Mn/DOT AUDIT · Mn/DOT AUDIT COUNTY HIGHWAY ACCOUNTANTS SINGLE AUDIT DISCUSSION. Mn/DOT Office of...
Transcript of Mn/DOT AUDIT · Mn/DOT AUDIT COUNTY HIGHWAY ACCOUNTANTS SINGLE AUDIT DISCUSSION. Mn/DOT Office of...
Mn/DOT AUDITMn/DOT AUDIT
COUNTY HIGHWAY ACCOUNTANTSCOUNTY HIGHWAY ACCOUNTANTS
SINGLE AUDIT DISCUSSIONSINGLE AUDIT DISCUSSION
Mn/DOT Office of Audit Organization Chart
External Audit Mgr. External Audit Mgr.Larry Kienitz Suzanne Thayer Bruce Kalland
Student WorkerGregg Fuerstenberg
Senior AuditorMaynard Guenther
Intermediate AuditorVan Vu
Intermediate AuditorRuth Hinrichs-Clark
Guptan Kaplingat
Student WorkerCarmon Yang
RAILROAD, UTILITY,TRANSIT UNIT
Intermediate AuditorFelicia Wells
Principal AuditorRichard Juntilla
CONSULTANT AGR. CONSULTANT LIAISON &PRE AWARD AUDIT UNITCLOSE-OUT UNIT
Deputy CommissionerDoug Differt
Daniel KahnkeAudit Director
Sr. Auditor SupervisorDave Wolvert
INTERNAL AUDIT UNIT
Internal Audit Mgr. External Audit Mgr.Greg Hlivka
Brian Cherry
Principal Auditor Dave Christensen
Mike JohnsonSenior Auditor
Intermediate Auditor
Student Worker
Senior Auditor Randy Stallkamp
Senior Auditor Allen Kachelmyer
TYPICAL AUDITOR USING THE LATEST TECHNOLOGY
SINGLE AUDIT OUTLINESINGLE AUDIT OUTLINE
Project SelectionProject Selection
DCP RequirementsDCP Requirements
DavisDavis--Bacon Act Compliance Bacon Act Compliance
Contract Item Payments Contract Item Payments
Material on Hand PaymentsMaterial on Hand Payments
Supplemental Agreement PaymentsSupplemental Agreement Payments
Environmental Requirements ComplianceEnvironmental Requirements Compliance
Material TestingMaterial Testing
Single Audit Report ProcessSingle Audit Report Process
PROJECT SELECTION
Single Audit Act of 1984: Highway Planning and Construction Program
PROJECT SELECTION
Single Audit Act of 1984: Highway Planning and Construction Program
Agreement With Office of Legislative Audit
PROJECT SELECTION
Single Audit Act of 1984: Highway Planning and Construction Program
Agreement With Office of Legislative Audit
Letter of Agreement and Stewardship Plan Between Mn/DOT and the Federal Highway Administration
PROJECT SELECTION
Single Audit Act of 1984: Highway Planning and Construction Program
Agreement With Office of Legislative Audit
Letter of Agreement and Stewardship Plan Between Mn/DOT and the Federal Highway Administration
Population of Highway Construction Payments for the State Fiscal Year Ended June 30
PROJECT SELECTION
Single Audit Act of 1984: Highway Planning and Construction Program
Agreement With Office of Legislative Audit
Letter of Agreement and Stewardship Plan Between Mn/DOT and the Federal Highway Administration
Population of Highway Construction Payments for the State Fiscal Year Ended June 30
15-18 Highway Construction Projects Selected for Audit (some trunk highway and some city/county)
PROJECT SELECTION
Single Audit Act of 1984: Highway Planning and Construction Program
Agreement With Office of Legislative Audit
Letter of Agreement and Stewardship Plan Between Mn/DOT and the Federal Highway Administration
Population of Highway Construction Payments for the State Fiscal Year Ended June 30
15-18 Highway Construction Projects Selected for Audit (some trunk highway and some city/county)
Factors Influencing Selection: Project Size, Project Type, Location
