May 1, Dear Secretary Tolson:

Similar documents
STATE OF NORTH CAROLINA Office of the State Auditor

STATE OF NORTH CAROLINA Office of the State Auditor

270 WASHINGTON STREET, S.W. (404) FAX. May 25, 2018

STATE OF NORTH CAROLINA

STATE OF NORTH CAROLINA Office of the State Auditor

STATE OF NORTH CAROLINA

Internal Control System Components. Workers Compensation Board

STATE OF NORTH CAROLINA

Office of Inspector General. Annual Report for Fiscal Year

Department of Biology

Prevention and Management of Workplace Bullying Policy

STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER. September 28, 2004

SEMINOLE COUNTY OFFICE OF MANAGEMENT AND BUDGET PURCHASING DIVISION BLANKET PURCHASE ORDER PROCESS AUDIT. March 31, 1998

Understanding Board Responsibilities and Duties. A Self-Study Training

REVIEW OF AFFIRMATIVE ACTION PROGRAM MARCH 2010 CITY AUDITOR S OFFICE CITY OF GAINESVILLE, FLORIDA

Prairielands Groundwater Conservation District Accepting Applications for General Manager

POSITION DESCRIPTION

DISTRICT COMPILED POLICIES

Terms of Reference Audit Committee. Adyen N.V.

State Employee Performance Evaluation Program

County of Sutter. Management Letter. June 30, 2012

CATHOLIC DIOCESE OF ROCKFORD EMPLOYEE PERFORMANCE APPRAISAL

Office of the Chief Internal Auditor. Audit Report. South Carolina Department of Transportation Employee Safety Audit Findings and Recommendations

STATE OF NORTH CAROLINA

Quality Control Review of Air Force Audit Agency s Special Access Program Audits (Report No. D )

College of Engineering and Computer Science Dean's Office

STATE OF NORTH CAROLINA OFFICE OF STATE HUMAN RESOURCES 1331 MAIL SERVICE CENTER RALEIGH, NC

TASK LIST - UTILITY ADMINISTRATOR I (CLASS CODE )

Internal Audit Report. DOT - Traffic Signs and Markings

South Texas College Policy Update BOARD APPROVED: JANUARY 31, 2017

Office of the City Auditor. Committed to increasing government efficiency, effectiveness, accountability and transparency

Fiscal Oversight Fundamentals

Human Services Administrator

AUDIT OF: Richmond Pubic Schools PAYROLL

MANATEE COUNTY CLERK OF THE CIRCUIT COURT INTERNAL AUDIT DIVISION PUBLIC WORKS WATER DIVISION A U D I T R E P O R T

Subject: Definitions: None.

Stanislaus County Supervisor Training Academy Training Catalog 2018

STATE OF NORTH CAROLINA OFFICE OF THE STATE AUDITOR BETH A. WOOD, CPA

WESTMINSTER SCHOOL DISTRICT CLASSIFICATION STATEMENT

Internal Audit Report. BOCC Community Development Code Enforcement

Oxford Preparatory Academy Chino

STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 110 STATE STREET ALBANY, NEW YORK April 2018

Division of Police FY09 Expenditures. County of Henrico

The School Board of Brevard County, Florida Investigation of Specific Allegations Related to Whistleblower Complaint WB

DIVISION OF LOCAL GOVERNMENT AND SCHOOL ACCOUNTABILITY REPORT OF EXAMINATION 2017M-149. Town of New Hartford. Procurement

[ON HEADED NOTEPAPER OF COMPANY]

MERIT SYSTEM SERVICES Date Established: 10/30/80 Date Revised: 05/04 STAFF SERVICES ANALYST I/II (Madera County Title: Staff Services Analyst I)

The School Board of Brevard County, Florida Investigation of Specific Allegations Related to Whistleblower Complaint WB

Delaware County Employment Application

These guidelines are general provisions which apply to all Fishbones employees.

SECTION 24 DISCIPLINE

AUDIT COMMITTEE ACTIVITY REPORT

February 2, Mr. Brian J. Wing Commissioner Office of Temporary and Disability Assistance 40 North Pearl Street Albany, New York 12243

CAFOD CODE OF BEHAVIOUR

Internal Audit Report. DOT - Traffic Signals Section

Performance Auditing: What It Is, and Why It Is Important Presented by: Harriet Richardson, CPA, CIA, CGAP Audit Manager, City of Berkeley

Employment Process. October 16, Presented by Human Resource Services

TOWNSHIP OF ABINGTON 1176 Old York Road Abington, Pennsylvania Tel # Fax # Application for Employment

STATE OF NORTH CAROLINA

STATE OF NEVADA DEPARTMENT OF PUBLIC SAFETY CAPITOL POLICE DIVISION

Assistance. and Guidance Report. Administration and Processing of Leave and Attendance Report #1219 September 5, 2012

SUMMARY. 1,278 regular budget positions and 148 resolution authorities. Page i

Metropolitan Transportation Authority Metro-North Railroad. Forensic Audit of Payments to On-Board Service Managers

Scope Policy Statement Reason For Policy Procedure Definitions Sanctions Additional Contacts History. Scope. University Policies.

