Performance Audit
FINAL REPORT
September 6, 2022

Overview of Performance Audit Findings
Hillsborough County
September 6, 2022
HILLSBOROUGH COUNTY REPORT DIGEST
Overall, Across 25 Areas, the County Met Expectations in 21 Areas andPartially Met Expectations in 4 Areas.
Did the County Meet
Subtask Expectations?

Overall
Conclusion

Yes

Partially

No

Economy, efficiency, or effectiveness of the program (7)

Met

6

1

0

Structure or design of the program (2)

Met

2

0

0

Alternative methods of providing program services or products (4)

Met

4

0

0

Partially Met

2

1

0

Met

5

0

0

Partially Met

2

2

0

21

4

0

Issue Area (Number of Subtasks Examined)

Goals, objectives, and performance measures (3)Accuracy or adequacy of public documents, reports, and requests
prepared by the County (5)Compliance with appropriate policies, rules, and laws (4)All Areas (25)Results in Brief --------------------------

direct interdependence between the County
and HART with respect to finances or otherresources. Each entity has separate
accountability structures/oversight for thesurtax funds, internal control structure, andlegal compliance. The performance audits
included an examination of the issues
identified below.
 The
economy,efficiency,oreffectiveness of the program.
 The structure or design of the program toaccomplish its goals and objectives.
 Alternative methods of providing
program services or products.
 Goals, objectives, and performancemeasures used by the program tomonitorandreportprogramaccomplishments.
 The accuracy or adequacy of public
documents, reports, and requests
prepared by the County or which relate
to the program.
 Compliance of the program withappropriate policies, rules, and laws.

In accordance with s. 212.055(11), F.S., andGovernment Auditing Standards, McConnell& Jones LLP (the MJ Team) conducted aperformance audit of the HillsboroughCounty programs within the administrativeunit(s) that will receive funds through thereferendum approved by ordinance adopted
by the Hillsborough County Board ofCommissioners on April 20, 2022. The MJ
Team conducted a performance audit of theHillsborough Transit Authority (HART).
Although HART serves residents of theCounty and surrounding areas, it is not an
organizational unit of the County. It is anindependent special district created under
Chapter 163, Part V, Florida Statutes in
October 1979 to plan, finance, acquire,construct, operate and maintain mass transit
facilities
andsupplytransportation
assistance in Hillsborough County. As
required by the County ordinanceauthorizing the surtax, the County Clerk of
the Circuit Court must transfer 45 percent of
the surtax proceeds to HART. There is noiOverview of Performance Audit Findings

Hillsborough County
approved by the BOCC prior to incurring
additional costs and extending the project
timeline for Punch List items and the Final
Completion Letter is submitted inaccordance with County policy. One of thefour projects is reported as completed as the
roadway is open for public use; however, theproject is still pending the BOCC’s approvalin September 2022 of the final change order
to increase the contract amount by $303,260
and completion of items remaining on the
Punch List. Finally, the County has written
policies and procedures to take maximum
advantage of competitive procurement,
volume discounts, and special pricing
agreements.

Findings for each of the six issue areas werebased on the extent to which the programs
met expectations established by audit
subtasks. Overall, the audit found that
Hillsborough County met expectations in 4
areas and partially met expectations in 2
areas. Of the 25 total subtasks, the audit
determined that the County met 21 andpartially met 4.
A summary of audit findings by issue area ispresented below. A more detailed overview
of the findings can be found in the Executive
Summary.

Findings by Issue Area ---------------Economy, Efficiency, or Effectiveness of
the Program

The structure or design of the program toaccomplish its goals and objectives

The MJ Team reviewed Public Works, theCounty department associated with thesurtax through its Engineering andOperations Department (EOD) and Capital
Programs
Department
(CPD)
and
determined that program managers use
various reports and data on a regular basis
and that the information is adequate tomonitor program performance and costs.
Each program reviewed is periodicallyevaluated using performance informationand other reasonable criteria to assess
performance and costs. We also reviewed
findings and recommendations in relevantinternal or external reports on program
performance and costs noting thatadministrators took reasonable and timely
actions to address deficiencies in program
performance and costs identified in suchreports. All program administrators evaluate
performance and costs based on reasonablemeasures, including best practices. For the
sample of projects reviewed, overall, they
were of reasonable cost and completed well,on time, and within budget. However, PW
should ensure that change orders are

Public Works (PW) was reorganized in 2018
to streamline the organization and improve
service delivery. The MJ Team found that theCounty maintains an organizational
structure that has clearly defined units,
minimizes overlapping functions, and has noexcessive administrative layers. PW
provided examples of how it effectively uses
workload data to assign staff. The current
vacancy rate is approximately 10%, which isan improvement over last year’s rate which
had been about 18% of total staff andapproximately 28% for first year employees.
The County recently approved a cost-ofliving increase of 3% for employees, as ofJuly 20, 2022. The Human Resources
Department
isconducting
furthercompensation and labor market studies toprovide recommendations for additional
compensation adjustments, if needed. Some
County employees are covered by acollective bargaining (union) agreement.
Along with compensation adjustments the
Human Resources Department is working
with the American Federation of State

ii

Overview of Performance Audit Findings

Hillsborough County
infrastructure are developed,
documented and monitored.

County and Municipal Employees (AFSCME)
for additional retention strategies for thiscategory of employees.

clearly

The accuracy or adequacy of public
documents,
reports,andrequests
prepared by the County which relate to theprogram

Alternative methods of providing services
or Products
HillsboroughCounty(theCounty)demonstrated that program administrators,
through PW’s Decision Unit, formallyevaluate existing in-house services andassess alternative contracting methods toensure costs are reasonable. PW
demonstrated that it is less costly in certain
cases to utilize in-house inspection staff inlieu of contracted inspection staff. PW madechanges to service delivery methods, whenevaluations found that changes would
reduce program cost without significantly
affecting the quality of services.

The County prepares and makes available in
the public domain financial and nonfinancial information that is useful,adequate, and accurate. The County
effectively uses internal and external data
analytics and reports to assess the adequacyof the information it provides to the public.
The Communications & Digital Media
Department has developed an effective
assessment tool that measures factors suchas social media engagement, citizen
engagement, and productivity, which
demonstrates quality service from County
government. The County provided evidence
that it has a process in place to ensure
financial data available to the public is
accurate as well as a process to ensure thatincorrect, erroneous, and incomplete
information is corrected in a timely manner.

Goals, objectives, and performancemeasures used by the program to monitor
and report program accomplishments
Program goals were clearly stated,measurable, can be achieved within budget
and align with the County’s strategic plan.
Although some performance measures suchas pavement and bridge condition
inspections are sufficient and clearly
documented, other performance measures
such as for bicycle and pedestrian
infrastructure are referenced in documents
without a clear statement of relevant
performance measures. At least twelve(12%) of the general purpose surtax, if
passed, shall be expended on bicycle orpedestrian infrastructure and related
improvements. Internal controls, including
policies and procedures, provide reasonableassurance that program goals and objectives
will be met.

Compliance of the program withappropriate policies, rules, and laws
The County employs fulltime legal staff
responsible for providing transactional andgovernance legal services to the County. In
this capacity, the attorneys review allcontracts requiring board approval forcompliance with legal requirements andboard policy. The County obtains outside
legal assistance when necessary. The County
stays abreast of federal and state legislativechangesthroughmembershipin
professional associations and throughcontracts with three lobbying firms that
represent the County’s interests at the stateand federal level. Policies and procedures
are a key internal control, yet financial

The County should ensure that performancemeasures for bicycle and pedestrianiii

Overview of Performance Audit Findings
policies lack updates for over 10 years. The
County should review and update financial
policies, especially those over 10 years old.
The annual external auditor’s reports
reviewed demonstrated that the moresignificant audit findings were corrected andnot repetitive indicating overall timely
actions to address any noncompliance withapplicable federal, state, and local laws,
rules, and regulations; contracts; grant
agreements; and local policies andprocedures identified by internal or external
evaluations, audits, or other means.
However, the County lacked implemented
corrective action plans for the external
auditor’s reported repeat management
letter comments and one current year audit
finding. MJ recommends that the Office
Clerk continue to monitor and implement
action plans to correct repeat management
letter comments and resolve the current
year audit finding. Finally, programadministrators took reasonable and timely
actions to determine whether planned usesof the surtax were in compliance withapplicable state laws, rules, and regulations
particularly as such laws relate to
Section 212.055(1), Florida Statues- Charter
County and Regional Transportation System
Surtax, and to the County’s planned surtax
uses outlined in Ordinance Number 22-9,
adopted by the BOCC on April 20, 2022.

iv

Hillsborough County

Overview of Performance Audit Findings
Hillsborough Transit Authority
September 6, 2022
HILLSBOROUGH TRANSIT AUTHORITY REPORT DIGEST
Overall, Across 25 Areas, HART Met Expectations in 20 Areas and Partially
Met Expectations in 5 Areas
Did the Authority Meet
Subtask Expectations?

Overall
Conclusion

Yes

Partially

No

Economy, efficiency, or effectiveness of the program (7)

Met

6

1

0

Structure or design of the program (2)

Met

1

1

0

Alternative methods of providing program services or products (4)

Met

4

0

0

Partially Met

1

2

0

Accuracy or adequacy of public documents, reports, and requests
prepared by the Authority (5)

Met

4

1

0

Compliance with appropriate policies, rules, and laws (4)

Met

4

0

0

20

5

0

Issue Area (Number of Subtasks Examined)

Goals, objectives, and performance measures (3)All Areas (25)Results in Brief --------------------------and HART with respect to finances or otherresources. Each entity has separate
accountability structures/oversight for thesurtax funds, internal control structure, andlegal compliance. The performance audit
included an examination of the issues
identified below.
 The
economy,efficiency,oreffectiveness of the program.
 The structure or design of the program toaccomplish its goals and objectives.
 Alternative methods of providing
program services or products.
 Goals, objectives, and performancemeasures used by the program tomonitorandreportprogramaccomplishments.
 The accuracy or adequacy of public
documents, reports, and requests
prepared by the Authority or which
relate to the program.
 Compliance of the program withappropriate policies, rules, and laws.

