Finding 478667 (2023-002)

Finding #2023-002 – Significant Deficiency and Other Noncompliance. U. S. Department of Housing and Urban Development, Passed through City of Houston, HOME Investment Partnerships Program, Assistance Listing #: 14.239. Contract period: 02/17/23 – 02/16/40. Criteria: Prime and subcontractors are required to be reported on the Section 3 Utilization Plan and the MWSBE Utilization Plan by HAWC. Condition and context: During our testing of 6 subcontractors out of 55 for proper inclusion in the Section 3 Utilization Plan and the MWSBE Utilization Plan, we identified one subcontractor was not included on the reports in a timely manner. Cause: HAWC engaged the construction company to provide the required reporting for the Section 3 Utilization Plan and the MWSBE Utilization Plan. The construction company had overlooked filing the reports in the month the subcontractor was utilized (June 2023), but subsequently identified the error and filed the August 2023 report with the subcontractor included. Effect: The Section 3 Utilization Plan and MWSBE Utilization Plan reports were incomplete in June 2023. Recommendation: Provide additional independent reviews of the Section 3 Utilization Plan and MWSBE Utilization Plan reports. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.