Code of Conduct: Can t t We All Just Get Along?

DEPUTY DIRECTOR CHILD SUPPORT SERVICES

INTERNAL AUDIT DIVISION REPORT 2018/124

Supervisory Board Charter of the Audit Committee

Discipline and Dismissal Policy

CHIEF PROBATION OFFICER

CORPORATE COMPLIANCE PROGRAM CODE OF CONDUCT PLEDGE OF PRINCIPLES

STATE OF NORTH CAROLINA Office of the State Auditor

Office of the Chief Internal Auditor. Audit Report. Employee Vendor Match

DISCIPLINARY POLICY AND PROCEDURE. 1 Aims and Objectives

DRIVER'S APPLICATION FOR EMPLOYMENT

New York City Human Resources Administration. Personal and Miscellaneous Services Contracts

STATE OF NORTH CAROLINA

Quality Control Review of the County of San Luis Obispo Internal Audit Division

A REPORT BY THE NEW YORK STATE OFFICE OF THE STATE COMPTROLLER

BOARD SELF-EVALUATION TOOL

DRIVER APPLICATION

SELECT EMPLOYMENT POLICIES

Chief of Police Tammy W. Hooper Sylva Police Department

General Government Other Summary

EMPLOYEE ANNUAL PERFORMANCE EVALUATION

BEST PRACTICES FOR AUDIT COMMITTEES

THE UNIVERSITY OF TEXAS-PAN AMERICAN OFFICE OF AUDITS & CONSULTING SERVICES. Department of Communication Report No

PROCEDURES NUMBER: A SUPERSEDES: 4/1/13 EFFECTIVE: 9/3/13 CORPORATE POLICY & PROCEDURE MANUAL. CHAPTER: Human Resources

VACANCY ANNOUNCEMENT

HEALTH SCIENCE CENTER HANDBOOK OF OPERATING PROCEDURES

I. Mission. II. Scope of the Work

Audit of Public Works Overtime

Midpeninsula Regional Open Space District

GRAND JURY RELEASES REPORT ON WOODBRIDGE SANITARY DISTRICT. The San Joaquin County Civil Grand Jury today released its report

10. Budget Program Number Employee Name (leave blank if position vacant) 11. Present Civil Service Title / FLSA code (if existing Position

Audit Report 2016-A-0002 City of Delray Beach Purchasing

; tllflflfi~l ~~~ll~~f~[fil~~llilll[li~lllllllllllll

ELK GROVE UNIFIED SCHOOL DISTRICT

Town of Lenox. Internal Controls Over Selected Operations. Report of Examination. Period Covered: January 1, 2008 June 30, M-246

Transportation Program Manager II

Transcription:

May 1, 1998 Secretary Norris Tolson North Carolina Department of Transportation Transportation Building 1 South Wilmington Street Raleigh, North Carolina 27611-5201 Dear Secretary Tolson: We have completed a special review of the Department of Transportation (Department), Division of Highways, Jackson County Maintenance Unit (JCMU) in Division 14. Our primary objectives were to review allegations made by certain JCMU employees. We conducted a total of 33 interviews, including 20 maintenance employees (45% of the total maintenance staff). Additionally we reviewed the analyses performed by the Department s Internal Audit staff and the Department s Personnel Employee Relations Representative regarding some of the allegations. Finally, we examined documentation relative to allegations, including personnel actions and operational procedures and achievements. Our conclusions and recommendations are based on these reviews and our independent observations and assessments. This review was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States. Personnel Issues and Allegations In numerous letters to State Legislators, certain JCMU employees made allegations and expressed complaints regarding policies, operations, and personnel practices. While some of the allegations were substantiated, most were not. Table 1 below contains a summary of the of the allegations by category and our conclusions. From our observations and interviews, we believe there has been a lack of management leadership and control of the JCMU for quite some time. This was due, in part, to the inability of the former County Maintenance Engineer to effectively manage the Unit s activities because of illness. When the Engineer began disability on July 30, 1997, the Division and District management failed to formally address his absence and did not

