To: Assistant Director Audits and Investigations P4000 … · will be in the final BPR report...

State of California Cal ifornia State Transponation Agency DEPARTMENT OF TRANSPORTATIO!'\

Men1orandum Serious drought. Help save water!

To: WILLIAM E. LEWIS Date: June 7, 2016 Assistant Director Audits and Investigations Fi le: P4000-0392

From:

7./JL,/~ TJ-IO~;;~ALLENBECK Chief Division of Traffic Operations

subject: OUTDOOR ADVERTISING PERMIT AUDIT REPORT (P4000-0392) 360-DAY AND FINAL CORRECTIVE ACTION STATUS REPORT

Thank you for the oppo1tunity to provide a 360-day and final Corrective Action Status Repo11 on the actions the Division ofTraffic Operations has taken since the findings and recommendations in the Outdoor Advertising Permit Statewide Audit (P4000-0392).

This report also confirms the actions completed since the September 29, 2015, 180-Day Corrective Action Status Report. If you have any questions please contact Velessata Kelley, Chief, Office of Outdoor Advertising at (916) 653-4969.

Attachments (1 ) Audits and Investigations (A & I) 360-day Corrective Action Status Response

Final Report (lA) California Business & Professions Code 5360 (1 B) California Code of Regulations 2424

(2) Business Process Review (BPR) of the Office of Outdoor Advertising Program As-Is Process Report Final v l.0 - April 18, 2016.

(3) Audits and Investigations October 26, 2015, Response to the ODA 180-day Corrective Action Status Report to request additional information

(4) ODA November 23, 2015 Response to the request for additional information

c: Steve Takigawa, Deputy Director, Division of Maintenance and Operations Jeanne Scherer, Chief Counsel, Legal Division Douglas Johnson, Assistant Deputy Attorney, Legal Division Matthew George, Deputy Attorney, Legal Division Clark Paulsen, Chief, Division ofAccounting Zilan Chen, Supervising Management Auditor, Audit and Investigations Juanita F. Baier, Senior Management Auditor, Audit and Investigations Kris Kuhl, Assistant Division Chief, Division of Traffic Operations Kelly Takigawa, Acting Assistant Djvision Chief, Division of Traffic Operations Velessata Kelley, Chief, Office of Outdoor Adve11ising, Division of Traffic Operations

..Provide a safe. sustainable. integrated and ej/ic1ent transportation system to enhance California seconomy and livability ..

ATTACHMENT 1 Audits and Investigations (A & I) - 360-day Corrective Action Status Response - Final Report

Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392 Auditee: Office of Outdoor Advertising (ODA)

Audit Report Finding #1 Findin2: Incomplete Permit Aoolication Packa2es

A&I Audit Recommendation Auditee Response Estimated Staff Responsible 360-day Status A&I A nalysis to Final Report Completion Date

I. Formalize the ODA Permit process. The Office ofOutdoor Advertising (ODA) Completed ODA Office Chief As needed, ODA staff will Permit Process has been formal ized and is ODA Northern & reference the As Is Process documented in the Business Process Southern Area Managers Reporl as the guideline until Review (BPR) of1he Office ofOu/door BPR Consultant th is section of the report can be Advertising Program As-ls Process Report chronicled in an ODA Finalvl .0 - April 18. 2016. Operations Manual to be

completed by June 30, 2017. This process is documented in section 3.3 Avvlication Processinf! page(s)

2. Provide training for all s taff involved in the ODA HQ conducted its fi rst Outdoor Completed ODA Office Chief ODA's previous mention ofthe permit process. Advertising Academy July 8-10, 2014. ODA Northern & "To-Be" business process was

Southern Area Managers stated out of context. The sole ODA held the FHWA Highway purpose of the "To-Be' process Beautification and Outdoor Advertising is to identi fy program Workshop, fac ilitated by Realty requirements for seeking a new Specialists, Marshall Wainwright and system solution and database. Michele Palicka, August I 0- 11, 20 15.

Although the "To-Be process FHWA does not offer a formal on the job will be in the final BPR report training (OJT) for outdoor advertising field it would not be implemented inspector staff. The formal training until ODA has secured a new reviews the applicable statutes and system solution and database. regulations pertaining to outdoor The new system solution and advertising and provides the most current database is undetermined. insight to applying those provisions in the ir daily work . ODA intends to conduct formal

training every two years as All ODA staff attended both trainings long as resources are available. except for two of the most experienced All other trainings for staff Field Inspector sta ff. In 20 14, the tenured involved in the permit process staff was on an approved medical leave, will be OJT as needed and as and in 201 5 the staffwas retiring within new sta ff are recruited to the three weeks of the train ing. program.

The ODA Operations manual wi ll serve as part of the OJT and will be chronicled in an ODA Operations Manual to be completed by June 30, 20 17.

