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

13 |  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 6. Contractor Invoicing Observation  Per Exhibit A, Section 9.1 of the contract, “ The Contractor shall submit invoices on a per month  basis, for services provided. Payment shall be made in accordance with the contract fee  schedule for work satisfactorily performed as described in the Scope of Services .”  Additionally, Exhibit A, Section 8.3 states, “ Any added or increased service, permanent or  temporary, shall require a formal amendment to the contract and pro‐rata invoicing for any  partial month period .”  The auditor obtained a list of 10 Purchase Orders and 56 related invoices that were associated  with the Agreement since June 1, 2017. A random sample of 20 invoices was selected for  testing to determine if payments were remitted in accordance with the contract fee schedule.  During testing, the auditor identified one location in which the County was overbilled for  services in the amount of $29.73. This location is billed a monthly rate for daily services.  However, no services were provided for 12 days and the pro‐rated change was inaccurately  calculated. Once the overbilling was brought to the attention of PRNR management, the  contractor promptly issued a credit to the County.   Recommendation To ensure appropriate payment is remitted for services rendered, the County should verify  invoiced amounts to contracted rates prior to approving for payment.  Management Response  PRNR management team has reviewed payment procedures with staff and emphasized the  importance of verification and reconciliation of any park closures with field staff during the  invoiced time.