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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.
<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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