2023-302 Judicial Branch Procurement
Judicial Council of California
Published: January 9, 2024Report Number: 2023-302
Audit Recommendations Disclosure
When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor’s assessment of auditee’s response based on our review of the supporting documentation.
Recommendation 1
To ensure that it can appropriately detect and report potential instances of fraud in its contracting practices, the Judicial Council should do the following when it updates its contracting manual in 2024:
- Include language that is substantially similar to the fraud-reporting language in section 20080 of SAM that pertains to contracting and procurement.
- Require Judicial Council staff to report suspected instances of fraud to independent parties within the Judicial Council, such as the principal manager of audit services or chief administrative officer.
Status
Fully implemented
Date of implementation
Oct. 2024
Evaluator assessment status
Fully implemented
60-Day Agency Response
Judicial Council staff is in the process of developing proposed revisions to the Judicial Branch Contracting Manual. Following review by the Audit Advisory Committee and a public comment period, it is anticipated that the proposed revisions would be presented to the Judicial Council in September 2024, and that the revisions to the contracting manual would be effective October 1, 2024.
6-Month Agency Response
On May 2, 2024, the Judicial Council’s Advisory Committee on Audits and Financial Accountability (Audit Committee) completed the public comment period for the proposed revisions to the contracting manual. At its June 26, 2024, meeting (https://www.courts.ca.gov/auditcommittee.htm), the Audit Committee approved its recommended revisions to the contracting manual. These revisions implement the State Auditor’s recommendation. It is expected that the recommended revisions will be presented to the Judicial Council in September 2024, and the revisions to the contracting manual will be effective October 1, 2024.
1-Year Agency Response
On May 2, 2024, the Judicial Council’s Advisory Committee on Audits and Financial Accountability (Audit Committee) completed the public comment period for the proposed revisions to the contracting manual. At its June 26, 2024, meeting, the Audit Committee approved its recommended revisions to the contracting manual. These revisions implement the State Auditor’s recommendation. The Judicial Council approved the recommended revisions on September 20, 2024, and the revisions to the contracting manual were effective October 1, 2024.
Recommendation 2
To ensure that it can appropriately detect and report potential instances of fraud in its contracting practices, the Judicial Council should do the following when it updates its contracting manual in 2024: require Judicial Council staff to report suspected instances of fraud to independent parties within the Judicial Council, such as the principal manager of audit services or chief administrative officer
Status
Fully implemented
Date of implementation
Oct. 2024
Evaluator assessment status
Fully implemented
60-Day Agency Response
Judicial Council staff is in the process of developing proposed revisions to the Judicial Branch Contracting Manual. Following review by the Audit Advisory Committee and a public comment period, it is anticipated that the proposed revisions would be presented to the Judicial Council in September 2024, and that the revisions to the contracting manual would be effective October 1, 2024.
6-Month Agency Response
On May 2, 2024, the Judicial Council’s Advisory Committee on Audits and Financial Accountability (Audit Committee) completed the public comment period for the proposed revisions to the contracting manual. At its June 26, 2024, meeting (https://www.courts.ca.gov/auditcommittee.htm), the Audit Committee approved its recommended revisions to the contracting manual. These revisions implement the State Auditor’s recommendation. It is expected that the recommended revisions will be presented to the Judicial Council in September 2024, and the revisions to the contracting manual will be effective October 1, 2024.
1-Year Agency Response
On May 2, 2024, the Judicial Council’s Advisory Committee on Audits and Financial Accountability (Audit Committee) completed the public comment period for the proposed revisions to the contracting manual. At its June 26, 2024, meeting, the Audit Committee approved its recommended revisions to the contracting manual. These revisions implement the State Auditor’s recommendation. The Judicial Council approved the recommended revisions on September 20, 2024, and the revisions to the contracting manual were effective October 1, 2024.
Recommendation 3
By June 2024, the Judicial Council should ensure that procurement staff receive the revised training it develops to clarify the following:
- The circumstances under which staff must apply the certified small business preference when evaluating bids.
Status
Fully implemented
Date of implementation
July 2024
Evaluator assessment status
Fully implemented
60-Day Agency Response
The Judicial Council’s procurement team is on track to provide the recommended training to staff by the end of June 2024.
6-Month Agency Response
The Judicial Council’s procurement team has completed development of training material and is scheduled to provide the recommended training during July 2024.
