6 | A u d i t o f Cooperative P u r c h a s e R e q u e s t N J P A J u l y 2 0 2 1 1. Threshold Limits for Purchases. Observation Chapter 8 of the Procurement Manual outlines the different procurement methods that can be used when the County needs to procure a product or service. One of the primary ways to determine which procurement method should be used is by setting dollar threshold limits and defining what is required at each threshold. Resolution No. 2016‐055 outlines the delegated spending authority for each threshold. Those thresholds are listed below: The Procurement Official can authorize purchases up to $50,000, The County Administrator can authorize purchases up to $100,000, and The BCC authorizes purchases of $100,000 or more. Chapter 8.5 states that the Procurement Official has the authority to join with other units of government for cooperative agreements. After the approval is obtained, then the agreement must be approved based on the delegated spending authority levels. The auditor determined that after the cooperative agreement is approved by the BCC (for cooperative agreements of $100,000 or more), all individual purchases made against the agreement no longer have to obtain approvals based on the delegated spending authority levels. Recommendation To ensure controls are in place to monitor cooperative agreement expenditures, the County should modify the language within the Procurement Manual and related SOP’s. Purchases made under a cooperative agreement should be required to obtain approval based on identified dollar threshold limits. Additionally, all purchases of $50,000 or more should be reviewed by the Procurement Official to ensure the purchase is an allowable purchase under the agreement. Management Response The Fleet Services Division has followed the Procurement Manual as it applies to this contract regarding threshold limitations by following the One Solution approval process. However, the Fleet Services Division has adopted an Internal Procedure that the Fleet Operations Manager, Fleet Manager, and Fleet Fiscal Coordinator will review all purchases regardless of the expenditure pertaining to this contract.
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