Performance Bond Audit – Validity

Audit of Performance Bonds October 2004 10/19/04 OPR 04-03 Audit of Performance Bonds October 2004 Introduction The Office of Performance Review conducts audits to insure the quality of transactions, check financial records against budgeted statements, and to insure monetary validity when necessary. Contracts, especially contracts within the City of Chattanooga, must carry certain aspects of reassurance and legal stability. When a contract is made, a bond is attached, and strict guidelines are set. The legalities of the arrangement define quality, ensure compensation within a certain time frame, and provide goals in which to assess the job being performed. Summary The Office of Performance Review conducted a review of Performance Bonds, Payment Bonds, and attached General Power of Attorney forms within contracts held by the City of Chattanooga to determine their validity. These nine th thcontracts were picked from the period beginning April 8 , 2002 to July 26 , 2004. These contracts included expenditures and monetary operating levels beginning at $207,752 and ending at $9,727,000. OPR staff found that the bonds were valid. Scope OPR staff first directed their attention to the Purchasing Department, and contacted Artie Prichard – Purchasing Agent for review of the selected bonds. The contracts obtained are listed: 10/19/04 ---Department--- Purchasing and Finance (Annex ...