september 9, 2019 - state pf audit recommendations as of...

SEPTEMBER 9, 2019

� Los Angeles County

�

_ ... __

Metro

TO:

THROUGH:

FROM:

BOARD OF DIRECTORS

PHILLIP A. WASHINGTON f A aJ CHIEF EXECUTIVE O

;;rFIC R

DIANA ESTRADA CHIEF AUDITOR

One Gateway Plaza 213.922.2000 Tel Los Angeles, CA 90012-2952 metro.net

SUBJECT: STATUS OF AUDIT RECOMMENDATIONS AS OF JUNE 30, 2019

ISSUE

At the March 2005 Executive Management and Audit Committee meeting, the committee requested that the status of all open audit recommendations be reported to them. The report includes audits performed by Management Audit, Office of the Inspector General and audits performed by outside auditors.

DISCUSSION

In this report Management Audit fulfills the request to report the corrective actions for all open audit recommendations related to findings for Metro Operations, Communications, Finance and Budget, Information Technology, Planning & Development, Program Management, System Security and Law Enforcement and Vendor/Contract Management.

During the fourth quarter of Fiscal Year 2019, twenty-eight recommendations were added and eleven recommendations from previous audits were closed. At the end of the quarter, there were 42 outstanding audit recommendations. Details of all open recommendations as of June 30, 2019 are included in Attachment A.

In addition to the above MAS and external audit recommendations, we closed 64 recommendations made by the Office of the Inspector General (OIG). At the end of the quarter, there were 591 outstanding OIG audit recommendations. Details of OIG open recommendations as June 30, 2019 are included in Attachment B.

We are actively working with staff to close each recommendation as quickly as possible. Any findings that have not been corrected 90 days after the due date are reported as late.

1 This total does not include recommendations for the Audit of Westside Purple Line Extension Section 2- Modification No. 52 as the management response and/or estimated completion dates are still pending.

Table 1

Summary of MAS and External Audit Recommendations as of June 30, 2019

Open Recommendations

Executive Area Closed Not Yet Late Extended Due/Under

Review

Communications 3 2

Finance & Budget 1 1

Information Technology Services 2 3

Metro Operations 12

Planning and Development 3

Program Management 5 2 3

System Security and Law 1

Enforcement

Vendor/Contract Management 2 13

Total 11 6 36

Total Open

2

1

5

12

3

5

1

13

42

Table 2 Summary of OIG Audit Recommendations

as of June 30, 2019

Open Recommendations

Executive Area Closed Not Yet

Late Extended Due/Under

Review

Communications 1 5

Finance & Budget 3

Metro Operations 58 3 45

System Security and Law 2

Enforcement

Vendor/Contract Management 2 4

Total 64 3 56

NEXT STEPS

Total

Open

5

48

2

4

59

Management Audit Services will provide the next quarterly status report for the period ending September 30, 2019.

ATTACHMENT{S)

A. MAS Open Audit Recommendations Report B. OIG Open Audit Recommendations Report

1. This total does not include recommendations for the Audit of Westside Purple Line Extension Section 2-Modification No. 52 as the management response and/or estimated completion dates are still pending.

Attachment A

MAS Open Audit Recommendations

Report Audit Original Extended No.

Number Report Date

Entity Title Exec Area Rec No Recommendation Finding/Corrective Action Completion Completion

Date Date

We recommend the Communications Department to renew the agreement with the Lack of program ownership and oversight for Juror TAP (J-TAP) Program. Metro

1 11J.COM-P01 8/31/2016 MAS Special Fares Programs Communications 21 Court to confirm mutual agreement. Commute Services (MCS) will work direcUy with TAP Operations to implement cross-

3/31/2017 9/30/2019 Update: MOU Is In the final stages. Metro Commute Services (MCS) Is functional responsibilities between the two departments. An updated MOU may be obtaining Input from County Counsel. necessary and if so, once will be written or the current one will be updated.

Lack of written agreement for Youth on the Move Program (YOTM for foster youth). Metro We recommend the Communications Department obtain a written agreement with Commute Services (MCS) agrees. Although there are Board documentations and writings DCFS to confirm the mutual agreement and to retain the legal rights to enforce that assist in governing the YOTM program, the implementation of an MOU will be

2 11J.COM-P01 8131/2016 MAS Special Fares Programs Communications 23 DCFS to meet the Program guidelines and requirements. explored and constructed. MCS periodically produces an active card 11st and forwards it to 3/31/2017 12/31/2019 Update: MOU Is In the final stages. Metro Commute Services (MCS) is the DCFS YOTM program manager for review. We will work with the manager at obtaining Input from County Counsel. Department of Children and Family Services (DCFS) to determine a preset calendar

schedule. All findings will be shared with the appropriate level of management.

We recommend that the Chief Information Officer require that all IT required project documentation be completed for each phase of all IT projects, based on the IT

Formalized IT Project Management Methodology Needs to be Rolled Out. The IT Project Project Management Methodology. This is especially important to show adequate Performance Audit of requirements analysis and measurement of end-user involvement, testing, and Management Methodology Training Plan includes training for these documents. When

Information Technology Information acceptance. methodology training and rollout are completed deliverable documents appropriate for 3 17-ITS-P01 6/5/2018 MAS

Services (ITS) Technology Services 3 Update: ITS reports that It Is In the process of recruiting additional members each new project will be identified and created. With each phase of training the appropriate 6/30/2019 12/31/2019

Project Management for Its executive management team who will focus on project management and documentation will be created. The full rollout will be completed which will include all

the PMO (project management office) function. The recruitment of these required documentation. In the interim the PMO will assist with ensuring required PM

executive has not been completed but is expected to be finalized by the end of documentation Is completed.

the calendar year.

