State Auditor Crit Luallen Announces Performance Audits on State's Contract Business Practices: | Crit Luallen |
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(Frankfort - August 19, 2004)
Crit Luallen, Kentucky State Auditor, announced today that the Division of Performance Audit will conduct a three-part review of the Commonwealth's contracting practices. The three areas under review are purchasing, employment, and personal service. The review will consider price and value, the impact of contracting versus hiring employees, and the necessity and appropriateness of certain contracts.
"Last year, during my first run for elective office, I promised Kentuckians I would work to make our government as efficient as it can be. It is critical to that mission that we use our talents, not just to review problem areas, but to look at how we do business and increase efficiencies before dollars are wasted," Ms. Luallen said. During the performance review of the state's purchasing the Auditor's Office will evaluate the administration and management of master agreements. The examination will attempt to determine if the contracts provide the best prices and value for goods and services purchased by state government. A second review will attempt to analyze employment contracts, with special emphasis upon the type of circumstances surrounding the choice for privatization, the potential impact of such a choice, and ways to determine the number of workers currently under contract. State employees perform most work conducted by state government; however, under certain circumstances state agencies may contract with persons who are not classified as merit system employees. The final component in this series will involve a review of personal service contracts with a focus on necessity and appropriateness. In addition, these contracts will be reviewed to determine if they are sole source contracts and, if so, whether or not the statutory criteria for such contracts have been followed. The review findings will be released, in three separate reports, prior to the end of the calendar year. |
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