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HomeMy WebLinkAbout2011-01-ES Executive Summary - Limited Scope Performance Audit Parks and Recreation Facilities Asset Management EXECUTIVE SUMMARY Limited Scope Performance Audit of the Department of Parks and Recreation’s Facilities Asset Management [Conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS)] This limited scope performance audit examines the Department of Parks and RecreationÓs asset management of recreational facilities, including maintenance and meeting the goals for facilities, fiscal responsibility, and saf 2004-2009 Strategic Plan. The CountyÓs recreational facilities are public assets acquir investment of public tax dollars. County officials are stewards decisions about how public facilities are used, operated, mainta have far-reaching financial and social consequences.Currently, certain recreational facilities cannot be fully utilized by the public in their existing condition; games have had to be stopped due to leaking roofs; other major events have been impacted by f or parts of facilities have been closed due to hazardous materia Nationwide, many government jurisdictions and their constituents are experiencing the consequences of deferring maintenance and repair of public asset Hawaii County, the current Parks and Recreation Administration and Pa Division have inherited the responsibility for managing deterior critical maintenance and repairs. Many of the CountyÓs older re rehabilitation due to the long history of deferred maintenance, now determined to be hazardous, and new Americans with Disabilities Act (ADA) access requirements. Although we observed Parks Maintenance Division staff diligently and completing routine work orders, the DepartmentÓs reactive pr critical maintenance and insufficient proactive processes and pr maintenance have contributed to deteriorating facilities. Criti including roof painting and repair and termite treatment Î has b leaking roofs at 11 of the 16 recreational sites visited by the reported by facility staff at 6 of the 16 sites. Critical maint observed by the auditors or reported by facility staff at 15 of deficiencies being reported but left uncorrected for several yea The interrelated processes of planning, budgeting, operations, a upkeep of public facilities and effective asset management need Department of Parks and Recreation. The DepartmentÓs current system of asset management is ineffective, with the Department lacking a detailed facility inventory, condition assessment, and repair cost estimates to provide the information necessary t budgets. The Department does not have an asset management plan plan to reduce the backlog of deferred maintenance and repairs, hazardous materials with interim safety measures, and an annual proactive preventative maintenance of critical facility componen While the Department of Parks and Recreation roughly estimated c deferred maintenance backlog at approximately $80 million, $1.3 allocated CIP funding for Repairs/Improvements is scheduled to lapse unused on June 30, 2011. The DepartmentÓs Operating Budget is not based on actual needs, with the Parks Maintenance DivisionÓs Miscellaneous Contract Services account for roof painting and repair being reduced to zero despite unmet roof mai of trained staff and equipment to conduct necessary work. The Department of Parks and Recreation has insufficient written facilities maintenance and repair. Its current work order syste procedures for critical maintenance and major repair work orders Planner for completion with CIP funds, resulting in certain crit often not completed years later. While the Parks Maintenance S of preventative maintenance, the Division has not yet been able maintenance processes, and as a result, work orders for unplanne maintenance staff. A Ðcrazy cycleÑ develops with maintenance wo caused by neglected maintenance, leaving less time for completing preventative maintenance, which results in more deficiencies that become repair or safety Insufficient planning, monitoring, reporting, transparency, and DepartmentÓs project plans and priorities and asset management i makers and stakeholders with insufficient information to determi meeting its own strategic plan goals for facilities, fiscal resp goals of the County Administration, Council, and taxpayers relating to delivery of public services and access to public facilities. A root cause of deteriorating facilities appears to be the failu recognize the impact of deferring maintenance and repairs, which processes and insufficient budget resources allocated to maintai condition. Without proper maintenance, public facilities can pr preventative maintenance and minor repairs leads to more costly implementing best practices in asset management such as those recommended by the Government Finance Officers Association (GFOA) and National Research Council (NRC) that are cited in this audit report, the useful lives of public facil life cycle costs, access to public facilities can be improved, and the Department and all stakeholders will have the information necessary to determine how effective the County has been in meeting its goals and responsibilities relating to facil SUMMARY OF FINDINGS AND RECOMMENDATIONS FINDING ONEINSUFFICIENTLY INTEGRATED PLANNING, BUDGETING, : OPERATIONS, AND MONITORING PROCESSES RESULT IN INADEQUATE CRITICAL MAINTENANCE AND REPAIR Recommendation: The P&R Department, County Administration, and County Council ne ensure that there is an integrated overall process to facilitate repair of the CountyÓs recreational facilities. FINDING TWO:P&R’s PLANNING PROCESS FOR FACILITIES CRITICAL MAINTENANCE AND REPAIRS IS INSUFFICIENT Lack of an Asset Management Plan for Facilities Recommendation 2.1: P&R should develop a comprehensive asset management plan, whic should integrate plans to address the deferred maintenance and r rehabilitation, and hazardous materials remediation. The asset include a timeline for returning all facilities to the condition 2 Strategic Plan Outdated and Has Not Been Fully Implemented Recommendation 2.2: P&R should complete updating its 2004-2009 Strategic Plan. An ongoing process for updating its strategic plan, and reviewing a achieving strategic goals should also be developed. No Written Hazardous Materials Mediation Plan Recommendation 2.3: P&R should develop a plan to remediate hazardous materials issue its facilities, and integrate it into an overall asset managemen report on performance. The hazardous materials remediation plan measures implemented at each facility as well as cost estimates to remediate each identified hazardous condition. ADA Access Plan Not Integrated into Asset Management Plan Recommendation 2.4: P&R should integrate its ADA Access Plan into an overall asset management plan with a process to track and report on performanc Insufficient Periodic Maintenance Plan Recommendation 2.5: The Parks Maintenance Division should develop a comprehensive periodic maintenance plan