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NSAA Annual Conference June 12, 2004 Management Audit of the Illinois State Toll Highway Authority NSAA EXCELLENCE IN ACCOUNTABILITY AWARDS.

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Presentation on theme: "NSAA Annual Conference June 12, 2004 Management Audit of the Illinois State Toll Highway Authority NSAA EXCELLENCE IN ACCOUNTABILITY AWARDS."— Presentation transcript:

1 NSAA Annual Conference June 12, 2004 Management Audit of the Illinois State Toll Highway Authority NSAA EXCELLENCE IN ACCOUNTABILITY AWARDS

2 Illinois Toll Road System 274 miles of roads 1.2 million vehicles each day 2

3 How did we get here? 3 TOLLWAY : Originally constructed in 1958 March 2002 Reconstruction Plan: $5.5 Billion; 88% toll increase

4 The Authority has seen years of financial mismanagement, cost overruns, wasteful expenditures and poor planning…. It presented its 20-year, $5.5 billion plan to rebuild and extend tollways on a single sheet of paper…. To get public input … it arrogantly scheduled 12 different hearings all on the same night, at the same time. Before one barricade or detour sign goes up or shovelful of concrete is poured, the Illinois State Toll Highway Authority has a far more urgent patch-up job: its credibility. Chicago Tribune editorials: 4

5 How did we get here? THE PHONE CALL President of the Senate Historically, Tollway has not been anxious for oversight by anyone Audit Resolution passed the Senate on May 21, 2002 and the House on June 2,

6 How did we get here? One other minor detail… 6 The Resolution required the audit to be completed within one year of its passage.

7 Challenges: Open-ended resolution: 7 Determine whether the Toll Highway Authority is managing or using its resources in an economical and efficient manner

8 Challenges: Large complex agency: 1,900 employees $379 million budget Technical areas, such as bonds, construction, etc. Under intense public scrutiny 200 miles away from Springfield Office 8

9 What we did: Divided the Tollway into 18 functional areas, such as personnel, planning, contracting, real estate, etc. Made one staff person responsible for each of these areas (staff had multiple areas) Clearly defined responsibilities; staff development 9

10 Organizational Chart of OAG: 10 ASSISTANT TO AUDITOR GENERAL: CLARKE CULLY – Graphic Designer HAMILTON – Office Mgr. LIVINGSTONE – Secretary BRADLEY – Messenger Clerk EXECUTIVE SECRETARY: SMITH DEPUTY AUDITOR GENERALS JOHN W. KUNZEMAN CHARLES G. WOODWARD FISCAL OFFICER: PAPE LEONARD – Sr. Fiscal Asst. WALKER – Admin. Specialist LEGAL COUNSEL: PATTON DAHLQUIST – Admin. Mgr. WALKER – Admin. Specialist AUDITOR GENERAL WILLIAM G. HOLLAND FINANCIAL/COMPLIANCE DIRECTOR: BULLARD ASST. DIRECTOR: STEPHENS Stiles Appelbaum Carhill Usherwood Rudd Labonte Clark Kizziah Davis Fox Warden Long Campbell Hartson Ballion Dzierwa Olive Schertz Taylor Johnson Kirk Nwosu Prohaska King Sullivan Erickson Faller McDowell Smith, A. INFORMATION SYSTEMS DIRECTOR: SAMPIAS Devitt Humphries Lovejoy Gudgel Wagner Mehochko French PERFORMANCE DIRECTOR: SCHLOUCH Dada Wittrock Mittelstaedt Maziarz Paoni Helton Wahlbrink Peters Butcher Flessner Baptist Barker Glahn Allen Roberts Brown Weger Cors Lydigsen

