Finding Text
Finding Number 2023-003 Internal Controls and Compliance over Procurement and Suspension and Debarment, United States Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding Grants, ALN 14.251, January 1, 2023 through December 31, 2023 (Significant Deficiency).
Statement of Condition:
The Organization was not in compliance with its procurement of three minibuses funded by the program.
Questioned Costs:
None.
Criteria:
The Organization did not follow Uniform Guidance for the small purchase procurement method associated with the purchase of three minibuses. Competitive quotes were not documented by the Organization. The difficulties encountered post COVID in finding more than one quote due to the industry wide shortages of available minibuses to purchase was not properly documented by the Organization.
Cause:
The Organization did not have a procurement policy in compliance with Uniform Guidance standards.
Effect:
The Organization is not in compliance with Uniform Guidance standards.
Recommendation:
We recommend the Organization create and implement a procurement policy in compliance with Uniform Guidance standards that will ensure compliance with Uniform Guidance formal procurement methods.
Management Response:
Management agrees with the finding. An adequate procurement policy is being developed in order to comply with Uniform Guidance formal procurement methods.