We audited the public housing and Housing Choice Voucher programs at the Housing Authority of the City of Hartford, CT, as a result of a hotline complaint alleging potential noncompliance with procurement requirements. The objective of the audit was to determine whether the Authority complied with U.S. Department of Housing and Urban Development (HUD) and Federal procurement requirements and the Authority’s procurement policy.
The allegation in the complaint regarding the potential noncompliance with procurement requirements was valid. Authority officials did not always (1) comply with HUD and Federal procurement requirements and their procurement policy and (2) ensure that costs did not exceed contract terms. These deficiencies occurred because Authority officials did not have adequate procedures and controls in place. Also, Authority officials and their procurement consultant were not always aware of or disregarded procurement requirements. In addition, Authority officials did not have an adequate system in place or a complete and accurate contract register to ensure that contracts did not exceed the contract terms. As a result, they paid more than $2.5 million in unsupported costs and more than $1.5 million in ineligible costs and may pay more than $1.6 million in additional funds that may not have been properly awarded.
We recommend that the Hartford Office of Public Housing’s program center coordinator require Authority officials to (1) support that more than $2.5 million in funds paid were reasonable and allowable or repay the unsupported amount from non-Federal funds; (2) repay from non-Federal sources more than $1.5 million in ineligible funds paid when costs exceeded contract terms and were paid on expired contracts; (3) determine that more than $1.6 million in additional funds not yet spent on contracts are reasonable and allowable or reallocate the funds to the appropriate programs and reprocure the services, as necessary; and (4) strengthen internal controls and procedures over procurement and establish effective systems for contract administration
Recommendations
Public and Indian Housing
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Status2017-BO-1007-001-AOpenClosed$2,679,580.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Enero 27, 2023Support that $2,533,377 in costs were reasonable and allowable program expenses in accordance with requirements or repay from non-Federal funds the appropriate programs any amounts they cannot support.
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Status2017-BO-1007-001-BOpenClosed$1,625,391.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on Marzo 27, 2023Repay the appropriate programs from non-Federal funds the $1,524,604 in ineligible funds paid when costs exceeded contract terms.
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Status2017-BO-1007-001-COpenClosed$1,242,154.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on Noviembre 13, 2018Determine the appropriateness of the remaining balance of $1,242,154 on unsupported contracts to ensure costs were reasonable, reprocure the subject contracts, or reallocate the funds to the appropriate program.
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Status2017-BO-1007-001-DOpenClosed$375,526.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on Diciembre 07, 2018Reprocure expired service contracts to ensure estimated balances of $375,526 are used on eligible contract.
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Status2017-BO-1007-001-EOpenClosedClosed on Diciembre 12, 2018
Reprocure any service contracts necessary and ensure that the contracts are properly awarded in accordance with HUD requirements.
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Status2017-BO-1007-001-FOpenClosedClosed on Septiembre 28, 2018
Strengthen and implement controls and procedures over procurement, including monitoring consultants, to ensure that procurement activities meet HUD requirements.
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Status2017-BO-1007-001-GOpenClosedClosed on Junio 15, 2018
Establish and implement an effective system to ensure that payments do not exceed approved contract values.
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Status2017-BO-1007-001-HOpenClosedClosed on Julio 12, 2018
Establish and implement an effective system to maintain a complete and accurate contract register to ensure proper contract planning and administration.
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Status2017-BO-1007-001-IOpenClosedClosed on Julio 12, 2018
Provide technical assistance to the Authority to ensure that responsible staff and board members receive necessary procurement training.