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approximately 50% of the time. It is possible that
bids were obtained over the phone, but not documented.
In some instances, the documentation we reviewed stated
that a bid could not be obtained due to time
constraints. We do not understand how this could occur
as the mailing schedule is determined months in
advance. Another possibility which exists is that
competitive bids are not obtained but documentation is
provided that states bids were obtained to pacify
council personnel requesting adherence to the stated
procedures regarding obtaining bids. True compliance
testing of the procedures can only be achieved through
independent verification with the vendors involved.
3. Lack of Timely Information.
The final major item we would like to discuss concerns
the lack of adequate, timely financial information
summarizing the activities of the direct mail campaign.
It is our understanding that management decisions are
often based on financial information obtained from
reports generated by W&H and the modified cash-basis
monthly financial statements prepared by the Council’s
accountant. This could be a dangerous course. We have
made two attempts to reconcile financial information in
the W&H reports to the Council’s financial records and
have been unable to do so. We were then informed by
* * * Watson that these reports were not complete,
contain several estimates, and would probably not agree
with the Council’s books. Therefore, we strongly
recommend that the Board not rely quite so heavily on
the reports generated by W&H. The best course of
action would be for Council personnel to prepare the
monthly financial statements in the same manner as they
have been prepared at December 31, 1985. However,
given current circumstances, it would be impossible to
do this on a timely basis. One problem is that W&H can
take up to four months to record an invoice in accounts
payable, particularly W&H’s own invoices. With that
kind of time lag, the Council cannot determine the true
accounts payable at month-end until four months later.
* * *
Petitioner’s concern about W&H’s use of reasonable efforts
to obtain competitive bids from vendors continued throughout the
term of the Contract. During 1986 and 1987, petitioner further
discussed with W&H petitioner’s desire to exercise more control
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