GOVERNMENT OF THE DISTRICT OF COLUMBIA Office of Risk Management. October 3,2012

Transcription

1 Phillip A. Lattimore, III Chief Risk Officer GOVERNMENT OF THE DISTRICT OF COLUMBIA Office of Risk Management Eric E. Richardson Director Office of Cable Television 3007 Tilden Street, NW, Pod-P Washington, DC Dear Director Richardson: October 3,2012 The Office of Risk Management (ORM) is responsible for maintaining a system for managing the resolution ofoutstanding recommendations and findings from various sources, including from the Inspector General, the D.C. Auditor, extemal District-wide audits with management letter recommendations, court orders, retained consultants and others. Enclosed please find correspondence that was ed to the Agency Risk Management Representative (ARMR) for OCT that requests OCT to provide ORM with information about whether the OIG recommendations citied in OIG No MA(a) for your agency remain "open," "pal1ially implemented," "in the process of implementation," and/or "not implemented." Your ARMR is required to respond to this request by Friday, October 5, 2012, and provide supporting documentation substantiating the agency's position. If you have any questions or concerns, please do not hesitate to contact William "Clyde" Thomas at or \\illiai!j}jb("l!lj~:;/fd(,kgq~~. I thank you for your continued support Sincerely, \jk~}-/ Phillip A. Lattimore, III Chief Risk Officer and Director h Street, NW, Suite 800S, Washington, D.C (202) Main (202) Website: orm.dc.gov

2 Thomas, William (EOM) From: Sent: To: Cc: Subject: Thomas, William (EOM) Monday, October 01, :21 PM Edmunds, Vannice (OCT) Ferreira, Victor (EOM) RE: OIG Recommendation Update Please note that per Director Lattimore of the Office of Risk Management, a response by Friday, October 5, 2012 is required regarding these recommendations. If you have any questions or concerns, please do not hesitate to contact me. Thank you, Clyde From: Thomas, William (EOM) Sent: MondaYI October 01, :04 AM To: Edmunds, Vannice (OCT) Cc: Ferreira, Victor (EOM) Subject: DIG Recommendation Update Good morning Vannice: In an effort to close out two recommendations that were noted in OIG's Final Report OIG No. 11-!-08MA(a), please see the below two recommendations that remain "in the process of implementation" and "partially implemented". Please update our office on the implementation status and expected completion date for implementation of the two recommendations. In order for ORM to report that these recommendations are closed we will need supporting documentation to support recommendation implementation. Please let me know if you have any addition questions or concerns. OFFICE OF CABLE TELEVISION Audit oftire Managemellt Operatiolls oftire Office ofcable Television, OIG No CT, issued December 17,2009. Recommendation I: We recommended that the Office of Cable Television (OCT) coordinate with OCP to train OCT staff in District procurement and contract administration procedures to include standards ofconduct and ethics relative to gove11l1l1ent contracting and management responsibilities. Result of OIG Verification: OCT provided us with a list ofemployees and the training they have received in the process of implementing the OIG recommendation. Our review ofthe list shows that while 50% (5 out of 10) ofthe staff received training related to procurement, only I 0% (one employee) received training in ethics, which was a vital point ofour recommendation. During discussions with OCT, we were infonlled that training of employees would continue. Accordingly, we classified this recommendation as "in the process of implementation." Recommendation 4: We rec01l1mended that OCT conduct inventories annually, as opposed to every 2 years, given the substantial value ofassets CUlTelltly not being utilized, to minimize the risk oftheft and obsolescence.

3 Result of OIG Verification: During our follow-up review, \ve noted that OCT has made ir..lprovements in its inventory management process, such as conducting its own internal inventoly. However, the third-party inventory was still being conducted every 2 years. We reviewed the fixed assets inventory listing provided by OCT and found that, while all the items in the listing contain the District-assigned property ID numbers, only about 16% have the serial number listed. According to OCT management, the reason fol' the missing serial numbers could be that the equipment is mounted on racks, making the serial numbers inaccessible without disassembling their configurations. In addition, we noted that the internal inventory listings maintained by OCT do not contain any dollar values for the items. Accordingly, we classified this recommendation as "pat1ially implemented." Thanks, Clyde William Clyde Thomas Executive Office of the Mayor Office of Risk Management One Judiciary Square 441 Fourth Street, NW - Suite 800 South Washington, DC (P) (F) William3.Thomas@dc.gov The infonnation transmitted is intended only for the person or entity to which it is addressed and may contain confidential andlor plivileged matelial. Any review, retransmission, dissemination or other lise of, or taking of any action in reliance upon this infolmation by persons or entities other than the intended recipient is prohibited. Ifyou received this in error, please contact the sender and delete the material from any computer.