We recommend that the Chief Information Officer require that IT controls are designed into new systems and reflected within IT project management plans, and resulting operational procedures. A risk-based approach to the design and implementation of controls, related to application and related systems and business processes. should be utilized. Focus should be placed on risks that have the highest

Performance Audit of impact and likelihood to occur. At a minimum, the following controls should be Formalized IT Project Management Methodology Needs to be Rolled Out. ITS wlll start an Information Technology Information addressed on all IT projects to ensure a sound control environment upon completion:

4 17-ITS-P01 6/5/2018 MAS Services (ITS) Technology Services

5 Data Security Controls, Financial Controls, Application Controls, General Computer initiative to identify and design IT controls Into new systems, within IT project management 6/30/2019 12/31/2019

Project Management Controls (Infrastructure), Data Conversion Controls, Interface Controls, Data Integrity plans, and resulting operational procedures.

Controls. Update: ITS reports that It Is In the process of obtaining a subject matter expert to assist In reviewing Its proposed IT Project Management Methodology that It plans to roll out in the future, which will address the subject matter of this recommendation.

Attachment A


Audit Orlglnal Extended

No. Report

Report Date Title Exec Area Rec No Recommendation Finding/Corrective Action Completlon Completion Number Entity Date Date

Better Coordination and Communication is Needed Among the Track Allocation Coordinator, Rail Operations Controller, and Requesters to Optimize the Right-of-Way (ROW) Usage. Rail Operations completed Phase 1 of the electronic Track Allocation Fonn. The electronic process will result in data gathering to ease tracking and trending of

We recommend the Chief Operations Officer consider directing Rail Operations to the track allocation activi1ies so that track allocation activities can be assessed on an add more fields in the electronic Track Allocation Request Form to assist Rail ongoing basis.

5 17-OPS-P07 6/14/2018 MAS Perfonnance Audit of the

Operations 4a Operations Controllers in minimizing some of their manual entries. For example, the

6/30/2019 Track Allocation Process Track Allocation Request Form could be further configured to include a check box MAS: Subsequent to receipt of the response, Management Audit Services met with

indicating if the schedule was activated or not, as well as the time and date it was Operations Management to clarify their response. Operations Management informed us activated, and a drop down menu to include reasons for schedule modification. that the completion of the electronic Track Allocation Request Process consists of several

phases, such as developing an electronic Track Allocation Form/Schedule, integrating System Generated Special Events Calendar, generating an electronic Work Permit, and generating System Reports. Phase 1 was completed in January 2018 and the remaining phases that will assist Rail Operations Controllers will be completed.

Better Coordination and Communication is Needed Among the Track Allocation Coordinator, Rail Operations Controller, and Requesters to Optimize the Right-of-Way (ROW) Usage. Rail Operations completed Phase 1 of the electronic Track Allocation Form. The electronic process will result in data gathering to ease tracking and trending of

We recommend the Chief Operations Officer consider directing the Track Allocation the track allocation activities so that track allocation activities can be assessed on an Coordinator to measure effectiveness of schedules by periodically assessing ongoing basis.

6 17-OPS-P07 6/14/2018 MAS Perfonnance Audit of the

Operations 4b whether crews that were scheduled to access the ROW actually accessed the ROW.

6/30/2019 Track Allocation Process This will provide visibility to the stakeholders as well as assist the Track Allocation MAS: Subsequent to receipt of the response, Management Audit Services met with

Coordinator in modifying future schedules. This periodic review will only be possible Operations Management to clarify their response. Operations Management informed us once the data from the newty implemented log has been collected. that the completion of the electronic Track Allocation Request Process consists of several

phases, such as developing an electronic Track Allocation Form/Schedule, integrating System Generated Special Events Calendar, generating an electronic Work Permit, and generating System Reports. Phase 1 was completed in January 2018 and the remaining phases that will assist Rail Operations Controllers will be completed.

We recommend that the Chief of the Program Management Unit direct the Senior Quafity Management did not maintain evidence of its oversight activities. Management Performance Audit of the Director of the Quality Management Unit to document and maintain the results of the stated that Implementation of this recommendation has already started. Required quality

7 16-CON-P04B 1/31/2019 MAS Quality Assurance

Program Management 2 Quality Management quality assurance services provided for each minor records are stored in the IQMS and Quality Management's shared drive (S drive) which

4/25/2019 Process Over Minor construction project. Records of these activities include inspection reports, test serves as a working directory for the department. The S drive will be treated as the

Construction Projects activities, reports of non-conforming work found, reports of corrective actions taken repository of all quality documentation/activities until a formal document control solution is and surveillances perfonned. identified.

We recommend that the Chief of the Program Management Unit direct the Senior Director of the Quality Management Unit to continue to develop the IQMS as a

Quality Management did not maintain evidence of its oversight activities. Management centralized document control system for the maintenance of quality records for all Performance Audit of the minor construction projects. Use a consistent naming convention for the file name

stated that a numbering system for QM Quality Records was developed and training to


Program Management 4 and use tlties that correspond to the content so that files are easily searchable and staff was completed. The IQMS contains a numbering system that is consistent for most of 4/25/2019 8/30/2019

Process Over Minor accessible. the quality records, but for those records not yet included in this numbering system, such

Construction Projects Update: A contract for a Quality Management Consultant was approved and the as a submittals review, materials verification testing and inspections performed by Metro's

program unit Intends to issue task orders In the future that will involve review Independent laboratory, a consistent naming convention will be developed.

of the numbering system and development of key performance Indicators.

2

Attachment A


No. Report

Report Date Audit

Title Exec Area Original Extended

Number Entity Rec No Recommendation Finding/Corrective Action Completion Completion

Date Date

We recommend that the Chief of the Program Management Unit direct the Senior Director of the Quality Management Unit to develop unit specific key perfonnance

Quality Management Did Not Have Its Own Perfonnance Measurement System. indicators to help measure the efficiency and effectiveness of the quality services Perfonnance Audit of the provided by Quality Management. Quality Management's KPI should consider both Management stated that a contract for a Quality Management Consultant (QMC) is in


Program Management 5 workload and results factors, and could include but not be limited to the following: procurement. Quality Management Intends to utilize the services of the Quality

Process Over Minor Length of time between the opening and closing of NCRs; Percentage of reoccurring Management Consultant to develop a series of KPls. In addition. Quality Management will 4/25/2019 8/30/2019

Construction Projects NCRs; Trends on NCRs; and Number of quality audits perfonned on schedule. be using other deliverables to monitor QM perfonnance. Completion dates cited below will

Update: A contract for a Quality Management Consultant was approved and the be contingent on the board approval of the QMC contract. In the interim, QM will perfonn

program unit intends to Issue task orders in the future that will involve review analyses of IQMS data for trends and patterns.

of the numbering system and development of key performance Indicators.