11 Organizational Chart of OAG: 11 ASSISTANT TO AUDITOR GENERAL: CLARKE CULLY – Graphic Designer HAMILTON – Office Mgr. LIVINGSTONE – Secretary BRADLEY – Messenger Clerk EXECUTIVE SECRETARY: SMITH DEPUTY AUDITOR GENERALS JOHN W. KUNZEMAN CHARLES G. WOODWARD FISCAL OFFICER: PAPE LEONARD – Sr. Fiscal Asst. WALKER – Admin. Specialist LEGAL COUNSEL: PATTON DAHLQUIST – Admin. Mgr. WALKER – Admin. Specialist AUDITOR GENERAL WILLIAM G. HOLLAND FINANCIAL/COMPLIANCE DIRECTOR: BULLARD ASST. DIRECTOR: STEPHENS Stiles Appelbaum Carhill Usherwood Rudd Labonte Clark Kizziah Davis Fox Warden Long Campbell Hartson Ballion Dzierwa Olive Schertz Taylor Johnson Kirk Nwosu Prohaska King Sullivan Erickson Faller McDowell Smith, A. INFORMATION SYSTEMS DIRECTOR: SAMPIAS PERFORMANCE DIRECTOR: SCHLOUCH Dada Wittrock Mittelstaedt Maziarz Paoni Helton Wahlbrink Peters Butcher Flessner Baptist Barker Glahn Allen Roberts Brown Weger Cors Lydigsen Devitt Humphries Lovejoy Gudgel Wagner Mehochko French

12 Identified need for additional assistance – both grunt work and technical What we did: 12

13 Used public accounting firm doing our financial audit of the Authority to assist in personnel, contract, and expenditure testing ($26,250) GRUNT WORK: What we did: 13

14 Obtained assistance in areas of road reconstruction, benchmarking, capital planning, from consultant who had done work for other toll roads ($112,835) TECHNICAL: What we did: 14

15 What we did: Contacted the Economic and Fiscal Commission and the Illinois Gaming Board Entered into Intergovernmental Agreements Provided assistance at no charge to us 15

16 What we did: Used and electronic file transfers as much as possible to reduce travel cost and time – also helped with documentation Surveyed 964 Tollway employees Surveyed 32 toll road organizations in United States and Canada Results were very valuable; did extensive benchmarking from the survey results 16

17 An Intervening Event Elections held in November 2002 Democratic Governor elected for the first time in 28 years Governor-elect had made the inefficient Tollway an issue in the campaign New Executive Director was open to change and accepted most of the 23 recommendations made in the report 17

18 Legislative Audit Commission September 19, 2003 Management Audit ILLINOIS STATE TOLL HIGHWAY AUTHORITY

19 Capital Planning Regarding the $5.5 billion reconstruction plan: Some supporting documentation was not prepared until we requested the back-up Cost estimates prepared by the Tollways contractual engineering firm were not reviewed by Tollway staff 3A

20 Capital Planning The $5.5 billion cost estimate was the high end cost estimate and less costly alternatives existed 4A

21 Uncollected Tolls In 2002, the Tollway did not collect $11.2 million in tolls, or 3% of estimated toll revenue Tollways 3% uncollected rate was among the highest of tolls roads we surveyed 7A

22 0% 3% 6% 9% 12% 15% 18% UNCOLLECTED TOLLS December % Unattended Automatic Lanes 6.0% I-PASS Only Lanes Manual Lanes.3% 8A

23 Counting of Tolls We recommended improvements in the Tollways collection and counting of tolls: Limiting access to the Money Room, vault, currency counting areas Improving Money Room video surveillance 9A

24 Bonds Recommended Tollway look at refinancing certain bonds Subsequent to the audits release, the Tollway refinanced bonds, saving $600,000 10A

25 Benchmarking Compared the Tollways performance with that of other toll roads 11A

26 Total Staff Per Lane Mile 12A

27 Average Toll Rate Per Mile 6A

28 Percent of Electronic Toll Collection 13A

29 NSAA Annual Conference June 12, 2004 Management Audit of the Illinois State Toll Highway Authority NSAA EXCELLENCE IN ACCOUNTABILITY AWARDS


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