Audit Report Affecting Multiple Agencies
An Audit Report on Compliance With Historically Underutilized Business Requirements
March 1998
Report Number 98-033
Overall Conclusion
In fiscal year 1997, the 20 state entities reviewed for compliance with state Historically Underutilized Business (HUB) requirements demonstrated "good-faith" efforts to increase purchases from HUB vendors. However, the State's HUB program could be enhanced to encourage HUB recertification and prime-contractor monitoring and through fully excluding from HUB calculation expenditures not subject to HUB regulations.
Key Facts and Findings
- Twelve of the 20 entities exceeded the statewide goal in at least one expenditure category. *
- These 20 entities spent a total of $328,693,534 in applicable expenditures. Of this amount, $36,496,057, or 11.1 percent, was spent with HUB vendors.
The number of certified HUBs decreased in fiscal year 1997. Additionally, state entities have not been fully adhering to HUB requirements when contracting with prime contractors, and all expenditures not subject to HUB regulations are not fully excluded in HUB calculations.
Contact the SAO about this report.
Download the PDF version of this report. (.pdf)
HTML Equivalent (utilizing Adobe's PDF Conversion by Simple Form).