Secretary Norris Tolson May 1, 1998 Page 2 provide the unit with needed direction on lines of authority during that period of time. Therefore, the Maintenance Supervisor and other subordinate supervisors assumed authority over the Unit s operations. In our opinion, the absence of clear lines of authority, definitive assignment of duties, clear understanding of proper employee conduct, and, most importantly, effective management controls and leadership, are the major causes affecting JCMU s operations. Table 1 Summary of Allegations and Conclusions Allegation Category Conclusion Comments Manipulation of Overtime Substantiated The DOT Internal Auditor s found that the JCMU manipulated overtime hours. During our visit, we noted that Division management had addressed the issue and initiated corrective action. Preferential Treatment Unsubstantiated We agree with the conclusions drawn by DOT s Employee Relations Representative that allegations of favoritism were unsubstantiated. Based on a review of personnel actions, proper procedures were followed and documented regarding hiring of employees. Clerical personnel were given the opportunity to work overtime on an as needed basis, and the assigning of a temporary employee to perform office duties was based on need. None of these actions were discriminatory based on State personnel policies and procedures. Drug Abuse Unsubstantiated The allegation that JCMU management deliberately targeted certain employees for drug testing was false. We found that all drug testing was performed randomly in accordance with State policy. Further, we found nothing to support the allegation that certain JCMU employees were drug abusers. Nepotism Firearms Partially Substantiated Unsubstantiated as to specific allegations of selling firearms The DOT Employee Relations Representative found that a seasonal temporary employee was occasionally assigned to work for a relative within the JCMU. At that time, the Employee Relations Representative reiterated to Division management the NCDOT policy prohibiting the supervision of relatives. We subsequently learned that this temporary employee has returned to work at the JCMU. Although an isolated instance, we believe it may be contributing to the tensions within the Unit. We found no evidence to support the allegation that certain employees sold or traded weapons on state property. However, we observed an Air Rifle in a JCMU field office. We advised staff of the State s weapon policy. During interviews, we learned that a few JCMU employees were not aware of the State s weapon policy. Over expenditures Substantiated As discussed below under Other Issues, the JCMU has over expended maintenance allocations for Primary, Secondary Paved, and Secondary Unpaved maintenance projects. A further issue identified during the audit was poor morale with the JCMU. The employees interviewed unanimously stated that morale was very poor. We believe that the major cause for the poor morale stems from local political bickering among certain employees, unsubstantiated allegations, and inappropriate employee behavior with the intent to disrupt or create dissension. This disruptive behavior has resulted in a significant waste of resources. We further believe that management did not initiate appropriate and

Secretary Norris Tolson May 1, 1998 Page 3 timely disciplinary actions in response to the inappropriate activity, allowing the situation to continue to decay. We recommend that the newly appointed County Maintenance Engineer immediately initiate strong management practices to address and eliminate the current personnel problems, including appropriate employee disciplinary actions for those who engage or participate in activity disruptive to normal operations. Further, we recommend that steps be taken to ensure that employees are not supervised by relatives, and to consider placing related employees elsewhere in the Division to eliminate conflicts. Finally, we recommend that all employees be made aware of the State weapons policy. Other Issues The JCMU over expended budgeted allocations in at least one program category during fiscal year s 1995-1997, as shown in Table 2. We learned that to partially offset an expected deficit this fiscal year, two construction projects were held open during the off season. This allowed staff time to be charged to those projects rather than maintenance activities. Fiscal Year 1995 Allocation Expenditure 1996 Allocation Expenditure 1997 Allocation Expenditure Table 2 Allocations vs. Expenditures Secondary Primary Paved $788,060 $574,186 883,305 627,668 $ (95,245) $ (53,482) $738,797 663,180 $ 75,617 $687,552 853,524 $(165,972) $635,964 717,180 $ (81,216) $584,929 749,642 $(164,713) Secondary Unpaved $539,233 578,657 $ (39,424) $366,723 361,798 $ 4,925 $389,853 393,083 $ (3,230) The DOT Maintenance Management System requires the development of maintenance plans. Shortly after the beginning of each fiscal year, each Maintenance Unit develops an annual maintenance plan based on current labor, equipment, and material cost data. Field output reports are generated so management can measure progress against the plan. We reviewed JCMU s Annual Maintenance Plan and output reports for FY 96 and FY 97. We found significant variances between planned and actual accomplishments. Below are three examples noted: Planned 3,350 man-hours in FY 96 and FY 97 for manual clearing of right-of-way. Output reports showed 0 hours accomplishments for both years.

Secretary Norris Tolson May 1, 1998 Page 4 Planned 2,450 man-hours in FY 96 and FY 97 for removal of obstructions from right-of-way. Output reports indicate 0 hours accomplishments for both years. Planned 102 ditch miles for maintenance of unpaved side ditches in FY 96 and FY 97. Output reports show 0 hours accomplishments for both years. Budget over expenditures and the failure to meet accomplishments are common consequences of inadequate planning and/or poor monitoring of planned activities. We recommend that controls be established to prevent future over expenditures. Further, we recommend that realistic maintenance plans based on identified projected requirements be developed, and that accomplishments be properly monitored to include documented justifications for adjustments. In accordance with our policies and procedures, we request that your office provide us with a written response to the issues identified in this management letter. The response should be delivered to this office no later than June 11, 1998, in order to be included with the distribution of this management letter. If you wish to discuss any of the issues above, please let us know. We appreciate the courtesy, cooperation, and assistance provided to us during this review by your staff. Sincerely, Ralph Campbell, Jr. State Auditor RCjr:dr Management letters and responses receive the same distribution as audit reports.

As required for disclosure by GS 143-170.1, 250 copies of this public document were printed at a cost of $60.00 or 24 per copy.