Attachment 3
State Audit Update as of April 24, 2023
#10 Description
To reduce potential errors and omissions by city staff members when contracting for goods and services, by January 2023 Richmond should require its finance department to create a comprehensive checklist of required documentation for contract files that oth er departments must follow when conducting procurements.
#10 Corrective Action Plan
The City staff will compile a comprehensive checklist that will be utilized in reviewing and approving all contracts to ensure that proper procurement procedures and adher ence to all applicable City policies are followed.
#10 April 2023 Update
City staff created several checklists to ensure that all relevant contract items are reviewed, to reduce errors, improve efficiency and reduce audit findings. In addition, the checklists provide a standardized approach to ensure that all items are submitted and reviewed consistently and thoroughly and reduce the likelihood of o versight or mistakes. The checklist also provides a record of the process that was followed. Below is a list of the checklists that were created and distributed to all City staff during the trainings conducted , recorded and posted on the City’s Intranet. The checklist forms are also available on the City’s intranet for employees to download.
1. Contract Checklist Form
2. Contract Amendment Checklist Form
3. Purchase of Product Checklist Form
4. Contract Routing Process
5. Quote Summary Form
6. Piggyback Approval Form
7. Insurance Approval Checklist Form
#10 May 2022 Update
Updated checklists in place since November 2022. Intra -departmental team, including City Attorney’s Office, meet on a regular basis to review and update processes, procedures, and checklists. Additionally, additional refresher training will be provided to staff.
CONTRACT CHECKLIST - REQUIRED ITEMS
Use of this checklist will also ensure audit compliance This c
hecklist must be included in the contract module along with all the required documents listed below. Each document must be attached separately in MUNIS.
□ COMPANY OR CONTRACTOR NAME: ___________________________ VENDOR #: __________ □ CITY OF RICHMOND BUSINESS LICENSE NO: _______________ EXPIRATION DATE: __________ □ Contracts under $5,000 □ Written exemption from Accounting Manager over Revenue □INSURANCE CERTIFICATE WITH ENDORSEMENT
Certificate of Insurance and additional Insured Endorsements (General Liability; Business Auto; Waiver of Subrogation) naming the City of Richmond as additional insured. □ INSURANCE APPROVAL - Approved Insurance Form from Risk Manager □ APPROVED LEGAL OPINION
□ VENDOR SIGNED CONTRACT - Short-Form Contract ≤ $10,000 - Standard Contract > $10,000 Note: Contract is routed for approval after contract is approved in MUNIS. Fully executed contract is attached to the contract module prior to entering requisition in MUNIS. □ EVIDENCE OF COMPETITIVE BIDDING OR SOLE SOURCE OR EMERGENCY JUSTIFICATION OR
PIGGYBACK/COOPERATIVE AGREEMENT
□ Less than $3,000 – One written quote
□ Between $3,000 to $4,999 – Two written quotes – Attach Quote Summary or Rating Matrix □ Between $5,000 to $50,000 – Three written quotes - Attach Quote Summary or Rating Matrix □ Over $50,000 – Competitive Sealed Bids or Proposals
□ Include BidsOnline Project Report □ Include Rating Matrix or Canvass of Bids □ Include Bid Solicitation or Request for Proposal or Request for Qualifications □ APPROVED SOLE SOURCE FORM □ APPROVED EMERGENCY JUSTIFICATION FORM □ ≤ $10,000 Signed by Depart. Head, Finance Director, City Manager: Date Signed by CM_________ □ > $10,000 Signed by Depart. Head & Finance Director: Date Signed by Finance Director _________ □ PIGGYBACK/COOPERATIVE AGREEMENT
□ Copy of Solicitation
□ Approved Piggyback Justification signed by Finance Director □ COUNCIL APPROVAL DATE: _____________ - If over $10,000 – Attach the following Documents □ Minutes (or email from City Clerk’s office) □Staff Report □Resolution (if applicable) □ INFORMATION TECHNOLOGY ITEMS - If the item being purchased is an information technology item, include the Approved IT Authorization Form signed by the IT Director □ CONTRACT AMOUNT – $__________________ QUOTE/BID AMOUNT- $ ______________ TERM OF CONTRACT - _____________________
Note: This amount must match the council approved amount, and amount entered in MUNIS Requi
sitioner’s Name: ________________ Department: _____________
1. Contract Checklist Form
Cit
y of Richmond Business License Notes:
• Non-p
rofits will need to obtain a business license tax certificate. If they have proof of non-profit status, their business tax will be waived but they will be responsible for certain fees including a one-time $35 registration and recurring $4 State pass through fee.
