to the wmata board of directors summary...implement the base24-es debit-credit switch software...

August 22, 2005 AUD 05-Q004

TO THE WMATABOARD OF DIRECTORS

THIS DOCUMENT IS FOR INTERNAL USE ONLY

SUMMARY

This report to the Board of Directors contains descriptions and synopses of all reports and certain memoranda issued by the Auditor General for the following period:

• April 1, 2005 thru June 30, 2005

Guidance regarding issuance of this document is provided in the transmittal memorandum on the first page.

MEMORANDUM FOR: Chairman and Members of the Board SUBJECT: Fourth Quarter Audit Report Summary The attached Quarterly Report brings the Board up to date on all audit reports published during the fourth quarter of FY 2005. Distribution of this Quarterly Report is made on a controlled basis as described in the transmittal memo on the first inside page. Richard A. White General Manager and Chief Executive Officer Attachment

AUD 05-Q004

AUDITOR GENERAL WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

Fourth Quarter Audit Report Summary

Transmitted herewith are synopses of the Contract Audit Reports, Contract Audit

Memoranda on Pricing Proposals, Internal Audit Reports, Internal Audit Advisory

Reports, and Investigative Advisory Report completed during the fourth quarter of

FY 2005.

During the fourth quarter, we issued 10 Contract Audit Reports. We also issued

39 Contract Audit Memoranda on Pricing Proposals, 2 Internal Audit Advisory

Reports, 4 Internal Audit Reports and 1 Investigative Advisory Report.

We issued 2 Internal Audit Advisory Reports on Review of Internal Controls related to Accounts Payable and Review of Exception Card Administration which are summarized on page 26-27.

We issued 4 Internal Audit Reports on Review of Bus Maintenance Performance Standards, Review of FY2004 Purchase Card Program, Review of Fuel and Power Management, and Review of WMATA BUSV Revenue which are summarized on pages 28-46.

We issued 1 Investigative Audit Advisory Report on Hotline Complaint –MetroAccess Customer which is summarized on pages 47-48.

THIS DOCUMENT IS FOR INTERNAL USE ONLY I

AUD 05-Q004

As a result of WMATA initiating quarterly Audit committee meetings, the audit

reports contained in this Quarterly Report will be summarized and discussed with

the Audit Committee members at the next Audit Committee meeting. Redacted

copies of each of the reports will be available for public release as determined by

the Audit Committee.

We will continue to have contract audit reports and memoranda available for

examination by Board Members at WMATA at any time. However, to comply

with assurances to contractors that we will protect their proprietary data and to

preserve their vital interest in competing for contracts with WMATA, it is

necessary that these reports and memoranda remain within the building. In the

case of internal audit reports and memoranda, a copy of a report or

memorandum can be transmitted to the requesting Board Members when

requested. In certain cases where tighter control is warranted, the procedure

utilized for contract audit reports and memoranda would apply.

James C. Stewart Auditor General Enclosures a/s


ii

AUD 05-Q004

TABLE OF CONTENTS

PageContract Audit Reports

Prenegotiation Audits 1

Contract Audit Memoranda on Pricing Proposals

Audits of Rates 9

Prenegotiation Audits 20

Capital Transit Consultants (CTC) Proposals 23

Internal Audit Advisory Reports 26

Internal Audit Reports 28

Investigative Audit Advisory Report 47

N:\Quarterly Report\fourthQTR-05-ltr.memo.doc


iii

QUARTERLY REPORT ON

FOURTH QUARTER OF FY 2005

CONTRACT AUDIT REPORTS

Date And Report No. Subject of Report and Summary PRENEGOTIATION AUDITS: April 22, 2005 AUD 05-031 Audit of Proposal to Provide New or Rebuilt Escalator

Steps at Various Rail Stations, Submitted by Schindler Elevator Corporation, Contract FJ0957, PCO No. 034

Audit of the Contractor’s Uni-Step $2,547,288 proposal for 7,862 steps results in recommended audit adjustments of $172,964 primarily due to reduction of material costs.

Audit of the Contractor’s alternative Rebuilt Step $1,910,466 proposal for 7,862 steps results in recommended increase audit adjustments of $23,586. The net increase is for markups primarily as a result of a higher G&A rate per Audit than proposed by the Contractor.

As a result of our audit of the price for the two alternatives, we determined that the unit price difference per step is $56 subject to technical evaluation.

Additional adjustments may be necessary as a result of a technical evaluation. Current Status: Modification No. 46 which incorporated audit recommendations was issued in the amount of $1,399,842. Refurbished steps were deleted from the contract and new steps were purchased resulting in the net price of $1,399,842.

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Date And Report No. Subject of Report and Summary May 03, 2005 AUD 05-034 Audit of Proposal Submitted by Jones Vertrans, A Joint

Venture, Contract FK0243, Escalator Rehabilitation and Replacement of Controllers at Various Rail Stations Spare Parts, Phases 1-4

Evaluation of the Contractor’s $1,166,339 proposal on Spare Parts for Multi-Year Contract for Escalator Rehabilitation and Replacement of Controllers at Various Rail Stations results in recommended audit reductions of $11,079 as follows:

• $9,979 due to lack of supporting documentation • $2,066 due to incorrect unit prices quoted to WMATA for

two units • $1,045 due to Sales Tax Discount not passed to WMATA • $2,007 increase due to arithmetic error

We have a concern in that the Contractor is proposing to furnish Steps to WMATA at a cost of $473,281 higher than the other escalator maintenance contractor. The Contracting Officer should attempt to obtain better pricing for this item.

Additional adjustments may be necessary as a result of technical evaluation. Current Status: The proposal will be negotiated with the contractor.

Page 2 of 48

QUARTERLY REPORT ON



Date And Report No. Subject of Report and Summary May 03, 2005 AUD 05-035 Audit of Proposal Submitted by Jones Vertrans, A Joint

Venture, Contract FK0243, PCO No. 094, Escalator Rehabilitation and Replacement of Controllers at Various Rail Stations, Additional Part C Funding

Evaluation of the Contractor’s $496,762 proposal for Multi-Year Contract for Escalator Rehabilitation and Replacement of Controllers at Various Rail Stations results in recommended adjustments of $6,526 due to the reduction of the average unit price.

Additional adjustments may be necessary as a result of technical evaluation.

Current Status: The proposal will be negotiated with the contractor.