“THE 3 WISE ENGINEERS” REACT TO SELECTION OF THEIR PROJECT FOR AUDIT
DCP REQUIREMENTS
Evaluate Measures Taken to Ensure That DCP Projects are Administered Properly
DCP REQUIREMENTS
Evaluate Measures Taken to Ensure That DCP Projects are Administered Properly
Right of Way (Right of Way Certificate, Right of Way Acquisition Files, 1099 Forms)
DCP REQUIREMENTS
Evaluate Measures Taken to Ensure That DCP Projects are Administered Properly
Right of Way (Right of Way Certificate, Right of Way Acquisition Files, 1099 Forms)
Advertising, Bid Letting, Bid Tabulation
DCP REQUIREMENTS
Evaluate Measures Taken to Ensure That DCP Projects are Administered Properly
Right of Way (Right of Way Certificate, Right of Way Acquisition Files, 1099 Forms)
Advertising, Bid Letting, Bid Tabulation
Contract and Bond (Original Contract and Payment/Performance Bond)
DCP REQUIREMENTS
Evaluate Measures Taken to Ensure That DCP Projects are Administered Properly
Right of Way (Right of Way Certificate, Right of Way Acquisition Files, 1099 Forms)
Advertising, Bid Letting, Bid Tabulation
Contract and Bond (Original Contract and Payment/Performance Bond)
Most Recent State Auditor Report
DCP REQUIREMENTS
Evaluate Measures Taken to Ensure That DCP Projects are Administered Properly
Right of Way (Right of Way Certificate, Right of Way Acquisition Files, 1099 Forms)
Advertising, Bid Letting, Bid Tabulation
Contract and Bond (Original Contract and Payment/Performance Bond)
Most Recent State Auditor Report
Controlling Time Charges (Project Proposal Special Provisions and Weekly Construction Diaries): Tracking of Working Days
Recent Findings: DCP RequirementsRecent Findings: DCP RequirementsWeekly and Daily Diaries not Maintained: Specification 1806.1 anWeekly and Daily Diaries not Maintained: Specification 1806.1 and Contract d Contract Administration Manual 5Administration Manual 5--591.390591.390
www.dot.state.www.dot.state.mnmn.us/.us/tecsuptecsup/spec/index.html/spec/index.html
www.dot.state.www.dot.state.mnmn.us/const/manuals/.us/const/manuals/contractadmincontractadmin
1099 Forms not Completed1099 Forms not Completedwww.dot.state.mn.us/stateaid/samanual/chap300.pdfwww.dot.state.mn.us/stateaid/samanual/chap300.pdf
www.dot.state.mn.us/stateaid/forms/figl300.pdfwww.dot.state.mn.us/stateaid/forms/figl300.pdf
DAVIS-BACON ACT COMPLIANCE
Evaluate Measures Taken to Ensure That Required Wages are Paid to Contractor and Subcontractor Employees
Payroll/21658 Statement of Compliance Form Submittal and Review by City/County (Requests to Sublet; Weekly Construction Diary; Daily Diaries; Payrolls and/or 21658 Statement of Compliance Forms; Project Proposal Wage Decisions; Payroll Tracking Forms; all Correspondence Files )
Wage Compliance Checks (Completed Wage Compliance Check Forms)
Payroll Security
Recent Findings: DavisRecent Findings: Davis--Bacon Act ComplianceBacon Act Compliance
Subcontractors are not listed on a Request to Sublet: SpecificatSubcontractors are not listed on a Request to Sublet: Specification 1801ion 1801www.dot.state.www.dot.state.mnmn.us/const/labor/documents/.us/const/labor/documents/contractdocscontractdocs//requesttosubletrequesttosublet..pdfpdfwww.dot.state.www.dot.state.mnmn.us/.us/tecsuptecsup/spec/index.html/spec/index.html
