Audit finds hiring of event management services ‘compromised’

Internal audits requested by Chancellor and President Renu Khator looking into the process of hiring and awarding a contract for facilities and events management on campus has been “compromised,” according to a special project report presented during a UH Board of Regents meeting Thursday.

According to the report, UH followed all policies and state statutes during the audits, but the process was compromised because not all information was included in a request for proposal form.

Chief Audit Executive Don Guyton recommended that UH and UH System policies should be changed in order to punish those who don’t provide full information in a request for proposal.

UPDATE: Aramark received “a wealth” of more information than any other potential bidders, but did not meet a minimum requirement of $1 million guaranteed expected by the University in the request for proposal. The contract signed did not include the $1 million guarantee, which was described by some board members as a “material” difference that violated the request for proposal.

However, Board of Regents Chair Tillman Fertitta questioned why there was so much “noise” surrounding the discussion of the audits.

Aramark was the sole bidder to lead facilities and events management, even though the Houston Dynamo – who are managed by Anschutz Entertainment Group –  had an interest in managing the facility before building their own stadium and falling though with the offer.

“We wanted to keep the Dynamo because there were the single biggest source of revenue,” Executive Vice President for Administration and Finance Carl Carlucci said.

The final report of will be presented to the Regents at their May meeting.

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