Completed Performance Audits at WSDOT
WSDOT has been the subject of nearly 50 external performance audits over the past 10 years by the Joint Legislative Audit and Review Committee, Transportation Performance Audit Board, Joint Transportation Commission, Transportation Commission, and most recently, the State Auditor’s Office. WSDOT values recommendations to improve its operations, and has developed comprehensive action plans to address those recommendations within its control.
Completed performance audits are organized below by auditing agency and report issue date.
Completed Performance Audits
Performance Audit Follow-up Report (Most Recent)
Completed Performance Audits
Completed Tax Preference Performance Audits
As required by Initiative 900, JLARC annually reviews the implementation of State Auditor’s I-900 recommendations to the Legislature.
Other performance Audits:
Joint Transportation Commission
Transportation Commission
Transportation Performance Audit Board
State Auditor's Office
Washington State Ferries Performance Audit
Issued September 4, 2007
This performance audit analyzed data from June 30, 2004 through June 30, 2006. The auditors conducted an initial risk assessment of the entire Washington State Ferries division to identify the best opportunities for improvement. The audit firm determined two audit areas:
The functions and activities performed by WSF’s Maintenance Department, specifically the Eagle Harbor Repair Facility, which bears the main responsibility for vessel maintenance and preservation; and, the capacity and efficiency of ferry routes, in order to identify opportunities for cost savings related to fuel and labor.
top
Managing and Reducing Congestion in Puget Sound Performance Audit
Issued October 10, 2007
This audit evaluated the effectiveness of WSDOT’s current highway investments and infrastructure usage given current and projected highway user volume over the next five years. It also evaluated the financial and non-financial costs of any recommended improvements over the next five years.
top
Administration and Overhead Performance Audit
Issued November 15, 2007
This audit makes recommendations that focus largely on streamlining and centralizing operations within the Department, resulting in $18.2 million to $23.5 million in cost savings in the next five years. Those resources can be redirected to make improvements at the Department that we recommended in our other performance audits and that echo citizens’ priorities.
top
Highway Maintenance and Construction Performance Audit
Issued January 10, 2008
This performance audit had four primary objectives:
Answer whether WSDOT's Consumable Inventory and Supply Management system was meeting the operational needs of the Department efficiently and effectively? Whether WSDOT's current procurement strategy for hot mix asphalt, used for road construction and maintenance, as well as current state legislation, effective in optimizing hot mix asphalt supply chain costs? Whether WSDOT's maintenance-operations as efficient as possible based on best practices identified at other state transportation agencies or the private sector? Whether WSDOT's highway project delivery was effectively managing project costs and delays, as well as tracking these factors.
The audit field work was conducted from June 2006 through March 2007 under the nine principles of Initiative 900.
top Collection of State Debt Performance Audit
Issued August 12, 2008
This multi-agency audit was designed to determine if state agencies use and share opportunities to improve the collection of state debt. Additionally, the audit addressed the nine elements contained in Initiative 900. The audit examined outstanding receivables from six state agencies (including WSDOT) from July 1, 2005 through June 30, 2006 (Fiscal Year 2006), totaling $3.3 billion.
top
Statewide Performance Review
Issued December 17, 2009 (Re-issued January 2010)
WSDOT, along with 37 other agencies, participated in the State Auditor’s Performance Review of Washington State Government. The Performance Review looked at ways to improve the efficiency and effectiveness of state government’s shared services, identified innovative and practical government reform opportunities, and identified priorities for future state government performance audits. WSDOT participated in all three elements of the review.
top Washington State Department of Transportation Ferries Division Performance Audit
Issued September 8, 2010
In March 2010, the Governor asked the State Auditor’s Office (SAO) to consider conducting a performance audit of WSDOT’s Ferries Division’s payroll and timekeeping system. In 2007, SAO conducted two performance audits that included evaluations of the ferry system payroll and timekeeping processes. In response to the Governor’s request, SAO focused on whether another audit would identify additional cost-savings opportunities or operational improvements. The report outlines the following SAO conclusion (summarized, see report for complete details):
- WSDOT implemented previous audit recommendations within their authority.
