Deficiency Notices - 100.6

General

A Deficiency Notice is a formal mechanism to document non-compliance with Purchasing Authority standards. The purpose of this documentation is to aid state departments in taking appropriate corrective action.

State departments with purchasing authority may be cited for a deficiency resulting from, but not limited to:

• Purchasing Authority Reviews
• Non-compliance allegations
• DGS audit findings
• Bureau of State Audits (BSA) audit findings

The state department’s Procurement and Contracting Officer (PCO) is responsible for providing responses to all inquiries and the Deficiency Notice.

Allegations of Non-Compliance 

The Purchasing Authority Unit (PAU) occasionally receives allegations of non-compliance with Purchasing Authority standards (standards include
State policies, procedures, and laws pertaining to contracting/procurement).  The PAU receives these allegations from a variety of sources such as suppliers or other units within the Procurement Division (PD).  The PAU may be notified of non-compliance or deficiency issues by way of media coverage of a department’s procurement, a response to an audit, or executive management may have been contacted with concerns. Allegations are researched by the PAU.

Audit Findings

Every department granted purchasing authority undergoes audits conducted by DGS’ Office of Audit Services, Bureau of State Audits, or other governmental entities. Departments are typically audited once every three years. When an audit is conducted, DGS/PD is notified. PAU analysts review these findings to determine whether or not a department is cited for a deficiency depending upon the severity of the results.

Researching Allegations 

As a result of a non-compliance report or an audit, the PAU may conduct a quality assurance review.  The PAU will notify the state department’s PCO of the allegation and ask for a response.  The PAU may request that the department submit specific procurement files or may conduct an onsite review.

Corrective Action Plan

In order to properly address deficiencies, the PAU may ask the department to produce their own Corrective Action Plan (CAP).

PAU will notify the department verbally and/or in writing of the appropriate timeframe for the CAP to be completed.