Finding Text
2022-007 – Procurement, Suspension, and Debarment
U.S. Department of Housing and Urban Development
14.850 – Low Rent Public and Indian Housing
I. Procurement, Suspension, and Debarment – Significant Deficiency
Condition: The Authority did not have sufficient internal controls over debarment.
Criteria: Federal expenditure debarment requirements provide for internal controls to ensure federal funds are not used to pay contractors that are debarred.
Cause: The Authority did not have policies in place to document review of contractors for suspension and debarment.
Effect: Suspension and debarment were not verified.
Questioned Costs: None identified.
Perspective: This is a systemic issue.
Repeat Finding: Not a repeat finding.
Recommendation: RBT recommends that the Authority review its internal controls process for procurement and revise the procurement policy to include documenting suspension and debarment procedures when awarding contracts.
Auditee’s Response: See corrective action plan.