Audit Report on Other Than Personal Services Expenditures of Schools within the Department Education Regional Operations Center for Regions 6 and 7

Audit Report In Brief

The audit determined whether the Department of Education’s (DOE) procurement policies and procedures were followed for goods and services purchased by schools in Regions 6 and 7 that require Regional Operations Center (ROC) approval.

Audit Findings and Conclusions

DOE’s procurement policies and procedures were generally followed for goods and services purchased by schools in Regions 6 and 7 that required ROC approval. Specifically, we found that OTPS purchases were reasonable and necessary for the operation of the schools, and vendor invoices were on file to substantiate the amounts paid.

However, our review disclosed the following weaknesses:

• ROC officials did not receive required certification of delivery for four (10%) of 42 sampled purchases.
• ROC officials did not ensure that there was adequate written justification or OPM approval for all three sole-source purchases in our sample.
• For two (18%) of the 11 sampled purchases of goods and services for which schools were required to obtain written bids, ROC employees approved the related purchase orders without receiving all bidding documentation to support the purchases.
• Five (12%) of the 42 purchases for goods or services were made by the schools prior to receiving ROC approval.

Based on our findings, we make seven recommendations, including the following:

• ROC officials should obtain certification of delivery for purchases of goods and services prior to payment of invoices.
• ROC officials should ensure that school officials provide written justification for all sole-source purchases, in accordance with the Standard Operating Procedures Manual for Schools and Financial Management Centers , OTPS Purchases Chapter. The ROC should review this documentation before approving such purchases.
• ROC officials should review solicited written bids to ensure compliance with the bidding guidelines before approving purchase orders.
• ROC officials should maintain copies of bid documentation.