In accordance with s. 212.055(11), F.S., andGovernment Auditing Standards, McConnell& Jones LLP (the MJ Team) conducted aperformance audit of the HillsboroughTransit Authority (HART) programs within
the administrative unit(s) that will receive
funds through the referendum approved byordinance adopted by the HillsboroughCounty Board of Commissioners on April 20,
2022. Although HART serves residents of theCounty and surrounding areas, it is not an
organizational unit of the County. It is anindependent special district created under
Chapter 163, Part V, Florida Statutes in
October 1979 to plan, finance, acquire,construct, operate and maintain mass transit
facilities
andsupplytransportation
assistance in Hillsborough County. As
required by the County ordinanceauthorizing the surtax, the County Clerk of
the Circuit Court must transfer 45 percent of
the surtax proceeds to HART. There is no
direct interdependence between the CountyvOverview of Performance Audit Findings

Hillsborough Transit Authority
internal or external report on program
performance and cost. The plan should
describe the findings and recommendations,management’s responses, staff responsiblefor implementation, timeline, resource
requirements,
and
other
pertinent
information. Lastly, HART demonstrated
that it has established written policies andprocedures to take maximum advantage ofcompetitive bids.

Findings for each of the six issue areas werebased on the extent to which the programs
met expectations established by audit
subtasks. Overall, the audit found that HART
met expectations in 5 areas and partially met
expectations in 1 area. Of the 25 total
subtasks, the audit determined that HART
met 20 and partially met 5.
A summary of audit findings by issue area ispresented below. A more detailed overview
of the findings can be found in the Executive
Summary.

The structure or design of the program toaccomplish its goals and objectives
HART maintains an organizational structurethat has clearly defined units, minimizes
overlapping functions, and has no excessive
administrative layers. The current turnoverrate for non-bargaining positions (nonunion) is 28% and the vacancy rate is 20%,
which is high based on human resources
best management practices. The employees
covered under the collective bargaining
agreement (union) make up nearly 83% of
the current workforce at HART. As of July
2022, there are currently 37 vacant bus
operator roles and the turnover rate basedon a rolling 12-month period (July 1, 2021,
through June 30, 2022) is at 20%. Strategies
are underway to focus recruiting efforts on
positions that are critical to providing andsupporting the continuation of services tothe community and business units, such as
bus drivers. To address high turnover andvacancy rates, HART should continue toevaluate salary and wage rates to ensure
they are competitive and refine recruitment
and retention strategies and consider
establishing goals to lower turnover andvacancy rates for all non-bargaining andcollective bargaining employees to thesuggested guideline of 10%.

Findings by Issue Area -----------------------Economy, Efficiency, or Effectiveness of
the Program
The MJ Team reviewed HART operations
associated with the surtax and determinedthat all program managers use various
reports and data on a regular basis and thatthe information is adequate to monitor
program performance and costs. HART has
developed a rich portfolio of key
performance indicators (KPIs) and uses themto periodically assess program performanceand costs. HART evaluates performance andcosts based on reasonable measures,
including best practices. The cost, timing,and quality of current projects wasevaluated using a sample of five projects.
Except for one project which exceeded theplanned contract date, projects werecompleted well, within budget, timely, andfor reasonable costs compared to estimates.
However, MJ determined that HART
program administrators had not taken
reasonable and timely actions to addressfindings and recommendations included in
all audit reports. HART should establish a
policy that requires development of acorrective action plan in response to findings
and recommendations in any relevantviOverview of Performance Audit Findings
Alternative methods of providing services
or Products

Hillsborough Transit Authority
Success Plan and are clearly stated,measurable, and consistent with HART’s
Transit Development Plan (TDP) or strategicplan. However, documentation was notprovided to determine if goals andobjectives can be achieved within budget.
While HART uses various performancemeasures which provide progress towardmeeting program goals and objectives,
additional performance measures requiredin the TDP and Success Plan are not used toevaluate program performance and theSuccess Plan’s Performance Scorecard lacks
updating since Fiscal Year 2020. HART should
ensure that all required performancemeasures are reported at least annually anddocumenttherequired
CapitalDevelopment
performancemeasuresincluding completing projects withinschedule and budget. Internal controls suchas policies and procedures provide
reasonable assurance that program goals
and objectives will be met.

HART program administrators have formallyevaluated existing in-house services andactivities to assess the feasibility ofalternative methods of providing services.
An example described by HART staff was thedecision to contract out payroll services
rather than using in-house personnel. Thisdecision saved approximately $500,000
annually and reduced the risk of noncompliance.
Additionally,
programadministrators have made changes toservice delivery methods when theirevaluations/assessments found that suchchanges would reduce program cost without
significantly affecting the quality of services.
The example of this approach is the reviewof the consultant contract for the
preparation of the Transit Development
Plan. Upon review, HART administrators
determined in-house personnel would be
able to perform certain tasks better andmore cost effectively than having theconsultant conduct such work. HART has along tradition of working with its peers in theTampa Bay area. HART has taken the lead incoordinating with Tampa Bay peers inprocuring a region-wide fare system. The
Flamingo Pass is in the final stages of
implementation and will allow riders to use
the same fare card throughout Tampa Bay.
HART has also been the lead agency in thecommon fuel procurement contract, which
is now entering its third option year for thecurrent contract.

The accuracy or adequacy of public
documents,
reports,andrequests
prepared by the County which relate to theprogram
HART prepares and makes available in the
public domain financial and non-financial
information that is useful, adequate, andaccurate. HART uses some internal data
analytics to assess the adequacy of the data
it provides to the public; however, a moreformal evaluation process (report) toperiodically evaluate the adequacy andaccuracy of data is needed. This evaluation
should address factors such as whether the
information is relevant, useful, and reached
its intended audiences. HART’s website
providesboth
adequate
programperformance and cost information. HART
provided evidence that it has a process inGoals, objectives, and performancemeasures used by the program to monitor
and report program accomplishments
Program goals and objectives forTransportation Operations and the ProjectManagement Office are included in theviiOverview of Performance Audit Findings
place to ensure financial data available tothe public is accurate and also has a process
in place to ensure that incorrect, erroneous,and incomplete information is corrected in atimely manner.

Hillsborough Transit Authority
to obtain the services of an independent
auditor to conduct a single audit each year.
The CAFR completed on September 30,
2021, independent auditor did find amaterial weaknesses for the internal control
over financial reporting. HART staff
acknowledged the deficiencies, indicatedacceptance, and documented the action
taken to resolve the deficiency. The
corrective action plan prepared by HART
management to address the findings in the
single audit demonstrates that managementtakes reasonable and timely actions toaddress any noncompliance identified by an
external audit. HART has taken reasonable
and timely actions to determine whether
planned uses of the surtax are in compliancewith applicable state, laws, rules andregulations. The Independent OversightCommittee has been established to ensure
HART is meeting the requirements of theordinance.

Compliance of the program withappropriate policies, rules, and laws
HART has a process to ensure compliancewith applicable federal, state, and local laws,
rules, and regulations; contracts; grant
agreements; and local policies. HART has
developed procedures manuals to comply
with federal and state grants management
requirements. HART prepares a five-year
major Transit Development Plan (TDP) andcompletes an annual update in the form of aprogress report each year. The TDP isrequired by the Florida Department ofTransportation (FDOT) of transit agencies
receiving federal and state grant programs.
Federal transit grant recipients are requiredviii

September 6, 2022

Ms. Bonnie M. Wise
County Administrator
Hillsborough County, Florida
601 E. Kennedy Blvd., 26th Floor
Tampa, Florida 33602
Ms. Adelee Marie Le Grand
Chief Executive Officer
Hillsborough Transit Authority (HART)
1201 E. 7th Avenue
Tampa, Florida 33605
Dear Ms. Wise and Ms. Grand:
McConnell & Jones LLP (the MJ Team) is pleased to submit our final report of the performance auditof Hillsborough County (the County) and the Hillsborough Transit Authority (HART) pursuant to s.
212.055(11), Florida Statutes. In accordance with the requirements of the Laws of Florida, the Officeof Program Policy Analysis and Government Accountability (OPPAGA) selected MJ to conduct a
performance audit of the programs associated with the discretionary sales surtax proposed by the
Hillsborough Board of County Commissioners (BOCC). Florida-based, Dover Engineering, PLLC, IBI
Group Professional Services (USA), Inc., and Mr. Anthony Johnson augmented the Hillsborough/
HART review team.
We conducted this performance audit in accordance with Government Auditing Standards issued by
the Comptroller General of the United States. Those standards require that we plan and perform theaudit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings andconclusions based on our audit objectives. We believe that the evidence obtained provides areasonable basis for our findings and conclusions based on the audit objectives.

4828 Loop Central Dr.
Suite 1000
Houston, TX 77081
Phone: 713.968.1600

The objective of the audit was to fulfill the requirements of s. 212.055(11) Florida Statutes. This
statute requires that Florida local governments, with a referendum on the discretionary sales surtax
undergo a performance audit conducted of the program associated with the proposed surtax
adoption. The audit must be conducted at least 60 days before the referendum is held. OPPAGA ischarged with procuring and overseeing the audit. The subject auditees for this performance audit
were the Hillsborough County Public Works (PW) Department and supporting departments and
HART.

Fax: 713.968.1601
WWW.MCCONNELLJONES.COM

Diverse Thinking | Unique Perspectives

The objectives of the audit are consistent with the requirements of the statute, which are toevaluate the program associated with the proposed surtax adoption based on the following criteria:
1. The economy, efficiency, or effectiveness of the program
2. The structure or design of the program to accomplish its goals and objectives
3. Alternative methods of providing services or products
4. Goals, objectives, and performance measures used by the program to monitor and reportprogram accomplishments
5. The accuracy or adequacy of public documents, reports, and requests prepared by theCounty, which relate to the program
6. Compliance of the program with appropriate policies, rules, and laws
We developed a work plan outlining the procedures to be performed to achieve the above audit
objectives. Those procedures and the results of our work are summarized in the Executive Summaryand discussed in detail in Section 1 - Hillsborough County and Section 2 - Hillsborough Transit
Authority (HART) of the report.
Based upon the procedures performed and the results obtained, the audit objectives have been
met. We conclude that, with the exception of the findings discussed in the report and based upon
the work performed, Hillsborough County and HART have sufficient policies and procedures in place,
supported by appropriate documentation, reports, monitoring tools, and personnel to address thestatutory criteria defined in s. 212.055(11), Florida Statutes.
This report is intended for the information and use of Hillsborough County and HART. As required by
Florida Statute s. 212.055(11), this report must be posted on the County’s and HART’s website atleast 60 days before the referendum is held and kept on the respective websites for two (2) years
from the date posted.
Firm Signatures

