Specifications include, but are not limited to: PART A – Project Planning and Risk Assessment Project Planning: Describe the process to identify all information and resources that will be needed in order for Offeror to conduct the risk assessment and develop the audit plan, including but not limited to staff interviews and site visits, documents, manuals, legal references, policies and procedures. Describe anticipated workflow, communications, and reporting expected throughout the duration of the contract term. Risk Assessment: Describe the process by which the Offeror will assess and rank the DHS’ risks of procurement violations that will guide the development of the audit plan. Present a written report of findings with specific recommendations for the scope and structure of the audit plan. PART B – Risk Assessment and Audit Plan 1. Risk Assessment and Ranking: Propose a process for FMO to assess risks of procurement violations within the DHS with specific methods for collecting necessary information and data, and for ranking risks of potential procurement violations. This assessment may include surveys, questionnaires, or other tools needed to collect and analyze the data needed to assess risk. 2. Audit Plan: Develop a detailed procurement compliance audit plan. This plan should include, but is not limited to: a. Description of goals and objectives for the audit and its component steps; b. Criteria to guide the scope of the audit to account for FMO resource limitations related to a 4-person office (3 professionals and 1 clerical); c. An internal work schedule for FMO to complete an audit within a 3-4 month period; d. Identification of data to test; e. Data sampling methodologies to select sample types and sizes for testing; f. Outlines for entrance and exit conferences, field meetings and other meetings; g. Data analysis tools and methodologies to review data for risks, trends or patterns of occurrence; h. Methods and tools to evaluate program procurement policies, internal controls, and procurement records/files for compliance with State procurement requirements, including but not limited to: i. Tools developed should account for varying documentation requirements of different procurement methods. These tools shall be developed for all types of procurement listed in Appendix K. ii. Tools such as checklists and flowcharts to identify essential elements of a proper procurement action. These tools will also define the required elements of a complete procurement file for each procurement type. Checklists should include comprehensive citations to applicable procurement law, rule or policy. iii. Questionnaires or interview questions or other techniques to assess effectiveness of internal controls or program policies. i. A proposed final report template; j. Proposed document storage procedures for DHS work papers, data samples and other related work product generated for each audit. k. Recommendation for how to follow-up on findings in completed reports; l. Department-wide compliance measurement tools/methods to be conducted between procurement program reviews; m.A DHS procurement audit manual describing in detail the process to be followed by FMO to conduct reviews of DHS staff compliance with State procurement requirements for each type of procurement, including all checklists, schedules, reports and other tools developed under the Contract.
