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 2021/22 expenditures, auditors selected five city service contractors and two of their subcontractors for testing. From records these companies submitted, auditors selected for testing 37 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, one contractor and one subcontractor did not provide E-Verify documentation for a total of two selected employees. The audit recommended the Purchasing department continue to remind contractors that they are subject to the E-Verify requirement and that they may be selected for the annual audit.
The Purchasing Director responded that he will continue communicating the E-Verify requirements and coordinate with the applicable contract administrators to fulfill the recommendation.