We recommend that Executive Officer of Vendor/Contract Management, support The fonner P-Card Agency Program Coordinator did not ensure the two year refresher

services direct the Agency Program Coordinator to work with Talent Development to Perfonnance Audit of

Vendor/Contract add P-Card refresher training to the training profile of all cardholders and Approving

training was completed by all Cardholders and Approvers. V/CM Management is working

10 16-VCM-P01 3/2812019 MAS Purchase Card 2 Officials showing it as mandatory training to automatically trigger a refresher training with Training and Development on the development of automated training reminders. In

(P-Card) Program Management

reminder. This would afford the mandatory P-Card refresher training similar process the Interim time frame, the Agency Program Coordinator is now tracking fonnal mandatory

9/30/2019

such as Human Trafficking Awareness and Basic IT Security Awareness training training in an Excel spreadsheet and scheduling training sessions accordingly. This effort

which both are required for all Metro employees. was initiated in 2018.

Unsupported C8rdholder Statements. A service request was submitted to lnfonnation We recommend that Accounts Payable coordinate with lnfonnation Technology

Perfonnance Audit of Technology System (IT) in November 2018 requesting automation of the approval process

11 16-VCM-P01 3/2812019 MAS Purchase Card Finance & Budget 4 Systems and the Agency Program Coordinator to automate the approval process to of P-card Statements, authentication of users, and other enhancements. However, due to

(P-Card) Program improve processing time of P-card statements as well as authentication of the the shortage of resources (staff and budget), IT could not provide a completion date for the

8130/2019

approvers. evaluation of the service request and an estimated implementation date. However, the Sr. Director of Accounting will follow up with IT to check on the status of this service request.

18-RSK-P01 Perfonnance We recommend that the Emergency Management Unit collaborate with the business

Audit of Vendor / Contract Key lnfonnation needed In V/CM's COOP and SOPs. Emergency Management Unit will 12 18-RSK-P01 3/29/2019 MAS Management's (V/CM's)

System Security and 1a

units, starting with V/CM, to ensure that the business unit COOPs, and all related

Continuity of Operations Law Enforcement documents (e.g., SOPs), include the essential content necessary to support the

collaborate with the business units, starting with V/CM, to ensure that the business unit 6/30/2020

Plan (COOP) agency-wide program.

COOPs, and all related documents.

We further recommend that over the next 12 to 18 months. V/CM should consider focusing its efforts on completing and including the following content with Emergency

18-RSK-P01 Perfonnance Management's support and guidance: criteria for COOP activation and relocation Audit of Vendor / Contract

Vendor/Contract decisions; flow charts and decision trees; step.by-step instructions applicable to

Key infonnation needed in V/CM's COOP and SOPs. Management infonned us that they

13 18-RSK-P01 3/29/2019 MAS Management's (V/CM's) 1b Gateway or agency-wide emergencies; names, titles and contact details such as are currently working on the departmental contact 11st and recently engaged a third party to

Continuity of Operations Management

phone numbers and emails for all continuity personnel (e.g., Advance Team, CMG, assist with developing process maps to support the department's mission essential

10/30/2020

Plan (COOP) and successors); distribution and logistics dependencies, such as MEFs, mission functions.

essential systems, records, databases, supplies and equipment; mission essential records and database storage locations.

3

Attachment A


Report Audit Original Extended

No. Report Date Title Exec Area Rec No Recommendation Finding/Corrective Action Completion Completion Number Entity

Date Date

18-RSK-P01 Perfonnance Audit of Vendor / Contract

Vendor/Contract We recommend that V/CM management review and reassess the COOP and SOPs

Key infonnation needed in V/CM's COOP and SOPs. Management infonned us that they 14 18-RSK-P01 3/29/2019 MAS Management's (V/CM's)

Management 2 periodically to verify that any resulUng updates are Implemented, including updating

will review the COOP annually to coincide with annual training and desktop exercises. 4/30/2020

Continuity of Operations V/CM's COOP contact details in the event of key personnel changes. Plan (COOP)

18-RSK-P01 Perfonnance Audit of Vendor I Contract

Vendor/Contract We recommend that V/CM management work with Emergency Management to Key Information needed In V/CM's COOP and SOPs. V/CM management will work with

15 18-RSK-P01 3/29/2019 MAS Management's (V/CM's) Management

3 arrange for COOP execution training by an emergency management expert Emergency Management to arrange for COOP execution training by an emergency 7/31/2020 Continuity of Operations concurrently with each annual update. management expert

Plan (COOP)

18-RSK-P01 Perfonnance We recommend that the Chief Program Management Officer take the lead role in

Audit of Vendor / Contract Emergency utility agreements were not in place. Since estimating the completion date for

16 18-RSK-P01 3/29/2019 MAS Management's (V/CM's) Program Management 4 collaborating with all responsible parties. such as V/CM, Project Delivery Third Party

executing an agreement with the utility companies will be challenging, Program 3/31/2020 Coordination, County Counsel, etc., to establish agreements with utility companies to

Continuity of Operations guarantee service conllnulty and restoration In emergency sltuallons. Management will provide periodic updates.

Plan (COOP)

18-RSK.P01 Performance Audit of Vendor / Contract

Vendor/Contract We recommend that V/CM management consider referencing all the existing COOP- Business Process Improvement. V/CM management will consider referencing all the

17 18-RSK-P01 3/29/2019 MAS Management's (V/CM's) Management

5 related SOPs to the COOP and/or attaching them as appendices to the COOP, doing existing COOP-related SOPs to the COOP and/or attaching them as appendices to the 10/30/2020 Continuity of Operations the same to the SOPs under development as they are completed. COOP, doing the same to the SOPs under development as they are completed

Plan (COOP)

We recommend Metro's Countywide and Planning Development Management to Changes in the reported amounts of Lease Revenue and Congestion Mitigation & Air Quality Program (CMAQ) funding sources could not be corroborated in various reports.

