[read complete report - pdf]

Audit Objective

Determine whether Madison County (County) officials used competitive methods to obtain and renovate temporary courthouse space.

Key Findings

County officials:

• Paid more than $1.5 million to a limited liability company (LLC) to lease and renovate temporary courthouse space for a 19-month period.
• Did not use a competitive process to lease and renovate the temporary courthouse space.
• Paid the LLC a $500,000 deposit before any renovation work was completed or services rendered.
• Paid approximately $131,000 in renovation claims to the LLC without adequate supporting documentation.

Key Recommendations

• Conduct and document a thorough analysis of leasing alternatives before making major financial commitments.
• Ensure purchasing polices are clearly defined and conveyed.
• Ensure claims contain proper supporting documentation and goods and services are received before payment is made.

County officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action. Appendix B includes our comment on an issue raised in the County’s response letter.