Railroad Commission
Management Control Audit
Report #:96-032
Overall Conclusion
While the Texas Railroad Commission has adequate control systems in place, more formal planning, program evaluation, and data analysis are needed to ensure the efficient use of regulatory efforts. Some administrative processes are inefficient and would benefit from streamlining review procedures and delegating responsibility. Consideration of performance standards in both the awarding of well plugging contracts and in the contracts themselves would provide the Commission with an evaluation and enforcement tool.
Key Facts and Findings
The Commission's strategic planning process does not include well-developed operational planning or evaluation at the division level. The programs track the regulatory tasks performed by staff and collect a lot of data; however, little appropriate data analysis is performed or fed into an evaluation and planning cycle.
A number of administrative processes are inefficient and lack standardized procedures. The time-keeping system does not provide sufficient controls over computation of leave balances. Travel vouchers and well plugging payment vouchers are reviewed and approved by several levels of management before they are submitted for payment.
Selection of well plugging contractors does not include consideration of past performance of bidders. Contracts for well plugging do not include standards, penalties, or sanctions for poor contractor performance.
Two of the three commissioners were elected to the Commission in November 1994. Recent organizational changes include the transfer of transportation responsibilities to another state agency, the restructuring of program and administrative divisions, and the search for a number of high-level managers.
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