3 | Follow-up of Contract No 2022-003 with NAPA Auto Parts and Cooperative Purchase Request Contract with Sourcewell November 2024 Summary and Results Background The purpose of the November 2024 Follow-up Audit of Contract No 2022-003 with NAPA Auto Parts, National Auto Fleet Group, and Cooperative Purchase Request Contract with Sourcewell was to determine if the internal controls, specifically related to processes used by the County to monitor compliance with the terms of Contract No. 2022-003 and Cooperative Purchase Request for Sourcewell, were operating effectively. Please note, this audit report is a combined follow-up report for two previous audits: Audit of the Contract No. 2017-055 and Audit of the Cooperative Purchase Request for National Joint Powers Alliance (NJPA). The scope of the audit included an evaluation and assessment of whether management actions have been effectively implemented to address the Opportunities for Improvement listed in the original audits. As both audits will be addressed in this report, each item will be dictated in a way to indicate which audit it is referring to. The original Audit of the NAPA audit Parts listed a Contract No. 2017‐055, which was entered into on December 1, 2016, and continued to be in place until November 30, 2021. This agreement has been amended twice, with an amendment on September 25, 2017 which lowered the gross profit from 10% to either 8% or 6%, based on the invoice amount for “outside” purchases or services and amendment dated December 18, 2018, which lowered the gross profit from either 8% or 6% depending on the invoice amount for “outside” purchases, to a flat 8% for all purchases or services, regardless of amount for “outside” purchases. The Contract No. 2017‐055 expired and a new Contract No 2022-003 was entered into on May 27, 2021 and is currently in effect for the NAPA Auto Parts. The contractor is required to maintain and operate three vehicle and equipment maintenance parts facilities (on‐site stores) at existing Fleet Services facilities throughout Sarasota County during normal working hours, five days a week, Monday through Friday. The County is invoiced for all inventory purchases pursuant to the Agreement on a monthly basis according to the pricing plan in Exhibit B of the Agreement. This audit focused specifically on review and evaluation of the supporting documentation to ensure that management actions have been effectively implemented, to address the Opportunities for Improvement listed in the original audit. The original audit report of Contract No. 2017-055, currently No. 2022-003, identified the following areas where contractual stipulations were not followed. • NAPA Pricing Plan Summary, • NAPA Product Costs, and
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