11 Page


Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392 Auditee: Office of Outdoor Advertising (ODA)

Audit Report Finding #1 Finding: Incomplete Permit Aoolication Packages

A&I Audit Recommendation Staff Responsible 360-day Status A&I Analys is to Final Report

Auditee Res ponse Estimated Completion Date

ODA has a process and worksheet that ODA Office Chief As needed, ODA staff will and approvals for each application file; and 3. Include a checklist of required documents Completed

staff is currently using and the area ODA Northern & reference the As Is Process issue the permit only when the checklist has the manager reviews along with the permit Southern Area Managers Report as the guideline until required documents and approvals. application. The field inspector signs the this section of the report can be

form to confirm that all related work and chronicled in an ODA required documents is accounted for. Operations Manual to be

completed by June 30, 2017. This process is documented in sections 3.3 Application Processing and 3.6 Survey Field Inspection of the BPR "As Is Process" on page(s)

Audit Report F inding #2 Findine:: Permit Pavment Processine: Issues

A&I Audit Recommendation A&I Analysis to Final Report

Auditee Response Estimated Staff Responsible 360-day Status C ompletion Date

ODA Office Chief As needed, ODA staff will application fees to Accounting for processing

In the June 3, 20 15, 60-Day Corrective Completed I. Develop procedures for submitting Action Status Report ODA provided a ODA Northern & reference the As Is Process

that include: Southern Area Managers Report as the guideline until outlined the procedures for collecting and copy of Accounting Bulletin 15-04 which

Division of Accounting this section of the report can be - Timeframes for submitting checks and credit processing fee payments. chronicled in an ODA

card logs to accounting for processing. Operations Manual to be - Maintaining and filing copies of all check completed by June 30, 2017.

and credit card logs: and record the date check The formalized process is documented in section 3.3.2 Process Fees of the "As Is

and credit card logs are sent to Accounting. Process'' on pagc(s) - Performing a monthly reconciliation of

deposit ticket sheets with check and credit card logs to ensure payments arc processed for each application and following up on outstanding transactions. - Assess the current application receiving

process to determine if all payments should be sent directly to Accounting for processing.

2 1Pa g e


Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392 Auditee: Office ofOutdoor Advertising (ODA)

Audit Report Finding #2 Findin2: Permit Payment Processin2 Issues

A&I Audit Recommendation Auditee Response Estimated Staff Responsible 360-day Status to Final Report Completion Date

2. Evaluate policies to determine whether all For consideration, there is no statutory or Completed ODA Office Chief Legal has advised that i t would permit fees are non-refundable, or implement a regulatory mandate that would require the ODA Northern & be prudent to codi fy this process to refund permit fees to appl icants program to issue a permit refund or to Southern Area Managers pract ice through administrative when applications are denied. issue a refund i f requested. Issuing permit BPR Consultant rulemaking.

refunds upon request has just been a long standing practice and policy of the This process could conceivably program. Application fees are non- take one year once the refundable. This is clearly stated on the regulation package has been application. approved and submitted to the

Office of Administrative Law. Subsequent to the 60-day ODA incorporated language in two forms of As needed, ODA staffw i l l correspondence that will noti fy persons of reference the As Is Process their eligibility to receive a permit fee Report as the guideline until refund upon written request. this section of the report can be

chronicled in an ODA On 7-2-1 5, the Accounting D ivision Operations Manual to be provided a written procedures guide, titled completed by June 30, 20 17. 'Outdoor Advertising Refunds for Denied Applications or Overpayments" .

The formalized process for issuing permit refunds is documented in sect ion 3.3.3 Process Permit Fee Refund of the 'As Is Process on oage(s)

A&I Analysis

3 1Pa g e


Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392 Auditee: Office ofOutdoor Advertising (ODA)

Audit Report Finding #2 Finding: Permit Payment Processing Issues

A&I Audit Recommendation

3. Work with Accounting to develop a process to identify annual pern1its that are not renewed.

4. Develop fo llow-up procedures for permits that are not renewed to either collect renewal fees or issue a violation notice.

Auditee Response to Final Report

Upon the program securing a new system solution and database that would allow fo r a web-based accounting and payment processing system the existing process cannot be optimized any further.

Th is process is documented in section 3.4.2 Process Permit Renewals of the "As Is Process" on page(s)

Implementation ofa new ODA system solution and database is currently undeterm ined.

This issue regarding a process to identi fy non-renewed annual permits was cited as an improvement opportunity in the BPR As-ls Process Report. However to optimized this process any further would requi re a new system solution and database. As such, ODA must follow the statutory guidelines found in (Cal. Bus. & Prof. Code 5360) along with the speci fic process steps as found in (C.C.R. 2424) in handling non-renewed permits.

Estimated Staff Responsible Completion Date

Completed ODA Office Chief ODA Northern & Southern Area Managers BPR Consultant

Completed ODA Office Chief ODA Northern & Southern Area Managers BPR Consultant

360-day Status

ODA will continue to follow the provisions in (Cal. Bus. & Prof. Code 5360) and follow the specific steps in (C.C.R. 2424) in handling non-renewed permits.

Copies of these provisional code sections is included with this report as an attachments I A and I B.

