Audit Report on Other Than Personal Services Expenditures of Schools within the Department Education Regional Operations Center for Regions 9 and 10

Audit Report In Brief

The audit determined whether Department of Education (DOE) procurement policies and procedures were followed for purchases of goods and services made by schools in Regions 9 and 10 that required Regional Operations Center (ROC) approval.

Based on the documentation provided, we found that officials of the ROC and schools of Regions 9 and 10 generally did not follow DOE’s procurement policies and procedures for purchases that required ROC approval. Specifically:

• Purchase files lacked evidence of competitive bidding. In addition, two files contained evidence of bid improprieties indicating that the vendor who was awarded the purchase had submitted all three bids to the schools (bids should have been received from three separate vendors to ensure competition);
• Vendor invoices were not always on file;
• Files lacked justification for purchases made using the sole-source method rather than obtaining bids; and
• Files did not always contain documentation showing that the goods and services paid for were actually received. It should be noted that through physical observation we determined that most of the goods purchased were received. However, we could not determine whether the services purchased were provided.

In addition, we found that Park West High School used funds in its budget to purchase equipment on behalf of another school– Seward Park High School- -which is a violation of the Standard Operations Procedures Manual (SOPM). According to Park West officials, in exchange for this purchase, Seward Park High School permitted one of its employees to perform clerical duties for Park West High School .

To address these issues, we recommend that ROC officials:

• Ensure that school officials comply with procurement regulations requiring written bids from separate vendors. In that regard, all bids must be independent and solicited from separate vendors.
• Ensure that school officials maintain all appropriate bid documentation on file.
• Review the file containing the questionable bid documentation and determine whether the matter should be referred to the Special Commissioner of Investigation for the NYC School District .
• Ensure that school officials submit certificates of delivery for goods or services prior to payment of invoices.
• Obtain invoices prior to paying vendors for goods and services purchased.
• Ensure that all goods are delivered and services rendered before payment of invoices, in accordance with the SOPM.
• Ensure that all school officials provide written justification for all sole-source purchases, in accordance with the SOPM. The ROC should review this documentation before approving such purchases.
• Ensure that school officials obtain the approval of the OPM Administrator for sole-source purchases, in accordance with the SOPM.
• Should remind school personnel that they are to purchase only those items that are needed to conduct programs within their schools.