• Required of all vendors with physical presence (working in) Richmond or those entering Richmond to provide services.
• License required if vendor’s cumulative fiscal year total dollars = $5,000 or more – even if service is intangible (i.e. consulting)
Note: There are exceptions. If unclear, written exemption from Accounting Manager over Revenue is required in order to bypass the business license requirement.
Insur
ance Certificates: Contact Risk Management for questions regarding certificates and waivers. • Do not submit expired or about to expire insurance certificates. • For certificates pending renewal or about to expire – at least 3 months of any new contract period should be covered by the insurance certificate submitted.
• Must specify City of Richmond as “Additional Insured” and an endorsement must be attached. • Document must be endorsed (signed)
• If coverage is for less than the term of contract, the requisitioner must ensure new insurance documents are received and attached to the contract.
• If coverage (carrier) changes, the requisitioner must verify that nothing has been dropped or $ reduced.
1. Contract Checklist Form
CONTRACT AMENDMENT CHECKLIST - REQUIRED ITEMS
Use of this checklist will also ensure audit compliance This checklist must be included in the contract module along with all the required documents listed below. Each document must be attached separately in MUNIS.
□ COMPANY OR CONTRACTOR NAME: ____________________ VENDOR #: __________________ □ CITY OF RICHMOND BUSINESS LICENSE NO: ________________ EXPIRATION DATE: _______________ □ Contracts under $5,000 □ Written exemption from Accounting Manager over Revenue □INSURANCE CERTIFICATE WITH ENDORSEMENT
Certificate of Insurance and additional Insured Endorsements (General Liability; Business Auto; Waiver of Subrogation) naming the City of Richmond as additional insured. □ INSURANCE APPROVAL - Approved Insurance Form from Risk Manager □ APPROVED LEGAL OPINION
□ VENDOR SIGNED CONTRACT AMENDMENT
Note: Contract Amendment is routed for approval after contract amendment is approved in MUNIS. Fully executed contract amendment is attached to the contract module prior to entering requisition in MUNIS. □ COUNCIL APPROVAL DATE: ___________ If amendment is over $10,000 – Attach the following Documents □ Minutes (or email from City Clerk’s office) □Staff Report □Resolution (if applicable) □ CONTRACT AMENDMENT TIME & AMOUNT: AMOUNT $_____________ TOTAL CONTRACT AMOUNT - $____________________
NEW TERM OF CONTRACT - ______________
Note: This must match the council approved amount, and amount entered in MUNIS □ CONTRACT AMENDMENT TIME ONLY: NEW TERM OF CONTRACT ________________ Requisitioner’s Name: ___________________ Department: ______________ City of Richmond Business License Notes:
• Non-profits will need to obtain a business license tax certificate. If they have proof of non-profit status, their business tax will be waived but they will be responsible for certain fees including a one-time $35 registration and recurring $4 State pass through fee.
• Required of all vendors with physical presence (working in) Richmond or those entering Richmond to provide services.
• License required if vendor’s cumulative fiscal year total dollars = $5,000 or more – even if service is intangible (i.e. consulting)
Note: There are exceptions. If unclear, written exemption from Accounting Manager over Revenue is required in order to bypass the business license requirement.
Insura
nce Certificates: Contact Risk Management for questions regarding certificates and waivers. • Do not submit expired or about to expire insurance certificates. • For certificates pending renewal or about to expire – at least 3 months of any new contract period should be covered by the insurance certificate submitted.
• Must specify City of Richmond as “Additional Insured” and an endorsement must be attached. • Document must be endorsed (signed)
• If coverage is for less than the term of contract, the requisitioner must ensure new insurance documents are received and attached to the contract.
• If coverage (carrier) changes, the requisitioner must verify that nothing has been dropped or $ reduced.
