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Improve Purchase Order Sales Process <br /> Condition and Cause <br /> MTA sold taxi coupons, bus tickets, and bus passes to 23 vendors using purchase orders in lieu <br /> of a required contract. <br /> Effect of the Condition <br /> Non-compliance with provisions of contracted services resulted in several vendors having <br /> outstanding past due balances. <br /> Recommendation 7.1 <br /> "We recommend Mass Transit management comply with Hawaii County Charter Section 13-13, <br /> which requires all contracts with private parties to perform any function or activity with the County <br /> to be authorized and approved by the mayor, corporation counsel, and the finance director." <br /> Agency Action <br /> MTA developed a Fare Free Implementation Plan and issued it to the vendor to ensure their bus <br /> drivers are aware of the rules changes when greeting and driving passengers. <br /> Audit Activity <br /> Verified that the contract impacting this audit is appropriately approved and is current. Review <br /> also noted that while no supplementals or change orders were required, an MTA Fare Free <br /> Implementation Plan was developed and distributed to the vendor. <br /> Status: Implemented <br /> Recommendation 7.2 — Not Applicable <br /> "We further recommend Mass Transit management require payment at the time of sale unless an <br /> official contract has been established and approved. If and when a contract is executed, terms <br /> should be complied with and enforced (e.g., discounts, interest rates, timely payment, <br /> reassignment of non-transferable coupons)." <br /> Recommendation 7.3 - Not Applicable <br /> "We further recommend Mass Transit management implement a process to ensure collection of <br /> all outstanding accounts receivable balances." <br /> 22 1 Improve Purchase Order Sales Process <br />