Audit Finding on Spokane County's Purchasing Practices

The Washington State Auditor's Office issued a finding on September 8, 2008 that Spokane County's "internal controls are insufficient to ensure compliance with the County's purchasing policy and state law."

The auditor found that the County's financial system allowed users to "circumvent the Purchasing Department and make payments in excess of their delegated purchasing limits."

In addition, the auditor found a number of "sole source" purchases that were not justified or documented.

Click here to view the entire audit that also includes findings on other subjects (11 pages total).

It is important for public agencies to have clear policies related to sole source purchases, whether separately or for products included in a public works specification. Without valid justification of sole source products, an agency may end up unduly limiting competition and may thus pay more than is justified for a product. In addition, there is an expectation that businesses should have the opportunity to provide their products to public agencies. Without clear and compelling sole source justifications, public agencies are subject to bid protests from other vendors who believe their product will work just as well.

There are clearly valid reasons why a product may be determined to be a sole source, but these declarations should not be made lightly. And as the audit of Spokane County pointed out, it's important to be transparent and document sole source products.