Finding 500259 (2023-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: The Authority lacks adequate controls in the procurement process, leading to missing documentation.
  • Impacted Requirements: This affects compliance with HUD regulations and 2 CFR requirements for procuring goods and services.
  • Recommended Follow-Up: The Authority should improve its policies and internal controls to ensure all procurement documentation is complete and compliant.

Finding Text

Finding No. 2023-003: Missing Procurement Documentation (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Capital Fund Program Federal Assistance Listing Number: 14.872 Compliance Requirement: Procurement Criteria: Per HUD regulations, the Authority is required to follow 2 CFR regulations on procuring goods and services. Condition: The Authority did not have adequate controls over the procurement process, resulting in missing procurement documentation. Context: The Authority had three new contracts entered into during year; we reviewed two and identified missing procurement documentation. Effect: The Authority did not procure goods and services properly under the required regulations. Cause: The Authority did not have the appropriate controls over the procurement process to maintain proper documentation. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure that the procurement process includes the required documentation. Views of Responsible Officials: The Authority agrees with the finding.

Corrective Action Plan

Finding No. 2023-003: Missing Procurement Documentation (Significant Deficiency) Person Responsible: Reginal Barner Date of Completion: 12/31/2024 Corrective Action Plan: The agency will assess the procurement process and implement internal controls where necessary.

Categories

Procurement, Suspension & Debarment HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 500257 2023-001
    Material Weakness
  • 500258 2023-002
    Significant Deficiency
  • 1076699 2023-001
    Material Weakness
  • 1076700 2023-002
    Significant Deficiency
  • 1076701 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.08M
14.U82 Section 8 New Construction Sub Rehab $673,808
14.850 Public Housing Operating Fund $552,645
14.870 Resident Opportunity and Supportive Services - Service Coordinators $79,135