An Audit Report on a Construction Contract at the Department of Transportation
Report Number 15-033
The Department of Transportation (Department) generally planned, procured, and formed the construction contract audited in accordance with applicable statutes, rules, and Department policies and procedures that helped to ensure that the State's interests were protected. However, the Department should strengthen its current processes by:
- Retaining all contract planning documentation.
- Including a provision in each construction contract that establishes the Department's and the State Auditor's rights to audit the contract.
In addition, the Department performed oversight activities of the contract audited to ensure that the contractor performed and complied in accordance with the requirements of the contract. However, it should improve documentation of its monitoring efforts in the areas of (1) payment processing, (2) quality assurance testing, and (3) change orders.
Auditors communicated other, less significant issues related to contract documentation separately in writing to the Department.
Auditors also followed up on the implementation status of four selected recommendations related to information technology that the State Auditor's Office previously made in An Audit Report on Selected Contracts at the Department of Transportation (State Auditor's Office Report No. 13-044, July 2013). See Appendix 2 for additional information on the implementation status of those recommendations.
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