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Department of Transportation

A Follow-Up Audit Report on the Department of Transportation

August 1998

Report Number 98-052

Overall Conclusion

The Department of Transportation (Department) has made significant progress in addressing the recommendations from eight prior State Auditor's Office (SAO) reports issued during the previous three years. The Department's efforts have focused on addressing the most important recommendations.

As of May 1998, the Department had implemented 22 of 39 (56.4 percent) recommendations, had partially implemented 12 of 39 (30.8 percent) recommendations, and had not yet implemented 5 of 39 (12.8 percent) recommendations. Those recommendations were from SAO reports issued between January 1, 1995, and December 31, 1997.

Key Facts and Findings

Of the recommendations not implemented, four relate to the areas of contractor selection and monitoring. The Department has indicated that it disagrees with the findings and recommendations that would enhance standard contracts by including right-to-audit clauses and require district offices to develop controls to ensure data reliability. The Department has not taken action on the findings and recommendations that would require the allowances for contractor markups on force accounts to be reevaluated and impose controls over selection and monitoring of design contracts. We believe addressing these findings and considering these recommendations are still important to reduce the risk to the State associated with contractor selection, contract monitoring, and data reliability.

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