Report 2018-108 Recommendation 10 Responses

Report 2018-108: California High‑Speed Rail Authority: Its Flawed Decision Making and Poor Contract Management Have Contributed to Billions in Cost Overruns and Delays in the System's Construction (Release Date: November 2018)

Recommendation #10 To: High-Speed Rail Authority, California

To ensure that contract managers' invoice reviews are complete and that invoiced costs are allowable under contract terms, the Authority should amend its applicable procedures by May 2019 to require contract managers to document their review of invoiced rates and expenses.

6-Month Agency Response

The Contract Invoicing and Payment Policy, as well as the corresponding Procedure, have been revised and finalized to require Contract Managers to be prepared to justify and/or provide backup documentation which validates the work performed.

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

The Authority provided the revised procedures it references in its response.

60-Day Agency Response

The draft revision of procedures referenced in the initial response will be initiated in January and then circulated for comment and finalization.

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

The Authority provided a draft of the revisions to its existing procedures related to invoice review. However, these revisions are not responsive to the recommendation that the Authority require contract managers to actively document their reviews of invoice materials. When we shared our concerns with the Authority, it responded that it would take our comments into consideration when performing further reviews of the procedures.

All Recommendations in 2018-108

Agency responses received are posted verbatim.