This review was initiated because of the increase in the Divisional Purchase Order (DPO) limit to $50,000, the potential for a further increase in this limit, and instances of noncompliance with City purchasing policies and procedures that were identified in the past.
Although controls over DPOs have improved, there is an opportunity for the City to improve the efficiency and cost-effectiveness of DPOs as one of the City’s purchasing methodologies. This report contains four recommendations to improve cost-effectiveness, efficiency and management controls.
A separate letter has been issued to management outlining recommendations for minor administrative improvements that came to our attention during the audit.