Houston, Texas
September 6, 2022xFinal Report
HILLSBOROUGH COUNTY & HART PERFORMANCE AUDITSTABLE OF CONTENTSHILLSBOROUGH COUNTY REPORT DIGEST .......................................................................................... i
HILLSBOROUGH TRANSIT AUTHORITY REPORT DIGEST ................................................................... v
INTRODUCTION ........................................................................................................................................ 1
SECTION 1 – HILLSBOROUGH COUNTY ............................................................................................... 2
HILLSBOROUGH COUNTY EXECUTIVE SUMMARY.............................................................................. 3
PROGRAM DESCRIPTION AND MANAGEMENT ................................................................................. 11
RESEARCH TASK 1 .................................................................................................................................... 12
RESEARCH TASK 2 .................................................................................................................................... 38
RESEARCH TASK 3 .................................................................................................................................... 49
RESEARCH TASK 4 .................................................................................................................................... 62
RESEARCH TASK 5 .................................................................................................................................... 75
RESEARCH TASK 6 .................................................................................................................................... 92
HILLSBOROUGH COUNTY – MANAGEMENT COMMENTS ............................................................108
SECTION 2 – HILLSBOROUGH TRANSIT AUTHORITY .....................................................................113
HILLSBOROUGH TRANSIT AUTHORITY EXECUTIVE SUMMARY ....................................................114
PROGRAM DESCRIPTION AND MANAGEMENT ...............................................................................125
RESEARCH TASK 1 ..................................................................................................................................126
RESEARCH TASK 2 ..................................................................................................................................148
RESEARCH TASK 3 ..................................................................................................................................160
RESEARCH TASK 4 ..................................................................................................................................167
RESEARCH TASK 5 ..................................................................................................................................186
RESEARCH TASK 6 ..................................................................................................................................199
HILLSBOROUGH TRANSIT AUTHORITY – MANAGEMENT COMMENTS ......................................206

PAGE | xi

Final Report
HILLSBOROUGH COUNTY & HART PERFORMANCE AUDITSINTRODUCTIONHILLSBOROUGH COUNTY AND HART PERFORMANCE AUDIT OVERVIEWThis report is divided into two sections: The first section presents the performance audit ofHillsborough County while the second section presents the performance audit of theHillsborough Transit Authority. Hillsborough Transit Authority is the legal name shown in the
Agency’s charter and in Ordinance 22-9. Hillsborough Transit Authority is publicly recognized as
Hillsborough Area Regional Transit Authority and the acronym HART. In this report, theagency’s name is referenced as both Hillsborough Transit Authority and HART. Although HART
serves residents of the County and surrounding areas, it is not an organizational unit of theCounty. HART is an independent special district created under Chapter 163, Part V, Florida
Statutes. HART was created in October of 1979 to plan, finance, acquire, construct, operate andmaintain mass transit facilities and supply transportation assistance in Hillsborough County.
Hillsborough County is a member of HART. As such, four Hillsborough County Commissioners
currently serve on the HART Board. However, HART develops its own budget and manages its
own finances separate from the County.
Section 212.055(1), Florida Statutes, authorizes counties to levy a discretionary sales surtax
subject to approval by a majority vote of the electorate of the county. On April 20, 2022, theHillsborough County BOCC adopted Ordinance Number 22-9 to place a one percent sales surtax
on the November 8, 2022, ballot. As required by the County ordinance authorizing the surtax,
the County Clerk of the Circuit Court will retain the County’s portion and must transfer 45
percent of the surtax proceeds to HART.
The ordinance stipulates that HART’s surtax-funded public transportation projects are to beconsistent with HART’s Transportation Development Plan, which HART developed in 2017. It
provides a strategic view of transit operations within the service area and HART’s plan todevelop different aspects from service area, routes, maintenance, and infrastructure to support
these efforts over the next 10 years.
As required by the ordinance, the Clerk of the Circuit Court of Hillsborough County, aconstitutional officer separate and apart from Hillsborough County BOCC is required to transfer
45 percent of the surtax proceeds to HART. There is no direct interdependence between theCounty and HART with respect to finances or other resources. Each entity has separate
accountability structures/oversight for the surtax funds, internal control structure, and legal
compliance.

PAGE | 1

Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITSECTION 1 – HILLSBOROUGH COUNTYPAGE | 2

Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITHILLSBOROUGH COUNTY EXECUTIVE SUMMARYHILLSBOROUGH COUNTY OVERVIEW
Hillsborough County (the County), located on the Gulf Coast of Florida, is home to a populationof 1,459,762 per the 2020 Census. Established in 1834, Hillsborough County is now the fourthmost populous county in Florida. The County’s seat, and largest city is Tampa, and is part of theTampa–St. Petersburg–Clearwater Metropolitan Statistical Area. Hillsborough County isgoverned by a Board of County Commissioners (BOCC) comprised of seven District
Commissioners. Of the seven District Commissioners, four are elected from single-member
districts and three are elected county wide. Additionally, The BOCC appoints a County
Administrator who is responsible for preparing and annual budget and monitoring theeffectiveness of services provided by the County. Hillsborough Transit Authority (HART)
provides public transportation for Hillsborough County.
BUDGET SUMMARY
The County’s Fiscal Year 2022 budget totals approximately $7.5 billion. The Engineering andOperations Department (EOD) and Capital Projects Department (CPD) are the primary
components of Public Works and are the program areas that will use the surtax should thereferendum pass in November 2022. These program areas are included among County
Administrator Departments that perform all critical County operations such as water resources,
health care services, fire rescue, solid waste, and other functions necessary to serve County
residents. The County administrator departments represent 22 percent of the total County
budget. As shown in Figure ES-1, EOD and CPD represent 7 percent of the administrator
departments and less than 2 percent of the total County budget.

Description

Fiscal Year 2022

Percent of County
Administrator
Departments

Percent of Total
County Budget

Engineering and Operations$97,799,603

6%

1%

Capital Projects$11,529,384

1%

<1%

Other County Administrator
Departments$1,514,066,166

93%

20%

Total County Administrator
Departments$1,623,395,153

100%

22%

Non-County Administrator Budgets
Board of County Commissioners$4,048,891

County Attorney$9,842,810

Elected Officials$602,835,302

Judicial Branch$13,078,150

PAGE | 3

Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDIT

Description

Fiscal Year 2022

Boards, Commissions, & Agencies

Percent of County
Administrator
Departments

Percent of Total
County Budget$34,209,336

Total Non-Departmental$1,895,899,981

Transfers, Reserves, & Refunds$3,299,364,692

Total Non-County Administrator
Budgets$5,859,279,162

Total Fiscal Year 2022 County Budget$7,482,674,315

FIGURE ES-1: Hillsborough County Budget Overview.
Source: Fiscal Year 2022 Hillsborough County Budget

PAGE | 4

Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 1 – The Economy, Efficiency, or Effectiveness of theProgram.
Finding Summary: Overall, Hillsborough County Meets Research Task 1.
The MJ Team reviewed Public Works, the County department associated with the surtax
through its Engineering and Operations Department (EOD) and Capital Programs Department(CPD) and determined that program managers use various reports and data on a regular basis
and that the information is adequate to monitor program performance and costs. Each
program reviewed is periodically evaluated using performance information and otherreasonable criteria to assess performance and costs. We also reviewed findings andrecommendations in relevant internal or external reports on program performance and costs
noting that administrators took reasonable and timely actions to address deficiencies inprogram performance and costs identified in such reports. All program administrators evaluate
performance and costs based on reasonable measures, including best practices. For the sample
of projects reviewed, overall, they were of reasonable cost and completed well, on time, andwithin budget. However, PW should ensure that change orders are approved by the BOCC prior
to incurring additional costs and extending the project timeline for Punch List items and the
Final Completion Letter is submitted in accordance with County policy. One of the four projects
is reported as completed as the roadway is open for public use; however, the project is still
pending the BOCC’s approval in September 2022 of the final change order to increase thecontract amount by $303,260 and completion of items remaining on the Punch List.
Finally, the County has written policies and procedures to take maximum advantage ofcompetitive procurement, volume discounts, and special pricing agreements.
Research Subtask

Conclusion

Recommendation

1. The Economy, Efficiency, or Effectiveness of the Program
1.1

Met

None

1.2

Met

None

1.3

Met

None

1.4

Met

None

1.5

Met

None

1.6

Partially Met

RECOMMENDATION 1.6:
Ensure that change orders are approved by the
BOCC prior to incurring additional costs andextending the project timeline for Punch List
items and the Final Completion Letter issubmitted in accordance with County policy.

1.7

Met

None

FIGURE ES-2: Summary of Hillsborough County Research Results for Task 1.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 2 – The Structure or Design of the Program to
Accomplish its Goals and Objectives.
Finding Summary: Overall, Hillsborough meets Research Task 2.
Public Works (PW) was reorganized in 2018 to streamline the organization and improve service
delivery. The MJ Team found that the County maintains an organizational structure that has
clearly defined units, minimizes overlapping functions, and has no excessive administrative
layers. PW provided examples of how it effectively uses workload data to assign staff. The
current vacancy rate is approximately 10%, which is an improvement over last year’s rate which
had been about 18% of total staff and approximately 28% for first year employees. The County
recently approved a cost-of-living increase of 3% for employees, as of July 20, 2022. The
Human Resources Department is conducting further compensation and labor market studies toprovide recommendations for additional compensation adjustments, if needed. Some County
employees are covered by a collective bargaining (union) agreement. Along with compensation
adjustments the Human Resources Department is working with the American Federation ofState County and Municipal Employees (AFSCME) for additional retention strategies for thiscategory of employees.
Research Subtask

Conclusion

Recommendation

2. The Structure or Design of the Program to Accomplish its Goals and Objectives
2.1

Met

None

2.2

Met

None

FIGURE ES-3: Summary of Hillsborough County Research Results for Task 2.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 3 – Alternative Methods of Providing Services or
Products.
Finding Summary: Overall, Hillsborough County meets Research Task 3.
Hillsborough County (the County) demonstrated that program administrators, through PW’s
Decision Unit, formally evaluate existing in-house services and assess alternative contracting
methods to ensure costs are reasonable. PW demonstrated that it is less costly in certain cases
to utilize in-house inspection staff in lieu of contracted inspection staff. PW made changes toservice delivery methods, when evaluations found that changes would reduce program costwithout significantly affecting the quality of services.
Research Subtask

Conclusion

Recommendation

3. Alternative Methods of Providing Services or Products
3.1

Met

None

3.2

Met

None

3.3

Met

None

3.4

Met

None

FIGURE ES-4: Summary of Hillsborough County Research Results for Task 3.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 4 – Goals, Objectives, and Performance Measures
Used by the Program to Monitor and Report Program Accomplishments.
Finding Summary:
Research Task 4.