4 3007 T'lldeifStreel\W~fl~;Pod-P, Washington, DC IT: IF: 'i~,i iii,.._~~.. GOVERNMENT OF THE DISTRICT OF COLUMBIA EECUTIVE OFFICE OF THE MAYOR October 5, 2012 Phillip A. Lattimor.i,Ilr.~ ", Chief Risk OffIcer awbjtector Executive Office dt.m~yor OffIce of Risk M~t One JudldarySqwiiet~,;, 441 Fourth Sti-eet,NW-:Sulte 800 South, Washlnaton,I:)C ~' ',,, <,-.,.' OearMr.lattimore:, '.'.'~" :,!:" :t&:~,.{ '" r. i~' ~.:.;\ In response toyo.~~"f October 3, 2012, enclosed are responses to recommendations cited in OIG. No,. :l.~~a stating the following: That the DG'~ of Cable Television (OCT) coordinate with the Office of Contracting and Pro<:u~i(OCP) to train OCT staff in District procurement and contract admlrilst...iorli~dures to include standards of conduct and ethics relative to JOVemment~ing and management responsibilities; and, : ; ~i', ":~~.~ r ': " i'hat OCT ~1nventories annually, as opposed to every two (2) years. ~. ',~{" 'k: Ifyou have any questions, please do not hesitate to contact me at or the Agency Risk Management_Presentative (ARMR) at or vannice.edmunds@dc.gov. Executive Directot Enclosure

5 GOVERNMENT OF THE DISTRICT OF COLUMBIA * RESPONSE TO: AUDIT OF AGENCIES IMPLEMENTA1"ION OF AUDIT RECOMMENDATIONS AUDIT OF THE MANAGEMENT OPERATIONS OF THE DISTRICT OF COLUMBIA'S OFFICE OF CABLE TELEVISION (OIG No CT) ERIC E. RICHARDSON DIRECTOR OCTOBER 5, 2012

6 TRAINING Audit of the Management Operations of the Office of Cable Television, OIG No CT, issued December 17, Recommendation 1: We recommended that the Office ofcable Television (OCT) coordinote with OCP to troin OCT staff in District procurement and contract administration procedures to include standards of conduct and ethics relative to government contracting and management responsibilities. Result of OIG verification: OCT provided us with a list ofemployees and the training they have received in the process ofimplementing the OIG recommendation. Our review of the list shows that while 50% (5 out of10) ofthe staffreceived troining related to procurement, only 10% (one employee) received training in ethics, which was a vital point ofour recommendation. During discussions with OCT, we were informed that training of employees would continue. Accordingly, we classified this recommendation as "in the process ofimplementation. II Due to the mandatory ethics training implemented by DC government, OCP did not conduct separate ethics training in FY2012. OCP is, however, planning to offer ethics training related to procurement in the first quarter of FY2013. OCT staff who have direct access to the procurement process (either through PASS, SOAR or purchase card) will be required to attend. All OCT staff directly involved in the purchase of goods and services (via PASS or purchase card) (6 of 6) have taken the DC government mandatory ethics training. In addition, as of Friday, October 5, all of OCT's management staff in addition to their support staff have completed ethics training: Personnel Executive Director'" Director of Operations* Director of Programming'" Spv. Audiovisual Specialist (OCT) Spv. Audiovisual Specialist (DKN) Spv. Videographer Spv. Producer I Spv, Editor i Executive Assistant* Staff Assistant'" Program Analyst'" Ethics Training Completed *only these positions are directly Involved In the purchase of goods and services via PASS, SOAR or purchase card

7 INVENTORY Recommendation 4: We recommended that OCT conduct inventories annually, as opposed to every 2 years, given the substantial value ofassets currently not being utilized, to minimize the risk oftheft and obsolescence. Result ofdig Verification: During our follow-up review, we noted that OCT has made improvements in its inventory management process, such as conducting its own internal inventory. However, the thirdparty inventory was still being conducted every 2 years. We reviewed the fixed assets inventory listing provided by OCT and found that, while all the items in the listing contain the District-assigned property ID numbers, only about 16% have the serial number listed. According to OCT management, the reason for the missing serial numbers could be that the equipment is mounted on racks, making the serial numbers inaccessible without disassembling their configurations. In addition, we noted that the internal inventory listings maintained by OCT do not contain any dollar values for the items. Accordingly, we classified this recommendation as "partially implemented." As required by the Office of the Chief Financial Officer (OCFO) OCT participates in the biannual physical property inventory of its capitalized personal property (as required by District procurement policy and GASB Statement No. 34). The inventory includes any type of furniture, fixtures and equipment, or vehicles with an acquisition cost of $5, or more or has a lifespan of up to five (5) years or more. The District-wide database, fixed asset system (FAS), is generated and maintained by Office of Financial Operations and Systems (OFOS) within OCFO. OCT works with Office of the Chief Technology Officer's (OCTO) fixed assets accountant for the governmental operations cluster to coordinate the biannual physical inventory. When OCT purchases capitalized personal property the purchase order number, serial number, invoice and location is forwarded to OCTO's fixed assets accountant and OFOS. In July 2011, OCTO ceased issuing DC government tag number and OCT now creates its own property tags. The information is then entered into FAS by OFOS. When items are disposed of, OCT notifies OCTO and OFOS and the items are removed by OFOS from FAS. Based on the results of last year's OIG verification, OCT continues to work diligently to make consistent improvements in its inventory management process. To that end, we have streamlined and centralized OCT's internal process which now includes serial numbers and dollar values are now associated with the inventory items. OCT is slated to relocate its headquarters to th Street, NE in FY13. During the relocation the agency will be able to properly identify untagged equipment that was previously assembled and installed that are not currently accessible. As identified in OIG's original investigation, some of the items belonging to OCT are still in unopened boxing and are in original packing and remain in a secured environment and will be tagged prior to relocation. Due to the complexity and expansive inventory, OCT conducted market research to determine the most comprehensive, effective and efficient software application to house OCT's internal inventory which would allow the agency to better identify equipment's location, monitor and capture the entire lifecycle of OCT assets. OCTO is currently vetting the proposed system and we look to complete the project prior to the agency's relocation on or before the 3 rd quarter of FY13.