Review Agenda Item
Meeting Date: 12/14/2017 - 7:00 PM
Category: Old Business and Action Items
Type: Info
Subject: Performance Audit Staff Update: Procurement Process
ACPS 2025 Strategic Plan Goal:
Objective 6.1 Fiscal Policies and Practices
ACPS will plan, manage, monitor, and report spending to provide decision-makers and the community with a reliable, accurate, and complete view of the financial performance of the educational system at all levels.
Objective 6.2 Continuous Improvement
ACPS will engage in cycles of continuous improvement at every level of the school division, and it will employ evidence-based decision-making in its consideration of process improvements, policy making, and budgeting and accountability.
Objective 6.3 Operational Efficiency and Performance Management
ACPS will focus resources on student learning by utilizing a comprehensive performance management system that ensures efficient, cost-effective business operations.
Policy: DA - Management of Funds
Funding Source or Fiscal Impact (where applicable)
File Attachment:
Agenda Item Summary: In the eight months since the Procurement Process audit report was finalized, Procurement office staff and other division-wide employees have continued to make extensive progress towards the audit recommendations.

Of the 21 audit recommendations:
• 17 (81.0%) have already been fully implemented on schedule.
• 2 (9.5%) remain on track to be completed on the original timeline.
• 1 (4.8%) will be completed in January 2018 (after the original deadline).
• 1 (4.8%) was a recommendation that staff disagreed with in the original management response and chose not to implement.

All of the Procurement Process audit recommendations and their statuses are detailed within the attached presentation.
This report on the Procurement Process audit is the first in a series of performance audit staff updates. The Payroll Process and Facilities Process audits will be presented on January 11 and January 25 respectively. Then, staff will continue to present the School Board quarterly updates on each audit until all recommendations have been implemented.
Background: After an outside consultant completed a Risk Assessment of ACPS, the School Board approved funding in the FY 2016 Combined-Funds Budget for an internal audit program. In the spring of 2016, the School Board awarded a contract to Gibson Consulting Group to conduct audits in the following areas: Procurement, Facilities, and Payroll.

The Procurement audit began in August 2016 and was substantially complete in early 2017. The final audit report, including management responses, was issued to the School Board on April 7, 2017. Significant progress was already made towards implementing audit recommendations at the time of the Auditor’s report.

On November 9, 2017, Gibson Consulting Group presented the School Board with the audit results for all three functional audits.
Recommendation: The Superintendent recommends that the School Board reviews the Procurement Process Audit Report and the progress made on the audit recommendations.
Recommended By:
Signed By:
Mike Herbstman - Chief Financial Officer
Signed By:
Lois Berlin -