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Improve Purchase Order Sales Process <br /> <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 /> <br />Effect of the Condition <br />Non-compliance with provisions of contracted services resulted in several vendors having <br />outstanding past due balances. <br /> <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 /> <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 /> <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 /> <br />Status: Implemented <br /> <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 /> <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 /> <br /> <br />22 Improve Purchase Order Sales Process <br />