Contract Management, Dept. of Corrections, Performance Audit (09P-08)

Description

A RepoRtto theMontAnALegisLAtuRepeRfoRMAnce AuditContract ManagementDepartment of CorrectionsfebRuARy 2 0 1 0LegisLAtive Auditdivision09P-08Performance AuditsLegislative AuditPerformance audits conducted by the Legislative Audit Division Committeeare designed to assess state government operations. From the audit work, a determination is made as to whether agencies and Representatives programs are accomplishing their purposes, and whether they Dee Brown, Vice Chair can do so with greater efficiency and economy.Betsy HandsScott MendenhallWe conducted this performance audit in accordance with Carolyn Pease-LopezWayne Stahl generally accepted government auditing standards. Those Bill Wilson standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for Senators our findings and conclusions based on our audit objectives. We Mitch Tropila, Chair believe that the evidence obtained provides a reasonable basis for Greg Barkus our findings and conclusions based on our audit objectives.John BrendenTaylor Brown Members of the performance audit staff hold degrees in Mike Cooney disciplines appropriate to the audit process. Areas of expertise Cliff Larseninclude business and public administration, journalism, accounting, economics, sociology, finance, political science, english, anthropology, computer science, education, international Audit Staff relations/security, and chemistry ...

Informations

• Publié par: Phewyig
• Nombre de lectures: 12
• Langue: English

Extrait

A R e poRt to   th e M ontAnA L egi sL AtuRe

L egisLAtive A udit d ivision

09P-08

p e R f o R M A n c e  A u d i t

Contract Management Department of Corrections

f e b R u A R y  2 010

Legislative Audit Committee Representatives Dee Brown, Vice Chair Betsy Hands Scott Mendenhall Carolyn Pease-Lopez Wayne Stahl Bill Wilson Senators Mitch Tropila, Chair Gre Bars ohn Brenden Taylor Brown Mie Cooney Cli Larsen Audit Staff Performance Lisa Blanord Stee r oss ohnson oe Mrray

rad Hotline Help eliinate rad, waste, and ase in state oernent Call the rad Hotline at Statewide 1-800-222-4446 in Helena 444-4446

Performance Audits P     L  D           ,              ,         ffi   W                         ffi,          fi        W            fi        M     ff                 , , , , , fi,  , , ,  , ,  ,   P         L  C           M L         S      H  

D     L  D  160, S C P B 201705 H, MT 59620-1705 406 444-3122         

LEGISLATIVE AUDIT DIVISION   Tori Hunthausen, Legislative Auditor onia Huyg, Legal ounsel  

eruary 

Deputy Legislative Auditors aes Gillett Angie Grove

e Legislative Audit oittee o the ontana State Legislature is is our perorane audit o ontrat anageent at the Departent o orretions is report inludes inoration on the proureent and onitoring o ontrats at the departent and also addresses organiational ontrols Our reoendations inlude taing ation to oply ith proureent las, developing   ageny poliies and proedures to iprove transpareny and douentation, and elevating the iportane o ontrat anageent untions ithin the departent A ritten response ro the Departent o orretions is inluded at the end o the report e ish to epress our appreiation to departent personnel or their proessional and ourteous ooperation and assistane

espetully suitted, /s/ Tori Hunthausen Tori Hunthausen, A Legislative Auditor

oo  • State apitol uilding • O o  • Helena, T •     hone   • A   • Eail ladtgov

Tb f C igures and Tales  iii Appointed and Adinistrative Oiials  iv eport Suary  S Chatr I – IntroduCtIon ��������������������������������������������������������������������������������������������������������������� 1 Introdution   Audit Oetives  Audit Sope and ethodologies   eport ontents   Chatr II – BaCkground ����������������������������������������������������������������������������������������������������������������� 3 Introdution   Departent ontrat anageent Organiational Struture   Legal Servies ureau   Adinistrative and inanial Servies Division   opliane onitoring Unit   ontrat laeent ureau   Adult ounity orretions Division   ontrat Liaisons   ailities   Guidane or ontrating Ativities   Title , hapter , the ontana roureent At   Title , hapters  and , General Adinistration o Institutions, orretions  eent Iproveents in ontrols Over ontrat anageent   Chatr III – FaCIlIty ContraCt roCurmnt ����������������������������������������������������������������� 11 Introdution   opetitive roesses Not Alays Used in aility roureent   rerelease enter roureent    Deision aing and Douentation   Soring riteria Should onsider ange o ossile esponses   ontrated aility Loated on orer Departent roperty   roureent Ativities Should e Douented   Departent oliy Does Not Address euired Douentation    Evaluation oittee eership   Soe Servies erored ithout ritten ontrat   Inate Transportation Agreeent   Drug and Alohol Treatent enter and Assessent and Santion aility   La o ritten ontrats Inreases is to State   Chatr IV – ContraCt monItorIng ���������������������������������������������������������������������������������������� 23 Introdution   hat is ontrat onitoring   aility ontrat onitoring   ontrat laeent ureau Has Good roess to onitor Seure ailities  opliane onitoring Unit Tools euire Update   Ineetive onitoring Tools and Liited ouniation   ounity orretional aility onitoring   09P-08

i

ii

Montana Legislative Audit Division

aility onitoring Elsehere   Iproveents to ounity aility onitoring ould Inrease Sharing o Inoration   onitoring o isellaneous ontrats Is Inoral   ontrat onitoring in Other States   Evaluation o ontrator erorane roves eneiial   eent Iproveents Should e etter Supported Through ontrat onitoring  ontrator Evaluations Iportant at eneal Tie   Departent Las oliy to Douent ontrator erorane and ustiy eneals 

