Follow-Up of Change Order Processes, November 2018

Opportunities for Executive Summary improvement As part of the Annual Audit Plan, the Clerk of Circuit Court and County Comptroller’s Internal Audit Department and Office of the Inspector General conducted an independent audit of Change Order Processes.  Internal Audit obtained an understanding of the process of issuing change orders for existing purchase orders.  Between October 1, 2014 and September 30, 2016, there were a total of 1,609 purchase orders where change orders were subsequently issued for those purchase orders. Approximately 2,400 change orders were issued during the same time period.  Internal Audit selected a statistical random sample of 321 purchase orders with subsequent change orders, which included a total of 442 change orders.  Based on the procedures performed, overall, the Procurement Department appears to have an appropriate internal control structure in place to mitigate risks. However, certain processes could be enhanced. Additionally, there appears to be issues of non-compliance with the guidelines as found in the Procurement Manual and Standard Operating Procedures developed to ensure compliance with the Sarasota County Procurement Code.  Identified opportunities for improvement. Non-Compliance ~ Policies and Procedures  Twenty-six (26) approved change orders were not in compliance with Standard Operating Procedure #46.  Sixteen (16) approved change orders were not in compliance with Standard Operating Procedure #7.  One (1) change order related to a procurement exemption approved by someone other than the Procurement Official.  Two (2) instances where purchase orders were issued that exceeded the authorized spend limit.  One (1) approved change order related to a work assignment not approved by the Department Director. 2 | A u d i t o f C h a n g e O r d e r P r o c e s s e s M a y 2 0 1 7