Finding 503539 (2024-001)

2024-001 – PROCUREMENT, SUSPENSION, AND DEBARMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing CRITERIA Any small purchase or contract, greater than $10,000 ($2,000 if Davis-Bacon rules apply) but not exceeding $50,000, may be made in accordance with the small purchase procedures outlined in this section. BHA Staff seeking prospective purchase, to be funded within the current year’s operating or capital budget they manage, should solicit a minimum of two price quotes, oral or written, if available from prospective contractors, through a competitive Request for Proposal (RFP) process by phone, fax or email. Results of this process, including bid selection recommendation and related justification are then presented to the CO who will make the award to the entity with the lowest acceptable bid and/or greatest value. CONDITION We identified 2 instances in which sufficient documentation was not maintained to support the procurement of the vendor. CAUSE Documentation of procurement decisions was not sufficiently maintained. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Known Questioned Costs - $98,518 representing the aggregate payments to these two vendors. CONTEXT All purchases are required to be made within the Authority’s procurement policy. There were approximately 27 vendors paid in excess of the micro purchase threshold. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority develop and implement sufficient policies and procedures which provides for compliance with the Procurement, Suspension, and Debarment requirements of the Uniform Guidance. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.