Tanesha Stokes, VCO

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Procurement and the Auditor

• Presented by
• Tanesha Stokes, VCO
• Of the
• Auditor of Public Accounts

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What is the APA?

• The Auditor of Public Accounts is a
  constitutional officer with powers granted by
  Virginias constitution (Article IV, 18) and as
  specified in the Code of Virginia (Chapter 14,
  30.130 30.142)
• The Auditor of Public Accounts reports through
  the Joint Legislative Audit and Review Committee
  (JLARC) in the General Assembly
• The APA is the legislative external auditor for
• All State agencies
• Institutions of Higher Education
• Constitutional officers, and
• Various boards and authorities under the
  executive and judicial branches of state
  government

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Whos the Boss?!

• The Auditor of Public Accounts
• The Independent Auditor of the Commonwealth
• Appointed to a 4 year term by the General
  Assembly
• Has been with the APA since 1977

Walter J. Kucharski, CPA, CFE
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• Mission
• The APA serves Virginia citizens and
  decision-makers by providing unbiased, accurate
  information and sound recommendations to improve
  accountability and financial management of public
  funds.

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Where do we fit in?
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APA Specialty Teams

• Acquisition and Contract Management
• Budgeting and Performance Management
• Capital Asset Management
• Data Analysis
• Financial Management
• Higher Education Programs
• Information Systems Development
• Information Systems Security
• Reporting and Standards
• Social and Medical Services
• Judicial Systems

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Acquisition and Contract Management

• The Acquisition and Contract Management Team
  promotes effective and efficient use of public
  funds in acquisitions and contract management
  through the identification and recommendation of
  best practices.

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Acquisition and Contract Management Team

• Director Andy Powell, CPA, MBA, VCO
• Specialists Chadam Hover, CISA,VCO
• Andrew McCarty, CISA,VCO
• Angela OMary, VCO
• Shawnise Newsome, VCO
• Blair Price, VCO
• Tanesha Stokes, VCO
• Brett Sinsabaugh

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• Auditing the Procurement Cycle

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Responsibilities of the Agency

• Provide Documentation (Evidence)
• Agency Procurement and Accounts Payable Policies
  and Procedures
• Master listing of all term contracts
• Determination of Need
• Justification of non-Competitive Sealed Bid
  procurement
• RFP / IFB
• Bid tabulations

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Responsibilities of the Agency

• Provide Documentation (continued)
• Contract
• Contract Administrator assignment and duties
• Change Orders
• Renewals
• Vendor evaluations by end-user (at least yearly)

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Role of Each Agency

• Manage the Contract
• Ensure contract compliance by Vendor and End-User
• Tracking and Management of contract changes
• Review, approval and payment of invoices

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Auditor Considerations

• Is there the presence or absence of incentives?
• Is the procurement rational, feasible and doable?
• Is the procurement necessary?
• Is the Commonwealth getting value from this
  expenditure?
• Are there indicators of fraud?
• Are there any violations of laws and regulations

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Role of the Auditor

• Gain an Understanding of
• Policies and Procedures
• Systems and System Security
• Structure of the Procurement area
• Contract expenditures
• Monitoring project costs tools

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Role of the Auditor (cont.)

• Gather Evidence
• Test individual contract files
• Ensure that internal controls are in place
• Ensure files include adequate documentation
• Test compliance with State procurement
  regulations
• Conduct Substantive Tests
• Trace Contract Payments through Accounts Payable
• Trace individual vouchers to Contract

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Questions and Answers