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Mission 31/90

31 Recommendations in 90 Days
Updated as of 12/14/10

Recommendation Action Steps


1 We recommend the HRT Chief Executive Officer take appropriate action to ensure accurate and HRT issued budget-to-actual and a cost to
timely development and routine disclosure of LRT/Tide project budget-to-actual and cost-to- complete document to all stakeholders.
complete analysis to key stakeholders. We also recommend the HRT Chief Executive Officer
consider having discussions with FTA and possibly the United States Department of
Transportation, Office of Inspector General regarding whether HRT made full and timely
disclosure of the LRT/Tide project cost-to-complete.

2 We recommend that the HRT Chief Executive Officer take immediate steps necessary to ensure HRT has provided formal notification to the
the LRT/Tide project is in compliance with all terms and conditions included in the FFGA. Federal Transit Administration that it has
Such steps should include at a minimum, obtaining “written” approval from the FTA extending extended the start of revenue operations to May
the Revenue Operations Date beyond that contained in the FFGA. 2011.

3 We recommend that the HRT Chief Executive Officer consult with legal counsel to evaluate
existing remedies and alternatives available to reduce and/or mitigate the risk associated with
actions taken by HRT staff in connection with their duties. If such remedies exist, then evaluate
the probability of recovering damages related to actions involving LRT/Tide project.

4 We recommend that the HRT Chief Executive Officer take the steps necessary to effect a MOU has been approved by the board allowing
binding agreement regarding the usage of the NSU property. President/CEO to conclude agreement.

5 We recommend that the HRT Chief Executive Officer communicate to all HRT staff the Memo to staff distributed.
requirement to comply fully with the provisions of the Virginia Freedom of Information Act.

6 We recommend the HRT Chief Executive Officer ensure that solicitation and subsequent
evaluations of offerers’ bid/proposals are conducted in an impartial and comprehensive manner,
including consideration of pricing as an evaluation criterion where required. We also
recommend the HRT Chief Executive Officer, through the Director of Procurement, ensure that
procurement files are complete and provide a complete background, including the basis for each
step in the process and for the final decision.

7 We recommend the HRT Chief Executive Officer take appropriate action to ensure compliance
with federal and state procurement laws and internal procurement policies and procedures
regarding full and open competition. At a minimum, such activities should include required
organization-wide training of all management and administrative personnel involved with
procurement activities. We also recommend the HRT Chief Executive Officer study current
federal, state, local and internal procurement laws, regulations, policies and procedures and
ensure that HRT is appropriately applying the correct statutory authority for particular
procurement situations.

8 We recommend the HRT Chief Executive Officer take appropriate steps to ensure the complete,
open, and timely disclosure of contract matters to the Board. We also recommend the HRT
Chief Executive Officer take appropriate steps to ensure all required Board approvals are
obtained in accordance with applicable Federal and State laws and HRT policies and
procedures.

9 The missing funds at the Trolley Base Facility were not discovered timely or disclosed timely,
because management failed to do their jobs. Fare reconciliations were not performed for a
period of over two years. We recommend that management evaluate the need for corrective
and/or disciplinary action for those employees, currently employed, who failed to perform their
duties.

10 As the missing funds at the Trolley Base Facility occurred prior to September 2009, we
recommend that HRT evaluate the need to perform reconciliations for collections prior to
September 2009, at least on a sample basis, to look for patterns of shortages at fare collection
locations other than the Trolley Base Facility.

11 Our review of the daily reconciliations also noted that ticket vending machine money, customer
service cash, customer service credit card receipts, petty cash and other miscellaneous funds are
co-mingled with the fare collections and combined into one deposit for the day. We recommend
that funds other than fare collections be put in a separate daily deposit in order to simplify the
fare revenue reconciliation process.

12 We also recommend that the other funds (i.e. ticket vending machine money, customer service
cash/credit cards, petty cash) be collected and deposited separately.

13 Due to the lack of following procedures in cash receipts, we recommend HRT look at the
controls over all cash revenue operations.

14 We recommend that HRT management review the GFI system and evaluate implementing any
software or hardware that could enhance the performance of the HRT GFI system.

15 We also recommend that HRT management evaluate the personnel that will be using the GFI
system and ensure that employees are capable of using the GFI system, and are held
accountable for doing so.

16 We recommend that management evaluate the need for an audit of the GFI system at HRT to
determine whether it is accurate and reliable.
17 We recommend that HRT consider hiring an independent third party consultant to assist in
implementing the recommendations from each of the revenue studies.

18 We recommend that HRT document responses to each of the ROTF and APTA
recommendations.

19 We recommend that HRT review the different ways in which funds are transferred to the money
room and develop a consistent method for all locations which ensures security of the funds and
the employees transporting the funds.

20 We recommend that management review the staffing qualifications of the revenue operations
unit to ensure they have adequately qualified employees and an adequate number of employees
to perform the duties of the unit at all times.

21 Management may want to consider using contract employees or paying more money to get
better qualified staff in some of the positions in the revenue operations.

22 HRT could also prepare a cost benefit analysis of using a professional security firm, like Brinks
or Dunbar, to move vaults. Some banks may also provide money counting services, and HRT
could also consider if there is enough benefit to outsource some or all of these operations.

23 We recommend that Human Resources consider developing policies to address shortages or


thefts of funds and determine what actions should be taken when a shortage or theft is noted.

24 We recommend that management consider conducting more thorough criminal background


checks on employees working in the revenue operations. We also recommend that management
keep the requirement that employees must have a positive credit history report to be hired in the
revenue operations unit.

25 We recommend that the HRT Chief Executive Officer take immediate steps to ensure
compliance with all terms and conditions of grant agreements, including but not limited to:
review, identification and repayment of funding associated with the purchase of vehicles used
for commuting purposes; review, identification and repayment of funding associated with the
maintenance of vehicles used for commuting purposes; review recent surplus property disposals
to ensure documentation is maintained to establish the fair market value at time of disposal.

26 We recommend that the HRT Chief Executive Officer consider pursuing action to revoke the
authority granted under Commission Resolution No. 13-2001 relative to the donation of surplus
property.

27 We recommend the HRT Chief Executive Officer ensure that adequate controls exist over the
payment of invoices. At a minimum, current policies and procedures should be reviewed and
updated, as necessary, and there should be mandatory training for all Project Managers to
ensure they have a complete understanding of their responsibilities in this critical role.

28 We recommend that the HRT Chief Executive Officer immediately take the steps necessary to
ensure compliance with the State and Local Government Conflict of Interest Act contained in
Title 2.2, Chapter 31 of the Code of Virginia and that such actions apply to all key management
and procurement personnel whatever the employee type.

29 We recommend that the HRT Chief Executive Officer establish a position to independently Budget for position has been established for
evaluate HRT’s network of internal controls. The position should report functionally to the FY12.
HRT Chief Executive Officer under a Charter that permits the position to report directly to the
Chairman of the HRT Commission or to the Federal Transit Administrator when situations
require such a direct reporting relationship.

30 We recommend that the HRT Chief Executive Officer perform an evaluation of the existing Reorganization will take effect on Jan 1, 2011.
HRT organizational structure and staffing to ensure core functions are supervised by
experienced and knowledgeable staff with the right skill level.

31 We recommend that the HRT Chief Executive Officer ensure that Local contributions are
calculated, billed, collected, or refunded in accordance with the terms and conditions specified
in the Cost Allocation Agreement negotiated with the seven participating cities.

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