Finding 576625 (2022-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-10-05

AI Summary

  • Core Issue: GHURA used small purchase procedures instead of required sealed bidding for a $30,199 procurement, violating HUD's procurement rules.
  • Impacted Requirements: Compliance with procurement and suspension and debarment requirements was not enforced, affecting the integrity of the procurement process.
  • Recommended Follow-up: Ensure responsible personnel enforce compliance controls and publicly solicit bids for contracts over $25,000 to align with procurement policies.

Finding Text

Finding No.: 2022-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.850 Public and Indian Housing Federal Award No.: GQ001-00000321D Area: Procurement and Suspension and Debarment Questioned Costs: $0 Criteria: In accordance with applicable procurement and suspension and debarment requirements, for any amounts not exceeding $25,000, GHURA may use small purchase procedures. Sealed bidding shall be used for all contracts that exceed the small purchase threshold and that are not competitive proposals or non-competitive proposals. Under sealed bids, GHURA publicly solicits bids and awards a firm fixed-price contract (lump sum or unit price) to the responsible bidder whose bid, conforming with all the material terms and conditions of the Invitation for Bid (IFB), is the lowest in price. Condition: For one (or 4%) of 25 procurement transactions, aggregating $399,002 of $1,919,475 in total program nonpayroll expenditures, small purchase procedures were used for purchase order number PO220265 in the amount of $30,199 for janitorial supplies. However, sealed bidding procedures were required. Cause: GHURA did not effectively enforce controls over compliance with applicable procurement and suspension and debarment requirements. Effect: GHURA is in noncompliance with applicable procurement and suspension and debarment requirements. No questioned cost is reported because the procurement file demonstrated competition and the selection of the lowest quotations. Recommendation: Responsible personnel should enforce controls over compliance with applicable procurement and suspension and debarment requirements. For procurements in excess of $25,000, responsible personnel should publicly solicit bids and award a contract to the responsible bidder whose bid conforms with the IFB and is the lowest price. Views of Responsible Officials: Responsible procurement personnel are updating the procurement policies which include emergency procurement and small purchases.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 178 2022-001
    Material Weakness Repeat
  • 179 2022-001
    Material Weakness Repeat
  • 180 2022-002
    Significant Deficiency
  • 181 2022-002
    Significant Deficiency
  • 182 2022-003
    Significant Deficiency
  • 183 2022-003
    Significant Deficiency
  • 184 2022-004
    Material Weakness
  • 185 2022-005
    Material Weakness
  • 186 2022-004
    Material Weakness
  • 187 2022-005
    Material Weakness
  • 188 2022-004
    Material Weakness
  • 189 2022-005
    Material Weakness
  • 190 2022-004
    Material Weakness
  • 191 2022-005
    Material Weakness
  • 576620 2022-001
    Material Weakness Repeat
  • 576621 2022-001
    Material Weakness Repeat
  • 576622 2022-002
    Significant Deficiency
  • 576623 2022-002
    Significant Deficiency
  • 576624 2022-003
    Significant Deficiency
  • 576626 2022-004
    Material Weakness
  • 576627 2022-005
    Material Weakness
  • 576628 2022-004
    Material Weakness
  • 576629 2022-005
    Material Weakness
  • 576630 2022-004
    Material Weakness
  • 576631 2022-005
    Material Weakness
  • 576632 2022-004
    Material Weakness
  • 576633 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $42.87M
14.248 Community Development Block Grants_section 108 Loan Guarantees $11.39M
14.850 Public and Indian Housing $5.67M
14.239 Home Investment Partnerships Program $4.42M
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $3.54M
14.872 Public Housing Capital Fund $2.18M
14.U03 Emergency Housing Voucher $1.48M
14.157 Supportive Housing for the Elderly $867,010
14.267 Continuum of Care Program $759,419
14.U02 Public Housing Cares Act Funding $353,818
14.U04 Hcv Cares Act Funding $317,271
14.879 Mainstream Vouchers $218,269
14.U01 Central Office Cost Cares Act Funding $200,001
14.896 Family Self-Sufficiency Program $169,551
14.191 Multifamily Housing Service Coordinators $62,380
14.870 Resident Opportunity and Supportive Services - Service Coordinators $23,676
14.231 Emergency Solutions Grant Program $9,618