AUSTIN INDEPENDENT SCHOOL DISTRICT INTERNAL AUDIT DEPARTMENT TRANSPORTATION AUDIT PROGRAM

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1 TRANSPORTATION GENERAL: The Transportation Department provides transportation of students to and from school and other special trips. The aim of an effective transportation service delivery system must be to deliver safe, timely and efficient transportation to all district students. Transportation is a vital support service that demands sound management due to the large capital investments in bus fleets and annual expenditures required for maintenance and operations. The Transportation Department is responsible for establishing bus routes, assigning drivers, maintaining equipment, supervise and evaluate employees, provide for special trips and file all documents necessary to comply with federal, state, and local policies. AUDIT OBJECTIVES: 1) Comprehensive policies and procedures have been established for transportation services; 2) The District is in compliance with all applicable regulations, further Reference TEC , , , and ; 3) Evaluate the District standard set for school bus drivers to ensure they meet standards and qualifications set by the Department of Public Safety (DPS); 4) Determine that District Transportation staff have the proper credentials required to perform their duties; 5) To determine if the Transportation Department's training and staff development support the department's overall goals for reducing bus accidents, student conflicts and other human resource challenges; 6) Vehicles are accounted for and safeguarded; 7) Vehicles are adequately maintained and replaced according to District guidelines; 8) Reports, inspections, and maintenance data are complete, accurate, and submitted in a timely manner; Page 1

2 TRANSPORTATION 9) Equipment and supply inventory is monitored and accurately recorded; 10) To determine if efficient fleet management services are being provided at the lowest possible cost; 11) Gasoline usage is effectively controlled and only authorized users access the facility; 12) Bus routes and extracurricular trips are scheduled to achieve efficiency; 13) Transportation measures are accurately reported to the state so the District can receive all revenue due; 14) The department is operating within budgetary constraints and is providing adequate resources to meet current and future needs. AUDIT PROCEDURES: 1) General a) Obtain: 1. Policies and Procedures 2. Prior Audit Reports 3. External Auditor Management Records 4. Regulatory Examination Reports 5. Job Descriptions and Organizational Chart 6. Related Information of Laws and Regulations 7. Minutes of the Board 8. Significant contracts b) Review policies and procedures to determine adequacy and if the practices promote safest transport of all students. Ensure that all relevant policies and procedures have been communicated to appropriate personnel. c) Review prior examination reports to determine whether corrective action has been implemented for noted deficiencies. Page 2

3 TRANSPORTATION 2) Lead schedule a) Prepare a lead schedule of all accounts affected and indicate the balance as of the audit date. Prior to the completion of the audit, ensure that all accounts have been verified by reconciliation, analytical review, or testing. 3) Personnel a) Examine the organization and staffing charts and job descriptions for all transportation related functions including vehicle maintenance, and parts ordering and warehouse. b) Interview staff to determine reporting arrangements, whether the organizational structure depicted on the charts reflects the actual organization of the department and document if it has changed. c) Prepare a chart showing the salary rates and ranges for each position. d) Generate a roster report and chart the number of staff and related positions. e) Develop a chart showing the staffing ratios within the functions, such as mechanics to total buses in the fleet, drivers to supervisors, etc. Compare to peer districts or industry standards. f) Prepare a chart showing overtime worked by each position type stated in hours and dollars. Analyze trends for the last three years and determine whether overtime is reasonably controlled. g) Document how bus drivers certifications and licenses are monitored. Determine whether other employees in the Transportation department or district (i.e.. coaches) drive buses. If so, make sure they meet the same licensing requirements. h) Select a random sample of bus drivers (try to include other individuals who may drive buses) and ensure the following documents are available and current in their respective files: i. Criminal background check ii. Motor Vehicle Records (MVR) check Page 3

4 TRANSPORTATION iii. Valid Commercial Drivers License iv. Texas Education Agency (TEA) school bus driver certification (3 years) v. Texas school bus training course vi. Defensive Driving Course vii. Annual physical viii. Alcohol and drug test clearance. i) Assess the types and frequency of staff development opportunities offered to employees. 4) Vehicles a) Prepare a table showing the current fleet inventory by year, make, and model; fuel use type; capacity; date purchased; purchase price. (Compare Fixed Asset list to the Transportation Departments list and note any discrepancies.) i. Categorize the age of the buses as 1 to 5 years, 6 to 10 years, and over 10 years. Conclude the percentage of fleet over 10 years. ii. Physically inspect a sample of vehicles and document the condition to ensure a match to the fleet records. b) Determine whether vehicles are adequately secured after business hours. i. Stored in a locked area ii. Keys are stored in a secure area within the building iii. All vehicles are accounted for prior to closing c) Examine insurance records to ensure all buses are listed and covered. Note any discrepancies. 5) Vehicle Maintenance and Replacement a) Determine if there is a policy in place for preventive, routine, and emergency maintenance. Is there a work order tracking system used to document maintenance and repairs? Is there a log or spreadsheet documenting all maintenance on vehicles? Page 4

