Report 2015-102 Recommendation 17 Responses

Report 2015-102: Central Basin Municipal Water District: Its Board of Directors Has Failed to Provide the Leadership Necessary for It to Effectively Fulfill Its Responsibilities (Release Date: December 2015)

Recommendation #17 To: Central Basin Municipal Water District

To minimize its risk when contracting with vendors, the district should adhere to its administrative code and execute all contracts only after approval by its general counsel. Further, the district should amend its administrative code to prohibit engaging in a verbal contract. Finally, the district should continue to report to its finance committee all sole-source contracts and contracts entered under the general manager's authority.

6-Month Agency Response

Administrative Code Part 5: Procurement Policy was revised to include language that all contracts will be executed after approval by general counsel. Additionally, language was included to clearly state the prohibition of verbal contracts. The Board of Directors approved and adopted revisions to Administrative Code Part 5: Procurement Policy on March 28, 2016.

A new report format which includes all District contracts was presented to the Finance & Audit Committee and the Board of Directors in January 2016. Sole source reporting continues to be specified in the Procurement Policy, in addition to new specification for all contracts in force reporting. In practice, quarterly contracts report includes all contracts.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

Administrative Code Part 5: Procurement Policy is currently being revised and will include language to indicate that all contracts will be executed after approval by general counsel. Additionally, language will be added to clearly state the prohibition of verbal contracts. Revisions to Administrative Code will be presented to the Board of Directors in March 2016 for adoption.

A new report format which includes all District contracts was presented to the Finance & Audit Committee and the Board of Directors in January 2016.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2015-102

Agency responses received are posted verbatim.