Follow-Up of Change Order Processes, November 2018

6 |  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 Additionally, SOP #7 requires that if the request is to reduce a line item on the purchase order,  the procurement analyst is responsible for verifying that if the change order was processed, the  amount on the line item would not be reduced by more than the payments already made for  that line item. If the change order is to increase the amount of an issued purchase order with  an associated Term Contract, the procurement analyst must ensure that a Term Contract  Authorization Form (TCAF), signed by the Financial Agent responsible for managing the Term  Contract, has been submitted via the Help System.  During review of the 442 change orders in the sample, the auditor identified:   nine (9) processed change orders lacked documentation to support the approval of the  change order.    two (2) instances where the processed change order did not match the Change Order  Request Form.   two (2) instances where the processed change order reduced a line item by more than  the payments already made for the line item.   three (3) instances where the change order request did not include the required TCAF.  Original Recommendations, Report dated May 2017: To ensure compliance with SOP #7, develop and implement quality assurance processes to  ensure that:   adequate documentation is received and retained to support change order requests,   processed change orders match the Change Order Request Form,   requests to reduce a line item by more than payments already made on that line item  are not processed, and,   requests to increase an issued purchase order associated with a Term Contract includes  an approved TCAF.  Management Action Plan:  SOP #7 will be modified to allow Procurement Analysts to create notes in OnBase to document  minor discrepancies (scrivener’s errors, miscalculations, transposed numbers) between the  change order request form and the actual change that is made.      Management will meet with staff responsible for processing change orders to review SOP #7  and reiterate the need for the change order request form and supporting documentation to  accurately reflect the change that is made.