tailieunhanh - Financial Audit of the Department of Health_part3

Chương 2: Sự thiếu hụt kiểm soát nội bộ Bộ Thiếu chính sách chính thức và Thủ tục Trong quá trình quản lý hợp đồng của nó Nhà thầu của bên thứ ba thực hiện một phần đáng kể chức năng của bộ phận. Trong năm tài chính kết thúc vào 30 tháng 6 năm 2003, bộ phận thực hiện 168 hợp đồng với tổng giá trị khoảng $ . | Chapter 2 Internal Control Deficiencies The Department Lacks Formal Policies and Procedures Over Its Contract Management Process Third-party contractors perform a significant portion of the department s functions. During the fiscal year ended June 30 2003 the department executed 168 contracts totaling approximately 50 million. Of these 92 contracts worth approximately 31 million were procured in accordance with Chapter 103D HRS and 76 contracts of about 19 million were procured in accordance with Chapter 103F HRS. Given the volume and magnitude of the department s contracts it is imperative that they be effectively managed. This includes ensuring contractors comply with contractual terms and verifying that performance expectations are achieved. We found that the department lacks formal policies and procedures for its contract management process. Once a contractor is selected the department s programs divisions are responsible for carrying out the various contract management functions. For example each respective program division is responsible for monitoring its own contractors performance and ensuring all payments are made in accordance with contractual terms. Considering the size and complexity of the health department it is understandable that the majority of its contract management functions are performed at the program division level. However because the department does not have standardized policies and procedures in place the nature and extent of contract management procedures are not consistently applied among the various programs and divisions. In addition the department does not conduct formal employee training sessions to communicate uniform contract management requirements and processes. Without standardized policies and procedures for contract execution performance monitoring and payment processing the department has no means of ensuring minimum contract management functions are performed. We randomly selected 30 contracts totaling approximately 30 .