The Town’s Finance department performs an internal audit on Bid #2013-73 awarded to Julian Development for the Construction Material Processing Facility. The audit identifies numerous deficiencies including:
- The arrangement was expired for more than three months at the time of the audit
- The Contractor wasn’t making it’s required payments to the Town
- The Contractor wasn’t fulfilling it’s obligation to reduce the size of the Aggregate Fill Pile
- That the Contractor’s insurance certificate and performance bonds had expired. The Auditor requested the required documentation and had to wait two months to receive it.
Clearly, no one from the Town Purchasing Department was checking to ensure the Contractor was updating the required insurance and performance bonds – common safeguards designed to protect the Town from incurring liability due to errors or malfeasance by the Contractor. Stunningly, the Town Finance Department’s Auditor did not realize the performance bond she had pursued and validated was fraudulent.