As needed, ODA staff will reference the As Is Process Report as a guideline until this section of the report can be chronicled in an ODA Operations Manual to be completed by June 30, 20 17.

ODA will continue to follow the provision found in (C.C.R. 2424) in handl ing permit renewals and non-renewed permits. These steps will be incorporated in the ODA Operations Manual to be completed by June 30, 20 17.

The "To-Be process that will be included in the final BPR report would outline the processes that ODA would need to follow to coincide with a new permit monitoring and tracking database system. Implementation ofa new ODA database is currently undetermined.

A&I Analysis

4I Pagc


Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392 Audi tee: Office of Outdoor Advertising (ODA)

Audit Report Finding #3 Findin2: Untimely Follow-up of an Ille2al Display


I. Finalize the Violation Process, including Legal's involvement when issuing violation notices.

2. Monitor current violations and enforce the penalties in the Notice of Violations.


This process is documented in section 3.5 Enforcement of the "As Is Process' on page(s)

The program continues to partner with Caltrans Legal to enforce penalties sought in violation notices and subject to formal adjudication in an administrative fo rum as well as those subject to review by superior courts on writs of mandate.

This process is documented in sections 3.4.3 Monitoring: Track Appeal Process and 3.5 Enforcement of the "As Is Process" on page(s)

Estimated

Comoletion Date

Completed

Completed

Staff Responsible

ODA Office Chief ODA Northern & Southern Area Managers BPR Consul tant

ODA Office Chief ODA Northern & Southern Arca Managers BPR Consultant

360-day Status

As needed, ODA staff will reference the As Is Process Report as the guideline until this section of the report can be chronicled in an ODA Operations Manual to be completed by June 30, 201 7.

As needed, ODA staff will reference the As Is Process Report as the guideline until this section of the report can be chronicled in an ODA Operations Manual to be completed by June 30, 20 17.

A&I Analysis

S IP a g e

State ofCalifornia California State Transportation Agency DEPARTMENT OF TRANSPORTATION

Memorandum Serious drought.

To:

From:

Subject:

Help save water!

WILLIAM E. LEWIS Date: September 29, 2015 Assistant Director Audits and Investigations File: P4000-0392

:a~t.:::iECK, Chlef Division ofTraffic Operations

OUTDOOR ADVERTISING PERMIT AUDIT REPORT (P4000-0392) -180-Day CORRECTIVE ACTION STATUS REPORT

Thank you for the opportunity to provide a 180-day status report on the actions that the Division ofTraffic Operations has taken since the findings and recommendations in the Outdoor Advertising Permit Statewide Audit (P4000-0392). Included with the status report are copies of documents confirming actions completed since the June 3, 2015 60-Day Corrective Action Status Report.

Ifyou have any questions please contact Velessata Kelley, Chief, Office of Outdoor Advertising at (916) 653-4969.

Attachments (1) ODA Permit Audit (P4000-0392) 180-day Corrective Action Status Report (IA) Audits and Investigations June 19, 2015 Response to the ODA 60-day

Corrective Action Status Report

(2) Business Process Review of Outdoor Advertising Program Project Work Plan.

(signed Project Work Plan Acceptance Sheet on page 3 ofdocument) (3) Highway Beautification and Outdoor Advertising Control Workshop Handout (4) Highway Beautification and Outdoor Advertising Control Workshop

Attendance Sign-in Sheets (5) Caltrans Form ODA-0023A Permit Application Worksheet (6) Caltrans Form ODA-0023B Field Inspection Checklist (7) ODA Accounting Refund Procedures & (7 A) ARS Transactions Reports

c: Steve Takigawa, Deputy Director, Division ofMaintenance and Operations Jeanne Scherer, Acting Chief Counsel, Legal Division Clark Paulsen, Chief, Division ofAccounting Laurine Bohamera, Supervising Management Auditor, Audits and Investigations Laura Quintana, Assistant Division Chief, Division ofTraffic Operations Kris Kuhl, Assistant Division Chief, Division ofTraffic Operations Juanita F. Baier, Senior Management Auditor, Audits and Investigations Douglas Johnson, Assistant Deputy Attorney, Legal Division Matthew George, Deputy Attorney, Legal Division Velessata Kelley, Chief, Office of Outdoor Advertising, Division ofTraffic Operations

"Provide a safe, sustainable, integrated and efficient transportation system to enhance California seconomy and livability"

Audits and Investigations (A & I) - 180-day Corrective Action Status Response to March 9, 2015 Final Report Audit Name: Outdoor Advertising Permits Audit A u dit No. P4000-0392

Aud itee: Office of Outdoor Advertising (ODA)

Audit Report Finding #1 Findin2: Jncomolete Permit Annlication Packaees

A&I Audit Recom mendation Auditee Response Estimated Staff Responsible 180-day Status A&I Analysis to Final Reoort Comoletion Date

I. Fonnalize the ODA Pennit process. ODA currently has Visio Flow Chart that The final written ODA Office Chief Current was created in-house and used to give a process would be ODA Northern & visual overview ofthe pennit application incorporated in the Southern Area Final BPR Project Work process. A copy of the chart is attached. ODA operations Managers Plan completed 8-10- 15 The program is currently soliciting for a guide that will be BPR Consultant and is attached. consultant to complete a Business Process developed post the Review (BPR) and has included it as part ODABPR. BPR Project Work Plan ofthe scope of work requirements for the Acceptance signed by Consultant to draft a fully documented The estimated Caltrans on 8-1015 and "Asls" process for all ODA business completion of the lnformatix, Inc. on processes, functions and services. This BPR is 12-31 - 15. 8/ 14/ 15 and is included would include flowcharts, swim lane on page (3) ofthe BPR diagrams and the accompanying Project Work Plan. narrative(s) for all program activities.