Overall,

HillsboroughCountypartiallymeets

Program goals were clearly stated, measurable, can be achieved within budget and align with
the County’s strategic plan. Although some performance measures such as pavement andbridge condition inspections are sufficient and clearly documented, other performancemeasures such as for bicycle and pedestrian infrastructure are referenced in documents
without a clear statement of relevant performance measures. At least twelve (12%) of thegeneral purpose surtax, if passed, shall be expended on bicycle or pedestrian infrastructure andrelated improvements. Internal controls, including policies and procedures, provide reasonableassurance that program goals and objectives will be met. The County should ensure that
performance measures for bicycle and pedestrian infrastructure are developed, clearly
documented and monitored.
Research Subtask

Conclusion

Recommendation

4. Goals, Objectives, and Performance Measures Used by the Program to Monitor and Report Program
Accomplishments
4.1

Met

None

4.2

Partially Met

RECOMMENDATION 4.2 –Ensure that performance measures suchas for bicycle and pedestrian
infrastructure are developed, clearly
documented and monitored.

4.3

Met

None

FIGURE ES-5: Summary of Hillsborough County Research Results for Task 4.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 5 – The Accuracy or Adequacy of Public Documents,
Reports, and Requests Prepared by the County, which Relate to theProgram.
Finding Summary: Overall, Hillsborough County meets Research Task 5.
The County prepares and makes available in the public domain financial and non-financial
information that is useful, adequate, and accurate. The County effectively uses internal andexternal data analytics and reports to assess the adequacy of the information it provides to the
public. The Communications & Digital Media Department has developed an effective
assessment tool that measures factors such as social media engagement, citizen engagement,
and productivity, which demonstrates quality service from County government. The County
provided evidence that it has a process in place to ensure financial data available to the public
is accurate as well as a process to ensure that incorrect, erroneous, and incomplete informationis corrected in a timely manner.
Research Subtask

Conclusion

Recommendation

5. The Accuracy or Adequacy of Public Documents, Reports, and Requests Prepared by the County which, Relate
to the Program
5.1

Met

None

5.2

Met

None

5.3

Met

None

5.4

Met

None

5.5

Met

None

FIGURE ES-6: Summary of Hillsborough County Research Results.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 6 – Compliance of the Program with Appropriate
Policies, Rules, and Laws.
Finding Summary:
Research Task 6.

Overall,

HillsboroughCountypartiallymeets

The County employs fulltime legal staff responsible for providing transactional and governancelegal services to the County. In this capacity, the attorneys review all contracts requiring board
approval for compliance with legal requirements and board policy. The County obtains outside
legal assistance when necessary. The County stays abreast of federal and state legislativechanges through membership in professional associations and through contracts with threelobbying firms that represent the County’s interests at the state and federal level. Policies andprocedures are a key internal control, yet financial policies lack updates for over 10 years. The
County should review and update financial policies, especially those over 10 years old. The
annual external auditor’s reports reviewed demonstrated that the more significant audit
findings were corrected and not repetitive indicating overall timely actions to address any
noncompliance with applicable federal, state, and local laws, rules, and regulations; contracts;
grant agreements; and local policies and procedures identified by internal or external
evaluations, audits, or other means. However, the County lacked implemented corrective
action plans for the external auditor’s reported repeat management letter comments and one
current year audit finding. MJ recommends that the Office of Clerk continue to monitor andimplement action plans to correct repeat management letter comments and resolve thecurrent year audit finding. Finally, program administrators took reasonable and timely actions
to determine whether planned uses of the surtax were in compliance with applicable state
laws, rules, and regulations particularly as such laws relate to Section 212.055(1), Florida
Statues- Charter County and Regional Transportation System Surtax and to the County’splanned surtax uses outlined in Ordinance Number 22-9, adopted by the BOCC on April 20,
2022.
Research Subtask

Conclusion

Recommendation

6. Compliance of the Program with Appropriate Policies, Rules, and Laws
6.1

Met

None

6.2

Partially Met

RECOMMENDATION 6.2 County – Review and update financial policies especiallythose over 10 years old.

6.3

Partially Met

RECOMMENDATION 6.3 –Office of Clerk – Continue to monitor and implement
action plans to correct repeat management letter
comments and resolve the current year audit finding.

6.4

Met

None

FIGURE ES-7: Summary of Hillsborough County Research Results for Task 6.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITPROGRAM DESCRIPTION AND MANAGEMENT
Following the April 20, 2022, public hearing, the Hillsborough County BOCC voted 5 to 2 to send
to referendum a proposed one percent transportation surtax for voter approval. On theNovember Ballot, should voters approve the referendum, the HART departments anddepartments presented in Figure ES-8 will manage, oversee, and use, the funds for theindicated programs.
Department

Transit Administration andTransportation Operations

Transportation and MaintenanceOperations

Programmatic Use

Forty-five percent (45%) of the Surtax
proceeds, the “Transit Restricted Portion”, willbe allocated for the planning, development,
construction, operation, and maintenance of
public transportation projects located solely in
Hillsborough County. Of the Transit Restricted
Portion, no less than 45% of the funds shall bespent on enhancing bus services. No less than
25% shall be spent on transit services thatutilize exclusive transit right-of-way for at least
50% of the applicable service. And any
remaining portions of the Transit Restricted
Portion shall be spent on any project toimprove public transportation permitted by
Florida Statutes or Ordinance 22-9.
The remaining .5% of the Surtax Proceeds isallocated by the Clerk for the “Planning andDevelopment Portion”. This includes datacollection, analysis, planning, and grant funding
to assist other Agencies carrying out the
projects.

FIGURE ES-8: HART Departments that will manage, oversee, and use the funds and for the programs indicated, if
approved by on the November Ballot.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 1
FINDING SUMMARY
THE ECONOMY, EFFICIENCY, OR EFFECTIVENESS OF THE PROGRAM.

Overall, Hillsborough County meets Research Task 1.
The MJ Team reviewed Public Works, the County department associated with the surtax
through its Engineering and Operations Department (EOD) and Capital Programs
Department (CPD) and determined that program managers use various reports and data ona regular basis and that the information is adequate to monitor program performance andcosts. Each program reviewed is periodically evaluated using performance information andother reasonable criteria to assess performance and costs. We also reviewed findings andrecommendations in relevant internal or external reports on program performance and costs
noting that administrators took reasonable and timely actions to address deficiencies inprogram performance and costs identified in such reports. All program administrators
evaluate performance and costs based on reasonable measures, including best practices. For
the sample of projects reviewed, overall, they were of reasonable cost and completed well,on time, and within budget. However, PW should ensure that change orders are approvedby the BOCC prior to incurring additional costs and extending the project timeline for Punch
List items and the Final Completion Letter is submitted in accordance with County policy.
One of the four projects is reported as completed as the roadway is open for public use;
however, the project is still pending the BOCC’s approval in September 2022 of the final
change order to increase the contract amount by $303,260 and completion of items
remaining on the Punch List. Finally, the County has written policies and procedures to takemaximum advantage of competitive procurement, volume discounts, and special pricing
agreements.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 1.1 – Review any management reports/data that program administrators use on aregular basis and determine whether this information is adequate to monitor program
performance and cost.
OVERALL CONCLUSION
Subtask 1.1 is met. To reach this conclusion, Team MJ conducted a joint interview withindividuals in the following positions:

Assistant County Administrator Public Works

Director Engineering & Operations DepartmentDirector Capital Programs Department



Systems Planning Engineer

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

Transportation Maintenance Manager

Division Director-Environmental Services Division

We also conducted a separate joint interview with the Division Director Business Operations
and the Public Works / Assistant County Administrator.
We examined management reports/data that program administrators use on a regular basis
and determined that the information is adequate to monitor program performance and cost.
This information is discussed in the analysis section below and represents evidence that thesubtask is met.
ANALYSIS
Hillsborough County Joint Construction in Progress (CIP) Update FY22 Mid-Year Report
The Hillsborough County Quarterly Joint CIP Update Report (CIP Update) provides information in
the areas of capital programs, water resources, facilities management and real estate services,
economic development, and solid waste.
Program administrators for these areas use the programmatic and financial information in CIP
Update to assess program performance and costs. The CIP Update is adequate to monitor
program performance and costs because it consists of historical and projected financial and CIP
performance information. It also includes an overview of year-to-date accomplishments fortransportation, stormwater, architecture services, repairs & maintenance, water resources, andsolid waste.
An expenditure summary in the report provides total combined expenditures from Fiscal Years
2017 through 2022. This information provides program administrators with a historical analysisof expenditure trends that enables them to track costs at a high level over time. Not only does
the report include actual expenditure information, but it also includes planned expenditures foreach program area.
The CIP Update provides program administrators with a recap of construction starts andcompletions for the fiscal year. The recap shows the project type (transportation, stormwater,
potable water, solid waste, etc.) and provides the number of projects started for each projecttype, the construction value, and the number of projects completed. This information gives
program administrators an overview of the status and costs of projects in progress and projects
completed.
The CIP Update also provides program administrators with the total budget for each program
area, the number of projects, and the number and percentage of projects that are on scheduleand not on schedule.
There is also information on projected procurements for the next six months. This informationshows the project name, estimated award amount, estimated bid advertised, estimated award
date, program, and procurement type. Program administrators use this information to identify

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

expenditures that are in the pipeline and will be incurred in the near term so they caneffectively manage their project costs. The CIP Update ends with a list of initiatives andchallenges for the fiscal year. The MJ Team determined through review of the CIP Update that it
is adequate to monitor project performance and cost.
Top 20 Report
The Top 20 Report shows baseline, projected, and actual expenditures for the Top 20 CIP
projects. It shows the project number, title, and baseline expenditure projections for eachquarter of the fiscal year. It also provides actual expenditures for each quarter with a column
for the difference between total projected and total actual expenditures for each project. It also
shows encumbrances for each of the top 20 projects. The Top 20 Report is useful for programadministrators to prioritize how they manage and monitor the cost of their construction project
portfolio. The report also presents the information graphically, which enables programadministrators to grasp the information at a glance.
Top 10 Report
Whereas the Top 20 Report prioritizes the top construction projects, the Top 10 Report shows
the top-10 maintenance work activities for each program area. The Top 10 Report is preparedmonthly to provide management with insight about stormwater and transportation work
activities that consume the most resources, i.e., labor hours and money. The report also
provides the total number of work orders completed and a comparison to the previous year
thereby providing management the ability to identify trends and track progress goals. It
describes the work and summarizes the number of work orders, total labor hours, and total
costs. It also compares information for the current and prior fiscal years. The Top-10 Reportenables program administrators to track work orders, labor hours, and costs for high priority
maintenance work and to compare the information to the previous years to identify priorities
and trends.
Budget-to-Actual Report
Each month, Business Operations staff prepare budget-to-actual reports that PW department
directors and managers use to monitor and control their costs. The report captures financial
data exported from the County’s financial accounting system into an Excel workbook. The
workbook is designed to enable department directors and managers to review their cost centerbudgets and contains the seven worksheets described below.


Summary – Shows the department, cost center, account/fund number and description,budgeted expenditures, actual expenditures, encumbrances, percentage of budget
remaining, and actual expenditures for each month of the fiscal year. The summary
provides department directors and managers with a high-level summary of their costs.

