rcsd audit contract administration

8/7/2019 RCSD Audit Contract Administration

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OFFICE OF AUDITOR GENERAL

Contract AdministrationAudit Report


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Contract AdministrationIndex

Report Section Pages

Executive Summary 1

Summary of Recommendations 3

Observations, Recommendations and Action Plans 5P rotoco ls and P roc edu re sTrainingS up po rtin g D o cum en ta tio n A ut om a tio nF i le Documentat ionF ingerp rin t Clea ranceS erv ic es R en de re d P rio r to C on tra ct S ta rt D ate sCo nt ra ct s - M i le st on es a nd E xp ec ta ti on sMonitoringPeop leSoft ,. .Func t iona li tyE le c tr oni c Repos it or y fo r Con tr ac tsM emo s o f U n de rs ta nd in g (MOU )Contrac t Vio lat ionsCo nt ra ct s - Du ra ti on f or Compl et io nQ ua rt erl y R ep or tin g to th e B oa rd o f E du ca tio n

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Contrac t Admin is trationEx ec ut iv e S ummary

~QJEQIIYETo e va lu a te c o nt ra ct a dm i ni st ra ti on i nc lu d in g t he i nt er na l c o nt ro l e n vi ro nmen t, p ro ce d ur es , p o li ci es a n d c ompl ia nc e.

BACKGROUNDCon tr ac t a dm i ni st ra ti on i s t he p ro c es s o f e ff ic ie nt ly ma n ag in g c o nt ra ct c re at io n , e xe cu ti on a n d a n al ys is f or t he p u rp o se o f ma x im i zi ngf in an ci al a nd o pe ra tio na l p er fo rm a nc e a nd m i nimi zin g r is k. D is tr ic t p ol ic y r eq uir es a f orm al c on tr ac t w h en ev er th e to ta l c os tthe fiscal is $ 600 or m ore. A execu ted con tract m ust be in befo re

SCOPEWe w i ll e va lu at e t he e ff ec ti ve n es s o f t he i nt er na l c o nt ro ls , p o li ci es a n d p ro c ed u re s f or c on tr ac t a dm i ni st ra ti on a ct iv it ie s. We w i ll e va lu at ec omp li an c e w i th c on tr ac t l aw s , D i st ri ct p o li ci es , p ro c ed u re s, p e rf orman ce g ui de li ne s a n d b es t p ra ct ic es . We w i ll d e te rm i ne i f a de qu a tec on tr ol s h av e b ee n im pl em e nt ed to li m it t he D is tr ic t's e xp os ur e to u na uth or iz ed o r in ap pr op ri ate c on tr ac ts a nd e ns ur e th at te rm s a rep e rf o rmed wi th i n budge t ar y con st ra in t s.

W e w il l c oll ab ora te w ith t he k ey p er so nn el to u nd er sta nd th e c ur re nt c on tr ol e nv ir onm en t a nd te st t he o pe ra tin g c on tr ol e nv ir onm en t. W ew ill id en ti fy o pp or tu ni ti es f or im p ro vem en t a nd is su e r ec omme nd at io ns t o im pr ov e th e c on tr ol e nv ir onm en t. M a na gem en t w ill b e a sk ed tor es po nd in w rit in g t o o ur r ec omme nd ati on s w ith in 3 0 d ay s.

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Contract AdministrationExecutive Summary

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Contract AdministrationSummary of Recommendations

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Contract AdministrationSummary of Recommendations

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Contract AdministrationObservations, Recommendations and Action Plans

I. ' Responsibility: J oh n so n , C ., GeneralCounsel Due Date: 9/30/2010L-- ,. ,, ~ .__ _.._._ _.. 1

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Support ing Documentat ion - Au toma ti onKey contraet information is captured on MS Word documents and hard copy documentation. A Request to Issue contract (RTI) iscreated by the Requisitioner in a Word document and is attached to the electronic requisition in PeopleSoft. The RTI is a manualdocument which must be manually signed by the Superintendent before contract processing occurs. The RTI acts as a commitment toenter in a contractual relationship. Basic vendor/contract obtained on the the of ........In...._.nrements and contract terms.

