Purpose of Audit

The purpose of our audit was to examine the Village’s procurement process for the period June 1, 2015 through August 31, 2016.

Background

The Village of Malverne is located in the Town of Hempstead in Nassau County and has a population of approximately 8,500. The Village is governed by an elected five-member Board of Trustees. Budgeted appropriations were approximately $16 million for the 2016-17 fiscal year.

Key Findings

• Village officials have not enforced compliance with the Village’s procurement policy.
• Village officials allowed goods and services to be purchased before authorization from the Clerk-Treasurer, which resulted in confirming POs (that is, a purchase order prepared after a purchase has been made).
• Village officials did not enforce the procurement policy requirement for documented verbal or written quotes before purchasing goods or services.

Key Recommendations

• Ensure that all employees comply with the procurement policy requirement for the use of requisitions/POs prior to ordering goods and services.
• Restrict the use of confirming POs to exceptional situations, such as a documented emergency situation.
• Ensure that all employees who are involved in the procurement process comply with the procurement policy requirement for the use of verbal and written quotes.