Finding 565167 (2024-001)

2024-001. Contract Administration Federal Awards: 14.872 – Public Housing Capital Fund Type: Significant deficiency Criteria: HUD requires that all pertinent bid and contract document forms be maintained when administering a contract per HUD Handbook No. 7460.8 Rev 2 Chapter 11. Condition: I noted that the PHA did not maintain the following forms required by HUD for the Talbert’s Cleaning Painting & Construction contract: - Request for proposal or invitation for bid - Instruction to bidders - Reports, Certifications, and Other Statements of Bid - General Conditions - Construction Progress Schedule - Schedule of Amounts for Contracts Payments - Notice to Proceed - Bid Tabulation Form Questioned Costs: None noted. Effect: The PHA did not comply with HUD requirements while administering the aforementioned contract. Cause: It appears that the former administration did not follow proper procurement procedures. Recommendation: I recommend that PHA ensure that all contracts and other required forms are signed and maintained in the contract file and follow proper procurement procedures. Management’s Response: The previous administration worked tirelessly to implement the current Procurement Policy. The policy was implemented in the calendar year of 2024 and is being followed. All Board Members and Staff have received an up-to-date Procurement Policy.