Report 2018-114 Recommendation 24 Responses

Report 2018-114: Disabled Veteran Business Enterprise Program: The Departments of General Services and Veterans Affairs Have Failed to Maximize Participation and to Accurately Measure Program Success (Release Date: February 2019)

Recommendation #24 To: Corrections and Rehabilitation, Department of

To ensure that DVBE participation data are reported accurately and consistently, Corrections should implement or strengthen a review process to ensure that DVBE participation amounts entered into its data systems or FI$Cal are accurate. This review process should include verification, on a sample basis, of the amounts awarded to, and the certification status of, the DVBE contractor or subcontractor for high-value contracts that include DVBE participation.

1-Year Agency Response

Due to portal size limitations, please refer to CAP submission via email.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

Corrections provided policies it implemented for a secondary review process. It also provided documentation to show secondary review its staff conducted to verify, on a sample basis, the amounts awarded to, and the certification status of, the DVBE contractors or subcontractor for high-value contracts that include DVBE participation.

6-Month Agency Response

Create 810 Workgroup made up of key stakeholders: Meetings have been held on 11/30/18,1/18/19,3/5/19,3/14/19,and 5/10/19.Meetings will continue bimonthly through the fiscal year,then as needed until all issues/requests are resolved.PCR 2570-Develop Minority Indicator Report to cross reference SAP entries and 810 Large Report.Partially Implemented.Estimated completion: 9/15/19.Currently in development and pending further review and testing by the 810 workgroup.PCR 2617-810Enhancements-adding Fund Year to report criteria in order to report by each Fiscal Year (multi-year contracts).Partially Implemented.Estimated completion: 9/15/19.Currently in development and pending further review of workgroup.POP:PCR 2617.Revise and update the Contracting Guidelines (Non-IT): Partially Implemented,estimated completion date of 9/15/19.In development: Contract Guidelines and Proof of training/implementation.Revisions to the Contract Manager's Handbook will be made to include additional instruction regarding DVBE participation input for Service and Expense Orders and POs issued in BIS.Partially Implemented with estimated completion date of 9/15/19.In development:Contract Manager's Handbook and Proof of training/implementation.

Develop written procedures for data verification/reconciliation report process to ensure accuracy in data reporting.Partially Implemented,estimated completion date of 9/15/19.In development:

PCR 2570.In development and pending further review and testing by the 810 workgroup.Revise/update the IT Contracting Guidelines:Partially Implemented with estimated completion date of 8/15/19.Met with new ITAU SB/DVBE Advocate to make necessary changes to processes,procedures,update handbook,make changes to boilerplate information that vendors receive,create a secondary review process to validate numbers,and train staff.Once handbook processes,and procedures are updated,we will be discussing/training at our biweekly team meetings.Estimated completion 9/15/19.

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

60-Day Agency Response

Create 810 Workgroup made up of key stakeholders: Office of Business Services' Contract Management Branch and Procurement Section, California Correctional Health Care Services, Facilities Planning Construction Management, Accounting, and the Statewide SB/DVBE Advocate, to identify areas in need of correction within SAP to improve accuracy and to further automate reporting.To discuss recommendations and create a corrective action plan to ensure CDCR is reporting accurate data, strengthening the review process of verification of amounts awarded and the certification status of the DVBE contractor and/or subcontractor for high value contracts that include DVBE participation.

Production Change Requests (PCR):

PCR 1585 - Auto-populate Vendor Master Data in order to reduce keying errors, and provide additional oversight of SB/DVBE certification.

PCR 2570 - Develop Minority Indicator Report to cross reference SAP entries and 810 Large Report.

PCR 2617 - 810 Enhancements - adding Fund Year to report criteria in order to report by each Fiscal Year (multi-year contracts).

Revise and update the Contracting Guidelines (Non-IT) which is provided to contract analysts that detail instruction on the contract process. Additional instruction will be added to ensure that DVBE participation is entered correctly when contracts and purchase orders (POs) are issued in BIS.Revisions to the Contract Manager's Handbook will be made to include additional instruction regarding DVBE participation input for Service and Expense Orders and POs issued in BIS. Develop written procedures for data verification/reconciliation report process to ensure accuracy in data reporting.The Procurement Operations and Delegation Oversight (PODO) Unit has developed a process for review of non-IT goods procurements to ensure accuracy in data reporting and to identify any discrepancies in the 810 Report.

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

All Recommendations in 2018-114

Agency responses received are posted verbatim.