Performance Audit of the Planning &

corroborate with the project team to perform a reconciliation of the funding sources in Management will work with the project team to reconcile the differences in funding sources

18 18-CON-P01 5114/2019 MAS Regional Connector Development

1 status reports and identify causes for the differences in funding amounts reported across various reports produced for the project. The Chief Planning Officer or designee will

6130/2019

Transit Corridor Project among request the project team to coordinate review and the release of any financial information

the various reports. with Financial Planning, Programming & Grants (FPPG).

Changes in the reported amounts of Lease Revenue and Congestion Mitigation & Air

Performance Audit of the Planning &

We recommend Metro's Countywide and Planning Development Management to Quality Program (CMAQ) funding sources could not be corroborated in various reports. In

19 18-CON-P01 5114/2019 MAS Regional Connector 2 conduct Fiscal Stability Overview and Funding Commitment Inventory analyses 2019, FFGA will update its financial forecast. including a summary of changes from the 12/31/2019

Transit Corridor Project Development

annually for the planned capital programs. prior version (the SRFF) and present the funding assignments to the Board for approval that is consistent with Metro "LRTP Priorities Policy."

We recommend Grants Management and Oversight Unit Strategic Management to Changes in the reported amounts of Lease Revenue and Congestion Mitigation & Air

Perfonnance Audit of the Quality Program (CMAQ) funding sources could not be corroborated in various reports.

20 18-CON-P01 5114/2019 MAS Regional Connector Planning &

3 review If existing procedures are in-place to corroborate or document the allocation

FPPG staff will conduct a review of existing policies and procedures for any that document 6130/2019 Transit Corridor Project

Development and changes in project revenue streams such as the Lease Revenue and or corroborate allocations and changes in project revenue. FPPG will report back to

FAST/CMAQ funds in fiscal years. 2020/2021 and 2021/2022. Management Audit Services with the results of the review.

Business Process Improvement: Additional Narrative/Illustration on Contingency.

Performance Audit of the We recommend Project Controls Management to consider including a discussion Management will include additional narrative accompanying the contingency discussion in

21 18-CON-P01 5114/2019 MAS Regional Connector Program Management 7 and/or illustration on the forecasted contingency amount as part of the Cost the Monthly Project Status Report. Metro's Program Control Department will conduct a 6/30/2019 Transit Corridor Project Contingency Drawdown Analysis in the monthly and quarterly project status reports. program-wide review of suggested changes across all mega projects to ensure reporting

consistency.

4

Attachment A




Date Date

Performance Audit of the Off Call-Back (OCB) assignments exceeded the maximum of one day per week. With the HASTUS System - We recommend Operations management develop a procedure to track operators HASTUS upgrade version 25 scheduled in the fourth quarter of fiscal year 2019, HASTUS

22 18-ITS-P01 511612019 MAS Implementation of Operations 1 that were already assigned OCB for the week to reduce the risk of assigning them will begin automatically tracking and limiting OCBs to one day per week. Also, Operations 9/30/2019 Collective Bargaining OCB again the same week. management will review and validate changes made by ITS to track Operators who are Agreement Changes already assigned OCB for the week.

Performance Audit of the Off Call-Back (OCB) assignments exceeded the maximum of one day per week. HASTUS System - We recommend Operations management ensure that Division Staff require

Operations will re-instruct Division staff to assure that VCB request forms are completed 23 18-ITS-P01 5/16/2019 MAS Implementation of Operations 2 Operators to provide a signed VCB request form to prevent the VCB from being

by Operators and entered into HASTUS prior to the Operators' start of work on their 9/30/2019

Collective Bargaining erroneously recorded as OCB. scheduled day off.

Agreement Changes

Performance Audit of the We recommend Operations management periodically monitor OCB assignments and Off Call-Back (OCB) assignments exceeded the maximum of one day per week.

HASTUS System -identify Dlvlslon(s) with high exception rates. Perform a root cause analysis to Operations will periodically monitor OCB assignments and identify Division(s) with high

24 18-ITS-P01 5/16/2019 MAS Implementation of Operations 3 evaluate alternatives to resolve, e.g., requesting support to cover workforce exception rates. Also, Operations will consider performing a root cause analysis for

1 2/31/2019 Collective Bargaining

shortages in certain Division(s). altematlve solutions. Agreement Changes

Performance Audit of the HASTUS System -

We recommend Operations management continue working with ITS to implement Off Call-Back (OCB) assignments exceeded the maximum of one day per week.

25 18-ITS-P01 5/16/2019 MAS Implementation of Operations 4 the planned automated controls to prevent OCB more than once per week.

Operations will continue working with ITS to implement the planned automated controls to 7/31/2019 Collective Bargaining prevent OCB more than once per week. Agreement Changes

Performance Audit of the Inaccurate recording of line Instructor Premium (LIP) Hours. Operations management HASTUS System - We recommend Operations management immediately perform all the needed corrected the LIP underpayments from July 1, 2017 to March 3, 2018 for the hours

26 18-ITS-P01 5/1612019 MAS Implementation of Operations 5 corrections for underpayments and overpayments for all LIP eligible hours from July corresponding to REG, VAC and HLF. Operations will work with the necessary 12/31/2019 Collective Bargaining 1 , 2017 to date. departments to quantify and correct underpayments and overpayments for all LIP eligible Agreement Changes hours after March 3, 2018 and ensure the correct recording of LIP hours.

