PHOTO: THINKSTOCK Report on the Implementation of State Auditor’s Recommendations 2012 – 2016 Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services Number of Recommendations: 19 Number of Recommendations Partially or Fully Implemented: 17 Percent Implemented: 89% In Report No. 12-07, we made a total of 19 recommendations to the agency. Audit Recommendations by Status 17 2 Implemented Not Implemented N/A Source: Office of the Auditor In 2015, our office conducted an active follow-up into the implementation of our recommendation, and issued Report No. 15-06 entitled, “Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services.” As a result of this report, we found that 89%, or 17 of our 19 recommendations had been at least partially implemented. Earlier this year (2018), we issued a formal request for information on the status of audit recommendations that had not been fully implemented in the follow-up report, Report No. 15-06. The agency reported that all of our recommendations (other than the recommendations we had previously designated as “Not applicable”) have now been fully implemented. 20 Report No. 18-16 / November 2018 Recommendation (1.a.i.) The Student Transportation Services Branch (STSB) manager should properly plan for school bus services statewide by establishing short- and longrange plans for ensuring the safety and efficiency of bus routes and services. (1.a.ii.) The Student Transportation Services Branch (STSB) manager should properly plan for school bus services statewide by creating guidelines, policies, and procedures governing school bus routes and stops. (1.a.iii.) The Student Transportation Services Branch (STSB) manager should properly plan for school bus services statewide by ensuring that the department has up-to-date and accurate route descriptions, ridership numbers, and route mileage statistics. (1.a.iv.) The Student Transportation Services Branch (STSB) manager should properly plan for school bus services statewide by acquiring and implementing bus route planning software. (1.a.v.) The Student Transportation Services Branch (STSB) manager should properly plan for school bus services statewide by establishing and implementing a system for analyzing route efficiency, and creating an inventory of bus stops and evaluating them for safety. (1.a.vi.) The Student Transportation Services Branch (STSB) manager should properly plan for school bus services statewide by reviewing contracts on a regular basis and revising them where necessary, including both routes and terms. Status of Recommendation Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Report No. 18-16 / November 2018 21 Report on the Implementation of State Auditor’s Recommendations 2012 – 2016 Recommendation (1.a.vii.) The Student Transportation Services Branch (STSB) manager should properly plan for school bus services statewide by taking a proactive role in assisting the Procurement and Contracts Branch (PCB) with securing bus service contracts by actively reviewing contract terms and conducting meaningful analyses regarding the fairness of single responsive offers. Status of Recommendation Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. (1.b.i.) The Student Transportation Implemented Services Branch (STSB) manager should We found this recommendation to be “Open but in progress” properly administer school bus service contracts by ensuring the branch maintains (Partially Implemented) in our follow-up, Report No. 15-06. a complete contract files which includes, In its response to our formal request for information on but is not limited to: status of implementation of audit recommendations, dated The executed contract; March 6, 2018, the agency reported that this recommendation has now been fully implemented. All contract modifications; Contractor contact information; All correspondence with and regarding the contractor; All complaints regarding the contractor, including disposition and resolution; and All other relevant information regarding the contractor, including previous contracts awarded to that contractor and any relevant bids from that contractor. (1.b.ii.1.) The Student Transportation Services Branch (STSB) manager should properly administer school bus service contracts by monitoring contractors’ performance. This includes ensuring contractors provide reports as required in their contracts, and that these are maintained within the contract file. 22 Report No. 18-16 / November 2018 Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. Recommendation (1.b.ii.2.) The Student Transportation Services Branch (STSB) manager should properly administer school bus service contracts by monitoring contractors’ performance. This includes evaluating contractors’ performance requirements and, where necessary, restructuring contracts to include specific performance requirements. Data to be collected should be sufficient to allow reasonable analysis of the fairness of future bus service contract bids. (1.b.ii.3.) The Student Transportation Services Branch (STSB) manager should properly administer school bus service contracts by monitoring contractors’ performance. This includes implementing annual price adjustments for fuel costs as required by contract terms. (1.b.ii.4.) The Student Transportation Services Branch (STSB) manager should properly administer school bus service contracts by monitoring contractors’ performance. This includes conducting spot checks to ensure contractors are providing services and equipment as required. (1.b.ii.5.) The Student Transportation Services Branch (STSB) manager should properly administer school bus service contracts by monitoring contractors’ performance. This includes verifying the accuracy of information provided by contractors such as vehicle inventories, vehicle ages, and driver background checks. (1.b.iii.) The Student Transportation Services Branch (STSB) manager should properly administer school bus service contracts by ensuring that all complaints are logged in a central repository, with disposition and resolutions noted. Status of Recommendation Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Report No. 18-16 / November 2018 23 Report on the Implementation of State Auditor’s Recommendations 2012 – 2016 Recommendation (1.c.) The Student Transportation Services Branch (STSB) manager should develop a manual delineating district transportation officers’ (DTOs) tasks and how to perform them, and train DTOs regarding the same. This may require reevaluating DTOs’ roles and responsibilities. (2.a.) The Department of Education should develop and implement a policy concerning procurement training for all employees who have procurement responsibilities. The training should highlight indicators of potential anticompetitive practices and identify what staff are expected to do in response. (2.b.) The Department of Education should develop and implement procedures, including forms, for reporting suspected anticompetitive practices as envisioned by the Hawai‘i Administrative Rules. Status of Recommendation Implemented We found this recommendation to be “Open but in progress” (Partially Implemented) in our follow-up, Report No. 15-06. In its response to our formal request for information on status of implementation of audit recommendations, dated March 6, 2018, the agency reported that this recommendation has now been fully implemented. Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Not Implemented - N/A Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. In our report, we noted: “The project control section manager in charge of bus procurement said the department had no policies and procedures specifically related to anticompetitive issues, but said the procurement code and administrative rules provide safeguards and the department is making structural changes to mitigate risk.” (3.a.) The Procurement and Contracts Branch (PCB) should ensure that the Student Transportation Services Branch (STSB) conducts an analysis determining the fairness of single responsive offers before accepting such offers. Analyses should be documented and retained within contract files. 24 Report No. 18-16 / November 2018 Not Implemented - N/A Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. In our report, we noted: “Since our audit, the department has issued two new contracts, for service on O‘ahu and Hawai‘i Island. Both received multiple proposals from vendors. As a consequence, we were not able to show that the department conducted meaningful analyses of single contract proposals.” Recommendation (3.b.) The Procurement and Contracts Branch (PCB) should ensure that the department solicits bids for expiring contracts with sufficient time to attract competitive offers. Status of Recommendation Implemented Per Report No. 15-06, Getting on Board: Follow-Up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services. Report No. 18-16 / November 2018 25