Chatr V – organIzatIonal StruCtur ChangS Could ImroV ContraCt managmnt����������������������������������������������������������������������������������������������������������������������������������������� 33 Introdution   No One Entity esponsile or anaging ontrats   Other States Have entralied ontrat anageent   ederal Agenies ontrat anageent   ontrat anageent ureau Not Alays Involved   Appropriateness o Other ontrats uestioned   The Iportane o the ontrat anageent ureau’s ole Not Ephasied 

dartmnt rSonS Departent o orretions  A

F  Tb Figures

Figure 1

Figure 2

Departent o orretions Organiational hart  

Departent o orretions ontrated ailities  

09P-08

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i

Montana Legislative Audit Division

A  A Off

depe  Cei die’ offieie erriter, Diretor Diana oh, Legal ounsel

aiiie  Fiihonda Shaffer, Adinistrator Seie diii Gary illes, hie, ontrat anageent ureau

a Ci Cei diii

m Se i

a une, Adinistrator

ie ahoney, arden atri Sith, hie, ontrat laeent ureau

m e’ io Aton, arden

he i Gary Hael, Adinistrator Ii Seie diii

h ree y Seie diii m Cei epie

Steve arry, Adinistrator Steve Gison, Adinistrator Gayle Laert, Adinistrator

R S

depe  Cei C m ee ontrated servies opose over  perent o the Departent o orretions’ total udget hoever, the departent has not developed adeuate ontrols over ontrat proureent and onitoring o ontrator perorane nor does its organiational struture properly ephasie the iportane o ontrat anageent

ai Fii During the s the ontana Legislature enated legislation alloing the state to ontrat ith private orporations, loal governents, and trial governents to operate orretional ailities Sine then, the Departent o orretions has entered into ontrats or a private prison, regional prisons, prerelease enters, and speialied treatent and santion ailities As a result, the dollar value o ontrats anaged y the departent has inreased signifiantly y fisal year , ontrated ailities ost the state approiately  illion, hih is nearly as uh as the osts o operation o stateoned orretional ailities In addition to the aility ontrats, the departent also anaged over  illion in other ontrats during fisal year  Together, there are over  departent ontrats hih opose over  perent o the departent’s overall udget

Our audit sought to deterine i the departent has internal ontrols in plae to ensure effiient and effetive ontrat anageent and i the departent’s organiational struture prootes effetive ontrat anageent To do this e revieed proureent files, evaluated the proesses used to onitor ontrats, and evaluated ho the departent’s struture ipats ontrat anageent Despite the signifiant investent in ontrats, the departent has not developed adeuate ontrols and is not strutured in a anner hih ephasies the iportane o ontrat anageent ai reei Audit or identified three priary areas in hih ontrat anageent iproveents are needed—prouring o ontrated ailities, onitoring ontrator perorane, and ephasiing ontrat anageent through organiational hanges eoendations address the need to  air and euitale treatent o all vendors in proureent proesses Ensure y oplying ith state proureent las all ontrats are set orth in riting  Ensure  a poliy regarding proureent evaluation oittee oposition Develop

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Montana Legislative Audit Division

  

 

  

Aend adinistrative rules to lariy the prerelease siting proess

Update ontrat onitoring tools and poliies to ensure all ontrats are adeuately onitored

Ephasie the iportane o ontrat anageent through hanges to the departent’s organiational struture

Chapter I – Introduction

Ii In Noveer , the Legislative Audit Division presented its finanialopliane audit report to the Legislative Audit oittee or the to fisal years ended  is report presented an issue related to the Departent o orretions departent ontrat adinistration Speifially, the report noted onerns regarding ontrat payents and several instanes here payents ere not ade in aordane ith the ters o the ontrat ontrat adinistration has een an ongoing issue or the departent ith onerns periodially rought orth during finanialopliane and perorane audits dating a to  As a result, the Legislative Audit oittee reuested a perorane audit o the departent’s ontrat anageent praties is perorane audit eaines the departent’s ontrat anageent ro a systeide point o vie ith ephasis on analying eisting internal ontrols

ai oeie e oetives o this perorane audit ere to deterine i  e Departent o orretions has internal ontrols in plae to ensure effiient and effetive ontrat anageent  organiational struture o the Departent o orretions prootes e effetive ontrat anageent

ai Spe  meie e onsidered ontrat anageent as a tostage proess e first stage is proureent, hih inludes ativities assoiated ith identiying a need or a ontrat, using a proess to otain the needed ite, onduting the proureent, and finally, issuing a ontrat and auiring the ite e seond stage is ontrat onitoring, hih inludes a variety o steps taen to ensure the departent reeives hat the ontrator has proised to deliver under the ters o the ontrat is audit revieed the departent’s ativities in oth stages o the ontrating proess

e revieed to types o ontrating ativities at the departent —those or orretional ailities or progras and those or isellaneous servies, suh as heial dependeny ounseling or ental health servies roughout this report e use the ters aility and progra interhangealy e ul o the departent’s ontrats in ters o total ontrat value are related to orretional ailities, so uh o our revie oused on ho these ontrats are anaged Sine ne orretional aility ontrats are longter ontrats, e generally revieed proureent and

09P-08

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