direct payments - april 2022
Direct Payments
Released April 2022 Download the audit report here Download the report highlights here 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. |
We found:
- 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.