In a 2015 review of State of Texas contracts, the Austin-American Statesman found, “Problem deals are often identified too late, after state officials have made mistakes and millions have been paid.” Further, they noted that “poor oversight has allowed modest contracts to balloon by tens of millions of dollars before being noticed by auditors.” (February 7, 2015, AAS). In performing contract audits, many auditors review the compliance provisions without considering whether contracts contain intended deliverables and provide value to the organization.
This one day session will address those “hard” and “soft” issues with respect to contracting. The hard issues are those of which you may have been aware such as bidding contracts over a certain dollar amount, confidentiality in bidding, impartiality in the selection process, and not accepting favors or promises from a potential contractor. However, have you ever considered the “soft” issues that relate to contracting? Perhaps you have considered them as “failures in compliance” or as “lack of knowledge” on behalf of the parties to the contract. This session will examine the three major players: procurement, recipient, and contractor. Using interactive discussion, exercises, and common examples, you will leave with practical items to consider and implement as an auditor.