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Audit Objective

Determine whether Lansing Central School District (District) officials used a competitive process to procure goods and services.

Key Findings

District officials did not always seek competition to procure goods and services. As a result, they may not have procured goods and services economically and in a manner that is in the best interests of taxpayers.

• Policies and procedures were inadequate and did not help ensure officials sought competition for goods and services.
• Officials did not seek competition for insurance coverage totaling $232,624 or for four of six professional service providers paid $301,023 during our 14-month audit period. Officials used the same insurance provider for about 20 years and each of the four remaining vendors for at least 10 years without periodically seeking competition.
• District officials may have saved at least $3,700 on fuel costs by using a State contract.

Key Recommendations

• Update the procurement policy and related procedures to include detailed guidance for procuring goods and services not subject to competitive bidding requirements.
• Periodically compare prices for goods and services to State contracts and contracts bid by other governments.

District officials generally agreed with our findings and recommendations and indicated they will take corrective action. Appendix B includes our comment on an issue raised in the District’s response letter.