1-Year Agency Response
The Judicial Council’s procurement team has completed development of training materials, including those related to the appropriate application of the small business preference, which was presented to staff on July 8, 2024 and documented in the training materials. Proper application of small business preference when evaluating bids, where applicable, has also been incorporated into Procurement’s onboarding process for all new staff. This content will remain a part of the curriculum for any future Procurement staff trainings.
Recommendation 4
By June 2024, the Judicial Council should ensure that procurement staff receive the revised training it develops to clarify the following:
- The correct type of solicitation process to use when procuring IT goods and services.
Status
Fully implemented
Date of implementation
July 2024
Evaluator assessment status
Fully implemented
60-Day Agency Response
The Judicial Council’s procurement team is on track to provide the recommended training to staff by the end of June 2024.
6-Month Agency Response
The Judicial Council’s procurement team has completed development of training material and is scheduled to provide the recommended training during July 2024.
1-Year Agency Response
The Judicial Council’s procurement team has completed development of training materials, including criteria for determining the correct type of solicitation process to apply, which was presented to staff on July 8, 2024 and documented in the training materials. Direction related to employing the appropriate solicitation process, including when procuring IT goods and services, has also been incorporated into Procurement’s onboarding process for all future hires. This topic will remain in the curriculum for all future Procurement staff trainings.
Recommendation 5
By March 2024, the Judicial Council should do the following:
- Formalize the processes by which contract dates are recorded in FI$Cal to ensure that the dates for any contracts it enters into in the future are accurate.
Status
Fully implemented
Date of implementation
July 2024
Evaluator assessment status
Fully implemented
60-Day Agency Response
In November 2023, Judicial Council procurement staff was instructed to record accurate contract start and end dates in FI$Cal for all transactions. This topic will also be included in the training to be provided to procurement staff by June 2024, and has been incorporated into the onboarding/orientation process for any newly hired procurement staff. Procurement leadership plans to periodically audit compliance with this procedural change.
6-Month Agency Response
The Judicial Council’s procurement team updated its business practices and training material to include appropriate direction on how to record contract start and end dates in Fi$Cal. In November 2023, existing procurement staff received direction on how to accurately report this data. All newly hired procurement staff receive proper direction during the onboarding/orientation process. We will attain full implementation upon delivery of training scheduled for July 2024.
1-Year Agency Response
The Judicial Council’s procurement team updated its business practices and training materials to include appropriate direction on how to record contract start and end dates in FI$Cal. The training was provided on July 8, 2024 and documented in the training presentation provided to all procurement staff.
Recommendation 6
By March 2024, the Judicial Council should do the following:
- Include in its procedures and training the steps required to record accurate dates when the Judicial Council executes a contract.
Status
Fully implemented
Date of implementation
July 2024
Evaluator assessment status
Fully implemented
60-Day Agency Response
Judicial Council procurement staff have been directed by management to record accurate contract start and end dates in FI$Cal for all transactions. Additionally, the training that will be provided to all Judicial Council procurement staff in June to address other recommendations from this audit will include the specific steps staff must take to record accurate dates in FI$Cal, and has been incorporated into the onboarding/orientation process for any newly hired procurement staff.
6-Month Agency Response
The Judicial Council’s procurement team updated its business practices and training material to include appropriate direction on how to record contract start and end dates in Fi$Cal. In November 2023, existing procurement staff received direction on how to accurately report this data. All newly hired procurement staff receive proper direction during the onboarding/orientation process. We will attain full implementation upon delivery of training scheduled for July 2024.
1-Year Agency Response
The Judicial Council’s procurement team updated its business practices and training materials to include appropriate direction on how to record contract start and end dates in FI$Cal. The training was provided on July 8, 2024 and documented in the training presentation provided to all procurement staff.
Recommendation 7
By January 2025, the Judicial Council should correct in its FI$Cal data the inaccurate contract dates for procurements dating back to July 1, 2021.
Status
Fully implemented
Date of implementation
Jan. 2025
Evaluator assessment status
Fully implemented
60-Day Agency Response
Judicial Council procurement staff have been instructed to correct the inaccurate dates within the system and are in the process of doing so. We remain committed to completing all applicable updates within FI$Cal by the established January 2025 deadline.
6-Month Agency Response
Judicial Council procurement staff continue to correct the inaccurate dates within the system. We remain committed to completing all applicable updates within FI$Cal by the established January 2025 deadline.
1-Year Agency Response
Judicial Council procurement staff corrected all inaccurate dates within FI$Cal, for procurements going as far back as 2021, in advance of the established January 2025 deadline.
