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<br /> State Highway and Transportation Officials (AASHTO), and National Cooperative Highway Research Program
<br /> (NCHRP). As part of our review of the adequacy of existing internal control systems, the audit also examines
<br /> the implementation by the Highway Maintenance and Traffic Divisions of relevant measurable program and
<br /> performance objectives to define and assess progress made toward meeting stated goals and standards for
<br /> infrastructure condition and maintenance and road safety.
<br /> Quoting from Government Auditing Standards: "Internal control comprises the plans, policies, methods and
<br /> procedures used to meet the organization's mission, goals and objectives. Internal control includes the
<br /> processes and procedures for planning, organizing, directing, and controlling program operations, and
<br /> management's system for measuring, reporting, and monitoring program performance...."
<br /> The audit period covers fiscal years 2006-2007 and 2007-2008.
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<br /> FINDINGS
<br /> Our review of the operational activities of the Highway Maintenance and Traffic Divisions identified the failure
<br /> of prior DPW Administrations to establish a proper "Tone at the Top", which requires the implementation of
<br /> program goals that are supported by action plans directly linked to measurable program objectives and
<br /> relevant performance measures. However, this finding is not unique to DPW, since County government as a
<br /> whole has historically failed to establish a "Tone at the Top" that requires consistent outcome-based planning
<br /> and budgeting for effective decision-making, maximization of resources, and regular performance reporting to
<br /> the public it serves. DPW is also restricted by an annual Highway Fund allocation process that is based on a
<br /> strict formula of road miles per District instead of an objective assessment of road conditions and traffic
<br /> volumes, as well as an annual budget allocation process that is driven by Department, District, or high-profile
<br /> projects instead of the economies gained by budgeting for preservation of existing assets and public safety
<br /> through regularly scheduled infrastructure maintenance and safety improvement programs.
<br /> DPW Administration and its Highway Maintenance and Traffic Divisions lack basic internal control systems to
<br /> gather, analyze, and communicate information required to promote the effective and efficient utilization of
<br /> Highway Fund revenues. They have collectively failed to establish, document, and communicate policies and
<br /> procedures to clarify roles, responsibilities, and expectations within each Division and the Department;
<br /> delineate the information and data needed to be collected and maintained; and establish formal processes for
<br /> planning, scheduling, communicating, and coordinating infrastructure maintenance and safety improvement
<br /> duties. DPW Administration and its Highway Maintenance and Traffic Divisions have not incorporated industry
<br /> recommended standards and practices for road, bridge, and flood control maintenance and traffic safety
<br /> programs. While it seems intuitive that the housing of the Highway Maintenance, Traffic, Engineering, and
<br /> Building Divisions under the Department of Public Works is to facilitate communication and coordination of
<br /> related duties, DPW management has historically permitted the perpetuation of a culture of autonomous units
<br /> and lacked the leadership and oversight required to implement the fundamental framework for planning,
<br /> communicating, coordinating, and assessing.the complex and critical tasks for which the Department of Public
<br /> Works is responsible.
<br /> RECOMMENDATIONS
<br /> In the report, we offer recommendations to the Highway Maintenance and Traffic Divisions and DPW
<br /> Administration specifically relating to their Highway Fund activities, as well as recommendations to the Mayor
<br /> and Council in their capacities to set a new "Tone" for County government that will impact all County
<br /> programs and operations, including those programs and operations supported by Highway Fund revenues.
<br /> The recommendations relate to establishing internal controls, or essentially building a foundation or
<br /> framework, to guide and direct County personnel charged with operational responsibilities for road, bridge,
<br /> and flood control maintenance and safety programs that were established to fulfill the County's stated mission
<br /> for the Highway Fund.
<br /> Summarized below are the broader recommendations offered in the report:
<br /> DPW Administration and Highway Maintenance and Traffic Divisions:
<br /> o Immediately develop written policies and procedures for all activities and functions, including requirements
<br /> for formal oversight, communication, and coordination within and between DPW Administration and its
<br /> Divisions, other County departments, State and federal agencies, and private utility providers, consultants,
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