Follow-Up of Change Order Processes, November 2018

3 |  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 Summary and Results Background  The purpose of the May 2017 Audit of Change Order Processes was to determine if the  Procurement Division’s internal controls related to reviewing, approving, and processing  change orders were 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 the time period of October 1, 2014 through September 30, 2016.  The original audit report concluded that the Procurement Division appeared to have adequate  controls in place to mitigate risks related to the issuance and approving change orders.  In  addition, operating procedures appeared to be in compliance with applicable laws, resolutions  and County policies and procedures. There were, however, opportunities to improve  compliance with the guidelines as found in the Procurement Manual and Standard Operating  Procedures, as detailed in the Opportunities for Improvement section of the original audit  report.  Objectives  The objectives of this follow‐up audit were to evaluate the observations reported on the  Change Order Processes audit report, dated May 2017 and subsequent corrective actions taken  by responsible management. This was achieved by providing independent, objective analysis as  well as reasonable assurance that the previous concerns have been addressed and appropriate  corrective measures implemented.  To meet the objectives of the follow‐up audit, the following procedures were performed:   Performed inquiries of the Procurement Division staff.   Obtained an understanding of changes made to the Policies and Procedures since the  original audit report date.   Tested a random sample of purchase orders with subsequent change orders including  purchase orders exempt from the competitive process, emergency procurements, and  purchase orders issued via work assignment.