OCA Audit Reports

Issued: February 2007

SUMMARY

This report presents the results of audit report on the department of Small and Minority Business Resources (SMBR). The purpose of this audit was to review SMBR’s performances in the areas of certification, contract monitoring and program enforcement, and performance reporting.

We found problems in the area of certification, specifically as it relates to the accuracy of data on certified firms maintained by the certification agency that processes certification of Minority-Owned Business Enterprise (MBE) and Women-Owned Business Enterprise (WBE) for the City of Austin. Furthermore, SMBR’s oversight of the contract with the certification agency was weak and we found problems with the completeness of documentation of certification eligibility maintained by the agency.

Once Council awards contracts with participation goals, SMBR monitors MBE and WBE participation during the course of the contract. We found that while SMBR has made progress in monitoring MBE and WBE subcontractors’ participation in City contracts. However, further improvements are needed to ensure that contracts are monitored consistently and effectively.

Collecting comprehensive performance information in key areas of operations is crucial to evaluate program performance and effectiveness. While SMBR tracks useful performance information for its certification activity, SMBR does not track comprehensive performance information in the areas of contract monitoring and program enforcement. Additionally, SMBR lacks the capability to access information designed to evaluate its operational performance. While SMBR establishes participation goals only on contracts requiring Council approval, our work indicated that SMBR establishes goals on the majority of City contractual spending.

We have issued thirteen recommendations aimed at correcting existing problems in the data for MBE and WBE firms maintained in the City vendor database; improving certification practices; improving monitoring of City contracts; ensuring enforcement of program rules; and improving SMBR’s ability in evaluating its performance and program effectiveness. Management concurred with nine recommendations, partially concurred with four recommendations, and has already taken steps to redress some of the problems pointed out by this audit.

Download the entire text of our Small and Minority Business Resources Department (Size: 2.17 MB) in Adobe Acrobat. You will need Adobe's Acrobat Reader to view these files. Or request a hard copy of this audit report, No. AU06107, by submitting this audit report request form.

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