Audit Objective 

Determine whether Town of Gorham (Town) officials made procurements in accordance with Town policy, statutory requirements and good business practices. 

Key Findings 

Town officials did not always procure goods and services in accordance with Town policy, statutory requirements and good business practices. As a result, there is an increased risk that the Town paid more than necessary for goods and services or made purchases that were not for Town purposes. 

For example, we reviewed: 

• 65 individual and aggregate purchases totaling $2.5 million and determined 16 purchases totaling $468,738 were not competitively bid. Officials also did not comply with purchasing policy requirements for 41 purchases totaling $1.4 million. 
• All nine professional services vendors totaling $1.1 million and determined officials did not seek competition when procuring any of these vendors. Two of these vendors lacked written agreements detailing the services to be provided and their cost. 
• All 116 credit card purchases totaling $29,562 and determined 12 purchases totaling $3,736 did not have adequate supporting documentation to indicate they were appropriate Town purchases. 

Key Recommendations 

• Comply with competitive bidding laws and the Town’s purchasing policy requirements when making purchases. 
• Develop written procedures that address situations, such as professional services, where the use of a request for proposals process may be appropriate. 
• Ensure credit card purchases are supported and made in accordance with Town policies. 

Town officials agreed with our findings and indicated they plan to initiate corrective action.