Audit cites flaws A City Council audit of the Department of Transportation Services found that the city agency's handling of its projects is deficient and has put federal funding at risk.
in transportation
leadership
'Serious weaknesses' in
By Gordon Y.K. Pang
the city agency threaten
federal funding, the audit says
Star-Bulletin"We found serious weaknesses in the way the Department of Transportation Services manages its capital projects," said the report, released yesterday.
The questions come at a crucial time when the city is embarking on its $1 billion Bus Rapid Transit project, which includes a tram line through urban Honolulu and a hub-and-spoke bus system for rural Oahu.
The audit was conducted by the Office of Council Services, the in-house research arm of the City Council.
DTS oversees the Oahu transit system and maintains city roads.
Department officials, in response to the audit, said they disagreed with most of the findings yet agreed with most of the recommendations.
Among the key findings:
>> Federal funding for the department's computerized traffic control system was halted because an operations plan had not been approved.
As a result, "the department is proceeding with a significantly scaled-back project that risks cost overruns and may not meet program requirements."
Transportation Services Director Cheryl Soon said it is true about $1.5 million for the computerized traffic control system is being withheld, but she disagreed with the audit's characterization.
The city had completed an operations plan but federal officials later required that the city develop a joint regional architectural plan with the state, Soon said.
Agency chiefs talked to officials with the Federal Highways Administration. "The FHWA is satisfied with the completed projects and there is not a danger of sanctions or a need to return federal funds," she said.
>> The department lacks official policies and procedures to manage capital projects, meaning it cannot ensure consistent management and documentation.
>> Project status reports to the Council are spotty and sometimes confusing, incomplete or "not meaningful."
>> Project files are incomplete and noncompliant with federal, state and even the department's own requirements for document retention, putting the city at risk of incurring sanctions from the federal government.
City transportation officials wrote: "The department feels that its project files are complete and they contain the significant records relating to the individual projects.
No records were being withheld and there appears to be some miscommunication as to what the auditor was requesting."
The department acknowledged file maintenance can be improved and that some files may be incomplete.
Duke Bainum, chairman of the Council's Transportation Committee, said, "Certainly there are some things that need to be corrected, but I wouldn't paint the picture as grim."