Audit Objective 

Determine whether the Amani Public Charter School (School) officials procured goods and services in accordance with established policies. 

Key Findings 

School officials did not procure goods and services in accordance with the established policy and procedures. As a result, there is no assurance that the purchases were made in the most prudent and economical manner without favoritism.

Specifically, officials did not: 

• Use competition for 18 purchases totaling $543,474 out of a sample of 21 (86 percent) totaling $763,413 required by School policy to be competitively purchased.
• Credit card charges were not supported by documentation, reviewed or approved as required. The Executive Director (Director) did not approve, and the Board Treasurer did not review any of the 35 charges tested, totaling $9,126.Also 28 out of 35 charges (80 percent) totaling $7,627, were not supported by a receipt, a documented purpose, or both.
• Officials did not use a purchase order for 23 purchases totaling $92,220 out of 24 tested totaling $93,865 (96 percent), as required by School policy. 

Officials also did not properly segregate procurement responsibilities. We identified that overlapping and conflicting responsibilities enabled two Directors to each control all aspects of the procurement process, including initiating a purchase request, approving the purchase, approving the invoice, and signing checks for payment. 

Recommendations 

This report includes 11 recommendations that, if implemented, will improve the School’s procurement. School officials generally agreed with our findings and indicated they will initiate corrective action.