2. Contract Amendment Checklist Form
PURCHASE OF PRODUCT CHECKLIST - REQUIRED ITEMS
Use of this checklist will also ensure audit compliance T
his checklist must be included in the REQUISITION module along with all the required documents listed below when a product is purchased (Not Services). Each document must be attached separately in MUNIS. □ COMPANY OR CONTRACTOR NAME: VENDOR #:
□ EVIDENCE OF COMPETITIVE BIDDING OR SOLE SOURCE OR EMERGENCY JUSTIFICATION OR
PIGGYBACK/COOPERATIVE AGREEMENT
□ Less than $3,000 – One written quote
□ Between $3,000 to $4,999 – Two written quotes – Attach Quote Summary Form □ Between $5,000 to $50,000 – Three written quotes – Attach Quote Summary Form □ Over $50,000 – Competitive Sealed Bids or Proposals
□ Include BidsOnline Project Report □ Include Rating Matrix or Canvass of Bids □ Include Bid Solicitation or Request for Proposal or Request for Qualifications □ APPROVED SOLE SOURCE FORM □ APPROVED EMERGENCY JUSTIFICATION FORM □ ≤ $10,000 Signed by Depart. Head, Finance Director, City Manager: Date Signed by CM _________ □ > $10,000 Signed by Depart. Head & Finance Director: Date Signed by Finance Director _________ □ PIGGYBACK/COOPERATIVE AGREEMENT
□ Copy of Solicitation
□ Approved Piggyback Justification signed by Finance Director □ COUNCIL APPROVAL - If over $10,000 – Attach the following Documents □ Minutes (or email from City Clerk’s office) □Staff Report □Resolution (if applicable) □ INFORMATION TECHNOLOGY ITEMS
If the item being purchased is an information technology item, include the Approved IT Authorization Form signed by the IT Director
□ AMOUNT APPROVED BY COUNCIL – $_____________________
QUOTE/BID AMOUNT- $ ______________
N
ote: This amount must match the council approved amount, and amount entered in MUNIS Re
quisitioner’s Name: ________________ Department: ______________
3. Purchase of Product Checklist Form
Department - Contract Initiation:
• Conduct appropriate solicitation per $ threshold
Less than $3,000 – Solicit One Written Quote
Between $3,000 - $5,000 – Solicit Two Written Quotes
Between $5,000 - $50,000 – Solicit Three Written Quotes Over $50,000 – Formal Sealed Bids/Proposals are Required • Formal procedures are used when the value of the purchase/service is over $50,000
• Prepare contract documents located on the intranet under Forms > Contract Preparation Forms
• Review Insurance Requirements on the intranet under Human Resources > Risk Management Forms and select appropriate COR Insurance Requirements Risk Management — Insurance Requirements Review:
Insurance verification requests are emailed to
insura [email protected]
Send the following documents to Risk Management for review:
• Insurance Requirements Documentation which includes:
Draft Contract
Service Plan (Scope of Work)
COR Insurance Requirements
Insurance Certificate with additional insured endorsements Insurance Checklist
Approved Checklist from Risk Management should be included in RLO.
City Attorney — Legal Review:
Requests for legal opinion are emailed to [email protected] Send the following documents to the City Attorney's Office for review:
• Completed Legal Opinion Form * which includes:
Evidence of Competitive Bid - (rating matrix, Bids Online Project Report (summary of bids/proposals/award) or
Sole Source Justification Form (Approved) or
Emergency Justification Form (Approved)
Draft Contract
w/ Service Plan (Scope of Work)
a w/ COR Insurance Requirements attached
Contract Routing & Contract Module - MUNIS Procedures
4. Contract Routing Process
(If applicable: proposed modifications to General Conditions, COR Insurance Requirements and/or waiver request noted on Special Conditions page)
Approved Insurance Checklist
Department - After Approved Legal Opinion — Contracts and Contract Amendments:
• Obtain approved minutes (email from City Clerk's Office is sufficient) or certified resolution from City Clerk's Office. (if greater than $10,000) • Contractor must sign the contract.
(
* All forms are located on the Intranet under Forms>Contract Preparation Forms) • Upload documents into Contract Module MUNIS: (use these titles as examples):
Evidence of Competitive Bid
1. ( RFP/RPQ, Request for Bid, awarded proposal
2. Rating matrix
3. Bids Online report or
Approved Sole Source Justification Form or
Approved Emergency Justification Form
Council Approval Greater than $10,000- Approved Minutes (email from City Clerk's Office is sufficient) or Certified Resolution Approved - Request for Legal Opinion (RLO)
Agenda Report (if more than $10,000)
Business License or approved waiver
Certificate of Insurance & Additional Insured Endorsements (General Liability; Business Auto; Wavier of Subrogation)
Insurance Checklist Form
If Insurance is to be waived — attach approved email from Risk Mgt Contract Checklist Form or
Purchase of Product Form
• R
elease contract in Contract Module
• Upon Purchasing's approval of contract, you will be sent via email an automated MUNIS notification.
