Audit says N.C. A&T violated policy with over $100k in no-bid purchases | Eastern North Carolina Now | N.C. A&T procures over $100,000 of services without following bidding procedures.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is Theresa Opeka.

    North Carolina Agricultural and Technical State University violated a university policy by purchasing over $100,000 in services without contracts, according to a report released Wednesday by North Carolina State Auditor Beth Wood.

    Wood's office said they received four allegations through its hotline that the university purchased painting services totaling $100,210 from G.S. Painting and Home Improvement, Jamestown, without seeking bids from July 2019 through June 2021. The report also says that the purchases may have been split to avoid the threshold for requesting quotes or formal bids.

    The university's purchasing procedures policy states that purchases over $5,000 but below $25,000 require a written request for quotes and that purchases over $25,000 but below $100,000 require formal bids.

    The policy prohibits departments from splitting purchases into smaller purchase orders to avoid seeking competition.

    In the first grouping, the Office of Facilities and Campus Enterprises requested 15 purchase orders totaling $64,035 for G.S. Painting and Home Improvement for what appears to be six painting jobs.

    Several of the purchases had similar job descriptions and were within 7-42 days of one another. Each purchase order, except one, was under the $5,000 threshold requiring a written request for quotes. Each group of purchases, when added together, exceeded the $5,000 threshold for requiring a written request for quotes. No written requests for quotes were made.

    Additionally, eight purchases were within $500 of the $5,000 threshold that requires a written request for quotes. Wood's office said that had these purchases been combined for the same painting job, the amount for each would have exceeded $5,000, requiring written requests for quotes.

    Procurement Services also processed four purchase orders totaling $36,175 for G.S. Painting and Home Improvement to paint the dining hall in 2020.

    Investigators say it appears that splitting of purchases to avoid competition may have occurred, based on the information reviewed during the investigation.

    One of the purchases for painting the dining hall exceeded the $25,000 threshold for requiring formal bids. Three of the four purchases were below the threshold to require the university to seek competition, and no bids were obtained for any purchases or the combined amount.

    The purchases for painting the dining hall were made within 25 business days of the first purchase. At a minimum, the purchase order dated June 15, 2020, exceeded the threshold in requiring formal bids.

    The report said that if the purchases had been combined for painting the dining hall, the total amount would have exceeded $25,000 and required formal bids.

    It also said continued violations of university policies might signal to the employees that this behavior is acceptable, causing the university to subject itself to higher fraud risk.

    The director of procurement services admitted to investigators that there are no procedures to detect or prevent departments from splitting purchases to avoid seeking competition.

    Wood's office recommended that the university determine if the jobs were split to avoid intentionally seeking competition. If so, it should consider disciplinary action against the employees that split the jobs. Other recommendations are as follows.

    The university's chancellor should:

  • Ensure that the director of procurement services has procedures in place to detect or prevent departments from violating the policy.
  • Determine if the university has an unethical relationship with G.S. Painting and Home Improvement.

    The director of procurement services should ensure competitive prices are obtained for all purchases by:

  • Implementing procedures to detect departments attempting to circumvent the policy.
  • Enforcing the existing policy by requiring a written request for quotes be issued for purchases that exceed $5,000 but are less than $25,000.
  • Enforcing the existing policy by conducting the formal bid process for purchases between $25,000 and $100,000.

Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Biden To Ease Sanctions On Socialist Venezuela, Releases Maduro’s Convicted Narco Trafficker Nephews Carolina Journal, Editorials, Op-Ed & Politics CNN ranks U.S. Senate race in N.C. as 6th most likely to flip


HbAD0

Latest Op-Ed & Politics

During a courageous public statement denouncing Adolph Hitler in 2022, President Joe Biden deviated from his prepared remarks and recounted the time he personally faced off against Hitler while working as a lifeguard
The U.S. Military unveiled its new strategic long-range stealth bomber this week, Northrop Grumman’s B-21 Raider, which will serve as the backbone of the future for U.S. air power for decades to come.
Treasurer Folwell, Local Government Commission Praise Turnaround, Hand Keys Back to Town
The majority of COVID-19 deaths are now happening in people who are vaccinated, according to a new analysis.
Democrats have dedicated themselves to finding a new social media platform that will agree to censor damaging stories coming about how they used other social media platforms to censor damaging stories.
Actor James Woods praised Twitter CEO Elon Musk during an interview Friday night, saying that Musk quite possibly “saved America” by releasing internal company documents showing how former employees censored conservatives and a story about President Joe Biden’s son.

HbAD1

If you are hosting Thanksgiving this year, you can expect to pay much more for your feast. Nearly all your favorite ingredients will have increased in price since last year.
Twitter CEO Elon Musk released internal company documents through journalist Matt Taibbi about the company's censorship of the Hunter Biden laptop story during the 2020 presidential election that showed that top officials at the company were in regular contact with Democrats.
As “Drag Queen Story Hour” events sweep the nation, two ministers are exhorting fellow Christian men to bring “Pastor Story Hour” to their local public libraries.
On Monday Nov. 7, U.S. Attorney of the Eastern District of North Carolina federal court Michael Easley announced that an assistant U.S. Attorney, Susan Menzer, would serve as a district election officer (DEO).
Sen. Raphael Warnock (D-GA) has defeated Republican challenger Herschel Walker in Georgia’s 2022 Senate runoff election. DecisionDeskHQ called the race at approximately 9:48 p.m.

HbAD2

Months after becoming Twitter’s deputy general counsel, former top FBI lawyer James Baker appeared to support the social media site’s move to suppress the New York Post’s report on Hunter Biden’s laptop in the run-up to the 2020 presidential election

HbAD3

 
Back to Top