Finding Text
Criteria: The City is required to comply with statutory and regulatory requirements governing procurement of goods and services over the bid threshold (N.J.S.A. 40A:11 and N.J.A.C. 5:34 or “Local Public Contracts Law and Regulation”). Condition: For 2 vendor procurements examined for proper bidding procedures, we noted public bidding was not done prior to the award of contracts or issuances of purchase orders related to the same projects that were, individually or in the aggregate, over the bid threshold. Cause: Inadequate procedures in place to review planned projects and vendor procurements to identify vendor costs that exceed the bid threshold in the aggregate to ensure all required bid procedures are performed and awards by governing body are completed prior to contracting with the vendor. Effect: Noncompliance with Local Public Contracts Law and Regulation. Recommendation: We recommend that the City implement procedures to review planned projects and vendor procurements to identify vendor project costs that exceed the bid threshold in the aggregate. We recommend communications are streamlined with the Purchasing Department to ensure any projects that may exceed the bid threshold are properly reviewed for bid requirements. We also recommend regular trainings over procurement statutes and regulations are conducted for all personnel involved in purchasing functions, including those responsible for planning and initiating projects, creating or reviewing and approving purchase orders and procuring goods and services. Procedures for reviewing purchase orders related to the same project for purposes of aggregation to achieve compliance with Local Public Contracts Law and Regulation should also be established. Management’s Response to Finding: The City is in agreement with this finding and will complete and implement a corrective action plan.