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Mana gem en t R e sp on se s: T h e n ew c on tr ac t p ro ce ss r eq uir es th at R e qu es te rs p ro vid e a ll r eq uir ed c on tr ac t d oc um e nta tio n u pfr on tb efo re a c on tr ac t w ill b e p re pa re d. T h e n ew R e qu es te r's In str uc tio ns fo r C o ntr ac ts c on ta in s a c he ck lis t, a nd id en tifie s e ac h o f th efo rm s to b e c om p le te d a nd ty pe s o f in fo rm a tio n r eq uir ed to p ro ce ss th e c on tr ac t. E xh ib it 1 .R e sp ons ib il it y: J oh n so n , C . , G ene ra l C ouns elDue Date: 9/30/2010

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Management Responses: Under the new contract process developed by the Department of Law. requesters obtain the names ofemployees of a contractor or consultant that will have access to students for five or more days per school year. Requesters are toobtain clearances for such employees prior to submission of the RTI to the Department of Law for a new contract. Through the RTIs,requestors confirm that the fingerprinting clearance is complete at the time that the RTI is submitted for execution by theThe of and administers matters related to for the School District.

Responsibility: Johnson, C., General Counsel; Baldwin, Lori, Director. Department of Safety and Security; Chiefs requestingContractsDue Date: 12/31/2010

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Services Rendered Prior to Contract Start Dates

Management Response: In'response to the State Comptroller's preliminary recommendations to the District issued last year, theSuperintendent mandated in December of 2009 that, except in exigent circumstances, all contracts be fully signed before servicescommence. In the event of any instance of the that thenr(,,,,U1P a written for each late contract.

Responsibility: Johnson, C., General CounselDue Date: 12/31/2010

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Contracts - Milestones and Expectations

In response to a request of Commissioner the District has modified the form in order to require requestersn..nT'~1 the Strategic Goal satisfied in order to justify the proposed contract. The new RTI will be implemented inthe fall of2010.Responsibility: Johnson, C., General Counsel Due Date: 12/3112010

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Responsibility: Johnson, C.~Gener al Coun se l Due Date: 7/30/2010

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.OBSE.H.yATIQl'l: #9.PeopleSoft - Functionality

C on tracts -to c re at e, a m en d a c on tr ac t a nd it s r ela te d c om p on en ts , R e vi ew -t o r ev ie w c on tr ac t- re la te d i nf orm ati on , C on tra ct P ro ce ssin g - to re vie w a nd u pd ate c on tra ct p ro gre ss , R enew als - to d efine an d pro cess ren ew als.



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Responsibility: J oh n so n , C . , G ene ra l C ouns elDue Da te : 5 / 3 1 / 2 0 1 1

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t he re i s n o e le c tr on ic , c en tr al iz e d l oc at io n f or f il in gema il s o f c on tr ac t

Responsibility: J oh n so n , C . , G e ne ra l Co u ns elDue Da te : 8/3112010

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Responsibility: J oh n so n, C ., G e ne ra l Co un se l

Due Da te : 9/30/2010

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Ii~onses:_A l is ti ng o f v e ndo rs is c u rr en tl y a v ai la bl e t hr ou gh t he Pu rc h as in g Dep ar tm en t.Responsibility: J oh n so n , C . , G en er al C ouns e l

Due Date: 2/28/2011

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Gener al Coun se l Du e Da te : 12/3112010

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There were fiveinstances tested in which a vendor's contracts under were not reporting. Three of thecontracts required a Board resolution because they were renovation expenditures. Based on the timing of the data collected for theBoard reporting, and how the information is captured from the system, these contracts were not reported.

Vendor expenditures that require a contract or Board Resolution are manually identified. A contract is required when a vendor reachesa $600 threshold according to Board Policy 6745-R and District Policy. Vendors that exceed $25K require a Board Resolutionapproval prior to entering into of the agreement per Board Resolution 98-99: 271. ICS does not utilize any system queries or trackingon spreadsheets of these contracts.



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Contract AdministrationObservations, Reconimendations and Action Plans

Due Date: 12/3112010Responsibility: J oh ns on , C ., G e ne ra l Co un se l


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