Purpose of Audit

The purpose of our audit was to review the County’s policies and procedures for contracting with third-party service providers for the period January 1, 2013 through June 9, 2014.

Background

Delaware County, which has a population of approximately 48,000, includes 19 towns and 10 villages. The County is governed by an elected Board of Supervisors that is composed of 19 members. Budgeted appropriations for 2014 totaled approximately $129.6 million.

Key Findings

• The procurement policy does not require that contracts be awarded through the use of competitive procedures.
• Three vendors were paid approximately $770,000 for services without written contracts.
• The County passed a resolution to establish a Board of Ethics, which has not convened, and Board members did not publically disclose potential financial interests in contracts prior to 2014.

Key Recommendations

• Amend the procurement policy to ensure that competition is used when awarding contracts.
• Ensure that written contracts are entered into with third-party service providers, indicating the contract period, services to be provided and the basis for compensation.
• Ensure that the code of ethics is being followed and ensure that any potential conflicts of interest are properly documented and disclosed.