Officials want purchasing revamp after audit

Glendale officials plan to revamp information technology and purchasing operations in order to save money and protect against liability issues regarding software licensing.

The moves come after the city’s internal auditor reviewed city purchases and licensing and discovered that a number of improvements could be made, according to reports discussed at an Audit Committee meeting Monday.

The purchasing audit, released in October, states the city should create stricter policies for purchases that would normally be made via requests for demand, which are similar to checks. Officials said some departments try to get around spending regulations by splitting purchases or deeming them emergencies. City credit cards also are being used too frequently, said Finance Director Bob Elliot, and some purchasing issues boil down to planning, he said.

“We’re fine facilitating emergency expenses, [but not when] they’re always emergencies,” Elliot said.

In addition, city staff plans to increase oversight of the request-for-demand system, as it leads to overspending on budgets, the audit stated.

“We want to be more proactive,” said Purchasing Manager Afshin Bokaei. “Is it doable? Yes. Can we do it? We will know it in the next audit.”

The audit suggests disciplining staff who don’t follow the stricter spending policies.

Officials also completed a separate audit in September that highlights holes in its software licensing policy, an issue that makes the city vulnerable to lawsuits from companies such as Adobe and Microsoft. Potential copyright infringement penalties could be up to $150,000 for each software program, according to the audit.

“It’s a substantial problem,” said Ed Fraga, director of Information Services.

The current policy lets departments handle their own licensing, said Fraga, adding that it can be ineffective and also cause the city to lose out on saving money by buying in bulk. The audit found some departments could not provide information on whether software was licensed or not.

A new policy will centralize software licensing in Fraga’s department as well as create new rules about the types of software employees can download on their computers.

“We think this whole effort is going to pay dividends to the city as a whole,” he said.