Audit of Contract No. 2017-199 Custodial Services for Park Facilities, November 2018

9 |  A u d i t o f C o n t r a c t N o . 2 0 1 7 ‐ 1 9 9  N o v e m b e r 2 0 1 8 3. Insurance Coverage Observation  Per Exhibit C, Item D of the contract,  “The contractor agrees to maintain Pollution Liability  coverage with limits not less than $1,000,000 per claim/occurrence for bodily injury, property  damage and environmental damage from sudden and gradual occurrences resulting from  pollution conditions arising out of the work or services performed under this contract…”.   The auditor reviewed the Certificates of Insurance  to determine whether the insurance  requirements were met per the contractual agreement. PRNR was unable to provide proof that  the contractor obtained and maintained the required Pollution Liability coverage. Recommendation To ensure compliance with the contract and reduce the risk of liability to the County, the  County should develop and implement quality assurance procedures to verify that contractor  obtains and maintains all required insurance coverages.  Management Response  The requirement for pollution liability insurance coverage was not part of the solicitation for  this contract and was included in the contract in error. An amendment of the agreement has  been initiated to remove this requirement.  Staff anticipate the amendment being completed  early 2019.