Finding 579167 (2023-001)

2023-001 Condition: Deficiencies Were Noted in Our Examination of Procurement During the review of the disbursements, it was noted that the Authority did not follow their procurement procedures for some small purchases procurement during Fiscal Year 2023. Quotes were not obtained for some maintenance and construction work that was performed above the micro purchase threshold, but below the sealed bids threshold. Assist. Listing No.: 14.872 Questioned Costs: None Cause: The Authority did not have adequate internal controls (monitoring) to determine that they were not in compliance with regulations or their own policies. Effect: The Authority has not been in complete compliance with HUD requirements. Criteria: The Authority is required by regulation and their own administrative policies to perform certain procedures to ensure that the program is administered in accordance with HUD regulations. Recommendation: We recommend that the Authority formulate, or review and update all its administrative policies to ensure that all contracts are in accordance with applicable HUD regulations. Reply: We concur with the Auditor’s recommendation. We will review and update all our Procurement Policies to ensure that all contracts are in compliance with HUD regulations.