Oregon Agency Criticized in Audit for Contracting Practices

An audit of the contracting practices of the Multnomah Educational Service District (ESD), an agency providing services to 171 Oregon school districts, found that 82% of the personal service contracts entered into by the ESD did not show any evidence that a competitive process was utilized in selecting the consultants.

The ESD stated that they did go through a competitive process but failed to maintain the submittals of unsuccessful proposers as part of the documentation in their files.

The audit recommended that the ESD develop contracting policies and procedures and address the following:

1. Contractors are selected using competitive screening and selection processes.
2. Contracts are signed by all parties prior to receiving and paying for services.
3. Contracts, leases, and intergovernmental agreements are adequately administered and monitored.
4. Contract files are organized and meet applicable documentation and retention requirements.
5. Intergovernmental agreements are used appropriately and a written record of how price was determined is maintained.
6. Responsibilities between different departments should be clearly assigned, and staff should be adequately trained.
7. Develop the monitoring capabilities of existing contract management and accounting information technology systems.
8. Review all unsupported payments to contractors and seek reimbursement for any payments determined inappropriate.
9. Seek reimbursement from contractors determined to have overcharged the ESD and review payments made to those contractors outside of the audit period for potential savings.
   

To read the four page audit, visit the Oregon Secretary of State website.

There is also a brief article on the audit available at www.OregonLive.com.

The audit points out the critical need for government agencies to review and develop contracting policies and procedures that results in consistent and transparent practices that protect the public's interests.