Request to Sublet Form Does Not Include Running Total Of Value ORequest to Sublet Form Does Not Include Running Total Of Value Of Subcontractor f Subcontractor Work: Specification 1801Work: Specification 1801
Recent Findings: DavisRecent Findings: Davis--Bacon Act ComplianceBacon Act Compliance
Subcontractors are not listed on a Request to Sublet: SpecificatSubcontractors are not listed on a Request to Sublet: Specification 1801ion 1801www.dot.state.www.dot.state.mnmn.us/const/labor/documents/.us/const/labor/documents/contractdocscontractdocs//requesttosubletrequesttosublet..pdfpdfwww.dot.state.www.dot.state.mnmn.us/.us/tecsuptecsup/spec/index.html/spec/index.html
Request to Sublet Form Does Not Include Running Total Of Value ORequest to Sublet Form Does Not Include Running Total Of Value Of Subcontractor f Subcontractor Work: Specification 1801Work: Specification 1801
Payrolls Do Not Include Labor Classification Code (example: 101 Payrolls Do Not Include Labor Classification Code (example: 101 For Common For Common Laborer): Contract Administration Manual 5Laborer): Contract Administration Manual 5--591591--320(B)(4)(a)(8) 320(B)(4)(a)(8) www.dot.state.www.dot.state.mnmn.us/const/manuals/.us/const/manuals/contractadmincontractadmin
The Inspector’s Diary Does Not Document all Companies Working OnThe Inspector’s Diary Does Not Document all Companies Working On The Project: The Project: Contract Administration Manual 5Contract Administration Manual 5--591.320(A)(1)(b)(1)591.320(A)(1)(b)(1)
Recent Findings: DavisRecent Findings: Davis--Bacon Act ComplianceBacon Act Compliance
Subcontractors are not listed on a Request to Sublet: SpecificatSubcontractors are not listed on a Request to Sublet: Specification 1801ion 1801www.dot.state.www.dot.state.mnmn.us/const/labor/documents/.us/const/labor/documents/contractdocscontractdocs//requesttosubletrequesttosublet..pdfpdfwww.dot.state.www.dot.state.mnmn.us/.us/tecsuptecsup/spec/index.html/spec/index.html
Request to Sublet Form Does Not Include Running Total Of Value ORequest to Sublet Form Does Not Include Running Total Of Value Of Subcontractor f Subcontractor Work: Specification 1801Work: Specification 1801
Payrolls Do Not Include Labor Classification Code (example: 101 Payrolls Do Not Include Labor Classification Code (example: 101 For Common For Common Laborer): Contract Administration Manual 5Laborer): Contract Administration Manual 5--591591--320(B)(4)(a)(8)320(B)(4)(a)(8)www.dot.state.www.dot.state.mnmn.us/const/manuals/.us/const/manuals/contractadmincontractadmin
The Inspector’s Diary Does Not Document all Companies Working OnThe Inspector’s Diary Does Not Document all Companies Working On The Project: The Project: Contract Administration Manual 5Contract Administration Manual 5--591.320(A)(1)(b)(1)591.320(A)(1)(b)(1)
Field Compliance Review on Labor Provisions Not Completed MonthlField Compliance Review on Labor Provisions Not Completed Monthly: Contract y: Contract Administration Manual 5Administration Manual 5--591.320 (A)(3)(b)591.320 (A)(3)(b)www.dot.state.www.dot.state.mnmn.us/const/labor/documents/.us/const/labor/documents/posterboardsposterboards//fieldreviewformfieldreviewform..pdfpdf
Payrolls Not Submitted Weekly: Contract Administration Manual 5Payrolls Not Submitted Weekly: Contract Administration Manual 5--591.320 (A)(4)(b) 591.320 (A)(4)(b)
“I AM IN CHARGE OF THIS PROJECT…AND I AM A DARN GOOD COOK TOO!!!”
