Falfurrias Housing Authority

Capital Fund-CDFA#14.872 Finding 2024-001-Capital Funding Program Not Adequately Administered-Procurement and Special Tests Criteria and Condition The authority is not fully complying with (a)- the May 2024 Compliance Supplement regarding the Capital Fund, (b)-Federal Uniform Grants Guidance Section 200.320, (c)-Louisiana State Bid Law R.S. 38:2212.1, and (d) the authority’s adopted Procurement Policy. Context $367,717 was paid in total to two contractors in fourteen payments for various types of repairs and substantial renovations. $259,032 and $108,685 was paid respectively to the two contractors. We note the following that should be corrected: (a)-federal regulations require that Independent Cost Estimates (ICE) be obtained on all expenditures above the Micro Purchases Amount, which is $5,000 per the authority’s Procurement Policy. Only one of the fourteen expenditures noted above were less than $5,000. No ICE’s were made available to us. To the extent that one type of renovation required more than one of the fourteen expenditures, an ICE is only required for that renovation. (b)-management did not document the attempts to solicit or advertise for other quotes. In addition, no other quotes were made available. (c)-monitoring notes on the progress or lack of or issues noted with construction were not available to us (d)-efforts by management to obtain the contractor payrolls and check for Davis-Bacon compliance were not documented. The contractor payrolls were not available to us. Effect (a) and(b)- the documentation is not sufficient to prove that the authority performed due diligence to obtain the most favorable price and quality for the expenditures of dollars for repairs and renovations. (c)- the Authority employees may have monitored the work but should have documented this in writing. (d)- the Authority did not document that the contractor payrolls were checked for Davis-Bacon compliance. Cause We are not aware of the reasons the above were not done. The requirements have been discussed with management in prior years, when the level of these expenditures were much less. In the prior years, management usually provided other quotes for non-emergency expenditures. Questioned Costs None Recommendation The deficiencies noted above should be corrected. View of Responsible Officials I am Yolonda Coleman, Executive Director and Designated Person to answer these findings. We will comply with the auditor’s recommendations.

Low Rent Program-CDFA#-14.850 and Capital Fund Program-CDFA#14.872 Finding-2024-005-Late Filing of Report- Reporting Criteria and Condition The audit report was due to the Legislative Auditor by March 31, 2025, six months after audit year end. Context The audit report was not timely filed. Effect State regulations were not complied with. Cause We, the auditors, did not receive the necessary accounting information in time for us to complete the audit and deliver the audit report by March 31, 2025. Questioned Costs None. Recommendation Audit reports should be timely filed in the future. View of Responsible Official We will comply with the auditor’s recommendation.