Procurement Reform Risk Assessment Pilot. 2013 DES Training Conference & Trade Show Presented by Roselyn Marcus, Jim Schnellman, Tammie Wilson and Jay Field October 30, 2013. Panel Presentation. Presenters: Roselyn Marcus , Assistant Director Legal and Legislative Affairs, OFM
Procurement Reform Risk Assessment Pilot
2013 DES Training Conference & Trade Show
Presented by Roselyn Marcus,
Jim Schnellman, Tammie Wilson and Jay Field
October 30, 2013
There are 7 areas of consideration:
L-4 How often and when does your agency’s internal audit function review your agency’s internal control systems for procurements?
Current Process - L&I’s Internal Audit performs an annual enterprise-wide risk assessment. Internal Audit uses the risk assessment to build an agency audit plan that may include audit or consultation services focused on the procurement process. A portion of the procurement cycle is included in the plan at least once every three years. In the event that an external auditor, such as the State Auditor’s Office (SAO), performs an audit of the procurement process, Internal Audit may rely on the external auditor’s work to fulfill that portion of the Agency Audit Plan requirement. Additionally, L&I’s Internal Audit reviews all corrective action plans to determine if previously identified deficiencies have been addressed. The last audit was performed by the SAO in 2010. L&I received two management letters, connected with procurement. The first resulted in three corrective action plans The three items in need of corrective action were: 1) No documentation that an eligible proposal for an IT contract was considered. 2) The department improperly reimbursed a contractor for a piece of equipment when the contract stated the contractor would provide the equipment. 3) Methods used to score two contracts were not consistent with methods outlined in the request for proposal. To address the corrective action plans, a checklist was implemented on November 29, 2010 and training was provided to the agency on April 17 and 26, 2012. The second identified four issues for correction in the procurement system. The result was a modification to the purchasing system to ensure all revisions to field orders required an electronic re-route for approval. The final system changes were implemented in May 2013 and are scheduled for testing by L&I’s Internal Audit early in FY14.
P-3 How does the agency provide training and development support systems for its procurement professionals?
CCS offers a series of regularly scheduled contracts and ACD classes throughout each year. They include Basic ACD Training, Basic Contracts Training, ACD Styles Training, Advanced Contracts Certification, and Managing Individual Provider Contracts. Basic ACD and Basic Contracts are offered approximately monthly, while ACD Styles and Managing Individual Provider Contracts are offered quarterly. Advanced Contracts is offered twice a year. Registration is available through the DSHS Learning Management System and class schedules and materials are available on the CCS Intranet Share Point site. CCS offers these classes at no charge to participants. CCS also considers special requests to offer specific classes in locations other than DSHS headquarters provided the program requesting the class is able to provide an appropriate classroom and/or computer training room as needed. These special trainings are generally scheduled several weeks in advance based on instructor and participant availability. On an ad hoc basis, the ACD Administrator will also offer training to DSHS contracts staff around building and managing reports using the ACD Online Reporting tool. …
Central Purchasing Unit (CPU) for Operational Goods and Services:
Internal CPU employees undergo supervisor and peer training on the current DES delegated authority, DES policy requirements, DSHS Annual Delegated Authority Memo (see Exhibit A – FY13AnnualDelegationMemo.docx), and the Tracks e-Purchasing purchase order (PO) process when beginning their position. New Contract Specialist 2 (CS2) and Contract Specialist 3 (CS3) also complete the Central Contract Services (CCS) Basic Contracting, Advanced Contracting, and Agency Contract Database (ACD) classes.
What value did you get from participating in the pilot process, developing the risk assessment tool, and implementing the tool in your agency?
What lessons did you learn by participating in the risk assessment pilot?
What do you see as the future of the risk assessment tool and the impact of this pilot?