- The current timekeeping and payroll system does not effectively support WSDOT’s needs.
- There are barriers to improve WSDOT’s timekeeping and payroll system, which include; incompatibility of data systems, collective bargaining agreements, and lack of funding.
- SAO does not believe another performance audit would be an effective use of taxpayer dollars at this time.
top
Issued December 20, 2010
This performance audit looked at the Master License Service (MLS) administered by the Department of Licensing to determine if the MLS program was achieving the goals set when the program was established in state law. In addition, the audit looked at ways service might be improved if more state agencies (including WSDOT) and local governments participated in the MLS program. SAO also examined factors that might inhibit the MLS expansion and identified options and recommendations to overcome those barriers.
top
Issued April 25, 2011
The State Auditor’s Office issued the Printing Services audit report in April 2011, which looked at ways to reduce printing costs at the state printer and throughout state government. The audit examined 10 state agencies with in-house printing shops (including WSDOT), as well as 8 state agencies that primarily use the state printer for printing services.
top
Issued June 30, 2011
On November 29, 2010, Washington’s Governor issued Executive Order 10-07 requiring that all cabinet agencies institute performance-based contracting for all new contracts and renewals of existing contracts. When issuing the Executive Order, the Governor also requested assistance from the State Auditor’s Office to conduct a management review of current contract practices. The initial phases of the review included WSDOT and 33 other state agencies and of those WSDOT and 13 other agencies were selected to participate in the detailed review phases of the audit.
top
Performance Follow-up Report (Most Recent)
2010 Performance Audit Progress Report
Issued January 7, 2011
Since citizens approved Initiative 900 in November 2005, the State Auditor’s has conducted 30 performance audits of more than 80 local and state governments, including several on or including WSDOT. In 2008, the State Auditor’s began issuing progress reports to summarize the results of those audits and the effectiveness audit clients have had in implementing the recommendations issued. This report summarizes performance audits issued between July 1 and December 31, 2009 and the 2009 State Government Performance Review.
top
Performance Audits:
Issued January 5, 2010
The 2009-2011 Transportation Budget directed JLARC to review WSDOT’s scoping and cost estimating practices for highway construction projects. The review examined whether the scoping and cost estimate guidelines used by WSDOT were consistent with general construction industry practices and other appropriate standards. In addition, the review analyzed how WSDOT is developing scope and cost estimates for future highway construction projects. The review resulted in one recommendation indicating that WSDOT “should adapt its current procedures and forms so that an easy-to-follow trail is established between the cost estimate developed by the cost estimating process and the request for funding submitted to the Legislature."
top
Issued April 21, 2010
The 2009-2011 Transportation Budget directed JLARC to conduct an analysis of the cost of credit card payment options at WSDOT. JLARC’s study identified and compared WSDOT’s full costs for accepting credit cards, debit cards, and other forms of payments, including the direct costs of contracted services, labor, and materials and the indirect costs of support activities. The analysis resulted in two recommendations; one directing WSDOT to work with the Office of Financial Management (OFM) and Office of the State Treasurer’s (OST) as we “develop plans for the future, such as the expansion of tolling” “to identify alternatives for reducing bankcard payments,” and the other is directed at OFM and OST, recommending that they “develop statewide guidance for all state agencies relating to the use of Automated Clearing House (ACH) transfer, use of convenience charges, and any other factors OFM and OST identify that could reduce state agency costs for accepting customer payments."
top
Issued January 5, 2011
The 2010 Supplemental Transportation Budget directed JLARC to analyze options for implementing the new stormwater permit issued to WSDOT by the Department of Ecology in 2009. JLARC’s study looked at options to implement the three major stormwater actives; maintenance, monitoring, and inventory. JLARC considered timing needs, organization fit, and the experience of other states and local governments when assessing the advantages and disadvantages of each option, and narrowed viable options worth considering for each of the major activities required in the permit. JLARC’s report resulted in two recommendations; the first was directed to the Legislature recommending that they direct WSDOT to conduct a pilot program contracting for the maintenance of some stormwater control devices, and the second recommending that WSDOT prepare comparative cost information on viable options for meeting monitoring and inventory requirements for future budget cycles.
