Follow-Up of Change Order Processes, November 2018

Background and objectives The Clerk of the Circuit Court and County Comptroller’s Internal Audit Department and Office of the Inspector General has completed an audit of Change Order Processes. The audit was planned and conducted in accordance with the International Standards for the Professional Practice of Internal Auditing (Standards) . Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The purpose of the audit was to review compliance with applicable county ordinances, and policies and procedures related to processing change orders. Background The Board of County Commissioners Sarasota County Ordinance No. 2016-019, known as the County Procurement Code (Procurement Code), establishes the policy for the procurement of goods and services for the County, in accordance with Chapter 125, Florida Statues. The Procurement Code delegates all rights, powers, duties and authority related to the procurement and contracting of goods and/or services, including change orders, to the Sarasota County Administrator, who is also responsible for the appointment of a Procurement Official and the preparation of a Procurement Manual. Chapter 4 of the Procurement Manual delegates the authority for the procurement and contracting of goods and services to the appointed Procurement Official. The Procurement Department provides centralized support and services for procuring goods and services, and works closely with business units from the initial purchase request to the issuance of the purchase order or the award of a contract. Modifications to issued purchase orders (change orders) are considered a normal part of doing business and are needed for various reasons, including, but not limited to: • Change in the needs of the business unit, • True-ups for actual need versus estimates, • Revision of specifications for major projects, and, • Correction of administrative errors. The Procurement Department has developed Standard Operating Procedures (SOPs) for procurement processes, including change order processes, to be used in conjunction with the guidance provided in the Procurement Manual to ensure compliance with the Procurement Code. 3 | 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