Procurement and the Auditor
PRESENTED BY:
TANESHA STOKES, VCO
OF THE
AUDITOR OF PUBLIC ACCOUNTS
What is the APA?
 The Auditor of Public Accounts is a constitutional officer with powers granted
by Virginia’s constitution (Article IV, § 18) and as specified in the Code of
Virginia (Chapter 14, §§ 30.130 – 30.142)
 The Auditor of Public Accounts reports through the Joint Legislative Audit and
Review Committee (JLARC) in the General Assembly
 The APA is the legislative external auditor for:
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All State agencies
Institutions of Higher Education
Constitutional officers, and
Various boards and authorities under the executive and judicial branches
of state government
Who’s the Boss?!
 The Auditor of Public Accounts
 The Independent Auditor of the Commonwealth
 Appointed to a 4 year term by the General Assembly
 Has been with the APA since 1977
Walter J. Kucharski, CPA, CFE
Mission
The APA serves Virginia citizens and decision-makers
by providing unbiased, accurate information and
sound recommendations to improve accountability
and financial management of public funds.
Where do we fit in?
General
Assembly
(JLARC)
Auditor of Public
Accounts
Deputy Auditor of
Public Accounts
Audit Specialty Team
Directors (11)
Auditors (88)
Human Resources
and Central
Operations Director (1)
Supporting Staff (12)
APA Specialty Teams
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Acquisition and Contract Management
Budgeting and Performance Management
Capital Asset Management
Data Analysis
Financial Management
Higher Education Programs
Information Systems Development
Information Systems Security
Reporting and Standards
Social and Medical Services
Judicial Systems
Acquisition and Contract Management
The Acquisition and Contract Management Team promotes
effective and efficient use of public funds in acquisitions
and contract management through the identification and
recommendation of best practices.
Acquisition and Contract Management Team
Director:
Andy Powell, CPA, MBA, VCO
Specialists:
Chadam Hover, CISA,VCO
Andrew McCarty, CISA,VCO
Angela O’Mary, VCO
Shawnise Newsome, VCO
Blair Price, VCO
Tanesha Stokes, VCO
Brett Sinsabaugh
Auditing the Procurement Cycle
Responsibilities of the Agency
 Provide Documentation (Evidence)
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Agency Procurement and Accounts Payable Policies and
Procedures
Master listing of all term contracts
Determination of Need
Justification of non-Competitive Sealed Bid procurement
RFP / IFB
Bid tabulations
Responsibilities of the Agency
 Provide Documentation (continued)
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Contract
Contract Administrator assignment and duties
Change Orders
Renewals
Vendor evaluations by end-user (at least yearly)
Role of Each Agency
 Manage the Contract
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Ensure contract compliance by Vendor and End-User
Tracking and Management of contract changes
Review, approval and payment of invoices
Auditor Considerations
 Is there the presence or absence of incentives?
 Is the procurement rational, feasible and doable?
 Is the procurement necessary?
 Is the Commonwealth getting value from this expenditure?
 Are there indicators of fraud?
 Are there any violations of laws and regulations
Role of the Auditor
 Gain an Understanding of:
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Policies and Procedures
Systems and System Security
Structure of the Procurement area
Contract expenditures
Monitoring project costs tools
Role of the Auditor (cont.)
• Gather Evidence
 Test individual contract files:
o Ensure that internal controls are in place
o Ensure files include adequate documentation
o Test compliance with State procurement regulations
 Conduct Substantive Tests
o Trace Contract Payments through Accounts Payable
o Trace individual vouchers to Contract
Questions and Answers