5 TRANSPORTATION i. Examine vehicle maintenance work orders, review schedules developed for fleet maintenance. ii. Review logs maintained for vehicle maintenance and determine: (1) Work was performed as scheduled. (2) Maintenance was completed and evidenced by signature. (3) Supervisor inspection/approval was obtained. iii. Select a random sample of buses and ensure that routine maintenance was performed in accordance with the schedule. (Pay attention to warranty work). iv. Determine what measures the Transportation Department uses to assess whether it has enough mechanics. v. Determine if the work order system is adequate to meet the needs of district. vi. Determine if the Department has established standard allotted times per each type of repair. (1) Does the Department track time of repairs in work order system (2) Determine if time management is tracked per mechanic to assess efficiency and effectiveness 6) Equipment, Tools, and Supplies a) Evaluate the procedures for maintaining equipment and tools. b) Ascertain whether periodic inventories are performed to confirm items on hand. i. Review inventory documentation and determine reasonableness. ii. Determine how supply levels are determined to ensure major parts are available when needed. Is a system used to monitor stock levels? c) Conduct a walk-through and inspect the parts storage facilities. Assess the following: i. Security measures implemented to protect supplies and equipment. ii. Liquids and other consumable items are properly labeled. iii. Hazardous materials are properly labeled and stored. iv. Tools and equipment are in safe working conditions (no frayed cords, damaged shields, etc.) Page 5

6 TRANSPORTATION d) Obtain a listing of the supply inventory and perform the following procedures: i. Does the Department maintain a listing of tools on hand? ii. Is there a standard equipment set-up at each station? iii. Is there a periodic inventory of tools? 7) Fuel Usage a) Document how fuel is obtained. If an onsite storage facility is used, find out whether specific environmental regulations must be followed and make sure the district is in compliance. b) Determine how fuel usage is controlled. Schedule the fuel usage by type for the past three years. c) Describe the physical controls used at the pumps and ensure that only authorized users access the facility. d) Ascertain whether other entities are allowed to use the fuel. If so, research how cost sharing is structured. e) Measure the amount of gas in the inventory system. Examine fuel reports and find out how often tanks are measured and refilled. Note any illogical trends. f) Determine if the district tracks fuel usage per vehicle. i. Does the district track miles per gallon for vehicle efficiency ii. Does the district track mileage to determine if drivers are properly reporting distance and fuel usage. 8) Routing and Scheduling a) Determine how bus routes are scheduled and summarize key components of the process. b) Compile a list of all routes showing the average ridership, ride times, and the number of miles driven per route. Note any opportunities for improvement. Page 6

7 TRANSPORTATION 9) Supplemental Transportation a) Review procedures for scheduling and pricing extracurricular trips. i. Record the process for scheduling, routing, and pricing the trips. (Pay specific attention to Medicaid reimbursements for special education students and reimbursement for career and technology trips.) ii. Review procedures for assigning extra trips to bus drivers. iii. Determine how these trips impact bus availability. b) Select a sample of extracurricular trips taken within the current year and recalculate pricing according to guidelines. c) Compile the extracurricular mileage, ridership, cost and reimbursements for the last three years. Analyze any trends. 10) State Reporting and Funding The transportation department of TEA requires each school district to submit certain transportation reports annually. From these reports, TEA determines the district's funding. a) Obtain copies of the Transportation Route Services and Transportation Operation Reports for the past two years. i. Determine who is responsible for submitting the transportation data to the state. ii. Assess the timeliness and accuracy of the reports. b) Diagram the tracking and reporting process used by the district including compiling rides and miles, how counts are taken, how data is verified before reporting, etc. c) Prepare a chart to show the district's linear density and state reimbursement rates for the past five years to identify if linear density is increasing or decreasing. Page 7

8 TRANSPORTATION d) Schedule the district's total transportation miles driven, ridership and cost for regular, special education, career and technology, hazardous miles, etc. and compare to the state reimbursement for each category of expense. Then evaluate against peer districts to determine if the district is recovering a higher, lower, or similar percent of its costs. 11) Budget a) Schedule the Transportation Department's budget for the past three years. Note any significant fluctuations. b) Obtain the Transportation Department's budget reports as of the most recent month-end. Review for unusual transactions, significant overdrafts, or serious fluctuations. c) Test a sample of transactions for proper approval, accuracy, reasonableness, and adequacy of supporting documentation. 12) Miscellaneous a) Determine if the department holds any cash on the premises. If so, count the funds and reconcile balances. b) Chart all accident reports for the past three years and determine whether a trend exists. c) Inquire about any performance indicators used within the department. Review and recalculate, if necessary, to determine accuracy. d) Test other areas as determined necessary. Page 8