Public Procurement Practice AUDITS

Flashcards covering audits, definitions, self-assessment, preparation, areas, and post-audit actions from the Public Procurement Practice AUDITS notes (Pages 1–9).

What are the three primary audit types in Public Procurement Practice AUDITS?

Compliance, financial, and performance audits.

How is an audit defined in Public Procurement Practice AUDITS?

A detailed review and examination of documents and business processes by internal staff or independent experts, culminating in a detailed report that may include findings.

What foundation underpins audit preparedness and effective self-assessment programs?

Knowledge of and adherence to laws, regulations, policies, procedures, and processes.

What is the outcome of applying the audit foundation to daily operations?

Economical, efficient, effective, and compliant operations.

Who can be the focus of an audit within the agency?

The Procurement Department, or procurement may be brought into the audit of another department by providing supporting documentation and data.

What must Procurement do when spending federal dollars?

Comply with the terms, conditions, and requirements of the grant.

How is the success of the procurement function measured?

Outcomes related to compliance, economy, efficiency, and effectiveness.

What are some purposes of establishing procedures and processes in procurement?

To ensure integrity and best value, respond quickly to needs, set goals and measure outcomes, and elicit feedback from clients and end users.

What governance knowledge should Procurement stay current with?

Laws, regulations, codes, statutes, ordinances, charters, case law, best practices, trade agreements; and where to locate them; changes; and who can update them; advocacy processes.

How can Procurement influence procurement laws and policies?

By staying informed, providing input, and advocating through local boards, state legislatures, legislative liaisons, and NIGP communities.

What topics should agency policies and procedures address to prepare for audits?

Compliance with laws/regulations/trade agreements; execution of procurement authority; ethical conduct; social, economic, and environmental goals; fair/open solicitations; publication of general information; records retention and information management; disaster recovery.

Give an example of a question that might appear on a Compliance Audit.

Are policies, procedures, regulations, trade agreements, and laws being adhered to in procurement processes?

What is the definition of a Financial Audit?

An audit to determine whether all funds are properly accounted for, the accuracy of financial statements, and that financial transactions are recorded correctly.

Provide an example of a Financial Audit question.

Were public funds spent on the goods or services specified in the grant or contract?

What is the definition of a Performance Audit?

A systematic and objective assessment of an organization's management and activities related to achieving outcomes efficiently, economically, and effectively against objective criteria.

Provide a sample question from a Performance Audit.

Was departmental performance measured, and did those measurements show efficiency, economy, and effectiveness?

What is the purpose of self-assessments in the procurement function?

To prepare for audits, ensure documents are up-to-date, and strengthen governance, risk management, and internal controls.

Who is responsible for instituting regular self-assessments?

The agency’s lead procurement official.

Name some areas that self-assessments should cover.

Small purchases; sole source purchases; emergency purchases; competitive solicitations; term contracts; procurement cards; written policies and procedures; training aids; customer service; supplier performance.

How often should self-assessments be conducted?

Regularly; ideally at least once per year; or based on events like new CPO, protests, staff turnover, increased delegation, new policy or procedure.

What daily/weekly records should Procurement maintain for audits?

Solicitations, contracts, addenda and amendments; the evaluation process and award decisions; communications such as correspondence, phone records, newsletters, and meeting notes.

What documents are often included in monthly or annual self-assessments?

Budgets and financial records; strategic plans; protests and disputes; list of procurement card holders and expenditures; spend analysis; training materials; staff certifications or memberships; policies, handbooks, and instruction manuals.

What triggers an audit in Element 3?

Major changes to the agency affecting procurement operations; reorganizations; staff changes; new services/products; changes in law; litigation, corruption, or fraud.

What should agencies do when an audit is scheduled?

Communicate expectations, ensure staff training, establish a single point of contact, return documents, provide clean copies, review unresolved findings, expedite related projects, update procedures.

What is a pre-audit questionnaire?

A questionnaire detailing items for review, e.g., organizational chart, procurement contracts list, internal policies, delegation letters, training plans, and SWaM plans.

What is a key distinction between internal and external audits?

Audits differ in objectives and scrutiny; external audits may have more media and senior management involvement and public meetings; internal audits typically face less external pressure.

What should be communicated to staff about audits?

Audits are normal; staff should be prepared for interviews; provide only requested information; management should be notified.

What does GPRA 2010 require?

A performance plan with a balanced set of indicators to measure progress toward goals, including customer service, efficiency, and outcomes.

What is a single audit?

One audit of all federal programs, rather than separate audits for each program.

What are the focus areas of sustainable procurement?

Environmental (recycling, waste reduction, conservation), social equity (DBE/MBE/WBE/small businesses/veteran-owned), and economic (efficiency, market development, innovation).

What is included in a records retention policy?

Disposal of documents according to the records retention schedule.

What is the purpose of disaster recovery plans?

To ensure procurement operations can recover and continue after disasters.