Audit prompts changes in school procurement in Panama | News, Sports, Vacancies

PANAMA — Government officials say Panama Central School needs to tighten its purchasing policies.

An audit by the State Comptroller found that school officials did not always comply with the district’s purchasing policies or Section 103 of the General Municipal Law. for $1.1 million in purchases made without the use of competitive procurement methods.

“Therefore, the board, officers and claims auditor failed to ensure that district funds were used to purchase goods and services in a reasonable and economical manner, in the best interest of taxpayers, and that procurement was not influenced by favoritism, waste, or corruption. or fraud,” the audit continued. “Some officials delegated their procurement responsibilities to others and did not ensure that those individuals complied with the procurement policies and GML Section 103. Procurement Policy and GML Section 103.”

According to the audit, the district’s purchasing policy was last updated in 2023 and requires purchasing officials and employees to review potential purchases to determine whether a competitive bidding process is necessary to procure the goods and services being purchased. These policies cover any purchase of supplies or equipment that costs more than $20,000 or is expected to exceed that amount in the aggregate for the same item or service in the same year. This also applies to public works contracts valued at more than $35,000.

The audit also states that the policy requires purchasing staff and employees to procure all anticipated purchases of supplies or equipment; less than $20,000 but more than $3,000 using written quotes from at least three suppliers, less than $3,000 but more than $1,000 using written quotes from at least two suppliers, or less than $1,000 using one written or oral quotation.

“Employees and officials involved in procurement must be familiar with the policy and adequately perform their procurement responsibilities,” the audit states. “When procurement officials and employees are unfamiliar with policies or deviate from established procurement rules, they cannot ensure that procurement represents a prudent and economical use of public funds for the benefit of taxpayers and is not influenced by favoritism or waste. and is not subject to possible waste, corruption or fraud.”

In reviewing Panama Central School’s purchases of goods and services totaling approximately $2.1 million during the audit period, the State Comptroller’s Office reports in the audit that its findings indicate that board and district officials did not always follow these policies. resulting in total purchases of approximately US$1.1 million, which were to be individually and collectively subject to competitive bidding, purchases totaling approximately US$597,000 for professional services, which were to be procured through a request for proposals process, and purchases totaling approximately $412,000 that were to be purchased using quotations.

“The manager told us that he relied on the purchasing agent to enforce the policy,” the audit report states. “The purchasing agent told us that she relied on department heads to comply with the policy. The claims auditor told us that she did not review policy compliance as part of the claims audit because she assumed that the superintendent and purchasing agent reviewed claims for policy compliance. Because county officials and the claims auditor did not ensure that officials and purchasing staff followed the policies, the county purchased goods and services that were not competitively bid, and officials missed opportunities to reduce costs or save taxpayer money.”

The audit recommends that the school district require the school board and superintendent to require the purchasing agent to enforce and monitor compliance with the policy, ensure that all purchasing officials and employees are aware of the policy and require them to strive to compete as this is prescribed by the policy before making purchases. The purchasing agent must ensure that purchasing officers and employees comply with policies and procedures in obtaining the required number of bids, quotes and proposals for each purchase.

The claims auditor must monitor compliance with policies as part of his claims audit process and ensure that purchasing officials and employees receive the required number of requisitions, quotes, and proposals for each purchase.

In the school’s response, included in the official audit and signed by Panama Superintendent Aaron Wolf, the school acknowledged the findings and promised to begin making corrections.

“The District continually seeks opportunities to further utilize taxpayer dollars and appreciates the assistance received from the Office of the State Comptroller,” Wolfe said in the response. “The district immediately began implementing corrective actions midway through the audit and will submit a detailed corrective action plan within 90 days.”