Purpose of Audit

The purpose of our audit was to examine the Library System’s procurement process for the period January 1, 2015 through July 8, 2016.

Background

The Mid-Hudson Library System is a nonprofit cooperative public library system, located in the City of Poughkeepsie in Dutchess County, which serves 66 regional libraries in Columbia, Dutchess, Greene, Putnam and Ulster counties. The Library System is governed by a 15-member Board of Trustees, elected for five-year terms by the member libraries. The Library System's budget for 2015 totaled approximately $3.5 million.

Key Finding

• The Library System does not verify that a vendor's quote is in agreement with the State contract prior to ordering.
• The Library System's purchasing policy does not address what internal procedures to use for purchases that do not require competitive bidding.

Key Recommendation

• Modify the Library System's procurement procedure to verify State contract pricing when purchases are made using State contract on behalf of member public libraries.
• Modify the Library System's procurement policy to include provisions for purchases below the competitive bidding threshold, and purchases of goods and services not subject to competitive bidding, on behalf of member public libraries.