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MANATEE COUNTY CLERK OF THE
CIRCUIT COURT
INTERNAL AUDIT DEPARTMENT
TRANSPORTATION DEPARTMENT
STORMWATER MANAGEMENT DIVISION AUDIT
A U D I
T R E P O R T
TABLE OF CONTENTS
I. INTERNAL
AUDIT REPORT
A. Background………..………..........................................................……............. 1
B. Purpose/Objectives; Scope; Methodology;..................................……...……...... 2
C.
Irregularities,
Abuse, or Illegal Acts; Test of Compliance;
Statement of Internal Control
Structure; Management Team
and Management Action Plan
…………...……………………..........…............
3
D. Management Summary............................................….....................…………... 4
E. Audit Report Authorization.................................…..........….............……..…… 5
F. Areas of Improvement and Management’s Action Plan…...........…………......
6 – 7
MANATEE COUNTY CLERK OF THE CIRCUIT COURT
INTERNAL AUDIT DEPARTMENT
TRANSPORTATION DEPARTMENT
STORMWATER MANAGEMENT DIVISION AUDIT
A U D I T R E P O R T
The Internal Audit Department conducted an audit of
the Stormwater Management Division for the audit period June 1, 1997
through December 31, 1998. The
audit was performed in accordance with Generally
Accepted Governmental Auditing Standards, issued by the Comptroller
General of the United States; and the Standards
for the Professional Practice of Internal Auditing, issued by the
Institute of Internal Auditors.
BACKGROUND:
The Stormwater Management Division is a division under
the Transportation Department and is comprised of the Stormwater Operations
and the Stormwater Management Sections. The responsibilities of each of these sections are as follows:
The Stormwater Operations Section
is responsible for maintaining and certifying that the flood carrying
capacity of the system is protected.
The Section maintains approximately 1700 miles of major drainage
canals and performs the following functions:
·
Repairs and/or
replaces drainage structures,
·
Cleans major
drainage structures by mechanical means,
·
Sprays with
herbicides to control growth of undesirable plant life in drainage canals,
·
Performs dredging
of county-wide silt basins, and
·
Manually removes
trash and debris from ditch/canal systems where access is limited.
The Stormwater Management Section
is
responsible for developing and implementing the Stormwater Management
Plan. The Section performs the
following functions:
·
Develops a
schedule of stormwater drainage projects as required by the Comprehensive
Plan,
·
Consults with
Stormwater Maintenance on minor drainage improvement projects,
·
Carries out
floodplain analysis and reviews land development within FEMA 100 year
floodway,
·
Performs engineering
services for in-house stormwater projects as approved by the Board,
·
Oversees the
countywide NPDES (EPA) permit for stormwater management systems,
·
Reviews proposed
private/public land development within Manatee County, and
·
Write grants
proposals.
PURPOSE/OBJECTIVE:
The
financial component of the audit consisted of verifying the accuracy
and appropriateness of revenues received, verifying the existence of
competition for purchases under $500, and verifying the reasonableness
of expenditures incurred for long distances phone calls, pagers, and
cellular telephones.
The
compliance component of the audit consisted of verifying compliance
with the following: Personnel
Policies, Rules and Procedures Manual; State record retention requirements;
Florida Statutes 163.3177, 163.3202, 369.20, 369.22, and 403.813; Attorney
General Opinion 82-018; Florida Administrative Code 62-40.450, 40D-4.051(12),
and 40D-400; Land Development Code Section 717; the Comprehensive Plan
Sections 3.2.1.6, 3.2.1.7, 4.1.3.1, 4.1.5.3, 5.3.2.2, and Section 9.4.1
through 9.4.5.3; Ordinance 91-25; EPA National Pollutant Discharge Elimination
System Permit (NPDES)-Municipal Separate Storm Sewer System; the Department
of Environmental Protection (DEP) Aquatic Plant Control Permit;
inter-local agreements for NPDES MS4 Part I and II permit; the
contract for professional services for a Stormwater Management Master
Plan; and the agreement for procuring services to develop the 25 year
floodplain with the South West Florida Water Management District (SWFWMD).
