FAC Explorer

Finding 516661 (2024-001)

- Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-12-23
Audit: 334644
Organization: Central Oregon Regional Housing Authority (OR)
Auditor: Loveridge Hunt & CO PLLC CPAS

AI Summary

  • Core Issue: The Housing Authority did not use the required sealed bid method for procurement as outlined in 2 CFR 200.320.
  • Impacted Requirements: This non-compliance with procurement standards could lead to future issues with funding eligibility.
  • Recommended Follow-Up: Assign a staff member in the development department to ensure proper procurement methods are followed in the future.

Finding Text

Assistance Listing Number/Federal Program/Granting Agency:AL # 21.027. Coronavirus State and Local Fiscal Recovery Funds, American Rescue Plan Act (ARPA) Criteria: Recipients are required to follow procurement procedures as required in the Uniform Guidance, 2 CFR 200.320. Statement of Condition: The Housing Authority did not follow sealed bid method in accordance with the procurement standards 2 CFR 200.320 of the Uniform Guidance. Questioned Costs: None. Cause: The Housing Authority executed a contract with the General Contractor and did not follow sealed bid method for procurement in accordance with the Uniform Guidance. Effect or Possible Effect and Perspective: The Housing Authority did not comply with the procurement requirement set forth in the Uniform Guidance, 2 CFR 200.320. Repeat Finding: Repeat finding. Recommendation: The Housing Authority should designate a person in the development department to verify which procurement method should be used. Views of Responsible Officials: Agree.

Corrective Action Plan

Response to Finding 2024-001 Federal Award Agency: Department of the Treasury Name of Contact Person: Geoff Wall, Chief Financial Officer Views of Responsible Officials: The housing authority did follow its standard procurement policy and obtained 3 qualified bids from General Contractors before executing the contract. As a subrecipient of the ARPA funding staff believed our procurement processes were sufficient. After the contract was executed, staff discovered that the requirement for sealed bids under 2 CFR 200.320 of the Uniform Guidance was passed through in the subrecipient agreement. Corrective Action: 1. The Director of Development and the Chief Financial Officer for the Authority will review grant agreements and subrecipient agreements for all sources of funding for construction/development projects prior to hiring a general contractor in order to confirm the most restrictive requirements for procurement are being followed. Date of Planned Corrective Action: Immediately following being notified of this finding.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 516662 2024-002
    Material Weakness
  • 516663 2024-002
    Material Weakness
  • 1093103 2024-001
    - Repeat
  • 1093104 2024-002
    Material Weakness
  • 1093105 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.60M
14.871 Section 8 Housing Choice Vouchers $1.52M
10.405 Farm Labor Housing Loans and Grants $1.03M
14.879 Mainstream Vouchers $626,651
10.427 Rural Rental Assistance Payments $248,265
14.896 Family Self-Sufficiency Program $181,882