CONTRACT ITEM PAYMENTS
Evaluate Support for and Timing of Contract Item Payments (Partial Payments; Supporting Documentation)
Partial Payment Timeliness (Partial Payments; Change in Construction Contract Status Forms)
RRecent Findings: Contract Item Paymentsecent Findings: Contract Item Payments
Payments Not Made to Contractors Every 35 Days: M.S. 471.425 Payments Not Made to Contractors Every 35 Days: M.S. 471.425 www.revisor.leg.state.mn.us/stats/471/425.htmlwww.revisor.leg.state.mn.us/stats/471/425.html
Contract Bid Item Mobilization Not Paid Properly: Specification Contract Bid Item Mobilization Not Paid Properly: Specification 20212021
RRecent Findings: Contract Item Paymentsecent Findings: Contract Item Payments
Payments Not Made to Contractors Every 35 Days: M.S. 471.425 Payments Not Made to Contractors Every 35 Days: M.S. 471.425 www.revisor.leg.state.mn.us/stats/471/425.htmlwww.revisor.leg.state.mn.us/stats/471/425.html
Contract Bid Item Mobilization Not Paid Properly: Specification Contract Bid Item Mobilization Not Paid Properly: Specification 20212021
Material on Hand, Work Order, and Supplemental Agreement PaymentMaterial on Hand, Work Order, and Supplemental Agreement Payments Documented s Documented in the Contract Bid Item Section of Partial Payments Rather Thanin the Contract Bid Item Section of Partial Payments Rather Than At The End of the At The End of the Partial Payment in a Separate Section: Specification 1501Partial Payment in a Separate Section: Specification 1501
Reduced Pay Factors Not Applied for Bituminous Mixture IndividuaReduced Pay Factors Not Applied for Bituminous Mixture Individual and Moving l and Moving Average Test Results Falling Outside Job Mix Formula Limits: BitAverage Test Results Falling Outside Job Mix Formula Limits: Bituminous Specification uminous Specification 2350/2360; Specifications 1503 and 15122350/2360; Specifications 1503 and 1512
ENGINEERS DECIDE WHO WILL TELL THE ACCOUNTANT TO PROCESS A PAYMEENGINEERS DECIDE WHO WILL TELL THE ACCOUNTANT TO PROCESS A PAYMENTNT
MATERIAL ON HAND PAYMENTSDetermine if Material on Hand Payments are Made at the Correct Price and Supported by Invoice
Material on Hand Payments (Partial Payments; Materials on Hand Invoices)
Determine if Material on Hand Amounts are Reduced as Material on Hand Quantities are Placed
Recent Findings: Material on Hand PaymentsRecent Findings: Material on Hand Payments
Payments Not Supported by Invoice Submitted by Contractor: SpeciPayments Not Supported by Invoice Submitted by Contractor: Specification 1906fication 1906
Payments Made at Contract Price Rather Than Invoice Price: SpeciPayments Made at Contract Price Rather Than Invoice Price: Specification 1906fication 1906
Payment for Material on Hand not Decreased as Material is PlacedPayment for Material on Hand not Decreased as Material is Placed and Paid for as and Paid for as Completed Contract Quantities: Specification 1501Completed Contract Quantities: Specification 1501
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SUPPLEMENTAL AGREEMENT PAYMENTSEvaluate Controls Over Supplemental Agreement Payments
Proper Execution (Executed Supplemental Agreements)
Payment Made After Execution of Supplemental Agreement (Partial Payments, Executed Supplemental Agreements)
Recent Findings: Supplemental Agreement PaymentsRecent Findings: Supplemental Agreement Payments
Payments Made Before Supplemental Agreements are ExecutedPayments Made Before Supplemental Agreements are Executed
Supplemental Agreements Executed by Supplemental Agreements Executed by MnMn/DOT District State Aid Engineers Rather /DOT District State Aid Engineers Rather than by City or Countythan by City or County
Duplicate Payment for Supplemental Agreement ItemsDuplicate Payment for Supplemental Agreement Items
ENVIRONMENTAL REQUIREMENTS COMPLIANCE
Evaluate Measures Taken to Ensure Compliance With Environmental Requirements
NPDES Permit Compliance (Erosion Control Inspection Logs; Stormwater Pollution Prevention Plan; Application for NPDES Permit; Letter From MPCA Acknowledging Permit Coverage; Change in Construction Contract Status Forms)
Building Removal (Building Materials Inspection Report; Notice of Intent to Perform Asbestos Related Work if Applicable; Notice of Intent to Perform a Demolition; Hazardous Waste Manifests if Applicable)
Recent Findings: Environmental Requirements ComplianceRecent Findings: Environmental Requirements Compliance