Performance Audit of the We recommend Operations management, after completing recommendation number

HASTUS System -5 above, partner with ITS to perform periodic true ups to detennine any

Inaccurate recording of line Instructor Premium (LIP) Hours. Operations will partner with 27 18-ITS-P01 5116/2019 MAS Implementation of Operations 6

over/underpayment, and submit required corrections to Payroll regularly and in a ITS to perform periodic true ups to determine any over/under payment and submit required 12/3112019

Collective Bargaining timely manner until calculations can be automated.

corrections to Payroll regularly and in a timely manner unb1 calculations can be automated. Agreement Changes

Performance Audit of the HASTUS System - We recommend Operations management reinforce the training with the Division Staff Inaccurate recording of line Instructor Premium (LIP) Hours. Operations will work with ITS

28 18-IT5-P01 5/16/2019 MAS Implementation of Operations 7 to properly record all LIP eligible hours and pay codes including special conditions for to reinforce HASTUS training with Division staff to properly record all LIP eligible hours and 12/31/2019 Collective Bargaining non-certified line Instructors. pay codes including special conditions for non-certified line Instructors. Agreement Changes

Performance Audit of the Inaccurate recording of Line Instructor Premium (LIP) Hours. Operations will collaborate

HASTUS System - We recommend Operations management collaborate with ITS, in consultation with with ITS, in consultation with Employee and Labor Relations, to assess possibilities to

29 18-ITS-P01 5116/2019 MAS Implementation of Operations 8 Employee and Labor Relations, to assess possibilities to automate LIP calculations automate LIP calculations and reporting as practical in either HASTUS or the Payroll

12/31/2019 Collective Bargaining and reporting as practical in either HASTUS or the Payroll system. Agreement Changes

system.


Information We recommend ITS management collaborate with Operations to explore possible Opportunity # 1 : Accuracy of operators' vacation balances. Negative balances are a result

30 18-ITS-P01 5/16/2019 MAS Implementation of Technology Services

9 solutions to prevent negative vacation balances in the Payroll System calculation.

of how vacation balances are accrued and prorated. Procedural change will be developed 9/30/2019 Collective Bargaining between Operations and ITS to address this concem. Agreement Changes


Information We recommend ITS management collaborate with Giro, Inc. to ensure that the data Opportunity # 1 : Accuracy of operators' vacation balances. ITS will collaborate with Giro,

31 18-ITS-P01 5/1612019 MAS Implementation of Technology Services

10 transfer from the Payroll system to HASTUS is complete with regard to PTO Inc. to ensure that the data transfer from the Payroll system to HASTUS is complete 9/30/2019 Collective Bargaining balances. regarding PTO balances. Agreement Changes

5

Attachment A




Date Date

Performance Audit of the HASTUS System - We recommend Operations management continue to work with ITS to correct the Opportunity # 2: Timely release of assignments vacant for over 60 days. Operations will

32 18-ITS-P01 5116/2019 MAS Implementation of Operations 1 1 design of the automated control In HASTUS that will enable timely release of those continue working with ITS to correct the design of the automated control in HASTUS that 7131/2019 Collective Bargaining vacant assignments after 60 days' continuous absence. will enable timely release of those vacant assignments after 60 days' continuous absence. Agreement Changes

Performance Audit of the Opportunity # 3: Inaccurate hours for fallback time were sent to the Payroll system. HASTUS System - We recommend Operations management immediately partner with ITS department Operations will Immediately partner with ITS department in determining any

33 18-ITS-P01 5116/2019 MAS Implementation of Operations 12 in determining any underpayments due to fallback hours, and make timely underpayments due to fallback hours and make timely corrections necessary for all 9/30/2019 Collective Bargaining corrections necessary for all holidays starting May 2018 to date. holidays starting May 2018 to date. Note: Since October 2018, HASTUS automatically Agreement Changes sends Rail fallback hours under the pay code LAO (Layover) to the Payroll System.

Opportunity # 3: Inaccurate hours for fallback time were sent to the Payroll system. Performance Audit of the We recommend Information Technology Services management work with Giro, Inc. Subsequent to the receipt of management's response dated May 6, 2019, MAS confirmed

HASTUS System -Information

to explore the solution for accurate record transfer from HASTUS to the Payroll with ITS management that HASTUS upgrade version 25, which contains the system

34 18-ITS-P01 5/16/2019 MAS Implementation of Technology Services

13 system for Rail Operators with fallback time on holidays. This requires that actual correction for accurate record transfer from HASTUS to the Payroll system, has been 7/31/2019 Collective Bargaining fallback hours instead of pre-scheduled fallback hours are transferred to the Payroll scheduled for Implementation in May 2019. Accordingly, ITS will work with Giro, Inc. to Agreement Changes system. implement the solution for accurate record transfer from HASTUS to the Payroll system for

Rail Operators.

Performance Audit of the Inaccurate data and reports related to SBE/DBE goal achievement. DEOD will coordinate

Tracking of Small We recommend that DEOD Management collaborate with Contract Administration to Business Enterprise Vendor/Contract develop procedures and establish the timeline for ensuring that information about

with Vendor/Contract Management (V/CM) contract administration to ensure contract

35 18-VCM-P02 6/28/2019 MAS (SBE) \ Management

1 modifications to contract values is promptly communicated from contract

modification value changes or other amendments are submitted to DEOD for input into the 10/30/2019

Disadvantaged Business administrators to DEOD staff to update the B2G system information. B2GNOW system. DEOD management will reprioritize staff responsibilities to complete

Enterprise (DBE) Goals this task.

Performance Audit of the Tracking of Small

We recommend that DEOD Management identify individuals within DEOO who

36 18-VCM-P02 6/28/2019 MAS Business Enterprise Vendor/Contract

2 should receive the contract change data from the Contract Administrators and Inaccurate data and reports related to SBE/DBE goal achievement. DEOD management

10/30/2019 (SBE) \ Management

Project Managers for updating the infonnation in the B2G system. will identify staff who will receive contract change data for input in the B2GNOW system.