June 13, 2005 AUD 05-036 Audit of Proposal to Provide Escalator Rehabilitation and

Replacement of Controllers at Various Rail Stations, Spare Parts for Phases 1 - 4, Submitted by Schindler Elevator Corporation, Contract FJ0957

Audit of the Contractor’s $1,288,825 proposal to provide spare parts for units to be rehabilitated in Phases 1-4 results in recommended audit adjustments of $269,395 primarily due to reduction of material unit costs and application of the contractually specific mark-up to the material cost rather than the mark-up used by the Contractor .

Additional adjustments may be necessary as a result of a technical evaluation.

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QUARTERLY REPORT ON



Date And Report No. Subject of Report and Summary AUD 05-036 (Con’t) Current Status: Schindler agreed to use the audited

amounts for material spare parts. They will resubmit their parts list using the audited prices. WMATA will then choose the items and quantities of spare parts needed on the contract.

May 20, 2005 AUD 05-037 Audit of Proposal to Provide Escalator Rehabilitation and

Replacement of Controllers at Various Rail Stations, Increase Allowance for Service Availability Incentive Program, Submitted by Schindler Elevator Corporation, Contract FJ0957, PCO No. 037

Audit of the Contractor’s $1,444,854 proposal to provide increase allowance for service availability incentive program, results in recommended audit adjustments of $77,664 primarily due to the actual incentive/disincentive value being lower than the Contractor’s estimate.

Additional adjustments may be necessary as a result of a technical evaluation. Current Status: Modification No. 43 was issued. Audit recommendations were incorporated resulting in a net price of $1,400,000. The Modification was based upon an estimate of the projected requirement. The contract is expected to need slightly less than $1.4M. WMATA is in the process of adding some new units (new parking garage units at Shady Grove, Grosvenor, etc), that will require more maintenance and incentive money. The additional amounts need to be accounted for in WMATA’s calculations. These additions were not part of the proposal or audit.

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Date And Report No. Subject of Report and Summary AUD 05-037 (Con’t) Since the amount of incentive that the contract can actually

achieve is subject to actual field condition, the modification was issued at a value that would be sure to cover WMATA’s future needs. If the contractor does not earn the entire $1.4M, the money will not be paid.

June 07, 2005 AUD 05-038 Audit of Proposal for Support to Implement Applied

Communications, Inc. (ACI) Base24-es Debit/Credit Switch Application, Submitted by Cubic Transportation Systems, Inc., Contract C44444

Examination of the Contractor’s revised $138,771 proposal to implement the ACI Base24-es Debit/Credit Switch Application results in recommended audit adjustments of $3,101 primarily due to adjustments to indirect rates based on current rates.

Additional adjustments may be necessary as a result of a technical evaluation. Current Status: Modification No. 1 was issued on July 22, 2005. Audit recommendations were incorporated resulting in a net price of $136,695.

June 07, 2005 AUD 05-039 Audit of Proposal for Regional Bus Fare Collection System,

Supply and Install Additional Fareboxes Plus Other Options, Submitted by Cubic Transportation Systems, Inc., Contract FJ5872, PCO No. 022

Examination of the Contractor’s $658,065 proposal to furnish 31 fareboxes plus other options results in recommended audit adjustments of $4,139 primarily due to adjustments to indirect rates based on current rates.

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Date And Report No. Subject of Report and Summary AUD 05-039 (Con’t) Additional adjustments may be necessary as a result of

technical evaluation. Current Status: Modification No. 21 which incorporated the audit recommendations was issued for 14 fareboxes. The contract value is $146,500 which includes $6,500 for spares.

June 13, 2005 AUD 05-043 Audit of Proposal to Provide Escalator Rehabilitation and

Replacement of Controllers at Various Rail Stations, Spare Parts for Phase 5, Submitted by Schindler Elevator Corporation, Contract FJ0957, PCO No. 036

Audit of the Contractor’s $338,259 proposal to provide spare parts for units to be rehabilitated in Phase 5 results in recommended audit adjustments of $57,391 primarily due to reduction of material unit costs and application of the contractually specified mark-up to the material cost rather than the mark-up used by the Contractor.

Additional adjustments may be necessary as a result of a technical evaluation. Current Status: Schindler agreed to use the audited amounts for material spare parts. They will resubmit their parts list with the audited prices. WMATA will then choose the items and quantities of spare parts needed on the contract.

Page 6 of 48

QUARTERLY REPORT ON



Date And Report No. Subject of Report and Summary June 24, 2005 AUD 05-044 Audit of Proposal for the Debit-Credit Switch Software,

Submitted by Applied Communications, Inc. (ACI), Contract FO5096

Examination of the Contractor’s $415,135 proposal to implement the Base24-es Debit-Credit Switch Software appears fair and reasonable, subject to profit considerations and technical evaluation.

The Contracting Officer should evaluate the amount of the profit margin on the project management and Cubic Controller Interface and negotiate a reasonable profit amount.

Additional adjustments may be necessary as a result of a technical evaluation. Current Status: Contract C05096, BASE24-es, Debit-Credit Switch Software, was executed June 29, 2005 between ACI Worldwide, Inc. and WMATA. The base contract amount is $407,185. The Contracting Officer incorporated determinations and findings as contained in the Audit Report.

Page 7 of 48

QUARTERLY REPORT ON



Date And Report No. Subject of Report and Summary June 28, 2005 AUD 05-045 Audit of Potomac Electric Power Company, Incurred Costs for

Construction of Outside Plant to Provide 13.2KV Electric Power Service to Morgan Boulevard and Largo Town Center Traction Power Substations, Work Authorization 6G3043, Master Agreement No. 043

Audit of Work Authorization 6G3043, currently funded in the amount of $5,360,070, results in our determination that the WMATA payments of $4,867,346 exceed PEPCO’s incurred costs by $296,377. We recommend collection of this amount and deobligation of $789,100 after collection of the $296,377.

Further adjustments may be necessary based on WMATA

technical evaluation. Current Status: The Office of Construction has prepared an invoice and submitted it to PEPCO for reimbursement of the over-payment noted in our audit report. Upon receipt of the payment by PEPCO, action will be taken to closeout this work authorization and the deobligation of the excess funds.

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QUARTERLY REPORT ON


CONTRACT AUDIT MEMORANDA ON PRICING PROPOSALS

Date And Report No. Subject of Report and Summary AUDITS OF RATES: C 05-140 April 08, 2005 Audit of Hourly Billing Rate Submitted by Thompson

Colburn LLP, Contract CO5057 – Legal Professional Services, Federal & Jurisdictional Agreement Services

Audit of proposed standard billing rate results in

determination that this rate is based upon the Subcontractor’s prevailing market rate for the proposed staff services.

