Individuals with authority to purchase contracted services cannot do so without involvement by at least one other employee of State Fund. Payment for services rendered also has controls. Controls over staff activities appear to provide adequate segregation of duties. These controls help minimize the potential for fraudulent activity and assure use of contracted services is necessary and reason-able. As a result, controls over contractors appear reasonable overall.
Procedures are in place which help ensure effective use of contracted services.
The issues identified during our review relate to improving the compliance, efficiency and effectiveness of the processes in place. Implementation of our recommendations will improve documentation and compliance, which should enhance the processes currently used by State Fund. Contract-Related Documentation Could Be Improved Various personnel within each department are responsible for procuring and monitoring contracted services. This responsibility includes maintaining records related to the contracting process. We found the amount, type, and organization of documentation varied between those contracts selected for review.