Disadvantaged Business Enterprise (DBE) Goals

Performance Audit of the Tracking of Small

We recommend that DEOD Management implement a supervisory review of DEOD Inaccurate data and reports related to SBE/DBE goal achievement. DEOD staff will

37 18-VCM-P02 6/2812019 MAS Business Enterprise Vendor/Contract

3 staff/consultants' data entries to ensure the data entered into the B2G system is conduct periodic reviews In the B2GNOW and CIMS systems to ensure contract values 10/30/2019 (SBE) \ Management

complete, accurate and valid. are accurate. Disadvantaged Business Enterprise (DBE) Goals

Performance Audit of the We recommend that DEOD Management work with ITS and the Vendor of the B2G Tracking of Small System to explore the feasibility of creating a reporting template in the B2G system

Inaccurate data and reports related to SBE/DBE goal achievement. DEOD will work with Business Enterprise Vendor/Contract that includes a built in formula that will automatically calculate the elements that

38 18-VCM-P02 6/28/2019 MAS (SBE)\ Management

4 DEOD requires for TBAC reports. This should include ensuring that the reporting

B2GNOW to automate the creation of this report as a function of the B2GNOW system. 10/30/2019

Disadvantaged Business template links properly to data sources within the B2G system for calculation DEOD estimates this task can be completed, assuming budget avallabmty.

Enterprise (DBE) Goals purposes and that the calculations are correct.

6

Attachment A



No. Number

Report Date Entity

Title Exec Area Rec No Recommendation Finding/Corrective Action Completion Completion Date Date

Perfonnance Audit of the We recommend that DEOD Management work with the ITS and the Vendor of the Shortfalls were not communicated timely and accurately to contractors. Management

Tracking of Small B2G system to explore the possibility of developing a standardized shortfall stated that three templates that include all the needed elements to infonn contractors of

Business Enterprise Vendor/Contract communication template which includes all needed elements to infonn contractors of their shortfall status are included In the Shortfall Mitigation Policy and Procedure dated

39 18-VCM-P02 6/28/2019 MAS (SBE) \ Management

5 their shortfall status. The template should be linked to data sources within the B2G April 5, 2019. Accordingly, DEOD considers this matter closed. With regard to llnklng the 10/30/2019

Disadvantaged Business system for accurate infonnation. Also explore the possibility whether the letters can shortfall communication templates to data sources within B2Gnow, DEOD will discuss the

Enterprise (DBE) Goals be automatically sent out to contractors for timely communication of the shortfall feasibility and will provide an update (this action is subject to budget availability for any status. (This Is for the long-tenn.) system customization).

Perfonnance Audit of the We recommend that the DEOD Management direct the Compliance Managers to

Tracklng of Small develop a mechanism to ensure that all required shortfall letters are actually being Shortfalls were not communicated timely and accurately to contractors. Management

Business Enterprise Vendor/Contract prepared and sent to the respective Prime Contractors for remedial action. (For stated that a mechanism to ensure that all required shortfall letters are actually being

40 18-VCM-P02 612812019 MAS (SBE) \ Management

6 example, periodically performing a supervisory review to compare the quantity of prepared and sent to the respective Prime Contractors for remedial action will be 10/30/2019

Disadvantaged Business Prime contractors that are in a shortfall status as of a given date to the actual developed based on budget and availability of resources. In addition, the shortfall policy shortfall letters that have been prepared and sent out to the respective Prime will be updated to address supervisory review of contracts in shortfall against letters sent.

Enterprise (DBE) Goals contractor. Based on the comparison, reconcile any differences if noted.)

Perfonnance Audit of the Tracking of Small

We recommend that DEOD management Instruct the DEOD consultant to prepare Process Improvement Opportunity. DEOD will develop written procedures for all key 41 18-VCM-P02 6/28/2019 MAS

Business Enterprise Vendor/Contract 7a written procedures for all key activities for inputting, tracking/monitoring and activities for inputting, track/monitoring and communicating SBE/DBE compliance data in 10/30/2019

(SBE) \ Management communicating SBE\DBE compliance data in the B2G system. B2Gnow.

Disadvantaged Business Enterprise (DBE) Goals

Perfonnance Audit of the Tracking of Small

We recommend that DECO management Instruct the DEOD consultant to train Process Improvement Opportunity. DEOO will train another designated DEOD staff in 42 18-VCM-P02 612812019 MAS

Business Enterprise Vendor/Contract 7b another designated DECO staff in inputting, tracking and monitoring data in the B2G inputting, tracking and monitoring data in the B2G system, using newly developed written 10/30/2019

(SBE) \ Management Disadvantaged Business

system, using these procedures. procedures.

Enterprise (DBE) Goals

7

Attachment B

OIG Open Audit Recommendations


No. Number

Report Date Entity


Review of Metro Safety The 1 17 recommendations included in this report address findings in Safety Culture, Red Signal Violations, Safety Assessment of Infrastructure Elements,

1 17-AUD-04 12/22/2016 OIG Culture and Rail Operations 24 Total Technology, Operations and Maintenance, Human Resources, and etc.

Pending response. Pending Operational Safety

Update: As of July 2019, 103 of 117 recommendations were closed.

2 18-AUD-03 10/24/2017 OIG Review of Metro Rail System Security and

6 Review approach to Police/Health delay incidents (while not part of this analysis, Metro Security will meet with Metro's contracted Law Enforcement agencies to review

8/30/2019 Service Disruptions Law Enforcement these delay incidents warrant review based on their frequency and duration). the frequency and duration of police and health related Incidents.

3 18-AUD-03 10/24/2017 OIG Review of Metro Rail System Security and

7 Partner with law enforcement agencies to review process used for police/health Metro Security will meet with Metro's contracted Law Enforcement agencies to review

8/30/2019 Service Disruptions Law Enforcement incidents. their protocols related to police and health related incidents.

4 18-AUD-03 10/24/2017 OIG Review of Metro Rail

Operations 9 Set priorities based on Metro's asset assessment as soon as it is completed to

Related finding B2-B10. 6/30/2019 9/30/2019 Service Disruptions reduce delay incidents.

Consider converting some P2000 cars running on the MBL/Expo lines back to the

5 18-AUD-03 10/24/2017 OIG Review of Metro Rail

Operations 25 MGL operation if the ATO/ATP packages removed earlier are still available. The

Related finding C5,C14,C28 12/31/2020 Service Disruptions critical float will be the P2000 MGL cars with their line specific ATO/ATP

equipment.

