PRESENTED BY:TANESHA STOKES, VCO

OF THEAUDITOR OF PUBLIC ACCOUNTS

Procurement and the Auditor

What is the APA?

The Auditor of Public Accounts is a constitutional officer with powers granted by Virginia’s constitution (Article IV, § 18) and as specified in the Code of Virginia (Chapter 14, §§ 30.130 – 30.142)

The Auditor of Public Accounts reports through the Joint Legislative Audit and Review Committee (JLARC) in the General Assembly

The APA is the legislative external auditor for: All State agencies Institutions of Higher Education Constitutional officers, and Various boards and authorities under the executive and judicial

branches of state government

Who’s the Boss?!

The Auditor of Public Accounts

The Independent Auditor of the Commonwealth

Appointed to a 4 year term by the General Assembly

Has been with the APA since 1977

Walter J. Kucharski, CPA, CFE

Mission

The APA serves Virginia citizens and decision-makers by providing unbiased, accurate

information and sound recommendations to improve accountability and financial

management of public funds.

Where do we fit in?

APA Specialty Teams

Acquisition and Contract ManagementBudgeting and Performance ManagementCapital Asset ManagementData AnalysisFinancial ManagementHigher Education ProgramsInformation Systems DevelopmentInformation Systems SecurityReporting and StandardsSocial and Medical ServicesJudicial Systems

Acquisition and Contract Management

The Acquisition and Contract Management Team promotes effective and efficient use of public funds in acquisitions and contract management through the identification and recommendation of best practices.

Acquisition and Contract Management Team

Director: Andy Powell, CPA, MBA, VCO

Specialists: Chadam Hover, CISA,VCOAndrew McCarty, CISA,VCOAngela O’Mary, VCOShawnise Newsome, VCOBlair Price, VCOTanesha Stokes, VCOBrett Sinsabaugh

Auditing the Procurement Cycle

Responsibilities of the Agency

Provide Documentation (Evidence) Agency Procurement and Accounts Payable Policies

and Procedures Master listing of all term contracts Determination of Need Justification of non-Competitive Sealed Bid

procurement RFP / IFB Bid tabulations

Responsibilities of the Agency

Provide Documentation (continued) Contract Contract Administrator assignment and duties Change Orders Renewals Vendor evaluations by end-user (at least yearly)

Role of Each Agency

Manage the Contract Ensure contract compliance by Vendor and End-User Tracking and Management of contract changes Review, approval and payment of invoices

Auditor Considerations

Is there the presence or absence of incentives?Is the procurement rational, feasible and doable?Is the procurement necessary?Is the Commonwealth getting value from this

expenditure?Are there indicators of fraud?Are there any violations of laws and regulations

Role of the Auditor

Gain an Understanding of: Policies and Procedures Systems and System Security Structure of the Procurement area Contract expenditures Monitoring project costs tools

• Gather Evidence Test individual contract files:

o Ensure that internal controls are in placeo Ensure files include adequate documentationo Test compliance with State procurement regulations

Conduct Substantive Testso Trace Contract Payments through Accounts Payableo Trace individual vouchers to Contract

Role of the Auditor (cont.)

Questions and Answers