Finding Text
Low Rent Program-CDFA#14.850 and Capital Fund Program-CDFA# 14.872
Finding 2024-001-Non-Compliance With Procurement Policy-Procurement
Criteria and Condition
All amounts above the Small Purchase Threshold (SMT) should follow the Procurement Policy. Depending on the amount, telephone, email, or written bids may be acceptable. In other instances, depending on the estimated amount of the expenditure, more strict methods are required by both the Authority’s Procurement Policy and also federal regulations regarding procurement. Even when individual expenditure amounts paid are below the SMT, if it is reasonable to assume that similar expenditures through the year will in total exceed the SMT, obtaining other quotes is still required.
Context
The adherence to policy has improved since this finding was made in the prior year. Each Low Rent manager maintains a book of quotes and comparable prices for the services they procure.
However, it appears the following major expenditures were not bid out:
$86,764-Cameras and related equipment and support
$100,441-Air conditioning replacements, repairs, and maintenance
Effect
It is possible that similar services might be procured for less dollars.
Cause
Management asserts that there are few if any other vendors in the Lawton area for the above services, or in the situation of air conditioning, are reliable and prompt.
Recommendation
As noted above in Context, the authority has improved its solicitation and documentation of efforts to obtain smaller items. For the two noted in the audit finding above, we suggest attempting to obtain quotes in nearby larger towns also. View of Responsible Official
I am Rita Love, Executive Director and Designated Person to answer these audit findings. We will comply with the auditor’s recommendation.