Change Orders Mismanaged by State Agency

The Washington State Parks and Recreation Commission was the subject of an audit finding by the State Auditor's Office for not adequately monitoring change orders on its public works projects.

The audit found the following deficiencies in the change order practices of the Parks and Recreation Commission:

• Out of Scope:  On a $4.8 million project at Cama Beach State Park, the Commission approved a $586,178 change order for the construction of a bathroom and showers that was outside the original scope of the contract.
  
  
• Work After Completion:  The Commission authorized four change orders to the Mount Spokane State Park contract for work after the substantial completion date of the project.  The work of the change orders was not related to the minor close out items remaining.  On another project, a change order was approved three months after the contract completion date of the project.
  
  
• Funding Not Verified:  The audit identified a number of instances in which the funding for change orders was not verified until after the change orders had been approved.
  
  
• Dollar Discrepancies:  Some of the change orders had discrepancies between the written dollar amount and the numerical dollar amount, and the higher amount was paid.

The Parks and Recreation Commission noted that they have reorganized staffing in an attempt to address the systemic concerns raised by the audit.  In addition, they are providing training to headquarters and region staff.