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This audit was conducted to comply with state law. Arizona law requires governments to randomly verify that their service contractors and subcontractors are using the federal E-Verify system to verify employment eligibility for their employees working on government contracts.
From fiscal year 2020/21 expenditures, auditors selected five city service contractors and nine of their subcontractors for testing. From records these companies submitted, auditors selected for testing 77 employees who were hired after the state requirement went into effect. The selected city contractors and subcontractors were generally using the E-Verify program for their workers on city of Scottsdale contracts. However, three subcontractors did not provide E-Verify documentation for a total of five selected employees. The audit recommended the Purchasing department work with applicable city staff to follow up with these subcontractors as noncompliance may result in their contract termination.
The Purchasing Director responded that he would coordinate implementation of the recommendation and will continue communicating the E-Verify compliance requirements.
