7 | 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 2. Inappropriate Purchases. Observation Section 3.16 states that the scope of the NJPA Cooperative Agreement is to supply “Vehicles, cars, vans, SUVs, and light trucks with related equipment, accessories, and services”. Section 3.17.2.1 states that primary focus is to provide vehicles, cars, vans, SUVs, and light trucks and that related equipment, accessories, and services are only meant to be included as incidental purchases. However, Section 5.25 and 5.26 states that Sourced Goods or Open Market Items are products that can be purchased under contract that are not currently available under the NJPA contract. These items can be requested for purchase as long as they are within the related scope of the contract. Section 5.27 states that these items can be sourced to the extent that the items are identified as “Sourced Products/Equipment” or “Open Market Items” on any quote issued. The auditor obtained a population of 141 invoices that were paid against PO’s issued between October 1, 2017 and April 9, 2020. Of those invoices, a statistical sample of 103 were selected and supporting documentation was obtained and reviewed. During review it was noted that there were five purchases made against four PO’s that did not accompany a purchase for a vehicle, car, van, SUV, or light truck. Each purchase lacked supporting documentation indicating they were purchases for “Sourced Products/Equipment or “Open Market Items” as required by Section 5.27 of the agreement. The purchases were for a large stand alone directional drill, a pull behind air compressor, and three trailers. Recommendation To ensure compliance with the intent of the cooperative agreement, the County should monitor purchases to ensure the purchases align with the contract. When additional related equipment and accessories are purchased, they should be included with the accompanying purchase and must be procured through the required contract sourcing process.
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