2. Provide training for all staff involved in the ODA HQ conducted its first Outdoor Completed ODA Office Chief August 10- 1I, 2015 pcnnit process. Advertising Academy July 8- 10, 2014. ODA Northern & ODA held the FHW A

All but one ofthe ODA's tenured staff Southern Area Highway Beautification attended the academy. Managers and Outdoor Advertising

Workshop, facilitated by The future plan is to conduct academies Realty Specialists, biennially (every two years). To develop Marshall Wainwright a sustainable training program for ODA and Michele Palicka. Field Inspectors, ODA has included as FHW A is satisfied that part of the scope ofwork for the BPR California is maintaining Consultant to establish a "To-Be" effective control of business process that documents the Outdoor Advertising. optimal pennit field review process that The handout and would be used to train staff in attendance sheet is coordination with the biennial academies attached. and on-the-job training field reviews with the more tenured ODA staff. All ODA staffattended

the training and received the workshop handout except one ODA Field Inspector who was retiring on 8/31/J 5.

AITACHMENTl

9/18/2015 . Page 1

Audits and Investigations (A & I) - 180-day Corrective Action Status Response to March 9, 2015 Final Report Audit Name: Outdoor Advertising Permits Audit Audit No. P4000- 0392

Auditee: Office ofOutdoor Advertising (ODA)

A~dit Report Finding #1 Findin2: Incomplete Permit Annlication Packa2es

A&I Audit Recommendation Auditee Response Estimated Staff Responsible 180day Status A&I Analysis to Final Reoort Comoletion Date

3. Include a checklist of required documents ODA has a process and worksheet that Completed ODA Office Chief The Penni! Application

and approvals for each application file; and staff is currently using and the area ODA Northern & Worksheet and Field

issue the pennit only when the checklist has manager reviews along with the pennit Southern Area Inspection Checklist are

the required documents and approvals. application. The field inspector signs the Managers attached. These

fonn to confinn that all the related work documents were not and required documents are accounted included in the March 9, for. 2015 response.

These documents will be incorporated in the ODA Operations Guide that will be developed post the ODA BPR.

Audit Report Finding #2 Findin2: Permit Payment Processin~ Issues

A&I Audit Recommendation Auditee Response Estimated Staff Responsible 180-day Status A&I Analysis to Final Report Completion Date

In the Division ofAccounting's report, I. Develop procedures for submitting Completed ODA Office Chief AB 15-04 was included

application fees to Accounting for processing they have indicated that written ODA Northern & in the June 3, 2015, 60that include: procedures for processing Outdoor Southern Area Day Corrective Action

Advertising Pennit fees have been and Managers Status Report and will be

- Timeframes for submitting checks and credit continue to be in existence. Division of Accounting incorporated in the ODA

card logs to accounting for processing. Operations Guide that

- Maintaining and filing copies ofall check As it relates to ODA, the program has will be developed post

and credit card logs; and record the date check included as part of the scope of work the ODA BPR. and credit card logs are sent to Accounting. requirements for the BPR Consultant to

. - Performing a monthly reconciliation of establish a "To-Be" business process that ODA regularly receives deposit ticket sheets with check and credit documents the desired future state of the ARS Transaction card logs to ensure payments are processed for ODA business and technical processes. Reports from each application and following up on Accounting. Copies of outstanding transactions. these reports from

- Assess the current application receiving January I - June 23,

process to determine ifall payments should be 2015 is attached. sent directly to Accounting for processing.

9/18/2015 Page 2

Audits and Investigations (A & I) - 180-day Corrective Action Status Response to March 9, 2015 Final Report Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392


Audit Report Finding #2 Findin2: Permit Payment Processin~


2. Evaluate policies to detennine whether all permit fees are non-refundable, or implement a process to refund pennit fees to applicants when applications arc denied.

Issues Auditee Response to Final Report

For consideration, there is no statutory or regulatory mandate that would require the program to issue a permit refund or to issue a refund if requested. Issuing permit refunds upon request has just been a long standing practice and policy of the program. Application fees are nonrefundable. This is clearly stated on the application.

In the Division of Accounting's report, they have indicated that accounting will work with ODA to implement a fee refund process for denied permit applications.

Currently, the only conditions under which an outdoor advertising entity is eligible for a refund would be a permit refund for a denied application and possibly a permit that has been revoked but the permit renewal fee(s) had been paid in pro-rata.

