Rehabilitation Commission
An Audit Report on Management Controls at the Texas Rehabilitation Commission
Report Number 96-012
Overall Conclusion
The Commission generally has effective management controls, but it does not have a fully developed contract management system to ensure quality provider services at a reasonable cost.
Key Facts And Findings
The Commission's records show that it spent approximately $121 million onservices for clients during fiscal year 1994, but it has developed formal contracts for only $2 million. While developing contracts with providers for all client services may not be feasible, the Commission should use contracts when providers meet certain criteria, such as high dollar volume.
The Commission does not have a formalized cost-based methodology to set rates for client services or an adequate system for monitoring providers' financial controls. This increases the risk that the Commission may be paying too much for some client services.
The Commission has undertaken a reengineering effort which is expected to increase the agency's efficiency in delivering services to Texans with disabilities. For example, to provide faster delivery of client equipment, the Commission is moving from using a centralized warehouse toward buying from large volume local providers. However, the Commission encountered problems in the initial organization and management of the reengineering project. As a result, it changed its original specifications, which delayed plans for the October 1, 1995, system implementation.
The Disability Determination Services Division has taken steps to reduce the number of case files waiting for examination and to shorten case processing time. As a result, management reports that the number of cases waiting assignment to an examiner dropped from an average of 9,490 in March 1995 to an average of 1,000. Management also reports that its mean processing time decreased from 90.5 days in April 1995 to 71.3 days in August 1995.
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