Audit Criticizes UNL's Purchasing Practices

Monday, August 6, 2012

Nebraska Auditor Mike Foley has found six-figure University of Nebraska-Lincoln contracts that were not competitively bid and a $470,600 contract that wasn’t reported to elected university leaders as he thinks it should have been.

The audit report looked at UNL’s process for paying for services and equipment, examining 49 out of 3,203 total vendors paid $298 million in 2011. The report found five instances in which contracts were signed by UNL staff who weren’t authorized to do so, and seven contracts that should have been reported to the University of Nebraska Board of Regents but weren’t.

The report also found one instance in which an $880,351 change order to a contract with Hausmann Construction for work on the Devaney Center Practice Facility was not approved by Chris Jackson, vice chancellor for business and finance, as required by university policy.

“There is an increased risk contracts are not appropriately entered into when UNL’s process is not followed,” Foley wrote. “In addition, there is an increased risk of projects running longer and costing more when appropriate individuals are not made aware of change orders, addendums or contract extensions.”

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