Purpose of Audit

The purpose of our audit was to examine the District’s procurement procedures for the period July 1, 2014 through August 16, 2016.

Background

The Belfast Central School District is located in the Towns of Allen, Angelica, Belfast, Caneadea and New Hudson in Allegany County. The District, which operates one school with approximately 340 students, is governed by an elected seven-member Board of Education. Budgeted general fund appropriations for the 2015-16 fiscal year totaled approximately $9.1 million.

Key Findings

• Although the Board has adopted a procurement policy that requires competition for purchases not subject to bidding requirements, the policy does not clearly establish procedures for procuring professional services.
• The purchasing agent and claims auditor did not always ensure that purchases were made in compliance with the policy or require District officials to properly document compliance when they sought competition.
• District officials could not demonstrate that they sought competition when procuring professional services from five vendors who were paid approximately $164,000 or obtained quotes for purchases from one vendor totaling $3,000.

Key Recommendations

• Review and revise its procurement policy to clearly require the procurement of professional services through RFPs or written or verbal quotes.
• Require the purchasing agent and claims auditor to regularly monitor compliance with the procurement policy and periodically report to the Board.
• Solicit competition for professional services through the use of RFPs or quotes and obtain the appropriate number of quotes for purchases as required by the procurement policy.