Audit of City’s Direct Voucher Program
Summary
The Inspector General’s Office has completed an audit of the City of Chicago’s Direct Voucher processes and procedures related to direct voucher disbursements between November 1, 2006 and October 31, 2007.
Executive Summary
As you know, the direct voucher system operates as an exception to the otherwise generally applicable requirement under State and local law and procedures for competitive bidding in government procurement. The purpose of the audit was to test and evaluate activities incident to the payment of direct vouchers to ensure effective and efficient operations and compliance with stated City polices and procedures, as well as to evaluate the effectiveness of controls related to such payments.
The audit found that the City had appropriate controls for ensuring that the City received the goods/services for which it paid by the direct voucher method and that transactions had the appropriate approvals under the stated policy. However, the audit found that internal controls limiting direct vouchers to commodities exempted from generally and presumptively applicable competitive bidding requirements under the Illinois Municipal Purchasing Act, 65 ILCS 5/8-10, et seq., were not adequate. Additionally, the audit determined that the City’s internal controls for ensuring that City Departments adhere to the City’s own Policy for Use of Direct Vouchers were not adequate.
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