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Receive the Auditor-Controller's Internal Audit Division's Internal Control Review of the County-Wide Contracting Process
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Auditor-Controller's Office (ACO) recommends the Board of Supervisors receive the Internal Control Review of the County-Wide Contracting Process and require the Department of General Services and the County Administrator to take action on the recommendations.
SUMMARY:
In accordance with the ACO Internal Audit Division's FY2023/24 Audit Plan, the ACO conducted an internal control review of the County-Wide Contracting Process. The scope of our review focused on determining whether contracts which started below the threshold requiring competitive bidding increased to amounts above the threshold without completing the competitive bid process.
Based on the ACO review, the ACO identified two areas for improvement over the County-wide contracting process:
1) The County's Purchasing and Contracting Policy ("Contracting Policy") includes a broad exception for expert and professional services.
2) The County does not have a centralized repository of contracts.
Management has acknowledged the findings noted herein and their response is attached (Attachment B). The ACO Internal Audit Division will perform a follow-up review to determine if the deficiencies have been adequately addressed.
FINANCIAL IMPACT:
The acceptance of the report has no financial impact.
DISCUSSION:
The ACO requested that each department provide a list of contracts for FY2022/23. From this list we selected a sample of 47 contracts and requested the contract files from the respective departments and evidence that the contract qualified as a sole source purchase or complied with the competitive bidding process. The ACO conducted this review in conformance with the International Standards for the Professional Practice of Inter...
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