Overview
During fiscal year 2017, CPD hired a consultant (NCG Office Systems, Inc.) to provide various IT services, including hardware replacements, antivirus software installation, email configuration, and system maintenance. From January 6, 2017 through April 21, 2017, this consultant provided these services even though CPD did not execute a formal contract with the consultant for the services until November 8, 2017. Services performed without a signed contract increase the risk that service expectations may not be met or services provided may not be authorized.
Authoritative Guidance
According to Section .07(2)(a) of the state Sheriffs’ Offices’ “Policy Governing the Procurement of Commodities and/or Services,”
The identification of a Selected Bidder(s) shall create no contractual obligation on the Sheriff’s Office or the State. Performance may not begin until a Contract is properly executed.
Reasons for Issue
CPD could not provide an explanation for the contracted services being delivered before a contract was executed.
Recommendation
NSO should ensure that no contractor begins working before there is a properly executed contract.
Auditee’s Response
Concur. The NSO Director of Finance will develop a training program to be conducted on an annual basis that reviews the Office of the Sheriff policy governing the procurement of commodities and goods and services, CSD 300—Budget & Fiscal Management, CSD 302—Internal Control Plan and CSD 339—Inventory Control. The objective of the training is to ensure that all staff (NSO and CPD) are aware of their responsibilities under the policies and have the necessary competencies to see that all policy requirements are adhered to.
Auditor’s Reply
Based on its response, NSO is taking measures to address our concerns on this matter.
| Date published: | February 5, 2020 |
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