Finding 560829 (2024-002)

Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Development Multi-Family Housing Revitalization Demonstration Program Assistance Listing Number: 10.447 Award Period: 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Procurement standards require a policy in place to be followed to endure entities are properly procuring goods and services and to ensure vendors and contractors are not suspended or debarred. Condition: During procurement and suspension and debarment testing, it was noted that the Organization does not have federal procurement policy that included a conflict of interest policy and other federal requirements. Questioned costs: None Context: Procurement transactions tested followed Rural Development’s policies Cause: The Organization does not have an approved federal procurement policy. Effect: It could cause the Organization to be out of compliance with federal requirements over procurement. Repeat finding: No Recommendation: We recommend that Organization approve a federal procurement policy and implement controls to ensure it is being followed. Views of responsible officials and planned corrective actions: There is no disagreement with the finding.