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

14 |  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 7. Contract Amendments Observation  Per 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 observed four locations where monthly recurring services are billed  in addition to the contracted monthly rate. These recurring services are being billed at the  $18.20 per hour rate, which is in agreeance with the fee schedule for “As Needed Custodial  Services”. However, based on our review, the only amendment to the contract, executed on  December 14, 2017, was to add a location for services. No amendments were made for  increased services at the four locations already under contract for monthly services.  Recommendation To ensure compliance with the contract, a formal amendment should be executed for increased  services at locations already included in the contract.  Management Response  A contract amendment has been initiated to clarify when an amendment is needed for added  service and to address the conflicting language associated with the temporary service needs.  Staff anticipate the amendment being completed early 2019.