10 | A u d i t o f C o n t r a c t N o . 2 0 1 7 ‐ 0 5 5 A p r i l 2 0 2 1 5. Inappropriate Purchases. Observation In Exhibit A of the Agreement, Section 6.0 states that the “Contractor shall provide/coordinate technical (mechanical) training to County employees as deemed appropriate for use of new or current products. The cost, if any, for such training will be mutually agreed upon in writing by the county and the Contractor via an amendment to this Agreement”. As a result of the testing methodology identified in Opportunity for Improvement No. 4 – Gross Profit Rate, it was determined that there were a total of four transactions, totaling $37,478.11 that appeared to be inappropriate purchases against the contract. The four transactions were listed below: Two purchases were related to an agreement with Stryker ($13,746.24), One purchase was related to an agreement for the Fuel Island ($15,091.87), and One purchase was related to vendor training ($8,640). The auditor determined that the purchase related to the Fuel Island was erroneously paid against a Purchase Order associated with Contract No. 2017‐055. The error was identified and a refund for the full amount was returned to the County. Upon review of the two amendments, a mutually agreed upon price for training was not included in either amendment. Additionally, the other three purchases were for two different maintenance agreements, which appears they should not have been paid against this agreement. Recommendation To ensure compliance with the intent of the agreement, the Fleet Department should monitor purchases to ensure that they meet the contractual requirements in order to be purchased using the agreement. If future training is to be purchased through the agreement, ensure the cost is mutually agreed upon by both parties and that the agreement is amended to include the agreed upon cost of training.
RkJQdWJsaXNoZXIy MzM3Mjg=