Follow-Up of Change Order Processes, November 2018

Procurement records indicate that between the dates of October 1, 2014 through September 30, 2016, Sarasota County issued 1,609 purchase orders that were subsequently modified with change orders. There were approximately 2,400 change orders related to the 1,609 purchase orders. Objectives, Scope and Methodology The objectives of this audit were to determine if the Procurement Department’s internal controls related to reviewing, approving, and processing change orders are operating effectively and if they are in compliance with the Procurement Code, the Procurement Manual, and relevant Standard Operating Procedures. The scope of the audit included a review of purchase orders that were later modified using the change order process during the time period of October 1, 2014, through September 16, 2016. To meet the objectives of the audit, the procedures performed included, but were not limited to, the following: • Obtained an understanding of the Sarasota County Procurement Code, Procurement Manual, Standard Operating Procedure #47 – Requesting Change Orders , and Standard Operating Procedure #7 – Processing Change Orders . • Walkthrough of the change order process. • Inquiries of county personnel. • Examined a statistical sample of purchase orders with subsequent change orders: o For procurements of less than $5,000, a statistical sample of 15 purchase orders was examined from a population of 76, which included 17 subsequent change orders. o For procurements of between $5,000 and $25,000, the population of 16 purchase orders was examined, which included 20 subsequent change orders. o For procurements of more than $25,000, including procurements that resulted in term contracts, a statistical sample of 87 purchase orders was examined from a population of 455, which included 122 subsequent change orders. o For procurements using sole/single source exemptions, a statistical sample of 30 purchase orders was examined from a population of 87, which included 48 subsequent change orders. o For procurements using waivers of competition, a statistical sample of 30 purchase orders was examined from a population of 88, which included 49 subsequent change orders. o For procurements using cooperative purchasing agreements, a statistical sample of 38 purchase orders was examined from a population of 161, which included 48 subsequent change orders. o For procurements using Professional Services Library work assignments, a statistical sample of 20 purchase orders was examined from a population of 46, which included 25 subsequent change orders. 4 | 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