Noncompliant Procurement Delegation - R&D - DOA, MUS - The Montana Department of Administration State Procurement Services Division is centralizing procurement staff and processes across all agencies to improve consistency in laws, rules, procedures, and policies when agencies procure products and s...
Noncompliant Procurement Delegation - R&D - DOA, MUS - The Montana Department of Administration State Procurement Services Division is centralizing procurement staff and processes across all agencies to improve consistency in laws, rules, procedures, and policies when agencies procure products and services. To modernize and integrate procurement in the Statewide Accounting, Budgeting, and Human Resources System and to strengthen oversight and payment of contractual obligations, the department is soliciting a new procurement system. All agencies will be required to document contract management activities in the new system. Compliance reviews will be conducted by a Department of Administration internal auditor beginning in fiscal year 2027 and will be prioritized according to risk assessment scores, auditor workload, and agency capacity. The department has improved compliance for sole‑source grants by appointing new committee members, and annual training for policies and procedures will be revised as needed. The State Procurement Services Division will develop and distribute a standard form for declaring exigencies to ensure agencies document all information required by statute, rule, and policy. The division is also preparing changes to administrative rules to clarify definitions and help agencies distinguish between exigent purchases and other expedited purchasing methods. The University of Montana - Missoula will continue working with the Montana Office of the Commissioner of Higher Education, which serves as the university’s liaison with the Department of Administration, to ensure written delegation agreements are executed and maintained in a timely manner. Montana State University - Bozeman concurs with the finding and agrees there are no questioned costs associated with the condition. The university will continue to work with the Montana University System office to receive an executed delegation of authority. A draft delegation was received from the Department of Administration in May 2026, and the university system provided feedback. As of the date of the audit report, the university has not received an update from the department. Responsible Party - Molly McLoughlin, Administrator, Montana Department of Administration Bob Hlynosky, Director of Procurement, University of Montana - Missoula Brian O'Connor, Chief Procurement Officer, Montana Office of the Commissioner of Higher Education Target Implementation Date - 6/30/2027