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Claims auditor reports on confirming orders, turnover and steps to improve purchasing compliance
Summary
Claims auditor Denise Ober reviewed the district’s annual claims and purchasing activity, noting an increase in confirming purchase orders tied to personnel turnover and clerical process issues; most confirming orders were small-dollar amounts and staff will work to reduce the rate below 1%.
Denise Ober, the district’s claims auditor, presented the annual review of purchasing and claims activity and reported on exceptions the auditor found during the last fiscal year.
Ober described “confirming orders” as the largest exception category and explained they occur when purchases are made before a purchase order is entered. “That's your confirming orders… those are orders that someone has purchased something prior to us OK’ing it,” she said. She told the board that most confirming orders are small-dollar transactions and that the district is tracking them so staff can retrain and reduce recurrence.
Board members asked about the dollar impact and scale. Ober said many confirming orders were “probably under $100,” and she described personnel turnover in the business office and a new claims auditor as factors that contributed to an uptick year over year. The transcript records the auditor saying she asked the district to be stricter so weaknesses would be visible and correctable.
Ober said all payments are reviewed before checks are issued and that when exceptions are found they are sent back to accounts payable for correction. She emphasized the district can document emergency purchases and the state will accept documented emergency repairs; these documented emergencies account for some confirming orders such as urgent facility repairs.
When asked how quickly purchase orders are approved if staff submit them in advance, the auditor said, “I approve POs like right now every single day. And when things go down, 3 times a week,” adding that approval can often be completed in a day or two and emergency POs are available when needed.
The auditor and board discussed the target of returning confirming orders to below 1 percent of total annual purchase orders; Ober said the district processes roughly 2,500 purchase orders a year and therefore the percentage is small though worth addressing.
No formal board action was taken on the auditor’s report; the board accepted the presentation and proceeded to other business. The transcript records subsequent routine motions on consent and new business later in the meeting.
