Follow-Up of Change Order Processes, November 2018

8 |  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 3. Written delegated authority .  Current Status, Follow‐Up Audit dated November 2018:  Since the original audit, the Acting Procurement Official issued an official memorandum  delegating authority to the Procurement Manager to sign certain types of procurement  documents. By doing this there is documented written delegated authority for all instances  approved by the Procurement Manager, until rescinded through written notification.   In order to ensure that purchase orders exempted from the competitive process with  subsequent change orders contain the appropriate approval or contain written delegated  authority, testing was performed on a sample of ten (10) purchase orders with change orders  processed November 3, 2017 through May 21, 2018.  It was observed that all ten (10) purchase  orders contain the appropriate approval or documented written delegated authority per the  amount of estimated expenditures on the request form, additionally; the approval was  obtained before the purchase order was issued.  Original Audit Observation, Report dated May 2017:  The Procurement Manual, Chapter 4.1.E.1 states, "The County Administrator delegates to the  Procurement Official authority to approve Procurement contracts, amendments, renewals,  extensions and other ancillary documents in accordance with Resolution No. 2016‐055 ..."  Chapter 4.1.E.9 states, "The Procurement Official may delegate this authority in writing."   During testing of change orders related to procurements exempted from the competitive  processes, the auditor identified six (6) instances where the exemption was approved by an  individual other than the Procurement Official. Of the six (6), documentation of written  delegated authority could not be obtained for one (1).  Original Recommendations, Report dated May 2017: To ensure compliance with the Procurement Manual, the Procurement Official should maintain  documentation of the written delegated authority for every occurrence.