Letterhead Memo - King County

SUBJECT: Follow-up on Small Construction Contracts Performance Audit ... order contract each quarter for agencies ... The decision-makers compare the.
164KB Sizes 3 Downloads 219 Views
The audits of its overall

DATE:

December 16, 2016

TO:

Metropolitan King County Councilmembers

FROM:

Kymber Waltmunson, King County Auditor

SUBJECT:

Follow-up on Small Construction Contracts Performance Audit

The Finance and Business Operations Division (FBOD) has made progress on eight of nine audit recommendations made by our office in July 2015. As a result, FBOD and implementing agencies can make more informed decisions on the use of Work Order Contracts (WOC). Full implementation of our recommendations will help agencies ensure a fair bidding process and mitigate the risk of paying more for construction projects. Additional actions are needed, however, to fully implement recommendations related to updating policies related to work order contracts, training of agency staff, documentation and tracking of work order contract expenditures, and improving internal controls within implementing agencies. Of the nine audit recommendations:

DONE

1

PROGRESS

7

OPEN

1

Recommendation has been fully implemented Auditor will no longer monitor Recommendations are in progress or partially implemented Auditor will continue to monitor Recommendation remains unresolved Auditor will continue to monitor

Please see below for details on the implementation status of these recommendations.

Metropolitan King County Councilmembers December 16, 2016 Page 2 of 6

Implementation Status as of December 2016

#

1

2

Quick Status

Recommendation

Status Detail

The County Executive should develop and implement a plan to monitor the use of work order contracts by requiring agencies comply with construction work order contracts policy (CON 7-19) and align with state law.

FBOD has completed a ‘Work Order Contracts Compliance Review Work Plan’ that describes the roles and responsibilities of implementing agency project control officers and the Finance Project Control Officer (PCO). The work plan is divided into four categories: Identify, Review, Report, and Train. The Finance PCO has made it part of its work plan to review a construction work order contract each quarter for agencies that use work order contracts. This quarterly review began in third quarter 2015. Since implementation of this work plan, FBOD has reviewed 20 WOC projects, covering seven agencies. FBOD has not taken specific steps to further ensure that its approach to work order contracts aligns with state law. To fully implement this recommendation, we would look for efforts by the County to have state law on the use of work order contracts more explicitly defined in code. FBOD worked with implementing agencies to develop a ‘decision matrix’ to assist with selecting the best procurement method. This document resides on the Construction Cross Collaboration SharePoint site, accessible to all agencies. FBOD should complete the decision guidance document, including any areas still under legal review and provide the guidance document to all agencies.

PROGRESS

PROGRESS

Finance and Business Operations Division should develop, document and disseminate decision-making guidance for divisions to use for selecting the optimal delivery method for small construction projects.

Metropolitan King County Councilmembers December 16, 2016 Page 3 of 6 #

3

4

5

Quick Status

PROGRESS

DONE

PROGRESS

Recommendation

Status Detail

The County Executive should update the construction work order contracts policy (CON 7-19) to clarify intended use of work order contracting and require agencies to document justification for each individual work order based on eligibility criteria established in the policy.<