Audit implications (adequacy of the system and controls, and the direct and material effects of non-compliance, effects on the audit opinions and/or footnote disclosures, significant deficiencies/material weaknesses, and management letter comments): Section F: Hospitals 2-16 Compliance Requirement: Ohio Rev. Code Sections 9.48, 153.65-.71, and 339.05 - Bidding procedures and purchasing policies for supplies and equipment (County Hospitals). Summary of Requirement: A of county hospital trustees may adopt, annually, bidding procedures and purchasing policies for supplies and equipment that are routinely used in operating the hospital and that cost in excess of the amount specified in Ohio Rev. Code Section 307.86, which is $25,000 as the threshold above which purchases must be competitively bid. If a board of county hospital trustees adopts such policies and procedures, and the board of county commissioners approves them, the board of county hospital trustees may follow these policies and procedures in lieu of following the competitive bidding procedures of Ohio Rev. Code Sections 307.86 to 307.92. Ohio Rev. Code Section 2921.42 - This section prohibits having an unlawful interest in a public contract. County hospitals that participate in a joint purchasing contract are exempt from using competitive bidding. [R.C. Section 9.48(C)-(D)] County hospitals procuring professional design services, over $25,000, do not need to follow the competitive bidding process. However, contracts for professional design services must adhere to the provisions of R.C. Section 153.65-.71 which require county hospitals to publically announce and provide notice of the contract, rank firms on the basis of qualifications, and award the contract to the most qualified firm. "Professional design services" are defined as services within the scope of practice of an architect or landscape architect registered under Chapter 4703 of the Revised Code or a professional engineer or surveyor registered under Chapter 4733 of the Revised Code. [R.C. Sections 153.65-.71] (Note that RC 9.24 regarding unresolved findings for recovery and contracts does not apply to hospitals.) In determining how the government ensures What control procedures address the W/P compliance, consider the following: compliance requirement? Ref. Policies and Procedures Manuals
Audit implications (adequacy of the system and controls, and the direct and material effects of non-compliance, effects on the audit opinions and/or footnote disclosures, significant deficiencies/material weaknesses, and management letter comments): Section F: Hospitals 2-16 Compliance Requirement: Ohio Rev. Code Sections 9.48, 153.65-.71, and 339.05 - Bidding procedures and purchasing policies for supplies and equipment (County Hospitals). Summary of Requirement: A of county hospital trustees may adopt, annually, bidding procedures and purchasing policies for supplies and equipment that are routinely used in operating the hospital and that cost in excess of the amount specified in Ohio Rev. Code Section 307.86, which is $25,000 as the threshold above which purchases must be competitively bid. If a board of county hospital trustees adopts such policies and procedures, and the board of county commissioners approves them, the board of county hospital trustees may follow these policies and procedures in lieu of following the competitive bidding procedures of Ohio Rev. Code Sections 307.86 to 307.92. Ohio Rev. Code Section 2921.42 - This section prohibits having an unlawful interest in a public contract. County hospitals that participate in a joint purchasing contract are exempt from using competitive bidding. [R.C. Section 9.48(C)-(D)] County hospitals procuring professional design services, over $25,000, do not need to follow the competitive bidding process. However, contracts for professional design services must adhere to the provisions of R.C. Section 153.65-.71 which require county hospitals to publically announce and provide notice of the contract, rank firms on the basis of qualifications, and award the contract to the most qualified firm. "Professional design services" are defined as services within the scope of practice of an architect or landscape architect registered under Chapter 4703 of the Revised Code or a professional engineer or surveyor registered under Chapter 4733 of the Revised Code. [R.C. Sections 153.65-.71] (Note that RC 9.24 regarding unresolved findings for recovery and contracts does not apply to hospitals.) In determining how the government ensures compliance, consider the following: What control procedures address the compliance requirement? W/P Ref. Policies and Procedures Manuals
OCSChapter2-contractsAndExpenditures.docx