Establish a process and a criterion for replacement of existing signal

Review of Metro Rail installations that includes useful life of installation, failure rate, obsolescence,

6 18-AUO-03 10/24/2017 OIG Service Disruptions

Operations 52 service needs, and available funding. While the Metro asset inventory will provide Related finding F17, F18 6/30/2019 9/30/2019 an important resource to this end when it is finished, this system of prioritization should be formalized and implemented in current signal procedures.

Establish a process and a criterion for replacement of existing traction power

Review of Metro Rail equipment that includes useful life of installation, failure rate, obsolescence,

7 18-AUO-03 10/24/2017 OIG Service Disruptions

Operations 57 service needs, and available funding. While the Metro asset inventory will provide Related finding G7-G9 6/30/2019 9/30/2019 an important resource when it is finished, this system of prioritization should be formalized and implemented in current signal procedures.

As part of Metro's strategic ridership marketing plan we have identified nine opportunities for ridership growth. They are 1) Increase business partnerships in areas

Increasing Public Transit Increase marketing to specific audience groups to increase ridership by where we have good transit service, 2) Increase school partnerships around areas

8 18-AUD-04 1/30/2018 OIG and Rideshare Use Communications 1 developing additional marketing programs directly aimed at user groups such as where we have good transit service, 3) Improve bus perceptions, 4) Create a pro-transit

Pending students, business and government entities, and employees "Live Near Your youth, 5) Identify and target new attitudinally defined markets, 6) Hyperfocused

Study Work" campaigns. targeting, 7) Maximize more share of currently car1ess, 8) Reduce number of cars per

household, 9) Promote new line openings. We have aligned all ridership marketing efforts around these opportunities. This is ongoing.

Coordinate with other LA County public agencies to encourage additional use of Increasing Public Transit public transit and participation in rideshare programs, including maximizing

Working with City of Los Angeles to implement Employer Pass (E-Pass) Pilot Program 9 18-AUD-04 1/30/2018 OIG and Rideshare Use Communications 2a allowable transit subsidies over parking subsidies. For example, the City of LA 12/31 /2019

Study could increase its monthly transit subsidy to be more in line with monthly transit at one demonstration department.

costs.

8


No. Number

Report Date Entity


Coordinate with other LA County public agencies to encourage additional use of

Increasing Public Transit public transit and participation in rideshare programs, including maximizing

10 18-AUD-04 1/30/2018 OIG and Rideshare Use Communications 2b allowable transit subsidies over parking subsidies. For example, the County of LA Working with County Supervisors Offices to implement Employer Pass (E-Pass) Pilot

12/31/2019 Study

could expand its current commuter programs to provide employees subsidies for Program for LA County Employees. using public transit/rldeshare for commute trips for all County work locations at a monthly rate closer to actual costs.

Increasing Public Transit Explore modifications to Metro's Employer Annual Pass Program to further Launched Employer Pass (E-Pass) Pilot Program in July 2018 to bill employers for

1 1 18-AUD-04 1/30/2018 OIG and Rideshare Use Communications 3 encourage transit usage, such as the addition of a monthly pass option. actual boardings on a quarterly basis. Pending

Study

Increasing Public Transit Encourage use of public transit at meetings and events where contractors will be Attendees at all Metro meetings should be able to validate transit for a free ride at $1 . 75

12 18-AUD-04 1/30/2018 OIG and Rideshare Use Communications 5 present. instead of validating parking for $8.00. Pending

Study

Metro Operations should monitor and track the amount of time required to transfer

13 19-AUD-01 7/16/2018 OIG Metro Transit Security

Operations 7 calls requiring a law enforcement response to the appropriate law enforcement

Pending response. Pending Performance Review dispatch center and take appropriate actions to ensure calls are quickly

processed.

Audit of Controls Over We recommend that the Logistics Department implement procedures to conduct

14 19-AUD-03 1/28/2019 OIG Inventory At Central Vendor/Contract

3 physical inventories using "blind counts" consistent with best practices in which The DEO of Logistics will oversee the implementation procedures of bllnd counts when

7/31/2019 Maintenance Facility Management Individuals performing the inventories do not have the knowledge of, or access to, conducting physical inventories.

Warehouse the on-hand quantity in the inventory records.

Audit of Controls Over We recommend that the Logistics Department consider adding to the quarterly

Inventory At Central Vendor/Contract inventory sample counts, a sample of items from randomly selected locations and

Logistics will consult with our partners in ITS to study the feasibHity of implementing this 15 19-AUD-03 1/28/2019 OIG 4 compare the counts to quantities on the inventory record (reverse). This would 7/31/2019

Maintenance Facility Management help to identify errors such as wrong locations recorded in the system or certain

recommendation. Warehouse

transactions not processed correctly or promptly.

Audit of Controls Over We recommend that the Logistics Department complete plans to use blanket

Material Planning and Procurement, in a collaborative effort, are always looking for


6 purchase orders to procure material when appropriate to reduce procurement time inventory items that are a good candidate for blanket purchase orders. They will

9/30/2019 Maintenance Facility Management

and eliminate work to create a separate purchase order for each procurement. continue this effort. This recommendation has been implemented and will be tracked

Warehouse and reported quarterly.

Audit of Controls Over


7 We recommend that the Logistics Department complete plans to review and The DEO of Logistics will oversee that the Inventory Management Guidelines and

9/30/2019 Maintenance Facility Management update existing inventory guidelines and procedures. Procedures are reviewed and updated as necessary.

Warehouse

OIG Spot Check • Bus We recommend that Operations Management continue to communicate to bus

18 19-AUD-07 4/22/2019 OIG Operator Battery Reset Operations 1 operators and controllers on a regular basis that the practice of bus operators 1 1/30/2019 Practices performing battery shutdowns has ceased.

OJG Spot Check • Bus We recommend that Operations Management continue to assess and provide the

19 19-AUD-07 4/22/2019 OIG Operator Battery Reset Operations 2 resources required to minimize transit customer delay time given that the battery 1 1/30/2019 Practices reset process did fix some operational problems.

