direct payments - april 2022
Released April 2022
Download the audit report here
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We undertook this audit because our June 2021 report, Forensic Audit Services, found that control deficiencies in the procurement process allowed a former city executive to make improper payments. We assessed whether controls were in place for the Department of Finance to ensure that direct payments are appropriate.
- The direct payment process allows city departments flexibility to obtain goods quickly, and the ability to procure items that cannot be obtained through the competitive procurement process.
- The direct payment process has relatively few pre-purchase controls, because the purchased item has usually already been received before the Department of Finance has an opportunity to review the purchase.
- The majority of direct payments in fiscal year 2021 were $5,000 or less, potentially eligible to have been made as micro-purchases.
- Accounts Payable has directed city departments to use a dashboard report to track compliance with policy and to reduce the number of unallowable direct payments.