Report I2010-1 Recommendation 4 Responses

Report I2010-1: Investigations of Improper Activities by State Employees: Misuse of State Time and Resources, Improper Gifts, Inadequate Administrative Controls, and Other Violations of State Law January 2009 Through December 2009 (Release Date: June 2010)

Case Number I2008-0644

Recommendation #4 To: Water Resources, Department of

Require its purchasing staff to comply with state contracting rules for all purchases and to document the steps involved in their compliance, including, when applicable, the techniques used to determine whether a price quote is fair and reasonable.

Agency Response From July 2010

In June 2010, Water Resources reported that it implemented practices in 2008 to ensure it receives a fair and reasonable price for its purchases after concerns about the integrity of its purchasing process were raised by staff in 2008. These practices included the division office instituting changes to its purchasing process to allow for physical inspections, inventory of goods received, and comparison to purchase orders or invoices. In addition, Water Resources reported that it changed its purchasing software in July 2010 to ensure segregation of duties among its employees.

California State Auditor's Assessment of Status: Fully Implemented


All Recommendations in I2010-1