Follow-Up of Change Order Processes, November 2018

5 |  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 Open/PARTIALLY COMPLETED Conditions and Pending Corrective Action One (1) of the five (5) conditions identified in the original report were partially addressed, but  require additional management action.  2. Compliance with SOP #7 – Processing Change Orders .  Current Status, Follow‐Up Audit dated November 2018:  The Procurement Division streamlined the request process by implementing an internal request  system and updated SOP #7 – Processing Change Orders to outline the updated process.  In  order to test purchase orders to ensure compliance with SOP #7, a sample of twenty‐six (26)  purchase orders with subsequent change orders processed November 3, 2017 through May 21,  2018 was selected.    During testing the auditor observed two (2) change orders processed in One Solution that do  not match the change order request form found in Onbase and do not include notes explaining  the discrepancy.  Task 4 of SOP #7 stipulates that in order to determine if a change order can be  processed "The change being made must match what is documented on the change order  request form.  If the change varies from the submitted Change Order Request Form it cannot be  processed and the request must be terminated."   Out of the sample of twenty‐six (26) purchase orders with subsequent change orders, two (2)  purchase orders were associated with a Term Contract.  In both instances the requirement of  an approved Term Contract Authorization Form is inapplicable due to an emergency  procurement and a non‐monetary change.  Although unable to test for compliance with Term  Contract Authorization form; policies and procedures appear to be updated.  Original Audit Observation, Report dated May 2017:  SOP #7 stipulates that when a procurement analyst is notified of a Change Order request  assignment via the electronic Help System, the Change Order Request Form and supporting  documentation are to be downloaded and saved in the departmental electronic filing system.  The procurement analyst is responsible for reviewing the documents, verifying that the  supporting documentation matches the request and the contract’s fee schedule, if applicable.  Validating that the request, if processed, would not exceed the procurement amount that was  approved or the not‐to‐exceed amount, if applicable, is to occur.