CITY OF HARTFORD

Date: September 29, 2014

To: Distribution

From: H. Patrick Campbell, Chief Auditor HPC

Telephone: 860.757.9951

Subject: Special Review of Purchasing and Financial Activities Relating to the Proposed
Hartford Municipal Office Building



As a result of an inquiry we received regarding the timing of purchasing/financial data and
reports relating to the proposed Hartford Municipal Office Building (HMOB), we performed a
special review of related activities. The following is a timeline of actions and activities relating
to the proposed HMOB.

November 1, 2013

Invitation to respond RFR #: 5464 for One Government Center: Municipal Office Building

This Request for Qualifications (RFQ) invites Qualified Respondents to submit proposals
describing in detail their technical, managerial and financial qualifications to design, develop and
structure financing, and manage the operation of a municipal office building. The response date
and time is December 2, 2013 at 2:00 p.m.

November 20, 2013

Section 2: Scope of Work Revised 11/20/2013 One Government Center: Municipal Office
Building Request for Qualifications RFR# 5464

December 2, 2013

Proposal for the City of Hartford RFP #; 5464 One Government Center Municipal Office
Building Gilbane, JCJ Architecture, CV Properties LLC

Proposal to provide Phase 1 services for the development, financing, design, construction and
management of a Municipal Office Building for the City of Hartford.

December 16, 2013

RFQ #5464 Selection Committee Rating Form and Final Selection

INTERDEPARTMENTAL MEMORANDUM




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December 18, 2013

Award letter to Gilbane. The following terms and conditions are in the letter.

This award is contingent to EEO Certification, tax status, final scoping/pricing and form
of Contract.
Do not initiate work until a contract has been executed.

February 6, 2014

First draft of contract.

March 24, 2014

Invoices for payment submitted by CV Properties LLC for $497,000. Paid as follows:

Invoice #603 $165,667 Dated March 24, 2014
Approved for Payment April 3, 2014
Paid June 2, 2014
Invoice #605 $165,667 Dated April 17, 2014
Approved for Payment May 28, 2014
Paid June 2, 2014
Invoice #608 $165,666 Dated May 6, 2014
Approved for Payment May 28, 2014
Paid August 18, 2014

April 2014

HMOB Hartford, CT The Study of the Hartford Municipal Office Building Volume 1
CV, JCJ Architecture, Gilbane

May 19, 2014

Contract Approval

May 20, 2014

Contract Execution

May 29, 2014

Purchase Order #20145218-00, CV Properties LLC, $497,000 for Architectural Services,
Professional



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Review Results

Various tests of the above transactions and documentation and reviews of related operations
disclosed the following:

1. One invoice totaling $165,667 was approved for payment by Department of Development
Services management prior to the approval and execution of the contract. It should be noted
that all three payments relating to this contract were actually paid after the contract execution
date.
2. All three invoices totaling $497,000 were approved for payment by Department of
Development Services management prior to the issuance of the related purchase order for the
services provided. It should be noted that all three invoices were not actually paid until after
the contract was executed.
3. The final vendors report HMOB Hartford, CT The Study for the Hartford Municipal Office
Building Volume 1 dated April 2014 was issued prior to the approval and execution of the
contract and purchase order for related services.
4. As noted above, the final vendors report was issued in April 2014 even though the
Procurement Services Unit award letter indicated Do not initiate work until a contract has
been executed. The contract was not executed until May 29, 2014.

Services should not be provided by vendors and invoices should not be approved for payment
prior to the approval and execution of applicable contracts and purchase orders. We recommend
that Department of Development Services management take action to ensure that contracts and
purchase orders are approved and executed before any services are provided by vendors and
invoices are approved for payment in the future.

We reviewed this matter with T. Deller, Director, Department of Development Services, who
informed us that he was not aware that this occurred until we brought it to his attention. T.
Deller also indicated and assured us that he has since established procedures and controls to
prevent this from occurring in the future.



Distribution:

City Council Members
Internal Audit Commission Members
A. Cloud, City Treasurer
T. Deller, Director, Department of Development Services
D. Hill, Chief Operating Officer
L. A. Ralls, Acting Director, Finance Department
P. Segarra, Mayor