakness Repeat
  • 623254 2022-001
    Material Weakness Repeat
  • 623255 2022-002
    - Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $594,468
14.850 Public and Indian Housing $558,180
14.872 Public Housing Capital Fund $172,547
10.415 Rural Rental Housing Loans $21,281
10.427 Rural Rental Assistance Payments $20,116