2009-02-AU Limited Scope Performance Audit of the Highway Fund

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Chapter 1: AUDIT PLAN Chapter 1 AUDIT PLAN Audit Scope This limited scope performance audit is intended to provide a broad review of the adequacy of current internal control systems of the Department of Public Works and its Highway Maintenance and Traffic Divisions to support their attainment of the mission statement of the Highway Fund: "To maintain and to continually improve the County's roadway transportation system for a safe and efficient movement of people and goods around the island." This performance audit also reviews the County's broader program goals and performance objectives related to the provision of services in a fair, efficient, and effective manner that is transparent and accountable to the public. The audit period covers FY 2006 -2007 and FY 2007 -2008. As defined in section 1.30 of Government Auditing Standards, July 2007 Revision (Yellow Book): "Internal control comprises the plans, policies, methods and procedures used to meet the organization's mission, goals and objectives. Internal control includes the processes and procedures for planning, organizing, directing, and controlling program operations, and management's system for measuring, reporting, and monitoring program performance..." Audit Objectives Assess the adequacy of internal control systems to provide current and historical information in a timely manner and in a format that permits analysis as a basis for decision - making relating to County roadways in the following areas: • Ranking of road conditions. • Development of useful life estimates. • Determination of timing and resource allocation for road rehabilitation and repair. • Incorporation of data into Department of Public Works and County -wide operational planning and budget processes. • Compliance with GASB 34 (Government Accounting Standards Board Statement 34: Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments). Assess the adequacy of internal control systems for communicating and coordinating operational tasks within and between the Highway Maintenance and Traffic Divisions; between the various DPW Divisions and DPW Administration; between DPW and other County 1