Follow-Up of Change Order Processes, November 2018

5. Appropriate approval of Professional Services Library work assignments . Observation 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. Recommendation 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. Management Response SOP #34 (Purchase Requisition Process) will be revised to include verification that Work Assignments are approved by the Department Director or Designee prior to submittal of PR. SOP #79 (Purchase Order Approval Process in OneSolution) will be revised to include verification that Work Assignments have proper approval authority. To ensure proper tracking of delegations, Department Directors will be advised to formally delegate authority for signing work assignments to a single person in their absence, and to provide Procurement with copies of any such delegations. Expected date of implementation is June 2017. 12 | 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