However it needs to be sold, it isn’t working.
Summary of Findings:
Total this audit 22
Total last audit 24
Repeated from last audit 17
7 problems fixed. 5 created. 17 continue. If you can’t document the savings, what is the point?
CMS’ contract files lacked certain documentation for 6 of 10 contracts we tested. The maximum award amount for these 10 contracts totaled $270 million.
CMS evaluated vendor proposals using evaluation criteria that were not stated in the RFP.
In 6 contracts we reviewed, CMS did not timely execute the contracts. In one of the contracts reviewed, the vendor was allowed to initiate work on the project without a formal written agreement in place.
The Department?s process to monitor vendor expenses was inadequate. For some contracts, the Department paid expenses with little or no review. In 4 of 10 contracts tested, the Department received no detailed documentation to support reimbursement for expenses.
The Department did not consistently develop or formally approve changes to contracts.
The Department has not established a property management function to effectively manage occupancy costs and revenues.
The Department should further refine its billing process for savings initiatives. CMS billed $41 million for efficiency initiatives to State agencies during FY05, yet only collected $21 million from various State Agencies. The remaining balance was written off by the Department.
During the prior year, CMS did not maintain adequate documentation to support the amount of savings it attributes to efficiency initiatives. Also, savings goals stated in RFP’s, vendor proposals and/or contracts were not always realized or documented. In April 2005, the Department reported savings of $621 million. In October 2005, the Department issued a report citing a reduction of estimated savings to $529 million, however, this figure does not include any costs the Department incurred related to its initiatives, which are estimated to exceed $72 million.
CMS did not maintain time sheets for its employees as required by the State Officials and Employees Ethics Act.