City panel to consider audit of office bids

Erin Neff and Ed Koch

Thursday, March 18, 1999 | 11:23 a.m.

One of four audits a Las Vegas committee will consider Friday finds fault with the city's awarding of office bids.

The special audit, completed March 9, confirmed a suspicion that the city is paying higher prices than necessary for office supplies, according to acting auditor Philip Cheng, who wrote the report. The contract with Advance Marketing for office supplies cost the city $80,000 more than it should have annually as a result of an inappropriate bid evaluation, the report states.

The city spends about $300,000 a year on office supplies.

After the report was released, Ken Falline, the city employee who was in charge of purchasing supplies, was placed on leave with pay until the city completes an investigation into the matter.

"Because of the allegations of bid irregularities, he was placed on administrative leave," City Manager Virginia Valentine said. "However, this report was released before we had a chance to talk to any employees to get their side of the story."

Valentine said one of the discussions Friday will be about when reports from the city's audit oversite committee should be made public.

In 1997, the city awarded the contract for supplies to Advance Marketing after years of awarding the contract to Office Depot.

The internal audit found the switch cost the city $80,000 more a year.

In the wake of the audit, the city will notify Advance Marketing that the contract will have to be re-bid, Valentine said.