An audit report on management controls at the Texas Department of Transportation.

Abstract

Key Findings • The Department could potentially save $6.2 million per year in preliminary and construction engineering activities, Savings could be achieved by reducing the amount of preliminary and construction engineering costs at the districts. • The efficiency of overall maintenance operations can be measured more effectively for evaluation purposes by management. There are potential cost savings of $5.9 million which can be achieved by reducing cost per unit. • Some districts are not performing efficiently in administrative functions. in addition, district and division managers do not have comparative information to evaluate the efficiency of administrative functions. Increased efficiencies could result in potential cost savings of over $900,000 per year. • District Internal auditors are not used effectively to encourage efficiency, ensure that controls are in place, and ensure that data is accurately and consistently generated and recorded at the district level, This creates "ad hoc" audit functions because managers cannot be assured that adequate controls are in place to ensure the quality of both processes and information. • Contractors' monthly assessment is not linked to the contract awarding process. Contractors who receive poor performance ratings can subsequently contract with the Department for future construction projects.