Currently, ODA has a process in place to obtain a refund check from accounting if requested, but not a process to notice persons that, under certain conditions, are eligible for a permit fee refund.

Effective immediately, ODA will incorporate language in two forms of correspondence that will notify persons of their eligibility to receive a permit fee refund upon written request. The two forms ofcorrespondence would include the notice ofreceipt of the application and fees, and the notice ofdenial ofan application. Any other methods or changes to ODA forms would require adoption of regulations.

Legal has advised that it would be prudent to codify this practice through administrative rulemaking. This process could conceivably take one year.

Estimated

Completion Date

Completed

Staff Responsible

ODA Office Chief ODA Northern & Southern Area Managers BPR Consultant

180-day Status A&I Analysis

On 7-2-15, the Accounting Division provided a written procedures guide, titled "Outdoor Advertising Refunds for Denied Applications or Overpayments".

The steps outlined in this document were implemented in late May 2015. This guide will be incorporated in the ODA Operations Guide that will be developed post the ODABPR.

A copy ofthe procedures is attached.

9/1812015 Page3



Audit Report Finding #2 Findin2: Permit Payment Processin~

A&l Audit Recommendation

3. Work with Accounting to develop a process to identify annual pennits that are not renewed.

4. Develop follow-up procedures for pcnnits that are not renewed to either collect renewal fees or issue a violation notice.

Audit Report Finding #3

Issues Auditee Response

to Final Reoort Accounting currently has its own internal process. Through the BPR, ODA may identify a more optimal process to work with accounting and incorporate it into the ''To-Be" processes. Additionally, the program is working to secure a new database platform that would allow for web-based accounting and payment processing for ODA. ODA has follow-up procedures for non-renewed permits, collecting renewal fees, and issuing violation notices. ODA anticipates that a better process will be identified during the BPR, including documented written procedures.

Currently, the program does have flowcharts staff can refer to in order to monitor the stages of a permit. A copy is included. Additionally, once the program has completed its BPR, ODA will take progressive steps to publish an operational guide that would provide basic, ins tructional processes and timelines

Findin2: Untimely Follow-up of an Illee:al Display A&I Audit Recommendation



ODA has included as part ofthe scope of work requirements for the BPR Consultant to establish a "To-Be" business process that documents the desired future state of the ODA business and technical processes. The "To-Be" process will include finalizing the violation process, including Legal's involvement, prior to issuing violation notices.

Estimated Completion Date

The estimated completion of the BPR is 12-3 1-1 5.

Implementation of ODA's new system database is estimated for early 2017.

The estimated completion of the BPR is 12-31-15.


The estimated completion ofthe BPR is 12-31-1 5.

Staff Responsible



St.aff Responsible


180-day Status

No change in status since the June 3, 2015, 60-day Corrective Action Status Report.

A final written process would be incorporated in the ODA Operations Guide that will be developed post the ODA BPR.

No change in status since the June 3, 2015, 60-day Corr ective Action Status Report.

A final written process would be incorporated in the ODA Operations Guide that will be developed pos t the ODA BPR.

A&J Analysis

180-day Status

No change in status since the June 3, 2015, 60-day Cor rective Act ion Status Report.

A final written process would be incorporated in the ODA Operations Guide that will be developed post the ODA BPR.

A&I Analysis

9/1812015 Page4

State of California Califomia State Transportation Agency DEPARTMENT OF TRANSPORTATION

Memorandum. Serious drought Help save water!

To: WILLIAM E. LEWIS Assistant Director Audits and Investigations

Date:

File:

June 3, 2015

P4000-0392

r-/?tt_,-/r:-From: THOMA P. HALLE~ECK

Chief Division ofTraffic: Operations

Subject: OUTDOOR ADVERTISING PERMITS AUDIT (P4000-0392)-60-DAY CORRECTIVE ACTION STATLS REPORT

Thank you for the opportunity to provide a 60-day status report on the corrective actions that the Division ofTraffic Operations has taken since receiving the findings and recommendations in the Outdoor Advertising Permits Statewide Audit (P4000-0392). Included with the status report are copies of documents confirming actions completed since the March 9, 2015 report.

If you have any questions please contact Velessata Kelley, Chief, Office of Outdoor Advertising at (916) 653-4969 .

