Finding 528641 (2024-001)

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Procurement Policies Not Followed Program Name: Continuum of Care Assistance listing #: 14.267 Federal Awarding Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Procurement Criteria: According to 2 CFR 200.320(a)(2) price quotations must be obtained from an adequate number of qualified sources for the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Condition: The Organization did not follow the small purchase procedures applicable to their procurement policy (for procurements between $10,000 and $250,000). Cause: Many expenses were split between multiple programs over the course of the program. While the expenditures were individually within the micro-purchase threshold; when combined, the amounts exceeded this threshold. Effect: The Organization did not adequately meet the requirements for their procurement policy which notes that the Organization should perform a cost/price analysis on their contractors. Repeat Finding: This is a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend the Organization receive price quotations for all material purchases and recurring expenditures relevant to federal awards.