An Audit Report on Performance Measures, Implementation of Prior Audit Recommendations, and Trends at the Department of Transportation
August 2012
Report Number 12-049
Overall Conclusion
This audit focused on the accuracy of selected Department of Transportation (Department) performance measures, as well as the status of the Department's implementation of prior audit recommendations related to those performance measures and trends in those performance measures.
The Department reported reliable performance measure results for all five performance measures tested for fiscal year 2011 and the first two quarters of fiscal year 2012. A result is considered reliable if it is certified or certified with qualification.
Dollar Volume of Construction Contracts Awarded in Fiscal Year (Millions) Performance Measure
This performance measure was certified with qualification because the results the Department reported were accurate within 5 percent, but the Department did not consistently document its review of its calculation. In addition, of three prior State Auditor's Office recommendations related to this performance measure, the Department has fully implemented one recommendation and partially implemented another recommendation; the third recommendation is no longer applicable.
The dollar volume of construction contracts the Department awards fluctuates significantly from quarter to quarter, and the Department exceeded the target for this performance measure once from fiscal year 2007 through fiscal year 2011. During fiscal year 2011 and the first two quarters of fiscal year 2012, the 10 contractors that received the highest dollar amount of contract awards were awarded 162 contracts totaling nearly $2.4 billion.
Percent of Construction Projects Completed on Budget Performance Measure
This performance measure was certified with qualification because, although the results the Department reported were accurate within 5 percent, the Department deviated from the Automated Budget and Evaluation System of Texas (ABEST) definition for the performance measure by considering projects with a cost increase that exceeded 1 percent to be on budget. Additionally, the Department's review was not adequate to help ensure that it included all completed contracts in the performance measure.
The title of the performance measure also may potentially mislead users of the information regarding the performance measure. The methodology for this performance measure is narrowly defined to count only budget overruns caused by change orders for rework or delay due to design error. If all project costs were included in the methodology, 53.15 percent of projects completed during fiscal year 2011 would have been completed within 1 percent of the original award amount.
From fiscal year 2007 through fiscal year 2011, this performance measure fluctuated between 91.37 percent and 98.88 percent, and the Department exceeded the target for this performance once (in fiscal year 2007).
Percent of Bridges Rated in Good Condition or Higher Performance Measure
This performance measure was certified with qualification because the results the Department reported were accurate within 5 percent, but the Department did not have a process for ensuring that it included all bridges in its bridge inspection database and did not have documented review controls to help ensure accurate reporting. In addition, of six prior State Auditor's Office recommendations related to this performance measure, the Department has partially implemented five and fully implemented one.
The percent of bridges rated in good condition or higher increased from 77.70 percent in fiscal year 2007 to 80.50 percent in fiscal year 2011. The Department rated 88.68 percent of on-system bridges (bridges on the state highway system that the Department maintains) as in good condition or higher. The Department rated 65.07 percent of off-system bridges (bridges not on the state highway system that a local government maintains) as in good condition or higher.
Statewide Maintenance Assessment Program Condition Score Performance Measure
This performance measure was certified with qualification because the results the Department reported were accurate within 5 percent, but the Department did not have a documented review process to help ensure the accuracy of its performance measure calculation.
For fiscal years 2007 through 2011, the Statewide Maintenance Assessment Program Condition Score was consistently just below the target of 80 (the level the Department considers to be good). For fiscal year 2011, interstate highways had a condition score of 82.97, and non-interstate highways had a condition score of 78.49.
Number of Fatalities Per 100,000,000 Miles Traveled Performance Measure
This performance measure was certified with qualification because, although the results the Department reported were accurate within 5 percent, the Department did not have edit checks to prevent errors in manual data entry and it did not consistently document its review of the information entered into its Crash Records Information System.
The number of fatalities per 100,000,000 miles traveled has decreased from 1.50 in fiscal year 2007 to 1.29 in fiscal year 2011. For fiscal year 2011, the Department based its calculation of the number of fatalities per 100,000,000 miles traveled on 3,023 fatalities in the state during the reporting year.
Auditors communicated other, less significant issues to Department management separately in writing.