Finding Text
2023-004 – PROCUREMENT AND SUSPENSION AND DEBARMENT
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing
CRITERIA
Any contract not exceeding $20,000 for construction or public improvements and $25,000 for
goods or services may be made in accordance with the small purchase procedures. Contract
requirements shall not be artificially divided so as to constitute a small purchase. For small
purchases over $2,000, but not greater than $20,000 for construction or public improvements
and $25,000 for goods or services no less than three offerors shall be solicited to submit price
quotations. (Pittsfield Housing Authority Procurement Policy)
CONDITION
We examined a sample of 5 vendors used for goods and services during fiscal year 2023 and
identified 5 instances where the Authority did not follow their procurement policy or did not
retain sufficient supporting documentation.
2023-004 – PROCUREMENT AND SUSPENSION AND DEBARMENT (CONTINUED)
CAUSE
The Authority’s internal control over procurement was not effective at identifying the need for
competitive procurement in instances where frequently recurring transactions resulted in
aggregate purchase in excess of competitive procurement thresholds.
EFFECT
The Authority has not ensured that it is receiving the most competitive prices or rates for
services that have been procured, which may have resulted in unnecessary additional costs to
the Authority.
QUESTIONED COSTS
Estimated questioned costs of $230,551 representing the total payments to these 5 vendors.
CONTEXT
We selected a sample of 5 from a population of approximately 50 vendors paid in excess of
the micro-purchase threshold. This was not a statistically valid sample.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend that the Authority improve its monitoring of contracts and periodically assess
the procurement implications of cumulative payments to frequently used vendors.