This bulletin provides state agencies with information for assessing their procurement process. It provides guidance to internal auditors, managers or others to help determine if the procurement process at their agencies is effective.
Agency management is responsible for implementing an effective system of internal controls. This includes monitoring the effectiveness of operations. Following the guidance in this bulletin will provide the State Comptroller's Office with assurance that agency management is identifying, analyzing and managing their procurement risks. Further, it will reduce the need for increased audit focus on payments made by agencies complying with the provisions of this document.
The Bureau of State Expenditures' audit of payment transactions is based on a risk rating assigned to each agency. The agency's audit or review of its procurement function will be a component of this risk rating. While agencies are strongly encouraged to submit a completed report at a minimum of at least once every three years - more frequent audits or reviews are encouraged. However, not submitting a report will impact an agency's risk rating and may result in loss or suspension of an agency's quick pay privileges. The next report is due by September 30, 2009.
For agencies that maintain an internal audit function, the procurement audit should be done according to appropriate auditing standards. For agencies that do not maintain an internal audit function, the appropriate agency manager should provide reasonable assurance their procurement process is working as management intended - accomplishing its objectives while being consistent with all applicable laws, rules and regulations. A copy of the report should be forwarded to the State Comptroller's Bureau of State Expenditures. The report should detail the results of the procurement audit, describing methodology, objectives and the extent of testing, and recommendations, if any. The report should not include confidential information such as social security numbers or employee evaluations or include items like agency procedure manuals.
To request data for the purposes of satisfying this bulletin, please send an email to KM@osc.state.ny.us. In your e-mail, include the specifications of the request such as 1) time frame 2) agency code(s) 3) data fields and 4) format (Excel, ACL).
Reports should be submitted to:
Office the State Comptroller
Knowledge Management Unit
Bureau of State Expenditures - 10th Floor
110 State Street
Albany, NY 12236