C 05-141 April 08, 2005 Audit of Hourly Rates Submitted by Russell Corrosion

Consultants, Inc., Subcontractor to Parsons, Brinckerhoff, Quade and Douglas, Inc., IAWP Task Orders, FY 2005

Audit of the proposed labor rates as of July 2004 results in verification of the actual labor rates and determination that escalation should be limited. Audit of the proposed overhead rate results in recommended reductions to exclude excessive indirect labor and unallowable costs per the Federal Acquisition Regulations.

C 05-145 April 22, 2005 Audit of Hourly Billing Rate Submitted by Leonard

Communications, Inc., Subcontractor to DMJM/DeLeuw Cather, Contract DMJM05, Integrated Annual Work Program, Engineering Services

Audit of the proposed billing rate results in

determination that it is the Subcontractor’s prevailing market rate and appears reasonable.

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Date And Report No. Subject of Report and Summary C 05-147 April 27, 2005 Audit of Proposed Overhead Rates Submitted by Parsons

Brinckerhoff Quade & Douglas, Inc., Contract SF5070, FY 2006 General Architect/Engineering Consulting Services

Audit of the Consultant’s home and field office overhead rates for FY 2006 services results in minor adjustments to exclude facilities capital cost of money.

C 05-152 May 09, 2005 Audit of Rates submitted by HKC, Inc., Subcontractor to

Booz Allen & Hamilton, Inc., Contract BAH05, FY 2005 Integrated Annual Work Program Engineering Services

Audit of the proposed labor rates as of February 2005 results in verification of the actual labor rate. Audit of the proposed overhead rate results in recommended reduction to exclude unallowable costs per the Federal Acquisition Regulations.

C 05-154 May 09, 2005 Audit of Hourly Rates Submitted by Transit Systems

Management, Inc., Subcontractor to Booz-Allen & Hamilton, Inc., IAWP Task Orders, FY 2005 Engineering Services

Audit of the Subcontractor’s proposed labor and

overhead rates results in determination that the proposed rates are reasonably stated.

Page 10 of 48

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Date And Report No. Subject of Report and Summary C 05-155 May 10, 2005 Audit of Rates Submitted by Consensus Systems

Technologies Corp., Subcontractor to DMJM/DeLeuw Cather, Contract DMJM05, FY 2005 Integrated Annual Work Program Engineering Services.

Audit of the Subcontractor’s proposed labor and

overhead rates results in determination that the proposed labor rate is reasonably stated and that the proposed home office overhead rate required adjustments to reclassify certain expenses as direct cost and to exclude unallowable overhead expenses based upon the Federal Acquisition Regulations.

C 05-156 May 17, 2005 Audit of Proposed Rates Submitted by Parsons

Brinckerhoff Quade & Douglas, Inc., Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Consultant’s average labor classification rates results in determination that the proposed rates, after adjustment for the previously audited overhead rate, are reasonably stated with the exception of the Technical Advisor I classification rate. Since this proposed classification rate was significantly higher than our calculated rate, we recommended reduction of the proposed rate to the audited rate.

C 05-158 May 20, 2005 Audit of Proposed Rates Submitted by Althavale, Lystad

& Associates, Subconsultant – Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the proposed labor classification rates as of May 2, 2005 and Calendar Year 2004 Home Office Overhead rate results in determination that the proposed rates are reasonably stated.

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Date And Report No. Subject of Report and Summary C 05-159 May 20, 2005 Audit of Proposed Rates Submitted by Coastal

Resources, Inc., Subconsultant – Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s average labor classification rates and Calendar Year 2004 Home Office Overhead rate results in determination that the proposed rates are reasonably stated with the exception of the Associate Professional I classification rate. Since this proposed classification rate was significantly higher than our calculated rate, we recommended reduction of the proposed rate to the audited rate.

C 05-160 May 20, 2005 Audit of Proposed Rates Submitted by Parsons

Transportation Group, Inc., Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Consultant’s average labor classification rates results in determination that the proposed rates, after adjustment for the previously audited overhead rate, are reasonably stated with the exception of the Technical Advisor I classification rate. Since this proposed classification rate was significantly higher than our calculated rate, we recommended reduction of the proposed rate to the audited rate.

C 05-161 May 23, 2005 Audit of Rates Submitted by Delon Hampton &

Associates, Chartered, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Consultant’s average labor classification rates results in determination that the proposed rates, after adjustment for the previously audited overhead rate, are reasonably stated.

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Date And Report No. Subject of Report and Summary C 05-163 May 23, 2005 Audit of Proposed Rates Submitted by Saeed Associates,

Chartered, Subconsultant - Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s average labor classification rates and home office overhead rate results in determination that the proposed rates are reasonably stated.

C 05-164 May 23, 2005 Audit of Proposed Rates Submitted by Rail Systems

Solutions, LLC, Subconsultant - Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s proposed average

classification labor rates as of May 2005 results in determination that the proposed rates are reasonably stated. Audit of the proposed home office overhead rate results in adjustments to the Calendar Year (CY) 2004 rate and cost projections for CY 2005 based upon additional staff positions for this contract.

C 05-166 May 27, 2005 Audit of Proposed Rates Submitted by Planners

Collaborative, Inc., Subconsultant - Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s average labor classification rates and home office overhead rate results in determination that the proposed rates are reasonably stated.

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Date And Report No. Subject of Report and Summary C 05-167 May 27, 2005 Audit of Proposed Rates Submitted by Travesky &

Associates, LTD, Subconsultant - Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s average labor classification rates results in determination that the proposed rates are reasonable with the exception of the Administrative Aide classification rate. Since this proposed classification rate was significantly higher than our calculated rate, we recommended reduction of the proposed rate to the audited rate. Audit of the proposed home office overhead rate results in determination that it is reasonably stated.

C 05-168 May 27, 2005 Audit of Hourly Rates Submitted by Foley & Lardner LLP,

Subcontractor to DMJM/DeLeuw AJV, Contract DMJM04, FY 2004 Integrated Annual Work Program, Legal Services

Audit of proposed standard billing rates results in

determination that these rates are based upon the Subcontractor’s prevailing market rates. However, we also determined that local rates rather than national rates are applicable to two of the proposed positions resulting in a reduction of approximately 12 percent to the proposed rates for these positions.

C 05-169 May 31, 2005 Audit of Hourly Rates Submitted by Henson Consulting,

Inc., Subcontractor to Booz Allen & Hamilton, Inc., IAWP Task Orders, FY 2005 Data Base Management Services

Audit of the Subcontractor’s proposed labor and field office overhead rates results in determination that the proposed rates are reasonably stated.