The operational component of the audit consisted of verifying an adequate system of internal control exists to safeguard assets, maintain the integrity of reports on operations, and provide adequate evaluation of programs’ objectives and responsibilities. In addition, an evaluation of the Division’s operational efficiency and effectiveness was performed by reviewing organizational charts, Policies and Procedures Manuals, and controls over the facility’s access.
SCOPE:
The financial audit scope consisted of a review of
accounts, financial transactions, and reports of the Stormwater Management
Division for the period June 1, 1997 through May 31, 1998.
The compliance audit scope consisted of a review of
compliance to the policies and procedures, Florida Statutes, federal
regulations, ordinances, resolutions, contracts, agreements related
to the Stormwater Management Division that were in effect during the
period June 1, 1997 through May 31, 1998.
Compliance test work was performed through December 31, 1998.
The operational audit scope consisted of a review of
the Stormwater Management Division’s internal controls and the effectiveness
and efficiency of the operations during the audit period June 1, 1997
through December 31, 1998. Management
controls were also reviewed to identify significant weaknesses that
may have contributed to deficient performance.
METHODOLOGY:
Internal control evaluations were accomplished by flow
charting the key operations of this specified area, discussions with
management and staff, observations, and analytical and substantive testing
of individual internal controls. Risk
analysis was used to establish priorities of audit objectives.
IRREGULARITIES,
ABUSE, OR ILLEGAL ACTS:
No indications of irregularities, abuse, or illegal
acts were discovered during the audit that could affect the Stormwater
Management Division for the audit period ending December 31, 1998.
TEST OF COMPLIANCE:
Internal Audit tested compliance certain laws and regulations,
obtained an understanding of internal controls and assessed control
risk. Tests performed appeared
to provide sufficient evidence that support an opinion on compliance
and internal controls.
Except as noted in our audit report, tested items were
in compliance with ordinances, resolutions, and other policies established
by the Stormwater Management Division.
STATEMENT
ON INTERNAL CONTROL STRUCTURE:
In planning and performing the audit of the Stormwater
Management Division for the period ending December 31, 1998, the internal
control structure was considered in order to determine the auditing
procedures for the purpose of this report.
As a result, we noted in the audit report significant matters
involving the internal control structure and its operations that are
considered reportable conditions under standards established by the
U.S. General Accounting Office, Government
Auditing Standards. Reportable
conditions involve matters relating to significant deficiencies in the
design or operation of the internal control structure, that in our judgment,
could adversely affect the organization's ability to record, process,
summarize and report on data consistent with management’s intentions.
Our consideration of the internal control structure
would not necessarily disclose all matters in the internal control structure
that might be reportable conditions, as defined above. In addition, because of the inherent limitations
in any internal control structure, significant deficiencies in the design
or operation of the internal control structure may exist and not be
detected. We believe the conditions
identified in our audit report constitute reportable conditions as previously
defined.
MANAGEMENT TEAM AND MANAGEMENT
ACTION PLAN:
A Management Action Plan will be used for each Area of Improvement reported. Management Action Plans are corrective actions with implementation dates developed in cooperation with the Department’s Management Team and the Internal Audit Department. The Management Team includes the Director of the Transportation Department and Stormwater Management Division Manager.
MANAGEMENT
SUMMARY:
The Stormwater Management Division
is staffed by hard-working employees who are dedicated to the Division’s
operations. Based on the audit
performed, it appears that the Division is effectively responding to
immediate problems and performing regular maintenance on Manatee County’s
stormwater management system. During
the past year, with the addition of more equipment and employees, the
Division has been able to implement a scheduled maintenance program. The implementation of this program has improved
the Division’s ability to prioritize their work schedule and take a
more preventative approach to stormwater maintenance.
During
the review of the operational records, it was noted that not all of
the maintenance activity records are automated.
A database, which integrates the maintenance activity records
of all the sections within the Division, would provide information of
maintenance activities that have taken place at specific locations within
the system. Management through its Management Action Plan
is in the process of purchasing a new software program to automate activity
records for all the divisions within the Transportation Department.
(See Area for
Improvement #1 on page 7.)