OIG Spot Check - Bus We recommend that Operations Management continue to study what

20 19-AUD-07 4/22/2019 OIG Operator Battery Reset Operations 3 circumstances cause bus field repairs and what specifications might be included in

1 1/30/2019 future procurements for systems and devices used in buses to reduce Practices

breakdowns and improve bus performance.

9


No. Number

Report Date Entity

Title Exec Area Rec No Recommendation Flndlng/Corroctfve Action Completion Completion Date Date

OIG Spot Check - Bus We recommend that Operations Management consider the engineering adjustments necessary for improved safety of operators or others associated with

21 19-AUD-07 4/22/2019 OIG Operator Battery Reset Operations 4 battery resets that might occur by operators regardless of the new guidelines to 11/30/2019

Practices cease operator battery resets.

OIG Spot Check - Bus We recommend that Operations Management consider if battery hatches should

22 19-AUD-07 4/22/2019 OIG Operator Battery Reset Operations 5 be locked the way hatches inside the buses are to prevent unauthorized access. 11/30/2019

Practices

We recommend that Operations Management consider if further research on what

OIG Spot Check - Bus circumstances or problems are corrected by a soft software reset versus a full battery reset, if it is possible to mitigate risks for software diagnostic damages in

23 19-AUD-07 4/22/2019 OIG Operator Battery Reset Operations 6 the event of a battery reset, and if considering the time it takes for a mechanic to 11/30/2019

Practices arrive, it might be more efficient to allow the performance of the appropriate reset in those cases.

Bus Operator Safety Metro should continue to install the bus operator safety barriers and onboard camera and monitor systems throughout its bus fleet and continue to monitor

24 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 1 incident data to further verify the effectiveness of both systems in preventing 10/31/2019

Effectiveness Study assaults on bus operators.

Metro should ensure data collection is standardized by Metro and all transit security providers and investigators to consistently identify the types of assaults

Bus Operator Safety that have occurred, if the bus was equipped with a safety barrier, if the barrier was 25 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 2a in use at the time of the assault. and if in use, how it was being used (i.e., top 10/31/2019

Effectiveness Study portion only, bottom portion only, or both portions). Standardizing the data in this manner will result in more accurate and consistent data that can be more easffy analyzed to identify trends and to measure performance.

Metro should ensure data is collected on the type and extent of injuries incurred by Bus Operator Safety bus operators when the safety barriers are in use. This will further aid in

26 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 2b determining the effectiveness of the safety barriers (i.e., if bus operator injuries 10/31/2019 Effectiveness Study are lessened as a result of the barriers being used) and if design changes or

modifications are necessary.

Metro should ensure that assault trend analysis results are used to review current Bus Operator Safety policing and fare enforcement strategies to determine if law enforcement,

27 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 3 Supervisors, and fare enforcement personnel and strategies are being 10/31/2019 Effectiveness Study appropriately deployed toward the routes and times of day in most need of Police,

Supervisory, or fare enforcement presence.

Bus Operator Safety Metro should make the use of the barriers mandatory until Metro can determine if

28 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 4a their use contributes to or causes accidents or increases accident frequency.

10/31/2019 Effectiveness Study

Mandatory use of the barriers is the best way to evaluate their true effectiveness in reducing assaults on bus operators.

If the use of the barriers is made mandatory, Metro should collect data to Bus Operator Safety substantiate and study the issues identified by operators as to why they do not use

29 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 4b the barriers. Metro can then take corrective action, such as design changes and 10/31/2019 Effectiveness Study modifications to the barriers, if accident/incident data substantiate operator

concerns.

10


No. Number

Report Date Entity

Title Exec Area Rec No Recommendation Finding/Corrective Action Completion Complotlon Date Date

Bus Operator Safety Metro should further study why bus operators feel the bus safety barriers do not 30 19-AUO-08 4/2212019 OIG Barrier Use and Operations Sa provide the protection needed to make them feel more secure and the other 10/31/2019

Effectiveness Study measures bus operators would like to see implemented.

Bus Operator Safety Evaluate the current design of the safety barriers to determine if bus operators' 31 19-AUD-08 4/22/2019 OIG Barrier Use and Operations Sb concerns can be addressed through design changes and modifications made to 10/31/2019

Effectiveness Study the safety barriers.

Create a committee comprised of bus operators, Supervisors and Managers, Safety Department, and Bus Operations and Bus Maintenance personnel to

Bus Operator Safety investigate these issues and to determine appropriate mitigations. The focus of

32 19-AUD-08 4/22/2019 OIG Barrier Use and Operations Sc the committee should include an effort to increase barrier use, identify ways to


make the barriers more effective, and evaluate training, and improve data collection and accuracy. Metro could also consider utilizing an existing committee to take on this action, if one has already been established for investigating possible safety issues with systems and equipment.

Bus Operator Safety Metro should review safety barrier and de-escalation training to evaluate scope of attendees, frequency, content, method of delivery, consistency of delivery, and

33 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 6a employee engagement and understanding. Results from these evaluations should


be used to modify training programs as necessary.

Bus Operator Safety Consider adding both training classes as part of the new hire training course and 34 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 6b periodic refresher training for current operators along with any other ongoing 10/31/2019

Effectiveness Study training requirements.

Bus Operator Safety Metro should continue to follow its current strategies and implement its current 35 19-AUD-08 4/22/2019 OIG Barrier Use and Operations 7a programs to prevent assaults on bus operators. These programs are consistent 10/31/2019

Effectiveness Study with Industry best practices.

Bus Operator Safety Consider using some of the evaluation tools developed by TCRP to identify in

36 19-AUO-08 4/22/2019 OIG Barrier Use and Operations 7b more detaa where its greatest risks reside and employ tactics such as targeted


fare enforcement and policing patrols to address problem areas using existing resources.

*This total does not include recommendations for the Audit of Westside Purple line Extension Section 2- Modification No. 52 as the management response and/or estimated completion dates are still pending.

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september 9, 2019 - state pf audit recommendations as of...

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