Mohave assists members with purchase verification. However, it is the member's responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Downloadable files are posted on the Contract Documentation page to assist members in meeting this due diligence responsibility.

CONTENTS

What Is Due Diligence?
What Information Is Available Through Mohave?
How Do I Use Mohave Documentation to Perform Due Diligence?
How Does Mohave Comply with the Rules and Regulations of the State?
How Much Due Diligence Should Be Performed?

Due diligence refers to the legal responsibility of a contract user to independently verify that the award of a cooperative's procurement contract conforms to the applicable rules and regulations of the state and that the quotation and purchase order complies with the terms of the award.

Mohave supplies all the needed resources for you to determine if a purchase conforms to the terms and pricing criteria of a contract and if a contract complies with the current procurement rules and regulations of the state of Arizona. Downloadable files are available on the Contract Documentation page.

How Do I Use Mohave Documentation to Perform Due Diligence Reviews?

The following tutorial provides details on how to use the contract documentation available our website and various methods to accomplish due diligence reviews.

Due Diligence Tutorial
(Rev. 10/23/07) (PowerPoint, approx. 1.2 MB)

Due Diligence Tutorial
(Rev. 10/23/07) (PDF, approx. 1.3 MB)

How Does Mohave Comply with the Rules and Regulations of the State?

The following attachments were prepared to assist members with due diligence reviews of our contracts:

Cooperative Procurement Compliance Questionnaire (PDF, 170 KB)

On June 28, 2004, Mohave received a copy of a revised Cooperative Procurement Compliance Questionnaire. The purpose of the questionnaire is to determine whether cooperatives are in compliance with the State's procurement laws and applicable rules in awarding contracts for schools to use.

Even though the questionnaire is dated May 2004, it is applicable to audits for fiscal years ending June 30, 2004, and thereafter. Many existing Mohave contracts were awarded prior to revision of the questionnaire. However, existing Mohave contracts comply with the requirements of the State's procurement laws and applicable rules, as well as, the Cooperative Procurement Compliance Questionnaire in effect at the time of award.

Mohave has reviewed the revised questionnaire and provided a response for each item as it applies to Mohave contracts. We believe the response will assist members in determining that Mohave contracts are valid options for their procurement requirements. Response revised April 9, 2008.

Procurement Practices Review 1- Period ending 6/30/05
Procurement Practices Review 2 - Period ending 12/31/05
Procurement Practices Review 3 - Period ending 6/30/06
Procurement Practices Review 4 - Period ending 12/31/06
Compliance Letter from Office of the Auditor General - Dated 8/22/06

USFR Compliance Questionnaire (Rev. 7/23/07) (PDF, 220 KB)
Attached is a review of the July 2007 Auditor General's revision to the USFR Compliance Questionnaire. This revised document will be used by auditors for school district financial audits beginning with the FY2007 audit. The portion in the attachment addresses procurement practices. Each requirement has been listed along with how it applies to Mohave contracts and the information Mohave can provide to substantiate compliance.

Arizona State Board of Education School District Procurement Rules Review (PDF, 90 KB)
The Arizona State Board of Education School District Procurement Rules set the requirements for school district competitive procurement over a specified threshold (currently $32,899). Those requirements were reproduced and appropriate Mohave responses to the requirements were inserted for member review.

This question is addressed in the following information from the Arizona Auditor General's Office:

School District Flyer - Newsletter of the Auditor General - July 2005 (PDF, approx. 210 KB)
Article entitled "Using Purchasing Cooperatives" gives the Auditor General's definition of due diligence as it relates to cooperative procurement.

Arizona Auditor General Email of 9/13/05 (PDF, approx. 30 KB)
Email pertains to amount of and degree of complexity of due diligence to be performed when using purchasing cooperatives.

School District Flyer - Newsletter of the Auditor General - June 2007 (PDF, approx. 120 KB)
In the Questions and Answers section of the newsletter, the Auditor General's Office addresses school district requirements related to purchases made through purchasing cooperatives.

NOTE: A copy of Mohave's review of the USFR Compliance Questionnaire issued by the Auditor General's Office is posted in the "How Does Mohave Comply with the Rules and Regulations of the State?" section above. The review includes information that will assist members in performing due diligence reviews.

QUESTIONS ABOUT DUE DILIGENCE?

If you have further questions about Due Diligence please contact, Craig McKee, Director of Contracting Programs, by email at craig@mesc.org, or by phone at (800) 742-2437 or (928) 753-6945.

If you would like to have a Due Diligence Tutorial Presentation made at your location for staff members, please contact Tom Peeler, Executive Director, by email at tom@mesc.org or by phone at (928) 753-6945, ext. 205.