Attachment( s) (1) Audits and Investigations (A & I) - 60-day Corrective Action Status Response to

March 9, 2015 Final Report (2) Highway Beautification and Outdoor Advertising Workshop flyer (3) Accounf ng Bulletin (AB15-04)

c: Steve Takigawa, Deputy Director, Division of Maintenance and Operations Jeanne Scher~r, Acting Chief Counsel, Legal Division Clark Paulsen, Chief, Division ofAccounting Laurine Bohamera, Supervising Management Auditor, Audits and Investigations Kris Kuhl, A~:sistant Division Chief, Division ofTraffic Operations Katie Berringer, Acting Assistant Division Chief, Division of Traffic Operations Juanita F. Baier, Senior Management Auditor, Audits and Investigations Matthew Gecrge, Deputy Attorney, Legal Division Velessata Kelley, Chief, Office ofOutdoor Advertising, Division ofTraffic Operations

"Provide a safe, sustainable, integrated and efficient transportation system to enhance California seconomy and livability


Auditee: Office of Outdoor Advertising (ODA) Audit Report Finding #1 Findioe:: Incomplete Permit Aoolication Packae:es


1. Formalize the ODA Permit process.

2. Provide tra ining for all staff involved in the permit process.


ODA currently has Visio Flow Chart that was created in-house and used to give a visual overview of the permit application process. A copy of the chart is attached. T he program is currently soliciting for a consultant to complete a Business Process Review (BPR) and has included it as part of the scope of work requirements for the contractor to draft a fully documented "As-ls" process fo r all ODA bu'siness processes, functions and services. This would include flowcharts, swim lane diagrams and the accompanying narrative(s) for all program activities.

ODA HQ conducted its first Outdoor Advertising Academy July 8-10, 2014. All but one ofthe ODA's tenured staff attended the academy.

The future plan is to conduct academies biennially (every two years). To develop a sustainable training program for ODA Field Inspectors, ODA has included as part of the scope of work tor the BPR contractor to establish a "To-Be" business process that documents the optimal permit field review process that would be used to train staff in coordination with the biennial academies and on-the-job training field reviews with the more tenured ODA sta!T.


The final written process would be incorporated in the ODA operations guide that will be developed post the ODA BPR.

The estimated completion of the BPR is 12-31-15.

7/3112016

Staff Responsible

ODA Office Chief

ODA Northern &

Southern Area

Managers

BPR Contractor

'

OD/\ Office Chief

ODA Northern &

Southern Arca

Managers

60-day Status A&I Analys is

BPR RFO was initiated on 3-10-15 and closed on 3-30-1 5

Final contract is expected to be executed by 6-30IS.

3-26-20 I 5, ODA met with FHWA liaisons Melani Millard and Joseph Vaughn. l'HWA offers a 2-day Outdoor Advertising workshop that is customized to fit CA state law and the representatives provide the training onsite. A copy of the flyer is attached that lists the topics covered.

Proposed dates are for August or September in 20 15. ODA is considering the feasibil ity of having Southern area staff visit HQ or ifFH WA can provide training in 07 and HQ.

Train ing specific to the internal permitting process wi ll be provided upon completion of ODA's BPR.

S/2612015 Page I


Auditee: Office of Outdoor Advertising (ODA) Audit Report Finding #1 Findin2: Incomplete Permit Aoolication Packages

A&J Audit Recommendation Auditee Response to Final Re oort

3. Include a checklist of required documents ODA has a process and worksheet that and approvals for each application file; and staff is currently using and the area issue the pennit only when the checkl is t has the manager reviews along with the permit

application. The field inspector signs the I form to confirm that all the related work and required documents are accounted for.

required documents and approvals.

Audit Report Finding #2 Finding: Permit Payment Processing Issues

A&l Audit Recommendation

I. Develop procedures for submitting application fees to Accounting for processing that include:

- Timeframes for submitting checks and credit card logs to accounting fo r processing. - Maintaining and filing copies of all check

and credit card logs; and record the date check and credit card logs are sent to Accounting. - Performing a monthly reconciliation of

deposit ticket sheets with check and credit card logs to ensure payments are processed for each appl ication and following up on outstanding transactions. - Assess the current application receiving process to determine ifall payments should be sent directly to Accounting fo r processing.

Auditee Response to Final Repo rt

In the Division ofAccounting's report, they have indicated that written procedures for processing Outdoor Advertising Permit fees have been and continue to be in existence.

As it relates to ODA, the program has included as part of the scope of work requirements for the BPR contractor to establish a "To-Be" business process that documents the desired future state of the ODA business and technical processes.

Estimated

Comoletion Date

Current

I

Estimated

Completion Date

Current

Staff Responsible 60-day Status A&I Analysis

ODA Office Chief ODA Northern & ~vu:~cm ,\;-~u

Managers

No change in status necessary.

I

Staff Responsible

ODA Office Chief

ODA Northern &

Southern Area

Managers

Division ofAccounting

60-day Status A&I Analysis

ODA currently adheres to the cash handling policy outlined in AB 15-04 issued 1-2-2015 and attached for review.

ODA currently and regularly receives ARS reports on the status of ODA deposits. ODA recommends that distribution of this report be included in Accounting's written procedures.

