The Division does not always use state contracts as required by the State Fiscal Rules. We recommend the Division identify situations in which a state contract should be used and begin using state contracts in accordance with Fiscal Rules and in a manner that will aid counselors in purchasing services for clients and allow counselors to ensure that they are purchasing certain services for the lowest cost. The Division agrees that it should identify situations in which it should be using a state contract and do so according to State Fiscal Rules. It agrees that it needs to improve its rate-setting processes, including ones for competitive bidding, so that there is more consistency in the Division's rates of payment and that the need for counselors to negotiate service costs is reduced. Pending approval by the State Controller's Office, these procedures will be implemented by October 1, 1997.
Contract management needs improvement .
We recommend the Division develop clear policies and procedures for contract monitoring, including the definition of staff responsible and clearly defined objectives and monitoring activities. The Division agrees that is contract management practices should be improved. The Division will revise its current practices by October 1, 1997. A common gauge of program success is to measure outcomes in terms of efficiencies. However, legislators and administrators have become interested in viewing success in terms of program effectiveness.