8 | Follow-up of Contract No 2022-003 with NAPA Auto Parts and Cooperative Purchase Request Contract with Sourcewell November 2024 Open Conditions and Pending Corrective Action A total of 1 of the 6 conditions identified in the original report for Contract No 2022-003 remain open and continue to require management attention. 5.I Inappropriate Purchases (Contract 2022-003) Current Status, Follow-Up Audit dated Month 2024: During the Internal Audit Department’s (IAD) testing and analysis of the 62 COPAR Invoice Packets, a single invoice was identified as an invoice for the training to County employees. Per new Contract No 2022-003 stipulations, training should be approved by a manager in writing prior to the training taking place and an invoice for training should be accompanied by the quote outlining the price for the training. As a result of testing methodology and inquiries, it was identified that manager approval for this invoice was done verbally and no written approval exist. Also, Fleet Department was unable to provide IAD with the copy of the quote for this invoice, as the previous employee who was handing this process was no longer employed by the County. It was determined that contractual stipulations were not followed correctly while processing this County employees training, IAD considers Opportunity for Improvement No. 5- Inappropriate Purchases, as open. Original Audit Observation, Report dated April 2021: 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 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 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.
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