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QUARTERLY REPORT ON



Date And Report No. Subject of Report and Summary C 05-171 June 02, 2005 Audit of Proposed Rates Submitted by Mercado

Consultants, Inc., Subconsultant – Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s average labor classification rates results in determination that the proposed rates are reasonably stated with the exception of the Associate Technician classification rate. Since this proposed classification rate was significantly higher than our calculated rate, we recommended reduction of the proposed rate to the audited rate. Audit of the proposed home office overhead rate results in determination that it is reasonably stated.

C 05-172 June 02, 2005 Audit of Proposed Rates Submitted by Russell Corrosion

Consultants, Inc., Subconsultant – Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s proposed average classification labor rates and home office overhead rate results in determination that the proposed rates are reasonably stated.

C 05-175 June 10, 2005 Audit of Proposed Rates Submitted by Sidhu Associates,

Inc., Subconsultant – Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services


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Date And Report No. Subject of Report and Summary

C 05-176 June 10, 2005 Audit of Proposed Rates Submitted by GeoConcepts

Engineering, Inc., Subconsultant – Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s proposed average classification labor rates as of May 2005 results in verification of the actual labor rates and determination that escalation should be limited to a reasonable rate. Audit of the proposed home office overhead rate results in recommended reductions to exclude excessive indirect labor.

C 05-178 June 10, 2005 Audit of Proposed Rates Submitted by Gallop

Corporation, Subconsultant – Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services


C 05-179 June 10, 2005 Audit of Proposed Rates Submitted by Ducom, Inc.,

Subconsultant, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services


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Date And Report No. Subject of Report and Summary C 05-180 June 10, 2005 Audit of Proposed Rates Submitted by TransSystems

Corporation, Subconsultant, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s proposed average classification labor rates as of June 2005 results in verification of the actual labor rates and determination that escalation should be limited to a reasonable rate. Audit of the proposed home office overhead rate results in recommended reductions to exclude excessive indirect labor.

C 05-181 June 15, 2005 Audit of Proposed Rates Submitted by Bellomo-McGee,

Inc., Subcontractor to DMJM/DeLeuw, AJV, Contract DMJM04, FY 2004 Integrated Annual Work Program, Planning Management

Audit of the proposed labor rates as of August 2003 results in verification of the actual labor rates. Audit of the proposed home office overhead rate results in recommended reductions to exclude unallowable costs per the Federal Acquisition Regulations.

C 05-183 June 22, 2005 Audit of Proposed Rates Submitted by GC Tech, Inc., –

Subconsultant, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s proposed average classification labor rates as of May 2005 results in verification of the actual labor rates and determination that the proposed home office overhead rate is reasonably stated.

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Date And Report No. Subject of Report and Summary C 05-184 June 22, 2005 Audit of Proposed Rates Submitted by RRR Engineering,

LLC – Subconsultant, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services


C 05-185 June 23, 2005 Audit of Proposed Rates Submitted by Kittleson &

Associates, Inc., Subconsultant, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services


C 05-187 June 27, 2005 Audit of Proposed Rates Submitted by KM Chng

Environmental, Inc., Subconsultant, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s proposed average classification labor rates as of May 2005 results in verification of the actual labor rates and determination that escalation should be limited to a reasonable amount. Audit of the proposed home office overhead rate results in recommended reductions to exclude excessive indirect labor.

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Date And Report No. Subject of Report and Summary C 05-189 June 29, 2005 Audit of Proposed Rates Submitted by Illium Associates,

Inc., Subconsultant, Contract SF5070 – FY 2006 General Architect/Engineering Consulting Services

Audit of the Subconsultant’s proposed average classification labor rates as of May 2005 results in verification of the actual labor rates and determination that escalation should be limited to a reasonable amount. Audit of the proposed home office overhead rate results in recommended reductions to exclude excessive indirect labor.

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Date And Report No. Subject of Report and Summary PRENEGOTIATION AUDITS: C 05-144 April 12, 2005 Audit of Proposal Submitted by Booz Allen & Hamilton,

Inc., Operating Budget System Migration Support Services

Audit of proposal in the amount of $90,634 results in

recommended adjustments of $9,632 as follows:

• $8,266 based upon audited billing rate. • $976 to exclude commuting expenses. • $390 to exclude excessive travel costs.

Current Status: PRMT negotiated a settlement in the amount of $89,268 after applying the recommended audit reductions of $1,366 for commuting and travel expenses. The recommended audit adjustment of $8,266 for billing rate differences was not accepted during negotiations due to concerns of the project office regarding the urgency and critical nature of the project and the contractor’s position that it was already giving a 3.18 percent reduction off the actual GSA Schedule rates.

C 05-146 April 26, 2005 Audit of Proposal Submitted by Schindler Elevator

Corporation, Escalator Rehabilitation and Replacement of Controllers at Various Rail Stations, Posi-Drive Material Shortage, Contract FJ0957, PCO No. 056

Audit of proposal in the amount of $51,777 results in recommended net audit adjustment of $91 to apply audited unit costs for material and to apply audit mark-up rates for material overhead and home office G&A.

Current Status: Modification No. 23 which incorporated audit recommendations was issued in the amount of $51,001.

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Date And Report No. Subject of Report and Summary C 05-148 May 03, 2005 Audit of Proposal Submitted by Schindler Elevator

Corporation, Additional Posi-Drive Assemblies (8 Escalators), Contract FJ0957, PCO No. 028

Audit of proposal in the amount of $74,525 results in recommended audit adjustment of $32,536 to apply audited unit costs for material and to apply audit mark-up rates for material overhead and home office G&A.

Current Status: Modification No. 25 which incorporated audit recommendations was issued in the amount of $41,953.

C 05-174 June 06, 2005 Audit of Proposal Submitted by Booz Allen & Hamilton,

Inc., Mead 79766, ITRP Workforce Development Support Services – FY 2005

Audit of the Contractor’s sole source proposal in the amount of $2,236,522 results in determination that due to administrative advantages obtained from use of the GSA Schedule pricing and in consideration of the reasonable difference between pricing under cost based rates and the GSA Schedule rates, the parties split the difference between the proposed GSA Schedule pricing and the cost based rates resulting in recommended savings of $71,106.

Current Status: PRMT negotiated the recommended reduction in the GSA vs. CPFF pricing thereby achieving the $71,106 savings. PRMT made additional adjustments relative to levels of effort and a Purchase Order was awarded in the amount of $2,220,450.

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Date And Report No. Subject of Report and Summary C 05-182 June 22, 2005 Audit of Sole Source Proposal Submitted by American

Traffic Safety Services Association – MEAD No. 93750, Managing Metro Emergencies Training Class

Audit of the Contractor’s proposal in the amount of $278,750 results in recommended adjustments of $1,513 to limit hotel accommodations to the Authority’s maximum rate for Washington, D.C. and to reduce the proposed overhead and profit mark-up amount accordingly.