The goal of an effective countywide
stormwater management program that prevents flooding and reduces pollutants
in stormwater runoff is complex and probably not achievable without
substantial commitment to capital improvements. This goal is further complicated by multiple municipal jurisdictions
within individual drainage basins, new development, and private as well
as public land included in the basins. The Manatee County Board of County
Commissioners has expressed a desire to achieve this goal through Ordinance
91-25 and the Manatee County Comprehensive Plan. The Ordinance authorized funding sources to
accomplish the objectives detailed in the Ordinance and the Manatee
County Comprehensive Plan; however, no specific funding mechanism has
been approved. As a result, the Division has not been able
to comply with certain sections of the Ordinance and the Manatee County
Comprehensive Plan.
Management has obtained a study
that identified and prioritized the major basins in Manatee County. They have further proceeded to contract with
a consulting firm to develop alternative plans for improvements on the
highest priority basin, and to determine the costs that will be needed
so that future funding mechanisms can be established.
The
option chosen by the Board County Commissioners will provide a benchmark
for future improvements to the remaining basins, establish funding sources,
and provide a direction for the County’s stormwater management program.
At that time, management through its Management Action Plan will revisit
Ordinance 91-25 as well as the related sections from the Comprehensive
Plan and make necessary amendments to comply with the Board’s future
intentions regarding the priorities and responsibilities of the Stormwater
Management Division.
(See
Area for Improvement #2 on page 7.)
We
appreciate the efforts of the Stormwater Management Division in addressing
the issues raised during the audit.
We believe through the implementation of the Management Action
Plans included in this report, the Division will be given the direction
needed to implement the goals and objectives of the Board of County
Commissioners.
AUDIT REPORT
AUTHORIZATION:
This audit report has been reviewed and authorized
by:
Richard
J. Orienti, CIA, CFE R. B. "Chips"
Shore
Director of Internal Audit Clerk of the Circuit Court and Comptroller
AREA
FOR IMPROVEMENT #1……………………………………….……..…..………………………
Subject: Automation of Operational Records
All maintenance activity records of the Stormwater
Management Division are not automated. Operations of the Division are
divided into three sections: Aquatic Plant Control, Maintenance, and
Road Gang. Maintenance and inspection activities performed
on the Stormwater system may involve any one, or all three of these
sections. Currently, no database
exists which integrates the maintenance activity records of all the
sections to reflect all of the work performed by the Division.
Of the three sections, only Aquatic Plant Control activity records
are computerized and recorded by the location where the work was performed,
as well as the date the work was performed.
All other maintenance and inspection activities are manually
documented on daily reports and filed only by the date work was performed,
making it difficult to determine what maintenance activity has taken
place at a specific location within the system.
Management Action Plan:
AREA FOR IMPROVEMENT #2 ……………………………………………………………………………
Ordinance 91-25 established
a unified countywide stormwater management system and authorized funding
mechanisms for financing the system.
The Ordinance and certain sections of the County’s Comprehensive
Plan provided that revenues from the funding source be used for:
1.
Planning, developing
and implementing stormwater management plans;
2.
Maintaining,
inspecting and managing stormwater facilities;
3.
Ensuring that
the owners of private stormwater systems clean and maintain the facilities
to ensure efficient and proper operation;
4.
Correcting
deficiencies and making improvements to drainage facilities necessary
to accommodate additional development in Manatee County;
5.
Monitoring
water quality. To date, no stormwater funding mechanism has been approved. As a result, it has not been possible for the
Division to meet all of these responsibilities. The Stormwater Management
Division has obtained a limited amount of grant funding for which they
have completed a prioritization study on the basins of Manatee County. They have currently hired a consulting firm
to master plan the improvements required on the first basin. The Division currently does not have funding
to implement any improvements.
Management Action Plan:
Upon completion of the Master
Plan, a presentation will be made to the Board of County Commissioners
containing recommendations of various costs and levels of service to
improve the first basin. The
decision made by the Board of County Commissioners will provide a benchmark
for future improvements to the remaining basins, establish funding sources,
and provide a direction for the County’s stormwater management program. At that time, the Division will revisit Ordinance
91-25 as well as the related sections from the Comprehensive Plan and
make necessary amendments to comply with the Board’s future intentions
regarding the priorities and responsibilities of the Stormwater Management
Division. The presentation to the Board of County Commissioners
is anticipated by December 31, 2000.