Weekly Erosion Control Logs Not Forwarded by Contractors to ProjWeekly Erosion Control Logs Not Forwarded by Contractors to Project Engineers; ect Engineers; Work Order Not Written to Instruct Contractors to do so: ContracWork Order Not Written to Instruct Contractors to do so: Contract Proposal Special t Proposal Special Provisions Specification 1717 Provisions Specification 1717 www.dot.state.mn.us/tecsup/prov/pdf/sp2000.pdfwww.dot.state.mn.us/tecsup/prov/pdf/sp2000.pdf, page 68 of 391, page 68 of 391
Notice of Intent to Perform a Demolition Not Forwarded to MPCA 1Notice of Intent to Perform a Demolition Not Forwarded to MPCA 10 Days Prior to 0 Days Prior to Demolition: Asbestos NESHAP, 40 CFR Part 61.145Demolition: Asbestos NESHAP, 40 CFR Part 61.145www.www.gpoaccessgpoaccess..govgov//cfrcfr/retrieve.html/retrieve.html
Recent Findings: Environmental Requirements ComplianceRecent Findings: Environmental Requirements Compliance
Weekly Erosion Control Logs Not Forwarded by Contractors to ProjWeekly Erosion Control Logs Not Forwarded by Contractors to Project Engineers; ect Engineers; Work Order Not Written to Instruct Contractors to do so: ContracWork Order Not Written to Instruct Contractors to do so: Contract Proposal Special t Proposal Special Provisions Specification 1717 Provisions Specification 1717 www.dot.state.mn.us/tecsup/prov/pdf/sp2000.pdfwww.dot.state.mn.us/tecsup/prov/pdf/sp2000.pdf, page 68 of 391, page 68 of 391
Notice of Intent to Perform a Demolition Not Forwarded to MPCA 1Notice of Intent to Perform a Demolition Not Forwarded to MPCA 10 Days Prior to 0 Days Prior to Demolition: Asbestos NESHAP, 40 CFR Part 61.145Demolition: Asbestos NESHAP, 40 CFR Part 61.145www.www.gpoaccessgpoaccess..govgov//cfrcfr/retrieve.html/retrieve.html
Inspection of Building Materials Not Done and Documented Prior tInspection of Building Materials Not Done and Documented Prior to Building o Building Demolition: MN Rules Chapters 4620.3330 and 4620.3460 Demolition: MN Rules Chapters 4620.3330 and 4620.3460 http://www.revisor.leg.state.mn.us/arule/4620/3330.htmlhttp://www.revisor.leg.state.mn.us/arule/4620/3330.htmlhttp://www.revisor.leg.state.mn.us/arule/4620/3460.htmlhttp://www.revisor.leg.state.mn.us/arule/4620/3460.html
Improper Disposition of Hazardous Waste Building Demolition MateImproper Disposition of Hazardous Waste Building Demolition Materials: Contract rials: Contract Special ProvisionsSpecial Provisions
MATERIAL TESTING
Assess Measures Taken to Accomplish Compliance With Material Testing Requirements
Bituminous Production/Testing Compliance
Concrete Production/Testing Compliance
Grading and Base Testing Compliance
Single Audit Report ProcessSingle Audit Report Process
Meet With County Engineer at End of Week When Audit is Meet With County Engineer at End of Week When Audit is Finished to Discuss Results of Audit for Specific Projects: Finished to Discuss Results of Audit for Specific Projects: Spring and Summer Spring and Summer
Results From 15Results From 15--18 Highway Construction Audits 18 Highway Construction Audits Combined and Evaluated in OctoberCombined and Evaluated in October
Meetings to Discuss Audit Results in November:Meetings to Discuss Audit Results in November:
Office of MaterialsOffice of MaterialsOffice of Construction and Innovative Contracting Office of Construction and Innovative Contracting State Aid for Local Transportation DivisionState Aid for Local Transportation DivisionMn/Dot Commissioner’s StaffMn/Dot Commissioner’s Staff
EXAMPLE OF ENGINEER’S ATTENTION SPAN AT AUDIT MEETING
Single Audit Report ProcessSingle Audit Report Process
Draft Report for Response Issued in December; Finding RecommendaDraft Report for Response Issued in December; Finding Recommendations tions Addressed to Addressed to MnMn/DOT Division Directors/DOT Division Directors
Finding Recommendations Related to County Projects Addressed to Finding Recommendations Related to County Projects Addressed to MnMn/DOT /DOT State Aid EngineerState Aid Engineer
Single Audit Report ProcessSingle Audit Report Process
Draft Report for Response Issued in December; Finding RecommendaDraft Report for Response Issued in December; Finding Recommendations tions Addressed to Addressed to MnMn/DOT Division Directors/DOT Division Directors
Finding Recommendations Related to County Projects Addressed to Finding Recommendations Related to County Projects Addressed to MnMn/DOT /DOT State Aid EngineerState Aid Engineer
Responses to Audit Findings Evaluated and Accepted by Mn/DOT DepResponses to Audit Findings Evaluated and Accepted by Mn/DOT Deputy uty CommissionerCommissioner
Final Report With Responses Issued in January is a Public DocumeFinal Report With Responses Issued in January is a Public Documentnt
Your QuestionsYour Questions
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