1. Contract Administrators’ and Purchasing Directors’ Meeting August 11, 2005 State Purchasing

2. 2 Contract Administrator’s/Purchasing Directors’ Meeting August 11, 2005 Agenda Audit Report: Contract Management of Private Correctional Facilities Legislative Proposals Discussion New Message Board and Subscription Service MFMP Issues Open Floor / New Issues Next Meeting: SRC, 9/8/05, 2-4 pm

3. 3 Audit Recommendations Provide contractors with written instructions for reporting vacancies Require contract monitors to review vendor records to verify the accuracy of vacancy reports prior to the reports being forwarded to BCP Require vendors to subcontract for non-security positions that remain vacant beyond a specific time Immediately terminate per diem payments in lieu of CAD

4. 4 Audit Recommendations In future solicitations for private prison operations, bidders should be instructed to make offers based only the vendor’s best bid price Immediately terminate burden payments on CAD Require contract monitors to verify the accuracy of vendor invoices prior to approval for payment Revise contract to conform to other facilities regarding routine and major maintenance and repair costs

5. 5 Audit Recommendations Propose deletion of Inmate Welfare Trust Fund; deposit funds generated from sales to inmates into GR fund Regularly review vendor Trust Fund operations to include commissary or other operations where revenues are derived from inmate sales Amend each service contract to reduce vendor’s per diem rates and discontinue deducting operations costs from vendors’ invoices Maintain direct communication to ensure that consensus per diem rates are available on an annual basis

6. 6 Audit Recommendations Propose transfer of responsibility for contracting and monitoring of private prisons to DOC, or propose transfer of responsibility for appropriations and budgeting authority to DMS