In the annual internal audit risk assessment, the procurement function was identified as a key risk area for a large tribal government. On behalf of the tribe, Baker Tilly performed a procure-to-pay audit and the review included two primary components:
Baker Tilly solution
Baker Tilly’s tribal services consulting team reviewed procurement documents, policies and procedures, conducted interviews with key process owners and tested a sample of expenditures. Sample expenditures were selected based on high risk and/or highest spend departments and programs.
All methods led to a better understanding of the procurement process completed specific to each person’s role and department. These findings were used by Baker Tilly to make informed recommendations.
The team presented to the Tribal Council, the Chief Financial Officer and other executive management and there were three key recommendations highlighted to improve the procure-to-pay function. First, proper segregation of duties would improve internal controls over the vendor master file. Secondly, the tribe could implement a process to track vendor performance as a means of improving the quality of goods and services delivered to the tribe. Lastly, joining a cooperative purchasing entity could reduce costs and limit the time spent soliciting bids and quotes.
For questions about how sample expenditures were selected, the key personnel interview process and the recommendations provided, please connect with us.