New York State DePuTy Director Office of Homeland Security FRANK TABERT January 12, 2009 Mr. Frank P. McDonald Executive Director of Safety and Security Pace University 1 Pace Plaza New York, NY 10038. Re: — Contract Number:C-161857 Contract Period: 10/01/04 — 03/31/07 Dear Mr. McDonald: This letter is to follow up on the fiscal monitoring visit conducted on October 7, 2008 by Hepburn. Williams. The purpose of this review was to obtain a reasonable assurance that Pace University administered federal funds in accordance with State and Federal requirements, including the terms and conditions contained in the above referenced contract. We reviewed the relevant supporting documentation relating to this award for: a) compliance with the award agreement, contract, budget and reporting requirements; b) maintenance of accurate and reliable accounting records; and ©) compliance with allowable cost and expenditure documentation standards in accordance with, applicable Federal, State and NYS OHS guidelines. The review included such tests of the accounting and financial records as we considered necessary under the circumstances. Transactions for our review were specifically selected from Fiscal Cost Reports (FCR) 10/01/04 — 03/31/07. As a result of this fiscal monitoring visit, two observations were made regarding Pace University. Observation 1 — Procurement-Advertising As contained in Appendix A-1, paragraph 12(3)(5) of the agreement, a not-for-profit grantee spending in aggregate of $10,000.00 and above must use a competitive bidding process. At a minimum, the competitive bidding process must incorporate the following: open, fair advertisement of the opportunity fo provide services; equal provision of information to all interested parties; reasonable deadlines; sealed bids opened at one time before a committee who will certify the process; establishment of the methodology for evaluating bids before the bids are opened; and maintenance of a record of competitive procurement process. First, Pace University did not publicly advertise the bidding opportunity for the pan tit cameras or the shatter resistant window film. Pace University contacted several companies and invited them to bid for the projects. 1220 Washington Avenue, State Office Building Campus Building 7A. ALBANY, NY 122262 Secondly, the University obtained three bids for the original window film project and selected the lowest bidder. However, the University subsequently determined that the grant funds they had remaining would not cover the window film project as originally bid and decided to reduce the size of the project Pace University did not rebid the project for the smaller arca, thus all vendors were not given an opportunity to adjust their quotes or potentially allow other businesses to respond to the smaller project. | ‘The University should be aware that the inability to provide documentation of a competitive procurement process results in noncompliance of the contract requirements and can negatively impact future funding ‘opportunities. if Pace University needs clarification or assistance with the procurement process, they should contact their OHS Program Representative or Auditor Observation 2 — Metal Detector ‘The FY05 Homeland Security Grant Program Guidelines require that the specific goals and objectives fimded by this grant program be completed within the contract timeframe, Three portable metal detectors were purchased and received on September 5, 2006 by Pace University, but only two of these detectors were fully assembied and operational at the time of the site visit. One detector was still its original carton. The University did indicate that the detector would be installed and fully operational OHS requests that Pace University provide an update on the installation status for the detector. IFit has not been installed, the University should establish a corrective action plain to utilize the detector. ‘The action plan should be incorporated into the 30 day requested response. Response Requested: This report is meant as a tool to assist Pace University in complying with the Federal, State and NYS OHS guidelines. We ask that you review the observations and recommendation and submit a written response, to the Fiscal Monitoring Unit, no later than 30 days from the date of this letter, explaining the following: 1. The corrective actions taken or corrective action plans in relation to our recommendation(s); 2. Any reason(s) why these recommendations may not be feasible; and/or 3. Your disagreement with the observations made upon which the recommendations were based, ‘We appreciate the time that Mr. Vincent Beatty took to show us the shatter resistant window film, metal detectors and CCTV cameras. Should you have any questions or concems, please contact Hepburn Williams by either phone or email: (212) 867-1285 and hwilliams@security state.ny.us respectively Sincerely, Teny witty Principal Auditor Fiscal Monitoring Unit (Ce: Federal Fieal Unit, NYSOHS ‘Contact Uni, NYSOHSNew York State Deputy DiRECTOR Office of Homeland Security FRANK TABERT Date: December 16, 2008 Mr. Lorenzo Terry Director, EP Coordinator / Security and Safety Department New York Downtown Hospital 170 William Street New York, NY 10038-2649 Re: — Contract Number: C-163457 Contract Period: 10/01/04 — 03/31/08 Dear Mr. Terry: This letter is a follow up of the fiscal monitoring visit conducted on June 23, 2008 by, Hepburn Williams. The purpose of this review was to obtain a reasonable assuirance that New York Downtown Hospital administered federal funds in accordance with State and Federal requirements, including the terms and conditions contained in the above referenced contract. We reviewed the relevant supporting documentation relating to this award for: a) compliance with the award agreement contract, budget and reporting requirements; b) maintenance of accurate and reliable accounting records; and ©) compliance with allowable cost and expenditure documentation standards in accordance with applicable Federal, State and NYS OHS guidelines. ‘The review included such tests of the accounting and financial records as we considered necessary under the circumstances. Transactions for our review were specifically selected from Fiscal Cost Reports 10/01/2004 = 03/31/2008. As a result of this fiscal monitoring visit, the following observation was made: Observation: The F¥0S Homeland Security Grant Program Guidelines require that the specific goals and objectives funded by this grant program be completed within the contract timeframe. During the time of the site visit, the card access system funded under the contract and installed in December 2007 was not operational. ‘The explanation provided to NYS OHS was that the system had to be connected to the Fire Department of New York (FDNY). The inability of New York Downtown Hospital to utilize items purchased under the grant leads to noncompliance of the contract. Non-compliance with contract requirements can result in disallowances and can negatively impact future funding opportunities. 1220 Washingion Avenue, State Office Building Campus Building 7A ‘Apany, NY 12226Recommendation: New York Downtown Hospital should establish a corrective action plan to implement utilization of the card access system. The action plan should be incorporated into the 30 day requested response. Response Requested: This report is meant as a tool to assist New York Downtown Hospital in complying with the Federal, State and NYS OHS guidelines. We ask that you review the observation and recommendation and submit a written response, to the Fiscal Monitoring Unit no later than 30 days from the date of this Ictter, explaining the following: 1. The corrective actions taken or corrective action plans in relation to our recommendation(s); 2. Any reason(s) why these recommendations may not be feasible; and/or 3. Your disagreement with the observations made upon which the recommendations were based, We appreciate the time you took to show and demonstrate to Mr. Williams the card access system. Should you have any questions or concems regarding this report, please contact Hepbum Williams by either phone or email: (212) 867-1285 and hwilliams@security.state.ny.us respectively. Sincerely, Pelco) Qa Terry Wilber Pringij litor Fiscal Monitoring Unit Ce: Federal Fiscal Unit, NYSOHTS ‘Contact Unit, NYSORS