Finding Text
Finding --- The Organization should strengthen internal controls over compliance in order to ensure that records are maintained that adequately detail the history of procurement. Criteria --- Section 200.318 provides general procurement standards consistent with Federal policy under the Uniform Guidance. Similarly, the State of New Jersey contract policy manual by department provides procurement information for funding expended that originated at the state level. Condition --- For all procurement thresholds internal controls over compliance related to documentation and reviews were not maintained. In an instance the sole-source exemption was inappropriately applied. Cause --- A change in upper management at the review level created a gap in internal controls during the year and adequate documentation and reviews over newly procured vendors in some instances were not maintained. In the instance where the sole-source exemption was applied, management provided information that the vendor was selected because all other related parties utilize the same vendor and since the service arrangement would allow synergies between the entities, other vendors were not taken into consideration. Effect --- Following procurement policies ensures that quality items are received at economical pricing. It also prevents fraud, waste, abuse and corruption including vendor kickbacks and reduces the chances of default on contracts. Questioned Costs --- None Recommendation --- Management should implement a checklist that asks if quotes were obtained and evidence retained. Process owners should document the quotes on the checklist, dates quotes were obtained and rational for selection. Approval of the checklist by an authorized reviewer prior to purchase authorization should exist. Views of Responsible Officials --- Governance agrees with the finding and will institute the recommendation(s).