2012 Legislative Audits 

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1. Summary of Report 2012-01 : A Performance Audit of of the Utah Transit Authority

UTA is in the midst of a $2.3 billion expansion of its rail system. Unlike earlier rail projects, this expansion is mostly being paid through local funds. It remains uncertain whether UTA will have the revenue to satisfactorily operate the costly systems that it is building. UTA's revenue projections are optimistic, while expense projections may be understated. Financial constraints may affect future service levels and transit projects. In addition, we found that in recent years, UTA's cost-effectiveness has declined because costs grew while ridership remained level. UTA faces challenges as it seeks to implement a new fare structure and as it attempts to reduce subsidy levels while maintaining and increasing ridership. Because UTA is the expert at understanding the costs of continuing to expand transit service and the extent to which future operating costs will need to be subsidized, it is important that UTA communicates that message widely before new systems are built. Otherwise, taxpayers may face an unexpected tax increase.
Full Report - A Performance Audit of the Utah Transait Authority

 

2. Summary of Report 2012-02 : A Review of School Community Council Election Practices

As required by statute, this report reviews school community council (SCC) election practices. We reviewed to see if schools were holding SCC elections, providing proper notice of elections, and fulfilling other statutory requirements. The purpose of SCCs is to allocate trust fund monies to select school programs through councils composed of parents/guardians and school representatives. We found that due to elections being uncontested, most SCCs are not required to hold elections. We question if one of the reasons elections are uncontested is that parents may not fully understand the direct impact they can have on their school's critical academic needs by being involved in an SCC. The audit also found that most sampled schools are not fully complying with election notification requirements. Although enough days' notice was provided, schools' notices were missing required elements. We found schools' election notices that did not list the election date, time, and/or positions up for election, which are all statutorily required. Utah law also prohibits a licensed educator from serving as a parent/guardian SCC member within the district of employment. We found principals and district representatives confused and frustrated about this requirement. We recommend the Legislature reexamine this law to ensure it fulfills the desired intent. Finally, principals must sign a principal assurance (PA) form testifying that election requirements have been fulfilled. We found PA forms with errors and a lack of a defined process for submitting the forms upon completion.

Full Report - A Review of School Community Council Election Practices

 

3. Summary of Report 2012-03 : An In-Depth Follow-up of Utah Medicaid's Implementation of Audit Recommendations

This report presents an in-depth follow-up of 63 recommendations made in four previous Medicaid audits. We found that of those 63 recommendations, 41 (65 percent) have been implemented and the other 22 (35 percent) are in the process of being implemented. Substantial cost savings have been achieved by the Utah Medicaid program and the Office of Inspector General's implementation of the audit recommendations. We estimate that cost savings could reach a half-billion dollars or more over the next ten years.

Full Report - An In-Depth Follow-Up of Utah Medicaid’s Implementation of Audit Recommendations

 

4. Summary of Report 2012-04 : A Performance Audit of DABC Oversight of Package Agencies

This report addresses the management of package agencies by the Department of Alcoholic Beverage Control (DABC). This audit was requested in response to the audit released in May, 2011 regarding a $300,000 loss from a closed package agency in Eden, Utah. We found that the problems associated with the Eden Package Agency were not isolated, but DABC has strengthened controls over package agencies since the Eden audit. DABC can further improve the oversight of package agencies by formalizing its new practices into written procedures and considering some other changes. Because of the risks associated with DABC operations, we recommend that an internal audit division be established at the department.

Full Report - A Performance Audit of DABC Oversight of Package Agencies

 

5. Summary of Report 2012-05 : An In-depth Follow-up Audit of PEHP's Business Practice

Our 2011 audit found that the Public Employees Health Program (PEHP) needed to make significant improvements in each area reviewed. This follow-up audit reviewed 19 recommendations given to PEHP in the 2011 audit. PEHP has implemented or is in the process of implementing 18 recommendations. One other recommendation has been partially implemented. First, we found that a new purchasing agent has established procurement practices that help foster competition when procuring vendors. However, PEHP still has three contracts that are perpetual. Second, PEHP has reduced medical reserve deficits by $4.1 million over the past year. Current deficits that need to be eliminated total $4.3 million. Also, excess reserves of $46 million need to be refunded to the state. Third, PEHP's pharmacy and therapeutics committee has adopted new policies and procedures to ensure members' needs are fairly addressed. Finally, PEHP has restructured its appeals process to include more clinical expertise.     

Full Report - An In-Depth Follow-Up of PEHP’s Business Practices

 

6. Summary of Report 2012-06 : A Performance Audit of the Division of Housing and Community Development

The Division of Housing and Community Development (HCD) performs a number of functions focusing on the development of low-income housing.  This report presents the results of an examination of some of those functions and activities.  One such activity, the purchase of property in South Salt Lake, appears to have been within HCD’s authority, but lacked guidance from internal policies.  Another function, the use of Neighborhood Stabilization Program funds, appears to have been performed appropriately and efficiently.  Bridges Out of Poverty, a training program, cost the state negligible amounts.

Full Report - A Performance Audit of the Division of Houising and Community Development