COM 1282.000 2006-2008 - Laserfiche WebLink

Home

CHAPTER 5 SPECIFIC AUDIT FINDINGS: AUDIT OBJECTIVES Audit findings are divided into two subject areas. Chapter 5 addresses specific findings relating to the audit objectives outlined in Chapter 1. Chapter 6 presents general findings relating to internal controls and the broader goals of contract management. In combination, Chapters 5 and 6 report specific and general audit findings that materially impact the Department of Public Works' efforts to deliver capital improvement projects that sufficiently meet public needs in a timely and economically prudent manner. These audit findings are followed by Recommendations in Chapter 7 and our Conclusion in Chapter 8. Audit Obieetive No. 1: Determine reasons for professional services contract supplements and construction contract change orders. • The Department of Public Works lacks adequate documentation to assess responsibility for and identify specific reasons why contract supplements and changes orders are necessary. Many times supplements simply state "additional design work" with no indication as to what the work is, whether the additional work relates to the "end user" not realizing a need at the time of scoping, or if it was an oversight on the part of the project engineer or consultant. While change orders may delineate specific work to be performed, they often lack sufficient documentation to determine whether the work may have been included in the originally contracted scope, whether the work relates to an error or omission in site assessment or design, or if it was due to an unforeseeable condition. Please see Appendix for: Table 5.1, Audit Sample -Contracts and Modifications. Audit Obiective No. 2: Determine whether adequate procedures and controls exist to keen contract supplements and change orders to a minimum. • The Department of Public Works lacks adequate procedures and controls to keep contract supplements and change orders to a minimum. o Of the 14 professional services contracts in our audit sample, 10 or 71 % ref]ect a current contract amount in excess of 110% of the County's original estimated project costs. o Of the 14 construction contracts in our audit sample, 12 or 86% reflect a current contract amount in excess of 110°l0 of the County's original estimated project costs. Please see Appendix for: Table 5.2, Variance between County Construction Estimate, Lowest Bid and Revised Contract. Table 5.2a, Variance between County Professional Services Estimate, Negotiated Fee and Revised Contract. 16