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Document

We audited the Charlottesville Redevelopment and Housing Authority’s use of public housing operating and capital funds because (1) we received a hotline complaint alleging that the Authority mismanaged its procurement activities and improperly awarded an internet services contract for more than $200,000 without receiving competitive bids and (2) we had never audited the Authority.  Our audit objective was to determine whether the Authority procured products and services using U.S. Department of Housing and Urban Development (HUD) operating and capital funds in accordance with applicable procurement requirements.

Although the allegation that the Authority improperly awarded an internet services contract for more than $200,000 without receiving competitive bids had no merit, the allegation that the Authority mismanaged its procurement activities had merit.  The Authority did not follow procurement requirements for acquiring products and services totaling $728,516 using operating and capital funds.  It also did not execute appropriate written agreements for some services it received.  These conditions occurred because the Authority (1) lacked controls to ensure that it complied with Federal, HUD, and State procurement requirements and its own procurement policy and (2) misinterpreted Federal procurement requirements.  As a result, HUD lacked assurance that the Authority purchased products and services totaling $728,516 at fair and reasonable prices.

We recommend that the Director of HUD’s Richmond Office of Public Housing require the Authority to (1) provide documentation to show that it purchased products and services totaling $728,516 at fair and reasonable prices or reimburse either its Public Housing Operating or Capital Fund from non-Federal funds for any amounts that it cannot support, (2) provide documentation to show that it had contracts for dumpster rentals and pest control services or reprocure these services, (3) obtain written agreements with the originating public bodies for its ongoing awards procured through intergovernmental agreements or reprocure these services, and (4) develop and implement controls to ensure that it complies with all applicable procurement requirements.  We also recommend that the Director of HUD’s Richmond Office of Public Housing provide technical assistance to the Authority to ensure that it understands Federal procurement requirements, including the proper use of intergovernmental agreements.

Recommendations

Key Details
(mouse over or click items for details)
  Open
  Closed
Funds Put to Better Use
Funds 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.

Questioned Costs
Questioned 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.

Sensitive
Sensitive

Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.

Priority
Priority

We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

Public and Indian Housing

  •   2019-PH-1002-001-A
    $728,516.00

    Closed on December 10, 2020

    Provide documentation to show that it purchased products and services totaling $728,516 at fair and reasonable prices or reimburse either its Operating or Capital Fund from non-Federal funds for any amounts that it cannot support.

  •   2019-PH-1002-001-B

    Closed on November 10, 2020

    Provide documentation to show that it had contracts for dumpster rentals and pest control services, and if it cannot provide the contracts, re-procure these services.

  •   2019-PH-1002-001-C

    Closed on November 10, 2020

    Obtain written agreements with the originating public bodies for its ongoing awards that were procured through intergovernmental agreements, including dumpster rentals, maintenance supplies, and consulting services, and if it cannot provide the agreements, re-procure these services.

  •   2019-PH-1002-001-D

    Closed on November 10, 2020

    Develop and implement controls to ensure that it complies with all applicable procurement requirements.

  •   2019-PH-1002-001-E

    Closed on November 10, 2020

    Provide technical assistance to the Authority to ensure that it understands Federal procurement requirements, including the proper use of intergovernmental agreements.