State audit of license fee office bidding procedures released

(From State Auditor Thomas Schweich)

State Auditor Tom Schweich released the audit of the fee office bidding and procurement policies, overseen by the Missouri Department of Revenue (DOR) and the Office of Administration (OA).

In the areas audited, the overall performance of the entity was Fair.

The DOR and OA do not prohibit contract agents from requiring employees to sign non-compete agreements that limit competition. Since 20 points are awarded during the bid evaluation process for retaining current staff, these non-compete agreements could hinder a new bidder.

The DOR and OA extend license office contracts beyond the time frames allowed by the contract terms, and the DOR did not request four contract renewals until after the contracts had already expired, resulting in license offices operating with no contract in place. Of 120 offices with extension options exercised, 91 percent extended past the 120 days allowed by the contract.

Schweich also noted that both the DOR and OA have been diligent in implementing previous audit suggestions in the oversight of fee offices.

To read the full report, visit: http://www.auditor.mo.gov/AuditReports/AudRpt2.aspx?id=57