top
Issued May 18, 2011
The 2009-2011 Transportation Budget directed JLARC to conduct an audit of the capital cost accounting practices of the Ferries Division of WSDOT. The audit follows a 2006 Joint Transportation Committee study and 2007 legislation addressing a broad range of State Ferries operations. Like the study and legislation, JLARC’s audit focused on ferry terminals. The audit found that Ferries Division and the Office of Financial Management had made progress in implementing the 2007 legislation, but additional actions were needed to ensure the Legislature receives appropriately detailed information and justification when requesting funding for ferry terminal preservation projects. As part of the WSDOT 2011-13 terminal preservation budget request the Ferries Division provided the Condition Rating and Due Year information to the Legislature and OFM Staff. In addition, they provided documentation justifying preservation work for assets in advance of their Due Year.
top
Issued July 20, 2011 (Proposed Final Report)
JLARC conducted a review of the effects of risk management practices on state conduct and tort payouts (i.e., payouts arising from lawsuits against the state) as required by the 2009-2011 Operating Budget (ESHB 1244). The Legislature directed JLARC to analyze post-incident reviews, including statutorily established Loss Prevention Reviews. In addition, JLARC also identified more general statewide risk management requirements.
top
Tax Preference Performance Audits:
Issued January 5, 2010
Under Washington law, aircraft generally are subject to either the personal property tax or the aircraft excise tax, depending on the type of aircraft. This tax preference performance audit reviewed general aviation aircraft that pay the aircraft excise tax but are exempt from the personal property tax. “General aviation aircraft” refers to all aircraft except those owned by the government or by commercial airlines. JLARC recommended no change to the current tax exemption.
top
Issued January 5, 2010
Commercial Aircraft Exemption from Aircraft Excise Tax
Washington imposes an annual excise tax for the privilege of using an aircraft in the state. There is, however, an exemption from the aircraft excise tax for aircraft engaged in commercial flying. The exemption also applies to aircraft operated for testing and training purposes. This tax preference performance audit was conducted to determine if the tax exemption should be continued under the existing tax system, since aircraft exempt from the aircraft excise tax are paying significantly more in taxes because personal property is taxed at a higher rate. JLARC recommended no change to the current tax exemption.
Nonresident Aircraft and Aircraft Held for Sale Exemption from Excise Tax
Washington imposes an annual excise tax for the privilege of using an aircraft in the state. Two exemptions from the aircraft excise tax are for; aircraft owned by nonresidents and registered in another state; and aircraft that are held for sale, exchange, delivery, test, or demonstration purposes solely as stock in trade of a licensed aircraft dealer. This tax preference performance audit was conducted to determine if the tax exemption should be continued under the existing tax system. JLARC recommended no change to the current tax exemption.
top
Issued July 20, 2011 (Preliminary Report)
Aircraft fuel tax applies to each gallon of aircraft fuel sold, delivered, or used in aircraft in Washington. The preference exempts certain purchases in Washington of aircraft fuel from the aircraft fuel tax when it meets conditions under RCW 82.42.030 or 82.42.070 (i.e., sold for export, used by commercial air carriers, or purchased by the U.S. Government or its agencies, etc.). This tax preference performance audit was conducted to determine if the tax exemption should be continued under the existing tax system. JLARC recommended that the Legislature further review and clarify the preferences, since parties that are exempt from paying the aircraft fuel tax now benefit from the expenditures of fuel tax receipts.
Issued June 23, 2011
Initiative 900 approved in November 2005 directed the State Auditor’s (SAO) to conduct performance audits of state and local government agencies. The initiative also includes the following direction with regard to performance audits of state government: “An annual report will be submitted by the Joint Legislative Audit and Review Committee by July 1st of each year detailing the status of the legislative implementation of the State Auditor’s recommendations.” This report represents JLARC’s compliance with this requirement for 2011. The current status of three SAO recommendations directed to the Legislature in performance audits of WSDOT are reflected in the report.
top