State auditors reported today that Treasurer Denise Nappier has failed to rebid four banking-service contracts, some of which date back 13 to 18 years. Here’s the section of the audit:
“Good businesses practices include a periodic rebidding of contracts. Section 4-216(a) of the General Statutes indicates that each personal agreement in excess of $50,000 shall be based on a competitive negotiation, requiring approval from the Office of Policy and Management (OPM). Sections 4-251(a) and 4-252 of the General Statutes, require a contract having a total cost of more than $500,000 to be subject to certain gift affidavit and certification requirements.
Condition: During our review, we found that four banking service contracts have not been rebid since their inception, between 13 and 18 years ago. Certain requirements, such as OPM approval and gift affidavits were not available as the contract dates preceded those requirements.
Cause: Management of the Cash Management Division did not rebid its contracts.
Effect: The banking needs of the Cash Management Division may not be met in an efficient and effective manner under these service contracts.
Recommendation: The Cash Management Division should rebid its banking service contracts periodically. (See Recommendation 2.)
Agency Response: “We concur with the Auditors’ recommendation. While we have put new banking services out to bid, most recently and notably services for the Department of Labor that will save the State approximately $4 million in annual administrative costs and $600,000 in annual banking service costs (depending on unemployment caseload), we will prepare an RFP to address the older contracts and expect to complete the procurement process by the end of 2011.”