Follow-Up of Change Order Processes, November 2018

10 |  F o l l o w ‐ u p o f C h a n g e O r d e r P r o c e s s e s  N o v e m b e r 2 0 1 8 5. Appropriate approval of Professional Services Library work assignments .  Current Status, Follow‐Up Audit dated November 2018:  The Procurement Division updated SOP #34 – Purchase Requisition Process to include the need  for departments to verify Department Director or Designee signature, and if applicable, to  include the documented written delegation of authority.  The auditor obtained a list of all  purchase orders associated with a work assignment with subsequent change orders processed  November 3, 2017 through August 15, 2018.    During the testing of the population of fourteen (14) purchase orders, all purchase orders  associated with a Professional Services Library work assignment contain the appropriate  approval.  It is noted that during testing the auditor identified one (1) Unit Price work  assignment below $150,000 that was approved by a Department Manager with no documented  written delegation.  However, since the scope of this audit is to look at Professional Services  Library work assignments this instance is not considered a finding but a noted observation.  Original Audit Observation, Report dated May 2017:  The Procurement Manual, Chapter 4.1.F states that Department Directors are delegated to  approve Professional Services Library Agreement work assignments up to $150,000 and Unit  Price Contract work assignments up to $100,000, for previously approved BCC contracts. The  auditor determined that there were 25 Change Orders associated with the 20 Purchase Orders  in the statistical sample for work assignments.   During review of the 25 approved Change Orders related to work assignments in the statistical  sample, the auditor identified one (1) instance where the Department Director did not approve  the work assignment that supported the Purchase Order or the Change Order. The work  assignment was approved by someone other than the Department Director.  Original Recommendations, Report dated May 2017: Develop and implement a quality assurance process to ensure that work assignments are  approved by the Department Director prior to approving and processing Purchase Orders and  any subsequent Change Orders.