Citizens to Tighten its Purchasing Belt
Citizens Property Insurance Corp. is revising its purchasing policy in a belt-tightening move that includes legal reviews on contracts topping $65,000 and managers to watch over deals worth more than $35,000.
The changes announced Friday state that the state-backed insurer will conform with state agency regulations unless the procurement procedures are already more stringent than the state.
Clarifying and strengthening our internal procurement procedures will be the first of many concrete improvements made as Citizens lives up to its commitment to hold itself to the highest levels of financial and ethical integrity, Citizens President Barry Gilway stated in a release.
According to the release from Citizens, among the changes:
Eliminate Citizens expedited procurement process.
Expand conflicts of interest provision to require the mitigation of potential conflicts and disqualifies any vendor that obtains information not available to the public.
Require that the review and approval process for contracts in excess of $65,000 include program, financial, and legal review and approval before the contract is executed.
Follow emergency procurements andprovide the chief financial officer (CFO) with a written determination that an emergency procurement was required, which has been certified under oath.
Assign a contract manager to each contract over $35,000.
Require that all Citizens contract managers attend Department of Management Services (DMS) sponsored training.
Require that all Citizens purchasing agents file financial disclosure forms.
The changes will be presented to the Citizens board of governors on March 22.
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