Summary Operating Expenses – Shows essentially the same classifications as thesummary tab except operating expenses are broken out into discretionary and non-

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

discretionary categories. This information provides department directors and managers
with the ability to discriminate between essential and optional operating costs.


Non-Discretionary Operating Expenses – Provides a further breakdown of budgeted,actual, and encumbered non-discretionary operating expenses by department, by month.
This information allows department directors and managers to focus on and monitor
essential spending.

Personnel – Shows essentially the same classifications as the summary tab except thefocus is on personnel costs such as salaries & wages, shift pay, overtime pay, paidcompensation leave, and other personnel costs. This information gives department
directors and managers the ability to monitor the cost of human resources allocated totheir cost center.

Contractual Services – Shows essentially the same classifications as the summary tab
except the focus is on expenditures for contractual services such as engineering,professional, and other contracted services. This information provides department
directors and managers with visibility into their contracted expenditures.

Fleet Management – Shows essentially the same classifications as the summary tab
except the focus is on costs necessary to manage the department’s fleet of vehicles suchas fuel and oil, management services, and vehicle rental and equipment. This information
enables department directors and managers to monitor the costs necessary to manage
their vehicle fleet.

Open Purchase Orders – Shows the order and supplier number, supplier name, item
description, account code and description, amount, and purchase order remainingbalance. This information enables department directors and managers to keep track ofoutstanding purchases.

The budget-to-actual reports provides critical financial information that empowers programadministrators to monitor and manage their cost center.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 1.2 – Determine whether the program is periodically evaluated using performance
information and other reasonable criteria to assess program performance and cost.
OVERALL CONCLUSION
Subtask 1.2 is met. To reach this conclusion, the MJ Team conducted interviews with individuals
in the positions listed in Subtask 1.1. We also examined pavement condition reports, bridge
inspection reports, and a Florida Department of Transportation (FDOT) contract compliance
audit. This information is discussed in the analysis section below and represents evidence thatthe program is periodically evaluated using performance information and other reasonable
criteria to assess program performance and costs.
ANALYSIS
Pavement Condition Assessment
The County uses a pavement management system to analyze, report, and manage thecondition of its road network. The County engaged an infrastructure consulting firm to evaluate
its roads and to provide pavement management services including Pavement Condition Index(PCI) inspections and analysis on approximately 1,200 centerline miles of pavement. Centerline
miles measure the length of a road or highway regardless of how many lanes it has.
The pavement consulting firm’s June 2022 report documented observed road conditions. The
consultant gathered information that PW staff entered into the County’s pavement
management system. The County uses the Paver Pavement Management System (PAVER) fordata analysis, reporting requirements, and other pavement management tasks. The Army Corpsof Engineers developed PAVER in the 1970s to help the U.S. Department of Defense perform
maintenance and repairs for its vast inventory of pavements. PAVER uses road condition data
to produce a pavement condition index (PCI) rating to predict current and future roadmaintenance and repair needs and costs.
The PCI was later modified by the American Society for Testing and Material (ASTM), which isan international standards organization that develops technical standards for a wide range ofmaterials, products, systems, and services. The PCI is the common method used to identify
sections of road needing preventative maintenance, rehabilitation, or reconstruction work. The
BOCC adopted ASTM’s PCI standard in September 2008.
The consultant performed PCI inspections on County roads in accordance with ASTM D6433
Standard Practice for Roads and Parking Lots Pavement Condition Index Surveys. The consultant
performed visual inspections, rated road conditions, and developed pavement deterioration
models based on PCI ratings.
Figure 1-1 provides road condition categories by PCI rating that PW administrators use to assess
the County road conditions.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

FIGURE 1-1: The pavement condition index (PCI) enables Public Works to rate County road conditions.
Source: Internet search and Hillsborough County Transportation Workshop Asset Preservation, May 26, 2021.

Figure 1-2 illustrates the condition of the County’s roads based on the PCI. The first bar shows
the condition of County roads as of May 2021. Based on the PCI rating system, 74 percent (58%plus 16%) of the County’s roads were in fair to good condition while 26 percent (24% plus 2%)
were poor to failed. The second bar shows road conditions over a 10-year period at the funding
levels existing in May 2021. The third bar shows road conditions over 10-year period at ideal
funding levels.

FIGURE 1-2: Current condition of County roads and projected condition over 10-years at current and ideal funding
levels.
Source: Hillsborough County Transportation Workshop Asset Preservation, May 26, 2021.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

Figure 1-3 illustrates road conditions and the type of maintenance required to preserve theroad for continued use. Roads in good condition only require resurfacing. However, roads inserious to failed condition require reconstruction.

FIGURE 1-3: Road conditions determine the type of work required.
Source: Hillsborough County Transportation Workshop Asset Preservation, May 26, 2021.

The consultant’s pavement inspection report, dated June 2022, indicated that the overall PCI
for the County’s roads was 73, which is satisfactory. The overall rating was determined from a
database of inspected roads that provided a PCI rating for each road. The pavement
consultant’s report provided PCI values for each road inspected.
To illustrate, a section of the database is provided in Figure 1-4. The pavement consultant’sreport provided PCI values for each road inspected. The MJ Team extracted this informationfrom over 600 pages of roadway information. Pavement assessments provide detailed
performance and cost information that PW administrators use to evaluate the condition of theCounty’s road system.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

FIGURE 1-4: The pavement consultant’s report provided PCI values for each road inspected.
Source: Hillsborough County Fiscal Year 2022 Pavement Inspections Report.

Bridge Assessments
The County’s bridges are periodically evaluated using performance information and othercriteria. Bridge assessments ensure that the County maintains its bridges in satisfactory to very
good condition. Every two years, FDOT inspects all public highway bridges in the Florida thatare on the National Bridge Inventory (NBI). The NBI is a database, compiled by the Federal
Highway Administration (FHWA) with information on all bridges and tunnels in the UnitedStates. Accordingly, every bridge in Hillsborough County that is on the NBI is inspected every
two years. FDOT performed the County’s most recent bridge inspections in 2021. FDOT inspects
and rates bridges; however, local governments are responsible for maintaining them.
Engineers in the County’s Technical Services Division (TSD), which is within the Engineering andOperations Department (EOD), are responsible for maintaining County-owned bridges. The
bridge management team tracks metrics and captures bridge data throughout the year. The
County uses information from FDOT’s biennial inspections of the County’s bridge inventory toschedule routine maintenance and/or bridge rehabilitation and preservation projects. EOD’s
goal is to maximize the service life of County’s bridges while minimizing overall costs.
To achieve this goal, the County contracted with an engineering firm to develop a bridge
inventory database to record, store, and organize bridge condition inspection data. The
database is a tool for tracking, analyzing, and reporting on the condition of the County’s bridge
inventory. The database also houses bridge-related data and establishes maintenance,
rehabilitation, and replacement estimates for future budget maintenance requirements.
During development of the bridge database, PW administrators and the engineering firm heldbi-weekly meetings to gauge progress, discuss options, and refine and improve the database.
The end result was a repository for all of the bridge inspection data PW engineers gathered
during bridge inspections.
The County reports infrastructure condition assessment results in its Comprehensive Annual
Financial Report (CAFR). Infrastructure includes roads, bridges, and stormwater structures. Each

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

year, EOD prepares a bridge condition report using data from FDOT’s bridge assessments. This
report is the basis for the infrastructure condition disclosures the County makes in its CAFR.
Team MJ reviewed EOD’s Fiscal Year 2021 bridge assessment report dated October 11, 2021,
noting that it contained the following sections:

Cover Memo

Summary of Inspection Results



List of Bridges Rated Poor or Worse

Map of County-Owned Bridges, Fiscal Year 2021 & Fiscal Year 2022 Inspection StatusEnd of Fiscal Year 2021 Bridge Inventory Table (with Fiscal Year 2021 Condition Ratings,
and Fiscal Year 2022 Inspections Planned)

Latest Inspection reports for all bridges

EOD’s Fiscal Year 2021, report prepared for CAFR disclosure consisted of 275 County bridges
not all of which are on the NBI, which records a total of 249 bridges. Figure 1-5 provides an
overview of the results of the assessment and demonstrates that 94 percent of the County’s
bridges are in satisfactory to very good condition. This information is based on available FDOT
bridge inspection reports received by the County as of October 2021. The rating is based on NBI
condition ratings developed by the FHWA.
NBI Condition Rating

Number of Bridges

Percentage of Bridges

Excellent1<1%Very Good

10

4%

Good

175

64%

Satisfactory

74

27%

Fair

11

4%

Poor

3

1%

Serious1<1%

Critical

0<1%Imminent Failure

0<1%

Failed0<1%

Total Bridges Inspected

275

100%

FIGURE 1-5: EOD’s Fiscal Year 2021 bridge assessment indicated that 94 percent of the County’s bridges were insatisfactory to good condition.
Source: Hillsborough County EOD Fiscal Year 2021 Bridge Assessment Report.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

FDOT Contract Compliance Review
The FHWA requires FDOT, as a contracting agency, to ensure that contractors comply with
Equal Employment Opportunity, Disadvantaged Business Enterprise, and On-the-Job Training
requirements for construction contracts funded with federal dollars. FDOT performed aconstruction contract compliance review of a County Local Agency Program (LAP) contract in
2021.
LAP is a federal program that FDOT is responsible for administering in Florida on behalf of theFHWA. LAP provides counties and other eligible jurisdictions with federal funds to develop,
design, and construct transportation facilities. To be eligible for LAP funding, counties must be
LAP-certified with FDOT to demonstrate that they meet program requirements. Through the
LAP, counties are essentially certifying that if a project is LAP funded, the agency will abide by
LAP procedures and requirements. Certification and recertification demonstrate that the local
agency is committed to complying with requirements of the Federal-Aid Highway Program.
FDOT’s report, dated February 15, 2021, assessed the County’s LAP contract. The outline below
shows the areas that FDOT assessed. The list underscores the areas of the contract that FDOT
considers to be important for compliance with LAP program requirements. The outline also
fosters an understanding of the general areas in which PW must demonstrate LAP program
compliance. The reviewers found no deficiencies and made no corrective action statements.
I.

Process & File Organizationo General Project Oversighto Non-ComplianceII.

Equal Employment Opportunity (EEO)o Company EEO
o Annual July Reporto Subcontracts/Temporary Employment Agency/Rental Agreements

III.

Trucker Observations & Verifications
o Jobsite Bulleting Board Inspections

IV.

Disadvantaged Business Enterpriseo Commitments & Paymentso Commercially Useful Function

V.

