TITLE
Recommendation to receive and file Parks, Recreation and Marine Purchasing and Competitive Bidding Process Audit Report.
DISCUSSION
We recently concluded our audit of the Parks, Recreation, and Marine (PRM) Purchasing and Competitive Bidding Process. Attached for your consideration is our audit report that highlights some areas for improvement as well as several recommendations for Management.
Purchasing controls are important to ensure that the City is always receiving the best price for its purchases, as well as to ensure transparency and fairness in the procurement process. Our audit identified the need for written policies and procedures to formalize the bidding process as well as regular training to ensure that standard bidding practices (e.g., proper time stamping of bids, not accepting bids after the submission deadline, etc.) are followed. Additionally, we found that sole-source exceptions to the competitive bidding process should be properly documented according to policy, and care should be taken to ensure that all purchases over the required threshold ($10,000) are bid competitively. Detailed discussion of all issues examined in our audit is contained in the attached report.
Changes have already occurred in the processes observed since the initiation of our audit, including the transfer of bidding responsibilities from PRM to the Purchasing Division of the Financial Management Department. Furthermore, PRM concurs with our report in its attached response and agrees to implement the recommendations. We thank the Department for its cooperation with the audit, and for implementing the changes as outlined in their response.
TIMING CONSIDERATIONS
Action by the City Council is not time sensitive.
FISCAL IMPACT
Competitive purchasing and bidding processes are essential in all city departments to ensure the City is receiving the best price on all of its purchases, and thus taxpayer dollars are maximized as best as possible.
SUGGESTED ACT...
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