An audit of Fulton County’s Information Technology Department found the department mismanaged contracts from two vendors. Among its findings:
*The IT Department paid the vendors $14.6 million in advance of services rendered, though county policies require payment only after work is confirmed and satisfactory.
*The audit found informal relationships between IT managers and vendors. For example, an assistant director was the former business partner of one contracted employees he supervises – a conflict of interest, the audit determined.
*A former 20-year department employee went to work for one contractor three months after retiring. The Fulton ethics code requires former employees to wait at least a year before participating in a county contract.
*Read the full audit report (PDF)
Fulton County's information technology department mismanaged millions of dollars worth of contracts and violated numerous county rules over the course of nearly four years, according to an internal audit released Wednesday.
The department improperly paid a vendor $14.6 million before it had done required work and paid excessive salaries to some contract employees, the audit found. One county employee supervises a contractor who is his former business partner. Another county employee retired, then went to work for a contractor who does business with the county, in violation of Fulton’s ethics policies. The department also violated purchasing rules and lacked procedures to properly monitor the contracts, the audit found.
The IT Department disputes many of the findings and will respond in 30 days. Despite the findings, interim County Manager Patrick O’Connor asked county commissioners Wednesday to renew the disputed contracts — which had been on hold pending the audit report — to avoid disruptions in county computer systems.
“I see no indication of corruption or fraud in the findings, and the county attorney has advised there is no legal reason not to approve the renewals,” O’Connor wrote in a memo to commissioners.
But commissioners were incensed by the findings and rejected requests to renew four IT contracts, including two for the vendors that were the subject of the audits.
“This, to me, is appalling,” said Commissioner Joan Garner, who requested the audit. “I cannot in good conscience approve these contracts.”
The county’s internal auditor reviewed contracts awarded to Randstad Technology of Alpharetta and Consilium Consulting of Roswell. Though Garner requested a broader audit of the Information Technology Department, County Auditor Anthony Nicks said his staff focused on professional services contracts, which he deemed to post the greatest risk to the county.
Randstad provides the county a number of on-demand services, including network engineering and telephone technical support. Consilium provides software licensing and support, database administration, disaster recovery planning and other services.
Representatives of both companies could not be reached for comment Wednesday.
The auditors reviewed documents related to the companies’ contracts dating back to Jan. 1, 2011. A copy of the audit obtained by The Atlanta Journal-Constitution lacks some key details, like the names of IT officials who allegedly violated county policies. But its 17 findings include:
- The IT Department paid the vendors $14.6 million in advance of services rendered, though county policies require payment only after work is confirmed and satisfactory.
- The audit found informal relationships between IT managers and vendors. For example, an assistant director was the former business partner of one contracted employees he supervises – a conflict of interest, the audit determined.
- A former 20-year department employee went to work for one contractor three months after retiring. The Fulton ethics code requires former employees to wait at least a year before participating in a county contract.
- Fulton's salaries for some contracted IT employees far exceed the salaries of comparable government and private sector jobs. For example, a Fulton database manager earns $336,391, while the job pays about $120,000 in Maricopa County, Ariz., and $103,000 in Mecklenburg County, N.C.
- The department failed to request background checks on contracted employees as required, and one subcontractor turned out to be a felon.
- The department didn't maintain attendance records for some contracted employees and could not verify they worked the required hours, exposing the county to the potential overpayments to the vendor.
- The IT Department generally lack procedures to adequately monitor contracts, making it impossible to tell whether the vendors are performing the work intended or meeting contract requirements.
Nicks told commissioners his investigation is continuing.
O’Connor, the interim county manager, pledged to address every finding. Among other things, he said the purchasing and IT departments would develop a process to monitor all IT contracts, with specific attention to the contracts covered by the audit.
O’Connor said the staff would respond to the audit at the Jan. 21 commission meeting.
Commissioner Liz Hausmann called the findings “alarming.”
“I’m concerned that our contracts don’t have sufficient safeguards in place that require vendors to perform for the millions of dollars they’re getting paid,” she said. “This, to me, seems extremely wasteful.”
About the Author
