AUDIT COMMITTEE SUMMARY
March 20, 2018
BESD Maintenance and Custodial Service Contracts
Report Issued November 6, 2017
Audit Objective
Determine if contract administration is effective to ensure compliance with key terms of contracts for maintenance and custodial services for City facilities.
Background
The Building and Equipment Services Department (BESD) Facilities Management division is responsible for a variety of building operations, maintenance, and custodial services and procures contracts with outside vendors to facilitate these services.
Audit Scope & Methodology
The audit scope was from June 2016 to May 2017 and included reviewing 18 maintenance and custodial services contracts and associated monitoring activities.
We interviewed BESD management and staff. We also reviewed monitoring documentation found in vendor contract files including Contract Administration Plans (CAP), vendor invoices, insurance and bond certificates, and quality assurance documents used to validate the completion of services. Criteria for testing our audit objective were based on contractual agreements, CAPs, and the City Procurement Policy and Procedures manual.
Audit Conclusions
BESD is effectively monitoring compliance with key terms of contracts for maintenance and custodial services. Specifically, BESD reviews invoices and remits accurate and timely payments to contractors and effectively monitors contractors to validate that services are performed. Additionally, BESD ensures compliance with state regulations through validation of qualified third party reviews and ensures all contractors have current and adequate insurance and bond coverage as well as the required certificates and licenses. BESD also ensures applicable contractors are compliant with Small Business Economic Development Advocacy (SBEDA) requirements.
We had no findings in this audit; consequently we made no recommendations to BESD management.