Page 35 - The Edge - Summer 2020

PROCUREMENT
PROCUREMENT
PROCUREMENT
PROCUREMENT
BY BOBBY WILLIAMS II
What Is the Proper Level of Due Diligence for

Your District?
Bobby Williams II

attended the Due Diligence class that Gary Barkman
The Uniform System of Financial Records for and I presented at the recent Vendor/Buyer Conference
Arizona School Districts (USFR) speaks about due then you know how detailed the due diligence is I am
diligence requirements under VI-G-13. Every district is referring to. At the very least, the level of due diligence
responsible for conducting some level of due diligence one should perform would be verifying that the contract
on each formal procurement, whether it is done is still available, the item/service that is being procured
independently or through a cooperative. The proper is covered by the contract, and the contract pricing
amount or level of due diligence will vary based on the matches the quote.

agency that wrote the procurement.

The USFR also speaks on the guidelines that the Office
A.R.S §15-213 (F) requires Arizona school districts to of the Auditor General has prescribed for performing
have a systematic review of their purchasing practices. those reviews as part of the Procurement Compliance
Working with my auditors years ago, when asked what Questionnaire, which was updated on July 1, 2019, and
my process was, I came up with a methodology of 25%. can be found on their website: https://www.azauditor.
That meant 25% of all my contracts per cooperative gov/reports-publications/school-districts/forms.
would have detailed due diligence completed on them. You can also access the web-based Compliance
Six years later my methodology has increased to 90%, Questionnaire form and a video of the form’s changes

but I shoot for 100%.
there as well.

This by no means is
the level everyone "At the very least, the level of
should be doing, due diligence one should perform
but merely was the would be verifying that the
goal that I had set contract is still available, the item/

for myself. You will service that is being procured
determine your own is covered by the contract, and
methodology based the contract pricing matches the
on your district’s quote."
usage, workload and
any other factors
that may need to be You may ask yourself, “What level of due diligence
considered to make should I do?” The USFR says: “A cooperative or
that decision. If you lead district (entity) that has had such a review within
CONTINUED ON PAGE 37

35