Report 2012-119 Recommendation 16 Responses

Report 2012-119: California Department of Veterans Affairs: It Has Initiated Plans to Serve Veterans Better and More Cost-Efficiently, but Further Improvements Are Needed (Release Date: May 2013)

Recommendation #16 To: Veterans Affairs, Department of

To more effectively and efficiently meet state purchasing and procurement requirements, CalVet should analyze its current purchasing model to ensure that it is the most efficient and cost-effective to use when purchasing non-IT goods and services for the veterans homes.

Annual Follow-Up Agency Response From September 2016

CalVet has rewritten its policies and procedures in December of 2015 to address the recommendations suggested in the audit. In January 2016, the Department of General Services (DGS) approved CalVet's new procedures as well as upholding the Department's delegated authority. Additionally, CalVet held a mandatory Contracts and Procurement Training Workshop for the entire Department on August 23-25, 2016.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

CalVet analyzed and revised its procurement policies and procedures and restructured its contracting unit. According to the chief of business services, CalVet analyzed its business structures as a result of the 2013 audit. Specifically, CalVet revised its non-IT procurement policies and procedures in December 2015. Further, CalVet determined that the hybrid centralized/decentralized method for contract procurements was ineffective, and in 2016 implement a centralized contracting unit where headquarters conducts the contracting for the veterans' homes.

Annual Follow-Up Agency Response From September 2015

CalVet's non-IT Contracts and Procurement staff have been under new leadership since May 2015. With this new leadership, the Department is undergoing an extensive revision of its procurement policies and procedures and generating updates and revisions as needed. CalVet will complete a revised procedure manual by December 31, 2015.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From October 2014

CalVet's analysis of our current purchasing model indicates we follow all purchasing guidelines and procurement laws and regulations. These laws are intended to ensure efficiency and cost effectiveness over all state procurements. CalVet continues to improve our compliance procedures and ensure purchasing and contracting staff at the Veterans Homes receive bi-annual training in all procurement processes. We are also relooking the purchasing model for the Department.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

CalVets analysis of our current purchasing model indicates we follow all purchasing guidelines and procurement laws and regulations. These laws are intended to ensure efficiency and cost effectiveness over all state procurements. CalVet continues to improve our compliance procedures and ensure purchasing and contracting staff at the Veterans Homes receive bi-annual training in all procurement processes. We are also relooking the purchasing model for the Department.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

Due to key staff retirements and the opening of the Redding and Fresno Veterans Homes no further action was taken on the analysis of current purchasing model. Analysis will resume and recommendations will be developed December 31, 2013.

California State Auditor's Assessment of 6-Month Status: No Action Taken

60-Day Agency Response

CalVet agrees to analyze its purchasing model, and concurs with the December 2013 time period provided in this audit. Review of purchasing at each home completed. Analysis of purchasing model in progress.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2012-119

Agency responses received after June 2013 are posted verbatim.