RCSD Audit Contract Administration
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Transcript of 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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Contract AdministrationObservations, Recommendations and Action Plans
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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
Responsibility: Johnson, C.~Gener al Coun se l Due Date: 7/30/2010
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Contract AdministrationObservations, Recommendations and Action Plans
.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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
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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Contract AdministrationObservations, Recommendations and Action Plans
Gener al Coun se l Du e Da te : 12/3112010
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Contract AdministrationObservations, Recommendations and Action Plans
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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