On-the-Job Training (OJT)-was not required on the assessed projecto General OJT Oversight

VI.

Wages
o Wage Decisiono Payroll

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HILLSBOROUGH COUNTY PERFORMANCE AUDITo Deductions
o Payroll Violations/Non-Compliance Communicationso Labor Interviewso Project Administrator
VII. Project Administrator: Acceptable Compliance Awarenesso EEO Complianceo Oh-The Job Training

SUBTASK 1.3 – Review findings and recommendations included in any relevant internal orexternal reports on program performance and cost.
SUBTASK 1.4 – Determine whether program administrators have taken reasonable andtimely actions to address any deficiencies in program performance and/or cost identified inmanagement reports/data, periodic program evaluations, audits, etc.
OVERALL CONCLUSION
Subtasks 1.3 and 1.4 are assessed together because they are so closely related. The subtasks
are met overall. To reach this conclusion, Team MJ conducted interviews with the individuals in
the positions listed in Subtask 1.1. We also examined bridge inspection reports and associatedwork orders, FDOT traffic signal maintenance reports, and an internal audit report on nonroutine maintenance requests. Using this information, we determined that administrators havetaken reasonable and timely actions to address deficiencies in program performance and/or
cost identified in management reports/data, periodic program evaluations, audits, etc.
ANALYSIS
Bridge Inspection Reports and Work orders
As discussed in Subtask 1.2, FDOT inspects bridges in the County that are on the NBI database.
With each inspection, FDOT prepares a bridge inspection report that provides details about thebridge such as name, year built, type, owner, inspection notes, sufficiency rating, health index,
repair recommendations, and other highly technical information. The report also includes
various bridge photographs.
Figure 1-6 shows a corrosion issue that FDOT identified with Bridge #104306 during a July 2020
inspection. The bridge is located at Taylor Gill Road over the Little Manatee River. The figure
shows FDOT’s recommendation to address corrosion, which can clearly be seen in the photo.
The other recommendation for this bridge was to fill in erosion at specific locations around thebridge. MJ examined a work order dated May 2022 that the County issued to address the issues
identified at this bridge.

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FIGURE 1-6: FDOT Bridge Inspection Report for Bridge 104306 inspected July 14, 2020.
Source: FDOT Bridge Inspection Report-Bridge 104306 dated July 14, 2020.

The information below is summarized from two additional FDOT bridge inspection reports that
the MJ Team examined. The information shows the bridge number and location, the date of
FDOT’s inspection, and the repair recommendations FDOT made. Also shown is the date of theworkorder that PW created to address FDOT’s recommendations. The work order datedemonstrates that FDOT’s bridge repair recommendations were addressed timely. Timelinessfor bridge repairs is explained after the information shown below.

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1. Bridge #104304
Location: Bethlehem Road Over South Prong Alafia River
Date of Inspection: July 14, 2020
Recommendations:

Repair section loss in lower sections of the abutment backwalls and apply corrosion
protection to both backwalls and all four wingwalls.

Fill and stabilize erosion behind the ends of all four wingwalls.

Repair spalls with exposed rebar in Abutment Cap 3, lower south corner and underside atPile 3-5. Spall are flakes of material that are broken off of a larger solid body.

Attach southeast end terminal to post.

Fill in erosion on southeast slope.

Replace missing southeast object marker.

Work order Date: April 2022
2. Bridge #104312
Location: McMullen Loop Over Rice Creek
Date of Inspection: April 30, 2020
Recommendations:

Repair spall/delamination, south curb at Abutment 4. Delamination is a mode of failure
where a material fractures into layers.

Remove deteriorated shotcrete. Clean and apply corrosion protection to backwalls andwingwalls. Repair exposed rebar.

Repair six spalls/delaminations in Abutment Cap 1 and thirteen in Abutment Cap 4.



Repair cracks in piles.

Repair spall in underside of Bent Cap 3 adjacent to Pile 3-1 and east face over Pile 3-5.

Clean and apply protective coating on exposed wire mesh underside of Beams 3-4, 3-11,
and 3-12.

Patch spall in right leg of Beam 2-12 over Bent 2.

Work order: March 2022
FDOT’s bridge repair recommendations were made in a timely manner according to PW
engineers. The two-year difference between the inspection reports and work orders results
because of the programming process, which can take from one to three years depending on thecomplexity of the repair and the availability of funding.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

PW’s Director Engineering and Operations told the MJ Team that one to three years to respondto FDOT’s bridge inspection recommendations is reasonable and appropriate given thecomplexity of bridge repair, engineering requirements, safety considerations, and funding
availability.
Following receipt of a FDOT bridge inspection report, the programming process for repair
consists of the following activities, which underscore the fact that a one-to-three-year response
is considered timely given the nature of bridges and what it takes to repair them:

Develop scope and estimate for repairs.



Prioritize all identified bridge repair projects based on level of urgency and risk to thebridge structure.

Program projects based on the priority and available funding.

Advance funded projects to design and permitting.

Generate repair work order following completion of design and permitting.

FDOT Traffic Signal Inspection Reports
The County performs traffic signal maintenance under a 2015 agreement with FDOT for 228
signalized intersections owned by FDOT. Under the agreement, FDOT makes ongoinginspections, and the County makes modifications and improvements to the traffic signals in
response to FDOT’s inspections.
The MJ Team reviewed the traffic signal maintenance contract between the County and FDOT
noting that it delineated the duties and responsibilities of each party. The County is responsible
for the maintenance and continuous operation of traffic signals and devices, which include thetraffic signals; interconnected and monitored traffic signals; traffic signal systems; control
device; emergency/fire department signals; and speed activated waning displays.
FDOT is responsible for conducting inspections of the traffic light structures every five years.
The FDOT submits a five-year inspection report of mast arms and steal strain poles, and theCounty makes recommended repairs that are in its scope of work. FDOT’s inspection reportserves as a 90-day notice to the County that deficiencies exist that require preventive andperiodic maintenance.
Preventive maintenance includes spot painting, cleaning, wiring issues, graffiti removal, signal
related issues, and repair and replacement of all components damaged by traffic impact.
Periodic maintenance includes repair of cracks in the mast arm structure; removal and/or repairof grout pads; resetting of anchor bolts; and repair or replacement of deteriorated anchor bolts
and nuts.
Figure 1-7 summarizes FDOT’s most recent traffic signal inspection reports and the County’s
response, which consisted of work orders issued to address FDOT’s maintenancerecommendations. FDOT conducted the inspections in December 2021, and approved the

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

inspection reports in February 2022. The MJ Team examined Work order #TP00165350 dated
March 14, 2022, issued to address the recommendations.
Location

Work order Recommendations

State Road 589 North Bound Ramp at
Lutz Lake Fern Road

Tighten all anchor nuts at foundation.

State Road 589 South Bound Ramp at
County Road 685A Lutz Lake Fern Road

Tighten all anchor nuts at foundation.

State Road 589 North Bound Ramp at
County Road 685A Van Dyke Road &Fire Station 34

Tighten all anchor nuts at foundation.

Clean and spot paint anchor bolt ends.



Clean and paint corrosion on both base plates.

State Road 589 North Bound Ramp at
County Road 685A (Van Dyke Road)

Tighten all anchor nuts at foundation.



Install bolt for lower hand hole cover.

State Road 589 South Bound Ramp at
County Road 685A (Van Dyke Road)

Remove grout rings at both foundations andclean and paint any corrosion.

Install vermin screens at both foundations.



Remove grout rings at both foundations andclean and paint any corrosion.

Install vermin screens at foundation.

State Road 589 (Eisenhower Blvd) North
Bound at Memorial Highway

FIGURE 1-7: FDOT Traffic Signal Inspections Work Order Recommendations and County Work orders.
Source: FDOT Traffic Signal Maintenance Reports and County Work order.

Non-Routine Maintenance Request Internal Audit
The County has two internal audit functions. One auditor is appointed by and reports to the
BOCC. This individual conducts audits and reviews of County departments, programs, andservices. The other auditor works for the Clerk of Court & Comptroller (Clerk). In Florida, theClerk is a separately elected public trustee established to provide a system of checks andbalances within the County. The Clerk serves as the county treasurer, recorder, auditor, financeofficer, and ex-officio clerk of the BOCC.
In May 2021, the Clerk’s internal auditor released an audit report on non-routine maintenancerequests. The audit objective was to determine whether adequate controls were in place overthe intake, tracking, and follow-up of non-routine service requests/work orders. The audit
period covered July 1, 2019, to August 3, 2020.
The auditors found that controls over non-routine work orders were well-defined, control
awareness exists among staff, and formal procedures and processes were in place. However,
the report noted that improvements could be made by closing completed work orders timelier

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

and continuing to monitor work order allocations to ensure they remain an effective planningtool.
The audit report contained the following recommendation:“Management should monitor work order statuses to ensure that work orders do not
remain open once work is completed. This process/procedure should also include aperiodic reminder to staff of the importance of closing out completed work orders if
exceptions continue to occur.”
PW management concurred with the recommendation and presented the following corrective
action plan with a target completion date of June 1, 2021. Maintstar is PW’s work order system.
“The Transportation Maintenance Division will run a 30-day Work Order Aging Reportfrom Maintstar. This report will be generated bi-weekly and distributed to themaintenance units for follow up on older work orders.”
Team MJ examined a screen shot of the shared drive where the work order aging reports are
stored noting that TMD began generating them as of August 2021 and has been producing
them each month since that date. Team MJ also examined an email to TMD managers
reminding them that, because of the Mainstar upgrade, it was important for them to “clean up”
the database and to dedicate the necessary staff hours to the process. Finally, Team MJ
examined the June 2022 Work Order Aging report noting that it fulfilled the requirements of
the audit report recommendation.