5/26/2015 Pagc 2

Audits and Investigations (A & 1)- 60-day Corrective Action Status Response to March 9, 2015 Final Report Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392

Auditee: Office of Outdoor Advertising (ODA)

Audit R eport Finding #2 Findine:: Permit Pavment Processine: Issues

A&I Audit Recommendation Auditee Response Estimated Staff Res ponsible 60-day Status A&l Ana lysis to Final Report Completion Date

2. Evaluate pol icies to detem1ine whether all For consideration, there is no statutory or The final written Business & Professions Code permit fees are non-refundable , or implement a regulatory mandate that would require the process would be 5486 authorizes ODA to process to refund permit fees to applicants program to issue a permit refund or to incorporated in the retain the application fee. when 3!1!11ications are denied. issue a refund ifreQuested. Issuing permit ODA operations

refunds upon request has just been a long guide that will be CCR Section 2424 (a) (8) standing practice and policy of the developed post the authorizes pe rmit fee refunds program. Application fees are non- ODA BPR. for revoked permits. refundable. This is clearly stated on the application. The estimated As of March 26, 20 IS, ODA

completion ofthe implemented the following In the Division ofAccounti ng's report, BPR is 12-31 -1 5. process for issuing refunds as they have indicated that accounting will follows: work with ODA to implement a fee refund process for denied permit applications. All refund requests must

be initiated as an emai l Currently, the only conditions under which from ODA to Accounts an outdoor advertising entity is eligible for Receivable, Revenue a refund would be a pem1it refund for a (Shuwan Chuang). denied application and possibly a permit The name of the person that has been revoked but the permit to whom the refund check renewal foe(s) had been paid in prorata. ODA Office Chief will be issued (payer,

ODA Northern & unless documented Currently, ODA has a process in place to Southern Arca otherwise). obtain a refund check from accounting if Managers A copy of the original requested, but not a process to notice BPR Contractor check or credit card persons that, under certain conditions, are account that was used, eligible for a permit fee refund. which will be accepted

electronically. Effective immediately, ODA will incorporate language in two forms of

The mailing address to where the refund check

correspondence that will notify persons of should be sent. their eligibility to receive a permit fee . The dollar amount to refund upon written request. The two refund. forms ofcorrespondence would include the notice of receipt of the application and Other items such as the customer or vendor #, fees, and the notice ofdenial of an original deposit slip#,application. Any other methods or chru1ges and application# may be to ODA forms would require adoption of included in the refund regulations. request, but are not

required.Legal has advised that it would be prudent to codify this practice through administrative rulemaking. This process could conceivably take one year.

512612015 Page 3

Audits and Investigations (A & I)- 60-day Corrective Action Status Response to March 9, 2015 Final Report Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392

Auditee: Office of Outdoor Advertising (ODA) ..

Audit Report Finding #2 Findio2: Permit Payment Processinl? Issues

A&I Audit Recommendation Auditee Response to Final Reoort

Estimated Comoletion Date

Staff Responsible 60-day Status A&l Analysis

3. Work with Accounting to develop a process Accounting currently has its own internal The estimated to identify annual permits that are not renewed. process. Through the BPR, ODA may completion ofthe No change in status since the final

identify a more optimal process to work BPR is 12-31-15. ODA Office Chief report on March 9, 2015. with accounting and incorporate it into the ODA Northern & "To-Be" processes. Additionally, the Implementation of Southern Arca A final written process would be program is working to secure a new ODA's new system Managers incorporated in the ODA operations database platform that would allow for database is estimated BPR Contractor guide that will be developed post web-based accounting and payment for early 2017. the ODA BPR. processing for ODA.

4. Develop followup procedures for permits ODA has follow-up procedures for non- The final written that are not renewed to either collect renewal renewed permits, collecting renewal fees, process would be fees or issue a violation notice. and issuing violation notices. ODA incorporated in the

anticipates that a better process will be ODA operations identified during the BPR, including documented written procedures.

Currently, the program does have fl owcharts staff can refer to in order to mon itor the stages of a permit. A copy is included. Additionally, once the program has completed its BPR, ODA will take

guide that will be developed post the ODA BPR.

The estimated completion of the BPR is 12-3 1-15.

ODA Office Chief ODA Northern &

Southern Area Managers

BPR Contractor

No change in status since the fina l report on March 9, 2015.

A final written process would be incorporated in the ODA operations guide that wi ll be developed post the ODA BPR.

progressive steps to publish an operational guide that would provide basic, instructional processes and timelines

Audit Report Finding #3 Findin2: Untimely Follow-up of an llle2al Display

A&I Audit Recommendation Auditee Response to Final Report Estimated Completion Date

Staff Responsible 60-day Status A&I Analysis


ODA has included as part of the scope of work requirements for the BPR contractor to establish a "To-Be" business process that documents the desired future state of the ODA business and technical processes. The "To-Be" process will include finalizing the violation process, including Legal's involvement, prior to issuing violation notices.

The final wriuen process would be incorporated in the ODA operations guide that will be developed post the ODA BPR.

The estimated completion of the BPRis 12-31 -15.



13PR Contractor

Since the final report, ODA's Legal Coordinator has reviewed all active violations in the database to reconcile outstanding violations between default cases, cases pending an OAH hearing, and cases pending assignment of an attorney from Caltrans' legal division. Currently all active violations have been processed to the extent possible.

