AUDIT COMMITTEE SUMMARY
March 19, 2019
Audit of TCI Storm Water Program Contract
Report Issued February 20, 2019
Objective
Determine if the City and vendor are in compliance with the Storm Water Facilities Inspection Contract.
Background
The City of San Antonio’s Transportation and Capital Improvement Department (TCI) is responsible for maintaining the City’s estimated 700 miles of storm water infrastructure. In order to assess the condition of the storm water infrastructure, an annual goal of 60 televised miles was established. TCI is responsible for televising 20 miles and a contractor was engaged to televise the remaining 40 miles annually. In June 2017, the City entered into a contract with RJN Group Inc. (RJN), in an amount not to exceed $4,250,000 over three years, to meet the annual 40-mile contractor goal. The primary goals identified were:
• Perform video inspections of storm water infrastructure, condition assessments, and map the storm water system network
• Develop a video inspection and Condition Assessment Master Plan for subsequent years
TCI monitors RJN’s progress and fiscal staff review invoices submitted. Furthermore, TCI’s Contract Monitoring Division performs monitoring procedures over key contractual requirements. The City’s ultimate goal is to utilize the results to prioritize future maintenance efforts.
Scope and Methodology
The audit scope included contract monitoring efforts from June 2017 through August 2018. We reviewed TCI monitoring processes for compliance with key contract terms. We verified contractual requirements were met related to project deliverables, personnel and equipment requirements, and insurance coverage. In addition, we reviewed TCI’s reporting of miles televised on a monthly basis and proposed maintenance plans. Furthermore, we tested invoices from both RJN and subcontractors to determine they were accurate and properly supported. Finally, reviewed user access and data backup procedures related to the PRIMELink system and restricted network drives.
Conclusions
The City and vendor are in compliance with the Storm Water Facilities Inspection Contract. We determined that TCI has monitoring controls to ensure the contractor is meeting project milestones and deliverables. However, there were opportunities to strengthen controls associated with citizen notifications and obtaining detailed support documentation for contractor invoices.
We made recommendations to address the opportunities. Management agreed with the recommendations and developed positive corrective action plans.