SUBTASK 1.5 – Evaluate program performance and cost based on reasonable measures,
including best practices.
OVERALL CONCLUSION
Subtask 1.5 is met. To reach this conclusion, the MJ Team conducted interviews with individuals
in the positions listed in Subtask 1.1. We also examined key performance indicators,
professional association accreditation, and FDOT bridge assessment data. This information
represents evidence that program is periodically evaluated using performance information andother reasonable criteria to assess program performance and costs.
ANALYSIS
Key Performance Indicators
PW administrators use key performance indicators to evaluate program performance and cost.
Data analytics staff in the Business Operations Division of PW gather and compile performancedata that program administrators use to manage their operations more efficiently andeffectively. They also use the information to enhance service to the public.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITTeam MJ reviewed the Key Performance Indicator (KPI) Report for PW’s Technical Services
Division (TSD) through the third quarter of Fiscal Year 2022. The report contained KPIs for TSD’s
three sections: Stormwater Engineering; Transportation Engineering; and Infrastructure
Engineering. Each section of TSD reports KPIs for each month and quarter during the fiscal year
as well as year-to-date results. The section summary lists the staff who prepared the analysis
and the date the information was updated. It also describes the services that the section
performs. For example, the services description for the Transportation Engineering Section is:
Providing technical transportation engineering services to improve transportation safety,
reliability, and mobility options.
As an example of TSD’s KPI report, Figure 1-8 provides the summary for the Transportation
Engineering Section. The information is as of the third quarter, which constitutes 75 percent of
the fiscal year. The summary shows that TSD’s Transportation Engineering Section was on track
to meet two of the four KPIs summarized in the figure. The performance indicators shown in
the figure are reasonable measures given the nature of TSD’s operations. It is reasonable the
TSD would want to measure performance against the metrics shown in Figure 1-8 below.
Fiscal Year2022 Target

YTD
ActualPercent
Achieved

Technical Service Requests:
Investigations completed

1,610

846

53%

Traffic Incident:
Emergency activities supported

865

366

42%

Project Development:
Deliverables

351

279

79%

Transportation:
Technical reviews and determinations

7,655

5,442

71%

Performance Indicator

FIGURE 1-8: TMD’s Transportation Engineering Section was on track to meet half of the targets presented above asof the third quarter of Fiscal Year 2022.
Source: Technical Services Division Fiscal Year 2022 Summary of Key Performance Indicators Report.

American Public Works Association Accreditation
The American Public Works Association (APWA) is a not-for-profit association dedicated toserving public works professionals throughout North America and the world. APWA offers anagency accreditation program that provides a formal means of verifying and recognizing public
works agencies for compliance with APWA’s recommended practices.
APWA accreditation includes a comprehensive review and evaluation of an agency’s
operational policies and procedures. Successful accreditation demonstrates alignment withaccepted industry practices, ensures definitive guidelines are provided to employees toaccomplish their assigned tasks, and provides agencies with a framework for decision-making
and action.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITIn May 2022, the APWA Accreditation Council granted re-accreditation to the County’s Public
Works department (PW) after an evaluation process. APWA granted re-accreditation foranother four-year period, which expires July 25, 2026.
APWA publishes a public works management manual for public works professionals that
describes basic criteria and procedures necessary to perform as an effective, full-service public
works agency. The manual also provides the framework for the objective self-evaluation of anagency. The County’s PW function has incorporated many of APWA’s practices into its own
policies and procedures. The manual consists of 40 chapters. Topics relevant to PW and thesurtax include the following:transit operations;bridges;

traffic operations;street maintenance;right-of-way management; andconstruction management.

An agency must demonstrate that it has incorporated APWA best practices into its programs tobecome APWA certified. Team MJ examined evidence that PW has incorporated APWA
practices into its policies, procedures, and operations. These best practices enable PW toevaluate program performance and costs based on reasonable measures, and they are woven
into the fabric of the department’s work activities. The benefits to PW include identifying
opportunities for improvement, establishing more effective standard operating procedures,
learning new methods, and identifying team-building tools.
Florida Department of Transportation Bridge Assessment
As discussed in Subtask 1.2, FDOT and EOD evaluate County bridges based on industry
measures, including best practices. FDOT uses the following terminology and ratings to define abridge’s condition.
Structurally Deficient – bridge should undergo a series of repairs or replacement within
the next six (6) years. FDOT’s policy is to repair or replace all the structurally deficientstate-owned bridges during that time. FDOT recommends that local governments follow
the same schedule for their structurally deficient bridges. According to FDOT’s 2022 Third
Quarter Report, two Hillsborough County bridges were structurally deficient.

Functionally Obsolete – bridge does not meet current road design standards. For
example, some bridges are "functionally obsolete" because they were built at a time
when lane widths were narrower than the current standard. According to FDOT’s 2022
Third Quarter Report, 40 Hillsborough County bridges were functionally obsolete.



Sufficiency Rating – used to help determine whether a bridge that is structurally deficientor functionally obsolete should be repaired or just replaced. A rating of 100 represents a

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDIT

perfect bridge (entirely sufficient for its current use). A rating of 0 percent is the worst
possible bridge (entirely insufficient for its current use). The sufficiency ratings for bridges
are part of a formula used by the FHWA when it allocates federal funds to the states forbridge replacement.


Health Index – measures the overall condition of a bridge. The health index typically
includes 10 to 12 different elements that FDOT evaluates. A lower health index meansthat more work would be required to improve the bridge to an ideal condition. A healthindex below 85 generally indicates that some repairs are needed, although it doesn'tmean the bridge is unsafe. A low health index may also indicate that it would be more
economical to replace the bridge than to repair it.

FDOT maintains NBI bridge information for all Florida counties on its website. Figures 1-9A
through 1-9D provide an overview of the County’s NBI bridges from FDOT’s Third Quarter 2022
bridge report and demonstrates that the County’s bridges are evaluated periodically. The tableshows that a little more than half of Hillsborough County’s NBI bridges are more than 40 years
old. FDOT inspected 95 percent of Hillsborough County’s bridges in 2021 and 2022 and assigned
a high sufficiency rating to 85 percent of the County’s bridges. FDOT also assigned a high healthindex rating to 75 percent of the County’s bridges.
Hillsborough County Bridge Age
Range

Number

Percent

0-10 Years

17

7%

11-20 Years

23

9%21-30 Years

50

20%

31-40 Years

32

13%

41-50 Years

44

18%

>50 Years

83

33%

249

100%

Total NBI Bridges

FIGURE 1-9A: A little more than half of Hillsborough County’s NBI bridges are more than 40 years old.
Source: Florida Bridge Information-2022 3rd Quarter Report.

FDOT Inspections of Hillsborough County Bridges
Year

Number

Percent

2020

12

5%

2021

155

62%

2022

82

33%

249

100%

Total NBI Bridges

FIGURE 1-9B: FDOT inspected 95 percent of Hillsborough County’s NBI bridges in 2021 and 2022.
Source: Florida Bridge Information-2022 3rd Quarter Report

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDIT

Hillsborough County Bridges Sufficiency Rating
RatingNumber

Percent

0-25

0

0%

25.1-5042%

50.1-75

33

13%

>75

212

85%

249

100%

Total NBI Bridges

FIGURE 1-9C: FDOT assigned a high sufficiency rating to 85 percent of Hillsborough County’s NBI bridges.
Source: Florida Bridge Information-2022 3rd Quarter Report.

Hillsborough County Bridges Health Index
RatingNumber

Percent

0-25

1

0%

25.1-5016

6%

50.1-75

45

18%

>75

187

75%

249

100%

Total NBI Bridges

FIGURE 1-9D: FDOT assigned a high health index rating to 75 percent of Hillsborough County’s NBI bridges.
Source: Florida Bridge Information-2022 3rd Quarter Report.

Figure 1-10 illustrates the condition of all County’s bridges (NBI and non NBI) based on EOD’s
Fiscal Year 2021 report prepared for CAFR disclosure. The County has a total of 275 bridges ofwhich 249 are NBI bridges assessed by FDOT. The bars show the percent of deck area (bridge
surface) square feet that is in the indicated condition. The first bar shows that 72 percent of theCounty’s current bridge surface area as of May 2021 was in good condition while 25 percent
was in fair, and 2 percent was in poor condition. The second bar projects bridge surface
conditions over a 10-year period at the funding levels existing in May 2021. The third bar shows
projected bridge surface conditions over 10-year period at ideal funding levels.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDIT

FIGURE 1-10: Current condition of County bridge surface area and projected condition over 10-years at current andideal funding levels.
Source: Hillsborough County Transportation Workshop Asset Preservation, May 26, 2021.

SUBTASK 1.6 – Evaluate the cost, timing, and quality of current program efforts based on areasonably sized sample of projects to determine whether they were of reasonable cost andcompleted well, on time, and within budget.
OVERALL CONCLUSION
Overall, this subtask is partially met. For the sample of projects reviewed, overall, they were of
reasonable cost and completed well, on time, and within budget. However, PW should ensurethat change orders are approved by the BOCC prior to incurring additional costs and extending
the project timeline for Punch List items and the Final Completion Letter is submitted inaccordance with County policy. One of the four projects is reported as completed as the
roadway is open for public use; however, the project is still pending the BOCC’s approval in
September 2022 of the final change order to increase the contract amount by $303,260 andcompletion of items remaining on the Punch List.
The July 2022 pending change order requests extending the completion date from December
20, 2021 to March 10, 2022 and to increase costs. The BOCC meeting is scheduled for
September 8, 2022. The completion letter states that all items of the roadwork work werecompleted in accordance with contract documents and all roadway punch list items werecompleted except items to be completed by December 2022 and some items at no additional
cost.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITThe proposed change order includes costs for additional work already completed plus
additional costs for safety modifications and to meet the disadvantaged business threshold. The
County’s Procurement Procedure Section 6.6.1(C) Changes to Agreements-Modifications statesthat all modifications (timeline and price) shall be approved by the Board prior to issuingauthorization to the bidder to perform the modification. The Certificate of Final Completionstates the date of final completion of the work is that date certified by the Project Manager
when construction is completed, in accordance with the contract documents, so that the owner
may occupy the work for the use for which it is intended.
ANALYSIS
To address the requirements of this subtask, the MJ Team used information obtained from ourinterview with PW program administrators and examined project documentation with thefollowing results as summarized in Figure 1-11. The MJ Team reviewed the following
documents to assess the cost, timing, and quality of current program efforts:Reasonable cost: Compared the department’s budget and engineering estimates to thevendors’ quotes and executed contract amount.

Completed well: Reviewed the final inspection and letters of substantial completion andfinal completion and payment of final vendor invoice.

Completed on time: Compared the agreed upon dates per the agreement and Notice toProceed to the dates per change orders and the letters of substantial and final
completion.