that includes schedules for critical m components, such as roof painting and termite treatment. Lack of Plan to Reduce Maintenance and Repair Backlog Recommendation 2.6: P&R should develop a plan to reduce its backlog of deferred maintenance and repairs based on a current facilities condition an overall asset management plan with a process to track and report on performance. Insufficient Prioritization of Projects Recommendation 2.7: P&R should develop a method for prioritizing its facilities main projects that is based on asset management best practices. This priority on preventative maintenance and timely completion of mi are required. FINDING THREE:P&R’s BUDGETING PROCESS FOR FACILITIES MAINTENANCE AND REPAIRS IS INSUFFICIENT Budget Process Does Not Incorporate Facilities Data Recommendation 3.1 : P&R needs to develop and implement a budget process that incorporates facilities condition information reported by its Pa Divisions in order to sufficiently plan, prioritize, and budget corrective measures. Once budgeted, Operating funds should be e prioritized periodic maintenance and repair activities to preven the need for major repairs requiring CIP funds. Budget Process is Insufficient and Lacks Transparency Recommendation 3.2: P&R needs to develop and implement a budget process that incorporates assessing the condition of all of its facilities; p needs; planning its maintenance and repair activities and schedu performance, and outcomes in order to adequately budget for its operations and projects. 3 P&R Does Not Have Reliable Estimates of Building Replacement Values Recommendation 3.3: P&R should calculate the current costs to replace each building record this data in its facilities inventory. P&R Does Not Have Accurate Cost Estimates for Deferred Maintenance Backlog Recommendation 3.4: P&R should calculate current cost estimates to return each facil “safe, clean, enjoyable, accessible and aesthetically pleasing” condition that is one of its strategic goals for facilities. A condition assessment and cost analysis for repairs, hazardous materials abatement, and ADA improvements should be completed for each facility in order to evaluate whether it would be more cost-effective to rehabilitate FINDING FOUR:P&R OPERATIONAL PROCESSES FOR FACILITIES MAINTENANCE AND REPAIRS ARE INSUFFICIENT Inventory of Facilities is Missing Key Components Recommendation 4.1: P&R should develop a complete facilities inventory that include essential inventory information recommended by the Government Finance Officers Association (GFOA) and National Research Council (NRC), and sufficient detail to assess current condition of facilities and their major components. Insufficient Periodic Maintenance and Repair Operations Recommendation 4.2: The Parks Maintenance Division should develop a list and schedul critical maintenance and repair activities. All maintenance and tracked to completion in the Maintenance Work Request System maintained by the Division. The County Administration should also evaluate the possibility o Maintenance Division manpower and equipment with any capacity fr clarify any resource-sharing responsibilities of the departments in written policies and procedures. Insufficient Recognition of the Impact of Deferring Maintenance and Repair is a Root Cause of Deteriorating Facilities Recommendation 4.3: The County Administration and Council could facilitate the succe P&RÓs asset management efforts by setting a “Tone at the Top” establishing the highest priority for performance of and accountability for maintenance of existin infrastructure by: Establishing and communicating the priority for maintaining exi Requiring the development of CIP and Operating Budgets funded w revenues to be based on long-term plans that recognize the prior preventative maintenance and major rehabilitation or replacement Requiring that all proposed CIP project data sheets (Financial Impact Statements) include the analysis and disclosure of: Ongoing maintenance costs, including full-time employee (FTE) r o Life cycle cost estimates and plans to reduce life cycle costs o materials and construction methods. Requiring the establishment of and reporting on relevant and qu measures for long-term asset and infrastructure maintenance. 4 Requiring project plans and status reports for maintenance and replacement, and new construction projects that clearly show tim progress. Supporting adequate resource allocations and budgets for operat Insufficient Process to Collect, Report, and Communicate Information Recommendation 4.4: P&R needs to develop and implement a process that adequately and timely coordinates the collection, reporting, and communication public, County Council, County Administration, P&R Administratio Parks Maintenance Divisions. Lack of Current Facilities Condition Assessment Recommendation 4.5: P&R should have a complete facilities condition assessment condu by qualified professionals. Historically Reactive Maintenance and Repair Recommendation 4.6: The Parks Maintenance Division should adopt proactive work schedules and practices that focus on preventative maintenance. P&R Does Not Have Performance Measures for Facility Conditions Recommendation 4.7: P&R should establish clear and reliable performance measures tha permit tracking the condition of its facilities over time. Insufficient Monitoring of and Reporting on Relevant Performance Measures for Facilities Management Recommendation 4.8: P&R should implement a system to track progress toward achieving its strategic goals for facilities. P&R should develop relevant and measures to monitor and report on improvement of facilities conditions. The Department also needs to implement a formal program for regular inspection of an components, such as roofs, mechanical and electrical systems, and wood components prone to termite infestation. CONCLUSION The County has an opportunity to establish a new direction regar infrastructure and capital assets that stresses the need to take focus on preventative maintenance. By implementing recommendations and best practices in asset management to improve its planning, budgeting, operations, the Department of Parks and Recreation can better achieve its st “safe, clean, enjoyable, accessible and aesthetically pleasing facilities.” The timing for implementation of the recommendations included in the priority placed by elected officials and the DepartmentÓs ad rehabilitating the CountyÓs Parks and Recreation facilities. A d and elected officials to establish an acceptable implementation immediate need for a comprehensive facilities asset management s monetary and human resource constraints, should be initiated. It must be recognized, however, that implementation will, at a minimum, require the commitment o auditors suggest that the Department of Parks and Recreation imm of and timing for implementation of the recommendations and comm to the County Administration, Council, and public, and provide r DepartmentÓs progress to stakeholders. 5