512612015 Page 4

Audits and Investigations (A & I) 60-day Corrective Action Status Response to March 9, 2015 Final Report Audit Name: Outdoor Advertising Permits Audit Audit No. P4000-0392

Auditee: Office of Outdoor Advert isin g (ODA)

A udit Report Finding #3 Finding: U ntime ly Follow- up of an Ille g a l Display

A&I Audit Recommendation Auditee Respons e to Final Repor t E stima ted Completion Date

S t a ff Respons ible 60-day Status A&l Analysis

2. Monitor c urrent violations and enforce the Currently, the program has a process fo r The final written Since the fi nal report, ODA's Legal penalties in the Notice of Violations. following up with violations, particularly

those violations that have been appealed to the department and arc pend ing an appeal hearing. T he program intends to implement a tracking method that wi ll notice the inspectors to recheck the status of the displays once the appeal period has been satisfi ed. This process wi ll also be addressed in the scope of work for the BPR contractor.

Additionally, the program would continue to cooperate with l ,cgal to enforce penalties sought in violation notices and subject to formal adjudication in an administrative forum as well as those subject to review by superior courts on writs ofmandate.

process would be incorporated in the ODA operations guide that will be developed post the ODA BPR.

The estimated completion of the BPR is 12-31 -15.



BPR Contractor

Coordinator did review all active violations in the database to reconcile outstanding violations and distinguish between default cases, cases pend ing an OAH hearing, and eases pend ing assignment of an allorney from Cal trans' legal division. Currently all active violations have been processed to the extent possible.

Note: The Office of Outdoor Advertising l isted the Business Process Review (BPR) as the means by which the program will correct many of the findings in the A&I fi nal audit report; as such, the followi ng is the status of the BPR:

BP R RFO initiated 3-1 0-15 B PR RFO C losed 3-30- 15 B PR RFO Response Evaluations 4-9-1 5 Interviewed BPR RFO Responders 4-1 6-1 5 BPR RFO Final Evaluation 4-20-1 5 DPAC processing BPR RQS 51 15*022 4-27-15 DPAC processed purchase order (P05 I 15*0 19) 5-26-1 5 PO approved 5-27- I 5 and returned to DPAC Final contract to execute before 6 -30- I5.

S/26/2015 Pages

Highway Beautifi:aition and Outdoor Advertising Workslu~p

Contact: MARSHALL WAINRIGHT 404.562.3692 [email protected]

MICHELE PALICKA 404.562.3918 michele.pa [email protected]

LENGTH

2DAY~

I. v - 11"

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BULLETJN #:

ISSUE DATE: TERM DATES:

TO:

SUBJECT:

PURPOSE:

CONTACT:

AB 15-04

J~nuary 2, 2015 ,fonuary 2. 2015 - Until Rescinded

All Department Employees

Cash Handling Policy

This bulletin is a reminder of the requirements anih, which is defined as coin, cunency. checks and warrants, that belongs t-J the Department. All ca;;h received must be deposited in a State hank acco:mt promptly a~ required by SAM 8032. l. Therefore, it is imperat ive that you are aw are of tht proper channels aued for department operations. The la\v is very clear on these points and there arc no exceptions. Thi ,; rcqLiremcnt applies to, but is not limited. to, Right of Way rental receipts, proceeds from auetions. encroachment permits, jury duty foes, publications, sales of scrap metal. materials or equ ipment disposed of at the end of its useful life. proceeds from recycling, refunds or dcpo2il::;, pl'ocecds from the l'Cturn of mate.rial or equ ipment, payment:: from employees to clear advances, and all other cht-cks made out t.o the DE-:Brtment (Caltrans). Whenever possible, it is preferable to have payment .,; sent dire ctly t.o h ead.quarters cu;;hier. If a check or money order is received in a fie !d location . it. should be mai led on the ;:ame day received to thl' h eadquarters' cas:,i:i ring office below:

1}.~_l>ostal Service Overnigh_Lrouri.~1~ Department of Transportation Dcpartm0nl of Trans portation Attention: Cashiering :\.t.tcntion Cashiering P.O. Box 168019 J820 i\lham bra Blvd .. MSf18

Sacramento, CA ~)58Hi-8019 Sacramento, C:'\ 95816

If cunency and coin:: are received , it may be taken in person to the hef:d

if you receive ca.sh or checks on behalf of Cal trans and need as.;;istan :.:e. plea::;e contact ,Jenny Wong in headquarters' cashiering.

Jermy \\rong at (916) 227-9220, for question s and/or concerns regard ing cas h handling policies.

-~This-Acco1mtiug .Bulletm has been approved for distribution by Clark Pii uben. D1n~ 1nn ::hi''c=J - . :

DEPT. OF TRANSPORTATION. DIVISION OF ACCOUNTING. MS 33 P.O. Box 168043 SACRAMENTO CA 95816

http:Bullet.rn

Outdoor Advertising 360-day status updateP4000-392 Outdoor Advertising 180 day SRP4000-392 Outdoor Advertising 180 day SROutdoor_Advertising_Permit_60_SR_P4000-392

To: Assistant Director Audits and Investigations P4000 … · will be in the final BPR report...

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