Internal Audit Report. DOT - Traffic Signs and Markings

Transcription

1 Internal Audit Report DOT - Traffic Signs and Markings Report Number: Date: April 2016

2 Date: April 29, 2016 To: The Honorable Linda Doggett, Lee County Clerk of Circuit Court & Comptroller From: Tim Parks, Chief Internal Audit Officer/Inspector General Re: Audit of DOT Traffic Signs and Markings Dear Ms. Doggett: The Internal Audit/Inspector General Department has conducted an audit of DOT - Traffic Signs and Markings. Dave Rollman, CIA, Senior Internal Auditor and Mabel Febles, CIGA, Internal Auditor completed this review. The auditee s response is attached to this report. The auditors wish to thank management and staff for their assistance and cooperation during the audit process. This report will be posted to the Clerk of Courts website, under Internal Audit/Inspector General, Audit Reports. A link to this report has been sent to the Lee County Board of County Commissioners and appropriate parties. Should you have any questions, please do not hesitate to contact me. Sincerely, Tim Parks, CIA, CIG Chief Internal Audit Officer/Inspector General Internal Audit/Inspector General Department TJP/GK

3 Executive Summary... 1 Background... 1 Objective, Scope, and Methodology... 2 Observations and Recommendations... 3

4 Executive Summary The audit of the Lee County Department of Transportation (DOT) Traffic Signs and Markings Section was a carryover audit within the Lee County Board of County Commissioners (BOCC) 2015 Annual Audit Plan. Based on discussions with Department management, and after preliminary research, the scope was established. The audit objectives were based on identified risks. The objective of the audit was to test the Traffic Signs and Markings Section for effectiveness, efficiency, and compliance with applicable laws, regulations, and written procedures. The DOT - Traffic Signs and Marking Section is performing their duties in a professional manner. Emergency sign repairs are being promptly completed. In our audit sample, all signs under the responsibility of the Section were repaired on the same day as repair notification was received. Expenditures were consistent in recent years. Expenditures in Fiscal Year 2015 were $2,727,188. Revenue has declined, primarily due to the discontinued practice of selling signs to the cities. The primary concern regards operational documentation. For example: The division lacked written billing procedures and employee policy and procedure acknowledgement forms. The reviewable policies and procedures were undated. There were discrepancies between employee education and training requirements and the documentation that demonstrated that they acquired the necessary education or training. A number of inventory discrepancies were noted and are being addressed. One weakness noted was a lack of control over the number of keys issued for the sign cage. We recommend that the vacant Sign Supervisor position be filled, and that the Marking Crews be assigned formal Lead Employees. Background The Internal Audit/Inspector General Department conducted an audit of the Lee County Department of Transportation - Signs and Markings Section. The Section is responsible to install and maintain all traffic signs, signals, pavement markings and other traffic control devices on county-maintained roadways. 1

5 The Section ensures that county-maintained roadways have appropriate signs and pavement markings. Street signs are fabricated and installed. Signs are classified into three basic groups: regulatory signs, warning signs, and guide signs. Pavement markings generally include thermoplastic lines at intersections and painted lines on roadways. The Manual on Uniform Traffic Control Devices (MUTCD), issued by the Federal Highway Administration, is the national standard for all traffic control devices installed on any street, highway, or bicycle trail open to public travel. The Florida Department of Transportation and Lee County DOT have adopted the manual. DOT personnel utilize ipads in the field that are linked to the Cartegraph system, which is the central data base for assets, work orders, labor hours, etc. Objective, Scope, and Methodology The audit of the Lee County Department of Transportation Traffic Signs and Markings Section was performed to evaluate risk exposures relating to the organization s governance, operations, and information systems, and to determine the adequacy of the internal control structure. The objective of the audit was to test the Traffic Signs and Markings Section for effectiveness and efficiency, and for compliance with applicable laws, regulations, policies, and procedures. The scope of the audit included a review of: Laws and regulations Written policies and procedures Budget activity Revenue and the billing process Expenditures Work Order system Training Procedures Fixed Assets Reports and statistics The audit methodology was comprised of four steps: Preliminary Risk Assessment: Meetings were held with management to discuss the audit objective, scope, and prior audit report findings. Planning: Audit procedures were developed based upon research, audit objective, scope, and the preliminary meetings. 2

6 Field Work: The auditor discussed and verified preliminary observations and findings. Managers and employees were interviewed for insight on the operations. Evaluations and tests were conducted on operations and procedures to address and complete the audit fieldwork. Wrap-up: An Exit Conference was held with management to discuss and obtain responses to the initial audit issues. Observations and Recommendations Department Documentation The following documentation deficiencies were noted: The Section lacked written billing procedures and employee policy and procedure acknowledgement forms. The reviewable policies and procedures were undated. There were discrepancies between employee education and training requirements and the documentation that demonstrates that they acquired the necessary education or training. Formal policies and procedures provide direction, guidance, sustainability, and oversight of the department s operations. Employees need to have a guiding force to provide them direction in executing their job to a sufficient level. To best support this, policies and procedures should have a policy owner. The role of the owner is to review and approve the policy on an at least annual basis to ensure the document is accurate and reflects current business processes. 1 Recommendation It is recommended that: Billing procedures be written and approved by Section management. Written procedures contain a notation as to when the procedures were written, updated, approved, and acknowledged. The monitoring process for education and training should be enhanced to ensure that required training is received and acknowledged. 3

7 Inventory Sample Audit of DOT - Traffic Signs and Markings A sample of 31 parts and signs listed in the Cartegraph System were traced to the actual amounts on hand. Twenty-three items were in agreement, but eight were not reconciled. One was due to the paperwork not yet being processed. The others were for various reasons such as undocumented returns or sub-location discrepancies. There was a lack of control over the number of keys issued for the sign cage. 1 The Division s total inventory is approximately $2 million. Recommendation We recommend that the personnel that have key access to the warehouse and sign cage be identified and access controlled. The inventory should be reconciled to the system. 4

8 DOT Traffic Signs and Markings Audit Responses: 1) Billing procedures be written and approved by Division management. Written procedures contain a notation as to when the procedures were written, updated, approved, and acknowledged. Billing procedures are currently being drafted, and we anticipate review and approval by May 31, ) Written procedures contain a notation as to when the procedures were written, updated, approved, and acknowledged. Written procedures are currently being reviewed and updated, completion anticipated May 31, Upon completion, updated procedures will be discussed and signed by each employee. 3) The monitoring process for education and training should be enhanced to ensure that required training is received and acknowledged. Current job descriptions and the education and training processes have discrepancies due to expanding job duties associated with technological advances. Human Resources is currently contracting the review of job descriptions. Upon completion, a thorough review of job descriptions, training, education, and necessary monitoring will take place. 4) We recommend that the personnel that have key access to the warehouse and sign cage be identified and access controlled. The inventory should be reconciled to the system. Access to the sign warehouse will be modified to utilize electric card reader locks, with limited and identified personnel. Currently obtaining estimates for this new reader access system. 5