AUDIT COMMITTEE SUMMARY
September 15, 2015
Audit of Transportation & Capital Improvements
On-Call Contracts
Report Issued August 18, 2015
Background
The City utilizes on-call contracts to expedite completion of infrastructure projects citywide. On-call contracts are used on an as needed basis and are typically for smaller projects or services. These types of services or projects can include design work, repairs, environmental studies, real estate appraisals, work on streets, drainage and traffic, or material testing. To use an on-call contract, a task order is created in Transportation & Capital Improvement’s (TCI) project management system, PrimeLink. This task order will have an attached project proposal created by the selected on-call contractor. The proposal details the scope of work and associated prices and fees for the designated service.
Audit Objective
Are TCI controls over on-call contracts for professional services adequate?
Audit Scope and Methodology
The audit scope was fiscal year FY 2014. This included all new on-call contracts, all expired on-call contracts, and all task orders created during the fiscal year. We reviewed for adherence to the required procurement process. In addition, we reviewed on-call contracts for proper renewals. We also reviewed task orders for proper approvals and adherence to the contracts.
Audit Conclusions
Yes, controls over on-call contracts for professional services are adequate.
However, we did note areas that needed improvement.
• Inconsistent use and support documentation within PrimeLink
• Vendors were charged incorrect rates due to TCI not following established contractual rates schedules
• TCI did not renew expiring on-call contracts timely due to inadequate monitoring of on-call contract renewals
We made recommendations to address these issues and the Director of TCI concurred with our recommendations and developed positive corrective action plans.