Current Status: The proposal is currently being negotiated with the Contractor.

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Date And Report No. Subject of Report and Summary CAPITAL TRANSIT CONSULTANTS (CTC) PROPOSALS: C 05-153 May 09, 2005 Audit of Proposal Submitted by Capital Transit

Consultants for FY 2005 Task Order Services, Task Order No. 05-FG1451-RVEH-7, 8-Car Train Precision Station Stopping Support

Audit of the $183,310 proposal from the Capital Transit Consultants for FY 2005 task order services results in a recommended net increase adjustment of $3,967. • Increase adjustments of $3,907 relate to

application of the labor and overhead rates verified per our prior audits for the proposed firms, including reduction of $9 for the Prime Contractor and increases of $3,916 for the three subcontractors.

• An increase adjustment of $60 was applied to the

Prime Contractor’s overhead on other direct costs consistent with agreed upon treatment of this mark-up.

Current Status: PRMT negotiated this task order in the amount of $187,277 and used the audited billing rates.

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Date And Report No. Subject of Report and Summary C 05-157 May 17, 2005 Audit of Proposal Submitted by Capital Transit

Consultants for FY 2005 Task Order Services, Task Order No. 05-FG1451-RVEH-3, 6000 Series New Car Procurement Support

Audit of the $3,054,994 proposal from the Capital Transit Consultants for FY 2005 task order services results in a recommended net adjustment of $11,004. • Net adjustments of $3,170 relate to application of

the labor and overhead rates verified per our prior audits for the proposed firms, including reduction of $7,512 for the Prime Contractor and a net increase of $4,342 for the six subcontractors.

• A net decrease adjustment of $7,834 results from

adjustment of temporary living expenses. • In addition, we recommended a $9,704 reduction

of related mark-up on other direct costs and an increase of $1,906 for subcontractor travel expenses.

Current Status: PRMT negotiated this task order in the amount of $2,737,756 using the audited billing rates.

C 05-170 May 31, 2005 Audit of Proposal Submitted by Capital Transit

Consultants for FY 2005 Task Order Services, Task Order No. 05-FG1451-RVEH-1, Breda 2000/3000 Series Overhaul Support

Audit of the $2,433,091 proposal from the Capital Transit Consultants for FY 2005 task order services results in a recommended net adjustment of $22,072.

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Date And Report No. Subject of Report and Summary

C 05-170 (Con’t)

• Net adjustments of $22,721 relate to application of the labor and overhead rates verified per our prior audits for the proposed firms, including a reduction of $35,011 for the Prime Contractor and a net increase of $12,290 for the eight subcontractors.

• An increase adjustment of $649 was applied to the

Prime Contractor’s overhead on other direct costs consistent with agreed upon treatment of this mark-up.

Current Status: PRMT negotiated this task order in

the amount of $2,830,630 using the audited billing rates. WMATA negotiated an increase in hours for inspectors from part-time to full-time as authorized by Rail Engineering.

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INTERNAL AUDIT ADVISORY REPORTS Date And Report No. Subject of Report and Summary

AUD 05-A0010 June 27, 2005 Review of Internal Controls Related to Accounts Payable

Our review of the internal controls related to the accounts payable function indicated that the internal control environment was adequate, except for the areas summarized in the report that require improvement. Our testing of accounts payable transactions indicated compliance with WMATA’s policies/procedures and laws and regulations. Our evaluation of internal controls pertaining to processing and recording of accounts payable transactions determined that the internal controls were adequate. During our review, we noted that the accounts payable function is in transition due to the ongoing implementation of the Information Technology Renewal Program (ITRP). Under the ITRP, the accounting information systems at WMATA are in the process of being converted to PeopleSoft from various legacy systems. Three financial modules are currently in production, including the accounts payable module which was placed into production effective July 1, 2004. WMATA’s policies and procedures addressing the accounts payable function are not current and not adequately documented due to the implementation of the new accounting system. ACCT and ITSV need to strengthen the accounts payable reporting process by continuing the training of employees to improve in-house technical expertise. Our evaluation of the general and application controls of information technology data security indicates that WMATA currently lacks adequate in-house resources and expertise pertaining to the accounts payable module of PeopleSoft.

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INTERNAL AUDIT ADVISORY REPORTS Date And Report No. Subject of Report and Summary

AUD 05-A0011 June 13, 2005 Review of Exception Card Administration

Since inception of the program, WMATA has issued a total of more than 1,900 SmarTrip exception cards that permit individuals to exit WMATA parking facilities without charge or need to exit a gate maintained by the parking Contractor’s Parking Customer Assistance Representative (PCAR). Currently, 1,400 exception cards are actively being used by a variety of entities, including the parking Contractor’s PCARs, MTPD, designated WMATA employees and local police and parking jurisdictions. Cards are directly issued and controlled by ASOT, tracked by PARK and maintained in a master file by TRES and ITSV. ASOT issues cards based on an assessment of need, function and history. ASOT and PARK monitor daily for any potential exception card abuse, specifically by WMATA employees located at Montgomery Bus and Maintenance Facility who use the White Flint Rail Station parking lot and the parking Contractor’s PCARs. Employees found abusing their exception card are reported to their responsible supervisor. Supervisors may reprimand and in some cases confiscate exception cards from these employees. A written procedure for issuing exception cards will allow ASOT and PARK staff a consistent and effective way to control the distribution of exception cards.

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INTERNAL AUDIT REPORTS Date And Report No. Subject of Report and Summary

AUD 05-033 Review of Bus Maintenance Performance Standards May 16, 2005

BUS established goals and performance indicators to monitor how effectively they provide safe and reliable transportation. There are eight major goals but only one was attained during FY 2004. The goal for bus availability was 100 percent and it was accomplished. Other goals monitored are: Road Calls Mean Distance between Failures Accidents Mean Distance between Service Interruptions Lost Trips Passenger Complaints Controllable Absenteeism Mean Distance Between Failures (MDBF) is an important performance measurement as it is a good indicator of the maintenance program and it directly affects customer perception of WMATA’s service. MDBF goal for FY 2004 was 6,300 miles and the actual was 4,733 miles. FY 2005 to date is 5,368 miles which represents a 13.4% improvement. Several factors contribute to the low MDBF. They are average age of the bus fleet, no new buses assigned during FY 2004, the city environment that the buses are used and Bus Operators have not sufficiently performed required pre-trip inspections to asses the condition of the assigned bus before going into revenue service.