• Once you receive the MUNIS notification, route contract for signature via DocuSign. Include:
o Routing Slip
• Once you obtain the executed contract , upload executed contract document into Contract Module in MUNIS
• Output/Post contract in Contract Module
• Create Purchase Requisition (PR) linking to contract # in MUNIS - release Contract Routing & Contract Module — MUNIS
4. Contract Routing Process
Division/Department:
_________________________ Quote Summary Form Form completed by: _____________________ PR# Bidders' Names:
Unit Ext. Unit Ext. Unit Ext.
Price Price Price Price Price Price
Item 1 price: $___________ $___________ $___________ $___________ $___________ $___________
1. Descript:
M
anufacturer offered by bidder:
Model offered by bidder:
Item 2 price: $___________ $___________ $___________ $___________ $___________ $___________
2. D
escript:
Manufacturer offered by bidder:
Model offered by bidder:
Item 3 price: $___________ $___________ $___________ $___________ $___________ $___________
3. D
escript:
Manufacturer offered by bidder:
Model offered by bidder:
Item 4 price: $___________ $___________ $___________ $___________ $___________ $___________
4. D
escript:
Manufacturer offered by bidder:
Model offered by bidder:
Item 5 price: $___________ $___________ $___________ $___________ $___________ $___________
5. D
escript:
M
anufacturer offered by bidder:
Model offered by bidder:
Sub-Total: $__________ $__________ $__________
Shipping & Handling, if any $__________ $__________ $__________ Add tax at current rate (9.75%) $__________ $__________ $__________ Grand Total $ $ $
Notes:
Mfg:
Mdl:
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(Vendor 1) (Vendor 2) (Vendor 3)Quote Title: (Project name) Quote No.
Quote Submittal Deadline:
Mfg:
Mdl:
5. Quote Summary Form
Justification for Utilizing a Piggyback Contract
P
iggyback or Lead Agency: ______________________________________________________________ Contract No./Description: ________________________________________________________________ Vendor(s) Name(s): _____________________________________________________________________ We have reviewed and completed due diligence on the aforementioned piggyback contract. As part of the due diligence review, we have confirmed that the contract complies with our procurement rules and practices. We have further confirmed that all purchases will comply with the terms and prices in the contract. It has been determined that it is in the best interests of the City to utilize this contract for the reasons cited below:
Item Issue Comments
1 Is there a Piggyback Purchase Agreement allowing use of the contract? If “Yes”, please attach to this form.
2. Are there local suppliers or contractors who could provide the product or service at competitive rates?
3. A copy of the solicitation has been obtained from the originating agency and reviewed for compliance with the City’s purchasing ordinance. Please attach to this form.
4. A written documentation has been made of a thorough investigation of the current market and determination that the originating agency's' solicitation is the most advantageous
5. Does the cooperative contract provide the most advantageous solution? Why?
Factors may include advantageous terms, conditions, prices, quality, performance, timing, experience & ability to perform etc.
6. The specifications of the item or service required by the City are not materially different from those originally specified in the originating agency's solicitation
7. The price of the purchase is lower than that estimated for the purchase if made directly by the City pursuant to the purchasing ordinance
8. The price of the purchase is within fifteen percent (15%) or $2,500 of the originating agency's solicitation
9. The contract resulting from the original solicitation is current or the solicitation is within thirty-six (36) months from the date of the City's order, or written justification is provided justifying use of an older solicitation
Signature Date Buyer Name
Signature Date Department Head Name
Signature Date Finance Director Name
6. Piggyback Approval Form
INSURANCE CHECKLIST
Email documents to: [email protected] CONTRACTOR: DATE OF CONTRACT: P.O. #
DEPARTMENT: REQUESTOR & PHONE #: CONTRACT TYPE:
DESCRIBE PROJECT / WORK:
Required?
Yes No Type of Insurance Insurance Company
Name Policy Number Expiration Date Per Occurrence
Insurance Limit
Endorsement
Attached?
Yes No
Request
Waiver
General Liability
Auto Liability
Excess/Umbrella
Liability
Workers’
Compensation
Professional
Liability
APPROVED: ___________________________________________ DATE: ______________ Authorized Risk Management Signature
New:
Renewal:
Risk Management Use Only
Waiver Approved: Yes: No: N/A:
7. Insurance Approval Checklist Form