Santa Cruz County Grand Jury
• 2011-2012
Pajaro Valley Unified School District Insurance Vendor Selection: Are There Options?
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 6 findings
F1
The Grand Jury found no evidence of any conflict of interest between PVUSD insurance related vendors and PVUSD employees or trustees.
Related Recommendations (1)
R1
PVUSD Board of Trustees should act more independently of the administration when reviewing and approving significant contracts and vendors.
F2
It appears that the PVUSD Board of Trustees has relied heavily on the administration for information and recommendations on vendor selection and contract approval.
Related Recommendations (1)
R2
PVUSD should include in their purchasing process an Internet background check on prospective vendors, relating to litigation or other issues.
F3
During the initial interviews, PVUSD Board of Trustees and administrators appeared to be unaware of ongoing litigation concerning Keenan & Associates.
Related Recommendations (1)
R3
PVUSD should review their purchasing process and identify possible changes that would increase the number of qualified bids.
F4
The services that Keenan & Associates provide PVUSD go beyond an advisory and consultative capacity for health benefits to also include brokering a wide variety of insurance, prescription management, early retirement planning and administration of several JPA’s.
Related Recommendations (1)
R4
PVUSD should consider the nature of the issues raised in the Fourth Amended Class Action Complaint to determine if they apply to their district. Following that, they should exercise clause 4-D in the Medical, Dental and Vision Consulting Services contract, to review both total direct and indirect compensation received by Keenan & Associates and the potential impact to PVUSD’s overall costs. Pajaro Valley Unified School District Insurance Vendor Selection ∫ 59
F5
Even though PVUSD requested proposals from five qualified vendors for Medical, Dental and Vision Consulting Services, and followed California Code and district purchasing policies, the process does not appear to encourage multiple bids.
No recommendations for this finding
F6
The Medical, Dental and Vision Consulting Services contract discloses that Keenan & Associates receives direct compensation from PVUSD and indirect compensation from brokered vendors, which is a conflict in that it diminishes the incentive for Keenan & Associates to always recommend vendors offering PVUSD the best deals.
No recommendations for this finding
Commendations 1
-
CM1 Page 11The Grand Jury requested budget information, purchasing policies and spending records from PVUSD. They responded with links to existing information on their website and added new detailed purchase order and payment history content at: http://www.pvusd.net/info/public-notice/PurchaseOrdersReport.html http://www.pvusd.net/info/public-notice/WarrantReports.html This PVUSD website contains a large amount of detailed information and historical data. It is an excellent example of transparency for which they should be commended.