AUDIT COMMITTEE SUMMARY
December 15, 2020
Audit of Contract Management of the Paul Jolly Center
Report Issued November 23, 2020
Audit Objective
Determine compliance with terms of the ACS contract with the Animal Defense League for Management of the Paul Jolly Center.
Background
In October of 2019, to aide in adoption efforts, City Council passed an ordinance authorizing a lease with the Animal Defense League of Texas (ADL) to operate and manage the Paul Jolly Center. The facility is an 8,200 square foot adoption center featuring indoor/outdoor kennels, "get acquainted" areas, puppy housing, and a cattery for feline adoptions.
The contract began November 1, 2019 with an automatic two-year renewal upon meeting all performance measures. Under this agreement, ADL:
* Pays an annual rent due of $1.00,
* Received one-time funding of $25,000 for repair or replacement of kennels and cages to be issued during the initial contract term,
* Receives 75% of utility costs (up to $45,000) reimbursed for years 2 and 3,
* Receives $450,000 annually to offset animal rescue expenses for the first 2,000 animals rescued.
Scope & Methodology
The audit scope was from November 2019 through fiscal year 2020.
We interviewed Animal Care Services personnel, conducted onsite review of adoption facilities, assessed financial data and key internal reporting.
Conclusions
The Animal Care Services Department (ACS) has adequate controls to ensure the proper management of the Paul Jolly Center by the Animal Defense League (ADL). ACS has developed a contract administration plan to verify compliance with key contract terms such as insurance, security, and maintenance requirements. ACS utilizes its Advisory Board to perform periodic inspections of the Paul Jolly Center's indoor and outdoor facilities for cleanliness and proper care of animals. Additionally, ACS verifies the accuracy of rescued animals reported monthly by ADL prior to invoice payment. From November 2019 through June 2020, ...
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