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AUD 05-033 (Con’t)

BUS initiated several actions to improve reliability. These included forming the BUS Engineering group, implementing a fluid analysis program, revising the Standard Operating Procedures (which included the preventive maintenance program) and creating Standard Practice Bulletins. These actions resulted in a general improvement in Mean Distance between Failures (MDBF). Recently, BUS implemented a policy to require and monitor the bus operators performing the pre-trip inspections. BUS has set goals and accumulated data by BUS Division, but has not analyzed the data by individual garages to identify issues and/or trends by garage. We recommended the following 7 actions:

• BUS should evaluate the current performance indicators to ensure that they are relevant to their overall goals and to determine if they properly reflect needed maintenance efforts and accomplishments.

• BUS should perform analyses to determine why

goals at each Division were not met. In performing these analyses, BUS should determine reasons for low performance indicators by Division and evaluate trends.

• BUS should review the performance indicators at

other transportation organizations (non public transit) to ascertain efficiencies that they can incorporate in their processes. BUS should determine if other transportation organizations’ performance indicators can be incorporated into the BUS maintenance environment.

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• BUS should implement a quality control process to follow-up on deferred corrective actions noted during preventive maintenance inspections and ensure that deficiencies are corrected in a timely manner.

• BUS should ensure that the operators comply with

the Standard Operating Procedures and perform required pre-trip inspections.

• BUS should review its time standards as it applies

to tasks performed on the Orion buses and adjust its time standards accordingly. BUS should also reevaluate its time standards for the remaining bus manufacturers and accomplish the following:

a. review time standards for tasks performed

in the Heavy Overhaul Maintenance Facility (HOMT) and include the time standards in the automated systems.

b. perform time and motion studies to

determine appropriate time standards for each maintenance activity.

c. contact private bus companies such as

Greyhound and Peter Pan and ascertain what time standards and performance measurements they use in evaluating maintenance efficiency.

• BUS should ensure access to the Maintenance

and Materials Management System so that analyses can be performed at the Division level to determine the factors that prevent goal attainment and evaluate trends.

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AUD 05-041 Review of FY2004 Purchase Card Program June 23, 2005

During FY 2004, WMATA employees spent $9.7 million through the Purchase Card Program. The Office of Procurement and Materiels (PRMT) is responsible for establishing internal controls in the program. However, all Departments/Offices that use purchase cards are responsible for the program's integrity. We found the same issues in FY 2004 that were evident in FY 2003. The program has an internal control structure including a review and approval process. We still note instances of policy violations which created an environment that could make the Purchase Card Program vulnerable to abuse. We found the following:

• Split purchases were made which circumvented the purchase card single transaction limit of $2,500

• Several transactions were missing receipts or other supporting documentation

• Some of the accountable property purchased was not bar-coded and thus not included in the Financial Accounting Management System

• Some purchase card files were not always properly maintained

• Several purchases made were in excess of the $2,500 maximum allowed single transaction amount.

Three recommendations from our prior Audit Report have not been implemented. They have been repeated in this report.

We recommended the following actions to implement which will strengthen the program:

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AUD 05-041 (Con’t)

1. Since this is the third year of repeated violations of policy, the cardholders that are repeat offenders pertaining to lack of receipts, having split purchases or had their cards used by others should have their purchase card privilege revoked.

2. The Deputy General Managers, Assistant General

Managers and/or General Superintendents should evaluate the recommendations as it relates to employees in their Divisions, Departments and/or Offices and in conjunction with the PCA ensure that each of the recommendations in the report are implemented.

Based on Recommendation 2, the PCA should coordinate

with the Deputy General Managers, Assistant General Managers and/or General Superintendents to ascertain that recommendations 3 through 15 are implemented.

3. The PCA should interview cardholders who were cited

for split purchases and for not having receipts (at least $1200). Strong consideration should be given to whether the purchase card should be cancelled or if other action should be taken and report their decision and reasons to us.

4. The PCA should continue to offer periodic refresher

courses to cardholders and approving officials (especially those who are specified in the report) to ensure compliance with the Program Manual. The refresher courses should emphasize the following:

• Cardholders are required to maintain receipts

or other supporting documentation for purchases

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AUD 05-041 Con’t)

• Cardholders and approving officials should sign the purchase card log

• The prohibition against split purchases

• Accountable property items are required to be

recorded and WMATA property decals attached

• Cardholders should not permit other

employees to use their cards

5. The PCA should advise purchase cardholders, approving officials and Department/Office Directors of the concerns found in this review and request that action be taken to prevent future occurrences of a similar nature subject to elimination of purchase card privileges.

6. Departments/Offices reduce the Approving Officials'

span of control to provide better oversight and control of the program.

7. The PCA should ensure that cardholders and

Approving Officials know that their signatures are required on the Purchase Card Log before they are submitted to ACCT. The authority to use purchase cards should be withdrawn from these cardholders and approving officials, if they do not follow this essential internal control.

8. The PCA should report SONCO and U.S. Couriers to

the Visa Credit Card Co. because they assessed WMATA a surcharge for their services. Also, if the practice continues, the PCA should prohibit cardholders from using their services.

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AUD 05-041 Con’t)

9. The PCA should require Approving Officials to attend purchase card training with emphasis placed on their role in the process.

10. The PCA should inform cardholders to record the

WMATA barcode number on the monthly Purchase Card log under the description column for all accountable property.

11. The PCA should determine why cardholders'

transactions appeared on the ProCard Statement of Account but not on the monthly Visa statement.

12. The PCA should determine why one cardholder's

transactions appeared on the monthly Visa statement but not the monthly ProCard statement of Account.

13. The PCA should pursue obtaining a credit for the

county taxes paid to the Holiday Inn in Silver Spring. If the county taxes are not credited to the cardholder's account, all cardholders should be prohibited from using purchase cards when staying at the hotel.

14. The PCA should ensure that the cardholders who had

overpayments seek reimbursement for the charges.

15. PRMT should evaluate whether it is feasible or cost effective to establish Blanket Purchase Agreements with vendors that have done business with purchase cardholders in excess of $25,000.

16. ACCT should review its current procedures to ensure

that submitted PTRs are accounted for and entered into FAMS in a timely manner.

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AUD 05-042 Review of Fuel and Power Management June 17, 2005

Fuel and power costs represent a significant expenditure. For FY 2005, diesel fuel, gasoline, compressed natural gas and electricity for propulsion power were budgeted for $49.3 million. Currently, WMATA has incurred costs of $59.7 million or $10.3 million over budget for these products. Overages are primarily due to diesel fuel costs. During FY 2005, WMATA also paid one supplier $738,880 for FYs 2001 through 2004 unpaid invoices and two other suppliers at least $121,000 for gasoline taxes not owed. Since 2001, WMATA has paid approximately $590,000 to the two suppliers for these taxes.

