Home » NEWS » State Auditor Releases Report on Madison County Contracts

State Auditor Releases Report on Madison County Contracts

Source: The Mississippi Office of the State Auditor

JACKSON — State Auditor Stacey Pickering has released the Performance Review of Madison County Contracts with Rudy Warnock. Based on the limited review done by the State Auditor’s Performance Audit Division, it is OSA’s recommendation to Madison County to improve its oversight and management controls.

“This report includes a review that can be helpful to many counties and cities across Mississippi to ensure the taxpayers are protected against potential loss as a result of weak contracts,” said State Auditor Stacey Pickering. “Contracts are an important part of management and operations for local governments but it is critical that all of the necessary precautions are taken by elected officials and management when entering into and executing contracts.”

The following issues were identified that create control weaknesses and could lead to potential losses to the County:

The Board not requiring sufficient documentation supporting payment claims

Seemingly poor contract construction approved by the Board

Poor oversight and monitoring of contracts by the Board in light of voiced concerns by individual supervisors

Potentially duplicative payment terms allowed in contracts

Of the contracts reviewed:

22 were properly spread upon the Board minutes

8 lacked an effective date

9 included titles and/or headings that did not correspond with the actual work described or the effective dates of the contract

10 included, for multiple services, flat rate/lump sum payments in addition to percentage payments and additional reimbursable payments which, when added together, resulted in more than 14% of the total estimated construction costs per project

18 provided reimbursement for expenses that might normally be considered overhead expenses covered in lump sum payments

14 showed missing, incomplete, or ambiguous scope of service terms

15 contained inapplicable terms and contract sections

6 lacked estimated construction cost totals, even though this amount is the basis of the percentage payments and even though there is a place in the contract designated specifically for such an amount

The State Auditor’s Office received several requests for a review of contractual issues specifically relating to Madison County and the contracts with the County Engineer, Rudy Warnock and the effectiveness of the contract management by the County in March 2010. The review began in April looking into road construction contracts with Rudy Warnock of Warnock and Associates. The review was divided into two parts – a contractual analysis and a financial analysis. The contractual analysis is provided in this report. The financial analysis will be released at a later time.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Amy McCullough

Leave a Reply