Audit finds ‘due regard to greatest worth,’ flags gaps in $6M of Vancouver furnishings buys – BC
Vancouver’s auditor common says town met its goals of “due regard to greatest worth” in shopping for practically $6 million in workplace furnishings over 30 months, “with some exceptions.”
The report, launched Wednesday, is barely the second audit by auditor common Mike Macdonell and his workplace, and makes 5 suggestions to town.
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Vancouver’s workplace furnishings purchases made headlines in September 2020, when a International Information report revealed it had spent practically $317,000 on high-end furnishings for a renovation at metropolis corridor amid COVID-19 value pressures.
The efficiency audit doesn’t converse to that buy particularly, however covers a interval from Jan. 1, 2020 to June 30, 2022.
The audit checked out procurement-related insurance policies from town’s provide chain administration (SCM) division and purchases made by the actual property and amenities administration (REFM) division.
Nonetheless, its scope didn’t embody selections made by town as as to if to make workplace furnishings purchases — one thing Macdonell stated his workplace would assessment in 2024.
General, the audit discovered that town’s workplace furnishings purchases adhered to its established purchasing-related insurance policies.
“The Metropolis had an evaluation course of to pick out workplace furnishings, a fairly complete procurement coverage, and used up-to-date provider agreements,” Macdonell discovered.
Nonetheless, the audit discovered “a number of areas the place the Metropolis didn’t totally meet our audit standards, and we discovered alternatives for the Metropolis to enhance its processes transferring ahead,” he concluded.
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In accordance with the audit, there have been a number of considerations associated to the SCM division’s insurance policies.
The report particulars how furnishings suppliers have been pre-qualified by way of a 2016 request for {qualifications} (RFQ). Nonetheless, it famous a scarcity of readability in that RFQ in regards to the choice course of and outcomes and whether or not the RFQ was binding, and stated suppliers got simply 12 days to reply to a 76-page doc.
Additional, it discovered town deviated from its personal coverage and commerce agreements when it failed so as to add extra certified suppliers after 2016 and prolonged its preparations with pre-qualified suppliers past the RFQ time period.
It stated most purchases made by the REFM division have been primarily based on previous furnishings picks, which have been primarily based on weighted assessments, but in addition flagged considerations.
The division didn’t have an outlined and documented timeline on when and the way typically to conduct and refresh its assessments, it discovered.
The division additionally failed to determine tariffs with all suppliers, and in no less than one case, it performed its evaluation with out the suitable stage of documentation.
The audit recommends town replace its Procurement Coverage to make sure it meets all commerce settlement obligations, and that each the REFM and SCM departments replace their procurement methods forward of town’s subsequent furnishings coverage.
It additionally requires the SCM and authorized companies departments to assessment and replace their RFQ templates.
And it calls on the REFM division to create clear tips on when and the way typically to evaluate furnishings and techniques to get greatest worth, and to constantly set up tariffs in provide agreements for generally sought furnishings.
In a press release, Deputy Metropolis Supervisor Armin Amrolia stated “many” of the audit’s feedback and suggestions would “inform senior administration to replace insurance policies with latest regulatory necessities, create procurement methods, change templates and customary working procedures and proceed to construct upon current processes in preparation for the following procurement of workplace furnishings and different future purchases.”
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