Nevada County Grand Jury • 2019-2020

Report on Responses to the 2018-2019 Grand Jury Report: Nevada County Request for Proposal

Published: May 29, 2020 16 pages
Ver PDF original

Findings and Recommendations 7 findings

F1
The County does not have approved policies or procedures for the efficient operation of the Purchasing Department. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS DISAGREE At the time the Grand Jury report was issued, April 30, 2019, the Purchasing On May 28th 2019, the Board of Policy was not in place. However, we Supervisors by Resolution 19241 passed applaud the new policy and have and adopted the Nevada County Purchasing determined that it does respond to many of Policy. the 2018-2019 Jury findings. CEO NO RESPONSE Purchasing NO RESPONSE Agent
Related Recommendations (1)
R1
The CEO, in cooperation with the County’s Purchasing Agent, should continue researching procurement best practices and establish appropriate written procurement policies, practices, and procedures that would be followed in executing County procurement processes. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS The recommendation has been The adoption and implementation of the implemented. new Purchasing Policy has taken place. A Purchasing Procedures Manual has not On May 28th 2019, the Board of been completed as of April 2, 2020. Supervisors by resolution 19241 passed and adopted the Nevada County Purchasing Policy. CEO NO RESPONSE Purchasing NO RESPONSE Agent
F2
The County’s Purchasing Guide is a training manual, not formal policy or procedure. The Purchasing Guide contains discrepancies between its contents, the Admin Code, and California Government Code; is not consistent with generally recognized best procurement practices, is ambiguous as to RFP procedures, and is not always followed by County Offices and Departments. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS AGREE Purchasing NO RESPONSE None Agent
Related Recommendations (1)
R2
The County’s Human Resources department and Purchasing Agent should conduct an assessment of the training needs of current procurement staff and implement a plan for the training of new procurement employees on generally recognized best procurement practices. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS The recommendation has been partially The Jury has learned that the HR implemented. Department is not staffed to provide department-specific training. The HR On May 28th 2019, the Board of Department reports that each department is Supervisors by resolution 19241 passed responsible for developing its own training and adopted the Nevada County Purchasing and the HR Department is available to Policy. Purchasing Staff will be working assist them. with Human Resources to provide training on the Nevada County Purchasing Policy. The Jury was able to confirm that training CEO NO RESPONSE on the new Purchasing Policy had been Human NO RESPONSE provided for department managers and Resources purchasing staff. Interviews with County staff indicate that the Purchasing Department is responsive to requests for assistance.
F3
County employees receive training on the Purchasing Guide, but many who conduct purchasing operations and/or manage contracts are not fully trained on and do not always follow best procurement and contract management practices. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS DISAGREE The Jury understands that training has been provided by the Purchasing Department. The purchasing guide has been replaced with a Board of Supervisors adopted The Jury learned that the Contract Purchasing Policy recently. County staff Management System, Cobblestone, has who perform purchasing functions will be been partially implemented and is being trained on the policy. With the size of an used primarily as a repository system. A organization as large as the County, Business Solutions team, with departmental staff with purchasing duties representatives from the County Health and do change over time as people come and Human Services Agency, Auditor- go, get promoted, or shift positions. As Controller, Community Development such, it is an ongoing effort to train new Agency, Sheriff and Nevada County people on a regular basis across the year. Information and General Services (IGS) is The County has implemented a new working on further implementation of the contract management system to track Cobblestone software. countywide contracts to best practice standards. Purchasing NO RESPONSE Agent Human NO RESPONSE Resources
Related Recommendations (1)
R3
The Purchasing Agent should submit a report to the BOS on completed revisions to the Purchasing Guide, as well as policies and procedures. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS The recommendation will not be The Jury understands that the Purchasing implemented at this time. Policy replaces the Purchasing Guide and the Admin Code has been updated. The Purchasing Guide has been replaced However, as of April 2, 2020, the with the Nevada County Purchasing Policy Purchasing Procedures Manual referenced via Resolution 19241. in the Purchasing Policy has not been Purchasing NO RESPONSE completed. Agent
F4
RFP practices in the Purchasing Guide have a number of correctable issues that could be addressed with detailed procedures if properly followed by County Offices and Departments. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS AGREE Many correctable issues were not Auditor- AGREE addressed with the new Purchasing Policy. Controller The most notable among these issues is the CEO NO RESPONSE lack of a finalized Purchasing Procedures Purchasing NO RESPONSE Manual. Through interviews with IGS Agent staff, the Jury understands that a finalized and approved Purchasing Procedures Manual will address these issues. The Purchasing Procedures Manual has not been completed as of April 2, 2020.
Related Recommendations (1)
R4