As a result of our findings, these taxes have been recouped or are in the process of being recouped. However, the refunds are not credited against the contract cost because WMATA’s system treats these refunds as reimbursements. The fuel delivery process needs improvement to ensure that it is effectively managed. Methods used and documentation maintained were inconsistent from location to location.

Ensuring that WMATA only pays for the fuel actually received is difficult because the delivery amounts recorded as received were often hundreds of gallons over or under the amounts ordered. These differences were due in part to taking stick readings rather than using the computerized tank management system in determining amounts received.

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AUD 05-042 (Con’t) Accurately tracking fuel consumption is difficult

because of inconsistencies in reporting systems for fuel. Monthly consumption amounts can vary significantly from one reporting system to another.

As a result of our audit, we identified 24 recommendations for improvement.

Based on the audit findings described in this report, we made the following recommendations: The General Superintendent – BMNT:

• Review SOP 2.5/0 and correct any inconsistencies or

confusion between taking stick readings and Veeder-Root readings.

• Ensure that the SOP is fully implemented within all of

the garages, including ordering and receiving fuel, and preparing required reports.

• Ensure that the review system for determining

payment to suppliers is based on the amounts actually received rather than the suppliers' delivery tickets.

• Ensure the filing of accurate consumption reports with

ENSV and the Budget Analyst.

• Review the Distribution of Costs (Report 54) to determine the purpose of this report and why its consumption amounts are consistently so different from the other reporting systems.

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• Ensure that no pumps or storage tanks have WMATA standard A389 locks, but that all have unique locks and keys controlled by the designated organization and assigned personnel.

The General Superintendent BMNT and the Chief Engineer Facilities:

• Develop a detailed SOP for CNG management which

will address the use of CNG for buses and non-revenue vehicles.

• Ensure this SOP is effective before Four Mile Run

activates its CNG facility.

The Chief Engineer – Facilities:

• Expand P/I 2.3/2 EECM or create a separate P/I or SOP which will include detailed procedures as to how electric power consumption is to be monitored and tracked and how invoices from suppliers are to be reviewed and authorized should a loss of corporate knowledge occur through personnel or organizational changes.

The Director PLNT and the Director TSSM:

• Ensure that the PLNT/TRST (TSSM) SOP is fully and consistently implemented within the rail yards.

• Ensure that no pumps or storage tanks have WMATA

standard A389 locks, but that all have unique locks and keys controlled by the designated organization and assigned personnel.

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AUD 05-042 (Con’t)

• Ensure that all locations with underground storage tanks submit to ENSV Monthly Reconciliation Reports, and submit to the BMNT Budget Analyst accurate reports for General Ledger submissions.

The ENSV Manager and the Director TSSM:

• Ensure that all Veeder-Root systems are properly

maintained and accurate.

• The Superintendent BMNT, the Director PLNT, and the Director TSSM consider whether the two SOPs for bulk fuel management should be combined into an overall OAP for WMATA management of bulk fuels rather than continuing to maintain separate SOPs for the different organizations.

The CFO ensure that:

• FIMA continue to coordinate with PRMT, and other

offices as needed, to reconcile actual usage and/or known contract values with budget estimates, thereby providing more accurate evaluations of potential expenditures for fuels.

• The CFO continue to inform the Board of Directors as

appropriate of potential or estimated budget overruns due to fuel cost escalation.

The Controller ensure that:

• ACCT no longer pays taxes besides those authorized

by the individual contract.

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• ACCT no longer automatically pays invoices that are for a prior fiscal year.

• Internal controls are put into place to ensure that one

clerk does not receive the invoice, verify it for payment, and also make the payment.

• ACCT notifies the CO of all instances in which (1)

invoices received are for a prior fiscal year, or (2) a fuel supplier charges any taxes on its invoices other than those allowed by the contract.

• ACCT fully recoups all Maryland and DC Gas taxes

paid to Mansfield and Truman Arnold.

The PRMT Managing Director:

• Ensure that contract files are updated to include lists of personnel authorized to purchase and receive fuel under the four fuel contracts.

• Ensure that personnel authorized to purchase and

receive fuel are trained in the specific contract provisions and ordering procedures for each contract.

The Controller and the PRMT Managing Director

• Develop a method by which the ACCT clerk responsible for making payments against specific contracts and the CO responsible for the contract coordinate what constitutes allowable charges against each contract.

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AUD 05-046 Review of WMATA BUSV Revenue June 28, 2005

During our audit, we evaluated the cash collection processes and procedures, evaluated whether policies and procedures were adhered to, determined the adequacy of training and staffing levels, evaluated internal controls and reviewed the advantages of the appropriate placement of the cash collection process.

The BUSV farebox probing and cash vaulting process is not functioning as intended. The current administrative operating procedure does not adequately address all areas of the process and does not clearly identify the roles and responsibilities of all persons involved.

A summary of our findings is as follows:

Policies and procedures that govern farebox operations need to be improved.

Farebox pullers do not complete their

worksheets and other paperwork correctly.

Also, worksheets need to be revised to be more effective.

All revenue buses are not probed and vaulted

daily.

Current staffing levels for farebox operations are inadequate and need to be improved.

Farebox puller training needs improvement.

Direct supervision of fare box pullers is

inadequate and needs to be improved.

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AUD 05-046 (Con’t)

There are no review procedures in place to evaluate the effectiveness of Farebox Pullers.

We have made sixteen recommendations for improvement in these areas. We recommended that:

• BTRA and BMNT superintendents review the current OAP that governs farebox operations and revise it to include the responsibilities of all persons involved in farebox operations. According to our observations and analysis of farebox operations, in order for 100 percent of the buses to be probed and vaulted daily, and farebox operations to operate effectively, everyone involved in the bus revenue process, including bus operators, maintenance supervisors, farebox pullers, service lane personnel and BTRA supervisors need to be held accountable for their actions. Therefore, the procedures that govern farebox operations should be consistent at all of the bus garages, and should include guidelines for everyone involved in the process and disciplinary action to be taken in the event persons fail to do their part, or violate the procedures.

• Since BMNT supervisors are responsible for the direct supervision of the farebox pullers, BMNT superintendents or their designee should be required to periodically review the worksheets to ensure that their supervisors are complying with the policy. This requirement should also be addressed in the revised OAP.

