YOUNGSTOWN Who was checking supply bills?

Each department is to assure that orders are filled and billed correctly.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Lack of vigilance among city departments appears to have let $25,000 slip by in overbillings for cleaning supplies.
The city bids out contracts for items such as cleaning supplies. But the city has decentralized purchasing, meaning each department orders its own items.
A review of the city's buying process shows departments should catch overbillings but apparently didn't in the case of Damon Industries Inc.
The state auditor is conducting a special audit at the city's request. The audit will explore whether overbillings by Damon, of Alliance, were intentional and if there are other discrepancies.
Money repaid
Damon repaid the city $25,042 during February and March for overbillings over four years. Finance Director David Bozanich discovered the problems earlier this year.
Mike Ogline, a lawyer for Damon, declined to answer questions Tuesday. He said the company doesn't want to say anything that might affect the audit. Ogline said his client will cooperate fully with the auditor's office.
The audit also will review whether the city has checks and balances to find other problems with vendor contracts. The audit will suggest any improvements.
The city's buying process works like this:
The city seeks bids and awards contracts on purchases for items such as for janitorial supplies.
The city often awards such contracts for two years with a one-year renewal option. Two-year contracts with renewals help the city avoid rising prices for multiple years, Bozanich said. Those contracts, however, also let the city bid out items annually if prices fall substantially year to year, he said.
Two- and three-year contracts also reduce the paperwork connected to the bidding process, he said.
Once the city awards a contract, each department writes purchase orders and sends those orders to the vendor.
Employees sign
The vendor delivers the items to one of a few people in each department who the city authorizes to sign for the order. Those workers are supposed to make sure the city receives the items it ordered and is charged the price contained in the contract.
Departments then send invoices to the finance department. Finance reviews the purchase order and invoice for procedural errors and then pays the bill.
Bozanich declined to comment further on the city's buying process. Bozanich said he first wants to talk today with state investigators about what he can say publicly without jeopardizing the auditor's probe.
rgsmith@vindy.com