March 29, 2004

Auditor General’s Review of Mohave Educational Services Cooperative Contractor Update

Mohave’s Status
Mohave’s status is unchanged. Mohave and ASPIN are managing contracts, processing purchase orders and invoices, answering questions and addressing the concerns of our members and contractors.

Mohave’s Status with the Auditor General
Mohave continues to communicate with the Auditor General to resolve outstanding issues. We are also in the process of performing a thorough review of the Auditor General’s report and preparing a detailed response. Once completed, the response will be posted on Mohave’s website.

The Status of Mohave’s Contracts
Mohave and ASPIN contracts comply with the procurement rules and remain valid for member use.

Mohave’s Response to the Auditor General’s March 17, 2004, Email
The Auditor General’s email did not indicate members should not use Mohave contracts. It informed members that they are responsible for determining that any Mohave or ASPIN contract, from which a purchase is made, complies with the procurement rules. This is neither a new requirement nor one unique to Mohave. Any time a public entity uses a cooperative contract, the buying entity is responsible for ensuring the contract complies with applicable rules, regulations and statutes. A public entity cannot free itself from responsibility for complying with its competitive procurement requirements simply by using another entity’s contract.

Mohave is preparing electronic information packages to enable members to make the determinations that Mohave contracts comply with the procurement rules. We began posting those packages Thursday, March 25, 2004. The downloadable packages can be found on the Contract Documentation page in the Purchasing Services area of the website. New links will be added daily until information for all contracts is posted.
When will the independent CPA review of Mohave’s purchasing practices be completed?

Semi annual reviews of Mohave’s contracting practices are included in Mohave’s discussions with the Attorney General and Auditor General. Mohave is agreeable and ready to proceed immediately with an initial procurement practices review. However, a representative of the Auditor General’s Office indicated that they prefer that no review be conducted outside of a settlement with the Attorney General. As a result, no procurement practices review has been scheduled and Mohave is reviewing it options.

When will this be resolved?
Mohave is addressing all issues associated with the Auditor General’s report as its top priority. Many items have been resolved. Resolution to other issues is in process, but involves negotiation or action by others and will take more time. Be assured that we are addressing this matter as prudently and promptly as possible, and all issues will be resolved.

What should Mohave’s contractors do?
Inform members that Mohave contracts are still viable options for their procurement requirements. Provide members with accurate and up to date information. Refer members to Mohave’s website for information and updates. Encourage members to call Mohave if they are concerned about using our contracts. Continue to offer your Mohave contracts as good solutions for all members.

Where should we go for information?
We are continually posting information on our website, www.mesc.org. Both members and contractors should check the website often for updates. We will also continue emailing updates.