The Purchasing Agent should, of establishing formal written policies, practices, and procedures, and completing revisions to the Purchasing Guide, lead each County agency through training on the County’s new policies, practices, and procedures. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS The recommendation will not be The Jury has learned that Purchasing staff implemented because it is not warranted. has provided training on the Purchasing Policy. The County has replaced the Purchasing Guide with the Nevada County Purchasing Further effort is required to finalize and Policy; therefore, the County will not approve the Purchasing Procedures provide training on the Purchasing Guide. Manual. Training will be required after it is However, training on the Nevada County finalized. Purchasing Policy will be provided over the course of the next year. Purchasing NO RESPONSE Agent
F5
The Office of the Auditor-Controller lacks sufficient staff to conduct contract reviews pursuant to BOS Resolution No. 98479, dated 27 October 1988 [sic], which requires internal contract audits be conducted every third year of the contract. No internal contract audits have been conducted since 2008 when the Auditor-Controller’s office staff was reduced by 25%. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS DISAGREE The Jury notes that the two responses do not align with each other. The Auditor Controller office has sufficient staff to conduct contract audits and does so The critical question is whether audits are regularly. being conducted as specified by Resolution Auditor- PARTIALLY AGREE No. 98479. Controller Staff reductions in the Auditor-Controller's The Jury has learned that the Auditor- office as well as other County departments Controller’s office continues to be began in the Fiscal Year 2009-10 through understaffed and is unable to comply with 2011-12 to address the downturn in the the Resolution. The Auditor-Controller is economy. A total of four positions of the now pursuing outsourcing the audit sixteen original allocated were eliminated functions. equating to a 25% reduction. In Fiscal Year 2016-17, one staff position was reinstated bringing the allocated staffing to thirteen. Beginning in Fiscal Year 2009-10 upon the elimination of the Senior Accountant- Auditor assigned to the Internal Audit Function, a reassignment of the duties occurred and the contract audits continued to be conducted through the Fiscal Year 2013-14. Following that year, with the loss of the assigned audit staff member due to a transfer to another County department and the unsuccessful recruitment that followed for a replacement candidate with equivalent experience, the office was unable to meet the goals as outlined in Resolution 98479. In the Fall of 2018, a qualified candidate to perform internal audits was hired by the office and the contract audit program has been re-established.
Related Recommendations (1)
R5
The Purchasing Guide should be reviewed and updated annually. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS The recommendation will not be implemented The Jury appreciates that the BOS agrees because it is not warranted. with annual review and appropriate updates of the Purchasing Policy. While the Purchasing Guide will not be reviewed and updated annually, the Purchasing Policy will be reviewed annually and updated as applicable. Purchasing NO RESPONSE Agent
F6
The increased thresholds of the new Purchasing Policy have improved contract-processing efficiencies.
Related Recommendations (1)
R6
The Purchasing Guide should be updated to include the following: a. required BOS approvals prior to issuance of in RFP; b. establishment and handling of protest periods; c. evaluation panel reviewer selection and recusals; d. procedure in the event of evaluation panel reviewer statistical anomalies; e. bidder qualification reviews where contract administrators have escalated concerns regarding a vendor’s past contract performance; f. maintenance of documented administrative files during a blackout period of County employee contacts involved with the RFP process and RFP respondents other than the County person named in the RFP document; and g. maintenance of complete administrative files documenting and justifying final decisions when that decision goes against the evaluation panel’s recommendation. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS The recommendation will not be The Jury recognizes that the Purchasing implemented because it is not warranted. Policy replaces the Purchasing Guide. The Board of Supervisors adopted the BOS response letter is silent on whether Nevada County Purchasing Policy on May each of these issues is addressed by the 28, 2019 that outline industry best practices new Purchasing Policy; a Jury review of for procurement policies. the new policy reveals that several of these Purchasing NO RESPONSE items were not addressed. Agent
F7
The Purchasing Policy, the Admin Code, and Purchasing Procedures Manual require periodic review to ensure continuous improvement.
Related Recommendations (1)
R7
The CEO’s office should complete a review of the Office of the Auditor-Controller and the staffing needs required to comply with BOS Resolution No. 98479 as soon as possible. RES. RESPONSE 2019-2020 GJ OBSERVATIONS BOS The recommendation will not be The BOS indicates that a staffing review implemented because it is not warranted. isn’t warranted because staffing levels are sufficient. That seems to contradict the The Auditor Controller office has sufficient response provided by the Auditor- staff to conduct contract audits and does so Controller. regularly. Auditor- PARTIALLY AGREE However, the audits have not been Controller completed as required by Resolution No. The County has an established process in 98479 and staffing shortages have been preparation of the annual budget cycle for cited as the cause. departments to request a review of staffing needs. The Office of the Auditor-Controller will use that process to engage in the conversation with the CEO's office to address staffing needs and specifically to converting a temporary staff position to a permanent staff position to support the activities in the office including the Internal Audit Function.

Additional Recommendations 2

These recommendations are not explicitly linked to specific findings.