Department of Health

Internal Controls Over Procurement Operations and Equipment Asset Management

The Department of Health oversees various public health programs and operates a number of health care facilities. We audited the Departmentís controls over procurements and found that contracts were often initiated before they were submitted for final approval. We also found that the Department could have saved about $1.6 million over a 17-month period by making better use of the Stateís Purchasing Card. Our examination of the Departmentís controls over equipment found that an estimated $4.5 million in equipment purchases had not been recorded on the Departmentís master inventory record. We also determined that 166 of the 199 cars purchased by the Department during our audit period were underused. When we analyzed the usage of six of these cars, we found that, if the Department had paid employees for the use of their personal cars instead of purchasing the vehicles, it would have saved more than $127,000. We recommended that a number of improvements be made in Department practices.

For a complete copy of Report 2005-S-17 click here.
For a copy of the associated follow-up report click here.