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AUD 05-046 (Con’t)

• BUSV superintendents revise the paperwork that farebox pullers use to record the buses and reconcile to ensure accountability. The paperwork should be revised so that it provides greater accountability of all buses and ensures that 100 percent of the buses are probed and vaulted daily. The revision should include detailed instructions for buses that are away, foreign buses at the divisions and buses that did not go out on revenue runs. The instructions should be constructed in such a way that the worksheets provide 100 percent accountability of all buses and provide reasonable assurance that all buses were vaulted and probed.

• The definitions and acronyms used to identify the status of buses should be revised to clearly state the true status of each bus assigned to the division.

• BTRA superintendents retrain farebox pullers, bus operators and service lane personnel, focusing on their individual responsibilities pertaining to farebox operations. The training should identify enforceable consequences for persons failing to adhere to established policies.

• BTRA revise the current worksheets and obtain a clear understanding from BMNT regarding crippled buses. The updated definition of crippled buses should be reflected on the updated worksheets.

• The divisions assign the operations supervisor to

conduct a random examination of worksheets each month (selecting at least one from each farebox puller), comparing the ‘put out’ sheets and BMNT’s cripple sheets and ‘road call’ reports to the farebox puller worksheets. This comparison would identify

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AUD 05-046 (Con’t)

farebox pullers who are recording the status of the buses incorrectly on their worksheets and bus operators who are not following procedures. Bus operators who fail to take buses through the farebox lane should be identified and should have to report to their superintendents to provide an explanation.

• BTRA senior management review long term

vacancies in other job categories and if possible, reclassify these positions to permanent farebox pullers. This would enable them to cover all shifts and discontinue the use of bus operators, utility clerks and other personnel who provide emergency coverage and fill in coverage until regular farebox personnel report for work.

• All farebox pullers undergo the same training and

should be proficient and knowledgeable in all areas of their job. Further they should be scheduled in a manner that provides effective coverage for all divisions without the need to incur overtime costs.

• BTRA establish a formal training program to train all new farebox pullers and retrain all farebox pullers on farebox operations. The superintendents should examine farebox operating procedures and processes and establish a training program that ensures that all of the farebox pullers are adequately trained and are knowledgeable in all areas of the process. The training should not be limited to just BTRA processes but should encompass all aspects of the farebox operations to include the responsibilities of bus operators, service lane personnel and others involved in the process. Training should also teach farebox

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AUD 05-046 (Con’t) pullers how to complete and reconcile paperwork after

buses are probed and vaulted. This would increase the effectiveness and efficiency of farebox operations and help ensure that all buses are probed and vaulted daily.

• BTRA and BMNT General Superintendents or their

designees look into the current procedures that have a BMNT supervisor responsible for direct supervision of farebox pullers. Our interviews indicated that maintenance supervisors generally focus on their jobs and are reluctant to take on additional responsibilities that, according to them, would prevent them from doing their jobs effectively. However, because of the sensitive nature of the farebox puller’s job (vaulting millions of dollars of cash annually), we believe that the farebox pullers should be directly and effectively supervised by well trained knowledgeable personnel. Based on our review of farebox operations, we determined that effective supervision should not be time consuming for the supervisors. A few visits to the farebox lane each evening along with effective communication between the supervisors and the farebox pullers should suffice.

• BMNT supervisors be trained on how to reconcile farebox puller paperwork in order to ensure that all of the revenue buses were probed and vaulted for the day and should not automatically sign worksheets that appear to be completed correctly without checking and reconciling them.

• BTRA work with the Office of Labor Relations (LABR)

and union representatives to explore the possibility of establishing a performance measurement system for farebox pullers that assesses and measures their performance by establishing reasonable goals, and

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AUD 05-046 (Con’t)

holds them accountable for their actions. If implemented, the performance criteria should outline goals and objectives that are reasonable, measurable, and attainable, and should identify corrective action procedures for persons who fail to achieve and maintain the minimum standards. The performance measurement can also be used as a motivating tool to reward farebox pullers who consistently perform in excess of minimum requirements. The performance measurement program should be based on farebox operations, employee duties and should be consistent with BUSV and organizational goals. The program should also establish clearly defined measurable goals and objectives, management expectations and should reinforce the dos and don’ts of employee conduct (for example leaving vaults unsecured and unattended).

• Division superintendents review the performance

measurements of incoming pullers who rotate to their bus divisions, due to union ‘picks’ when they report for duty. This would enable the superintendents to identify pullers who may require additional monitoring or need to be retrained and will allow them to focus their efforts on those individuals.

• All superintendents use the same criteria when

evaluating farebox pullers to ensure consistency of the performance measurements and to give superintendents assurance that they can rely on the evaluations of each other.

• The bus revenue cash collection process remains under the management of BTRA. However, in order for the process to be more effective, improvements need to be made.

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• We conducted several interviews, with persons involved in the farebox operations, and performed a detailed review of the current operations in order to ascertain whether operations should remain with BUSV or be transferred to TRES. During our review, we identified operational inefficiencies with the current process but believe that if those deficiencies were corrected, farebox operations would be effective under BUSV’s management. Our decision was based in part with the understanding that security cameras are scheduled to be placed in the farebox lanes to monitor the cash collection process. The placement of cameras is expected to be a great deterrence and is expected to greatly reduce the possibility of theft.

BUS Management has agreed with the recommenda-tions.

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INVESTIGATIVE ADVISORY REPORT Date And Report No. Subject of Report and Summary

AUD 05-A0009 April 15, 2005 Hotline Complaint – MetroAccess Customer

During our review, we reviewed the MetroAccess Customer’s Paratransit trip history, interviewed LogistiCare and providers (E&H Transportation) managers and the MACS managers. We interviewed the customer in order to fully understand the reason for his complaint and the nature of his relationship with LogistiCare.

LogistiCare is not providing professional, reliable service to the customer. His trips are constantly late and LogistiCare is not forthcoming with him about the status of his trips when he calls to enquire about his trips.

A summary of our findings is as follows:

LogistiCare’s manager was unprofessional in his response to the customer and his handling of the situation was inappropriate and unacceptable.

The customer antagonized the situation

by acting in an intimidating and degrading manner to LogistiCare personnel.

We have made one recommendation for LogistiCare Management to meet with the customer so that they can begin improvement in this area.

LogistiCare and MACS Management have agreed with the recommendation.

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INVESTIGATIVE ADVISORY REPORT Date And Report No. Subject of Report and Summary

AUD 05-A0009 (Con’t) However, to date the customer has been unwilling to meet

with Logisticare.

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to the wmata board of directors summary...implement the base24-es debit-credit switch software...

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