Completed within budget: Compared the department’s budget amount to the contract
amount and final change order amendments.
Maydell Drive
Bridge#C69634000

Apollo Blvd Extend to
4 Lanes#C69643

Kenley Elementary
Sidewalk Construction#C69608

Citrus Park Drive Extension#C61134

Construction
Budget/Engineer’s
Estimate$8,616,812 /$7,007,704$ $22,910,407 /$19,751,656$361,744 /$346,108$53,545,778 /$53,572,426

Basis for Vendor
Selection

Lowest bidder

Lowest bidder before
Lowest bidder
adding $750,000
allowance; then became
2nd lowest bidder

Lowest bidder

No. Tabulated Bids

10

4

5

3

Original Contract
Amount$7,497,250$20,406,908$333,735$47,992,585

Executed Contract
EffectiveDate

8/5/2020

11/16/2020

7/15/2020

5/1/2019

Revised per ChangeOrder$8,616,105 – CO #1$8,294,633 – CO#2

N/A

$287,117$51,955,980 pending BOCC
approval of Final Change
Order #4

Description

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITMaydell Drive
Bridge#C69634000

Apollo Blvd Extend to
4 Lanes#C69643

Kenley Elementary
Sidewalk Construction#C69608

Citrus Park Drive Extension#C61134

Latest Change Order
Date

5/18/2022

N/A

8/4/2021

7/22/2022

Change Order – Revised
Completion Date

3/31/2022 forunused days

N/A

N/A

12/20/2021 to
3/10/2022

Change Order – Revised
Costs

Credit $321,471 forunused allowance
funds

N/A

Credit $46,617 forunused allowance
funds

Add $303,260

Notice to Proceed By

10/12/2020

1/19/2021

10/26/2020

9/10/2019 Proceed
6/4/2021 Substantial and7/6/2021 Final

Date Contract Executed

8/13/2020

12/2/2020

7/29/2020

5/10/2019

Target CompletionDate

8/27/2022

10/10/2022

4/20/2021

Per Change Order #4:
12/20/2021 Substantial and3/10/2022 Final

Certificate of Substantial 1/4/2022
Completion Date

6/30/2022

1/29/2021

1/11/2022

Final Completion per
Certification ofCompletion Letter3/31/2022

Opened to traffic andconsidered“substantiallycomplete” on July 15,
2022

4/20/2021

3/10/2022 pending Punch
List items due by December
31, 2022

Reasonable Costs?

Yes; below budget
Yes
before Change Order

Yes, below budget

Pending final approved
change orders

Completed within
Budget?

Yes

Pending final invoice

Yes, below contract
amountPending final change orderapproval

Completed Timely?

Yes; early

Yes; early

Yes

Yes; based on change order
extensions

Contractor’s Affidavit
of Final Payment

4/20/2022 forperiod ending
4/24/2022

PW Department stated 5/25/2021 for period
waiting for invoice
ending 4/21/2021

Pending final change orderapproval

Completed Well?

Yes; early

Yes; early. Photos ofYes
ribbon cutting
maintained on County’s
website.

Pending completion of
Punch List Items

Description

FIGURE 1-11: Review of project documentation .
Source: Project files provided by County.

RECOMMENDATION 1.6 –Ensure that change orders are approved by the BOCC prior toincurring additional costs and extending the project timeline for Punch List items and the
Final Completion Letter is submitted in accordance with County policy.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 1.7 – Determine whether the County has established written policies andprocedures to take maximum advantage of competitive procurement, volume discounts, andspecial pricing agreements.
OVERALL CONCLUSION
The MJ Team did not divide Subtask 1.7 into separate program areas because the County’s
procurement policies and procedures are universal and apply to all County departments.
To address the requirements of this subtask, the MJ Team interviewed the County’s director of
Procurement. We also reviewed the County’s written procurement policies, its procurement
procedures, and a list of cooperative contracts. The MJ Team’s review of these documents
revealed that the County has established written policies and procedures to take maximum
advantage of competitive procurement, volume discounts, and special pricing agreements.
Therefore, this subtask is met.
ANALYSIS
Procurement Policies and Procedures
The BOCC adopted the procurement policy effective October 1, 2017. It establishes
procurement policies and procedures that are consistent with the laws of the State of Florida
for the efficient, effective, and transparent procurement of goods, services, and construction. In
addition, the County’s Procurement Procedures Manual, revised November 2021, provides
centralized procurement support to County departments and other designated County agencies
and offices that elect to use the services of Procurement Services, which is the County
department responsible for the procurement of commodities and services in a timely and costeffective manner and in accordance with BOCC procurement policy.
PROCUREMENT POLICY-EFFECTIVE OCTOBER 2017
The following are key provisions in the procurement policy that promote competitive
procurement, volume discounts, and special pricing agreements that accrue to the County’s
benefit.
Purpose To provide increased economy in County procurement activities and to maximize to thefullest extent practicable the purchasing value of public funds of the County.


To foster effective broad-based competition within the free enterprise system andmaintain an open and competitive environment.



To obtain in a cost-effective and responsive manner the goods, services, and construction
required by County agencies in order for those agencies to better serve this County’s
residents and businesses.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDIT

Methods of Source Selection
 Competitive Sealed BiddingCompetitive Sealed Proposals

Small PurchasesSole Source Procurements

Emergency ProcurementsSpecial Procurements



Noncompetitive Procurements



Other Forms of Procurement



Purchasing Card Program

Architectural, Engineering, and Other Professional Services

Provisions
 The Director of Procurement may request, or cause to be requested, factual information
reasonably available to the bidder or offeror to substantiate that the price or cost offered,or some portion of it, is reasonable…


The Director of Procurement may promulgate regulations permitting or requiring theinclusion of clauses providing for adjustments in prices, time of performance, or othercontract provisions as appropriate…



The Director of Procurement is authorized to accept and approve voluntary priceadjustments that reduce the price (cost) of a previously approved procurement provided
there is no material change to the specifications, scope of work, or conditions of thesubject procurement.



Unless prohibited by law, and when in the County’s best interest, the Director of
Procurement, on behalf of the County, may either participate in, sponsor, conduct, or
administer a Cooperative Purchasing Agreement for the procurement of any supplies,
services, or construction with one or more Public Procurement Units.

PROCUREMENT PROCEDURES-REVISED NOVEMBER 2021
The following are key provisions of the purchasing policy that promote competitive
procurement, volume discounts, and special pricing agreements that accrue to the County’s
benefit.
Purpose To provide for the procurement of commodities and services in a timely and cost-effective
manner and in accordance with the Board of County.


Develop procurement objectives, policies, programs, and procedures for the
procurement of all commodities and services except non-procurement and exempt
activities.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDIT

Consolidate purchases of like or common commodities or services and enter into term
contracts to obtain maximum economic benefits and cost savings.



Explore the possibilities of buying in sufficient quantities to take full advantage of quantity
discounts.



Determine the priority of procuring commodities and services that is in the best interestof the County.

Promote good will between Hillsborough County and its bidders. Encourage full and open
competition wherever possible. Assure fair and equitable business dealings with all
bidders.



Buy at the lowest cost consistent with the quality needed to meet its requirements.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 2
FINDING SUMMARY
THE STRUCTURE OR DESIGN OF THE PROGRAM TO ACCOMPLISH ITSGOALS AND OBJECTIVES.

Overall, Hillsborough County meets Research Task 2.
Public Works (PW) was reorganized in 2018 to streamline the organization and improve
service delivery. The MJ Team found that the County maintains an organizational structurethat has clearly defined units, minimizes overlapping functions, and has no excessive
administrative layers. PW provided examples of how it effectively uses workload data toassign staff. The current vacancy rate is approximately 10%, which is an improvement overlast year’s rate which had been about 18% of total staff and approximately 28% for first year
employees. The County recently approved a cost-of-living increase of 3% for employees, asof July 20, 2022. The Human Resources Department is conducting further compensation andlabor market studies to provide recommendations for additional compensation
adjustments, if needed. Some County employees are covered by a collective bargaining(union) agreement. Along with compensation adjustments the Human Resources
Department is working with the American Federation of State County and Municipal
Employees (AFSCME) for additional retention strategies for this category of employees.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 2.1 – Review program organizational structure to ensure the program has clearly
defined units, minimizes overlapping functions and excessive administrative layers, and haslines of authority that minimize administrative costs.
OVERALL CONCLUSION
Overall, Hillsborough County meets Subtask 2.1. To reach this conclusion, The MJ Teamassessed Public Works’ (PW) organizational structure and found that it has clearly defined units,
minimizes overlapping functions and has no excessive administrative layers that increaseadministrative costs. We also evaluated the span of control (number of direct reports) for key
PW staff who will play a key role in overseeing the surtax funds. We found that the ratio of
directors and managers to direct reports for all key positions was reasonable based on humanresource best practice guidelines.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITANALYSIS
To address the requirements of this subtask, the MJ Team conducted group interviews with thefollowing positions:

Public Works / Assistant County Administrator

Director of Engineering & Operations



Director of Capital Programs

Director of Management and Budget

Director of Human Resources

Organizational Structure
Figure 2-1 depicts the Hillsborough County Public Works organizational structure.

FIGURE 2-1: Public Works Organization Chart.
Source: Hillsborough County Public Works.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITManagerial Span of Control
The MJ Team also used the Society of Human Resource Management (SHRM) span of control
indicators as an assessment resource. SHRM is the world’s largest human resource professionalsociety devoted to human resource management and has more than 300,000 members.
We compared the recommended span of control ratio for directors and managers and lowerlevel manager and supervisory levels using SHRM guidelines. The recommended span of control
ratio for higher-level directors and managers is between 1:2 and 1:9 or slightly higher. Several
factors influence span of control guidelines, as described below:

Organizational size. Large departments tend have a narrow span of control, whereas
smaller departments often have a wider span of control. This difference is usually due tothe costs involved with more managers and the financial resources available to anorganization.



Workforce skill level. The complexity or simplicity of the tasks performed by theemployees will affect the number of desirable direct reports. Generally, routine tasks
involving repetition will require less supervisory control of a manager, allowing a wider
span of control, whereas complex tasks or dynamic workplace conditions may be best
suited for a narrower span of control, where managers can provide more individualized
attention.

Director’s and Manager's responsibilities. Departments and organizational units’
expectations allow managers to be effective with the number of direct reports they have,especially related to individual responsibilities, departmental planning, and training. For
example, executives often have fewer direct reports than other managers in theorganization.

Key Personnel Primary Job Functions
PW was created in 2018 to improve service delivery and focus on key initiatives important tothe community. The Public Works /Assistant County Administrator was assigned to work withthe department to focus on project delivery, resolution of customer issues and day-to-day
financial and administrative management PW is comprised of two departments and one
division, which consist of the following:
Capital Programs
Provides planning, design, and construction of capital improvement program projects fortransportation, stormwater, and facilities (parks, libraries, fire stations), including the following: Provides planning, design, and construction of capital improvement program projects fortransportation, stormwater, and facilities (parks, libraries, fire stations).


Inspections of developer construction including:o Subdivision infrastructure and land alterationo Private and public utilities in County Right-of-Way

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HILLSBOROUGH COUNTY PERFORMANCE AUDITo Public contributed assets in County Right-of-Way
o Commercial property improvements (non-building construction assets)
Engineering & Operations
Provides maintenance, management and engineering for transportation and stormwater
infrastructure, including:

Traffic management (manages and operates an Intelligent Transportation System for
efficient travel and improved safety for everyone using the roads and sidewalks.

Traffic signs, traffic signals, and roadway lighting

Traffic Signal Vehicle Presence Detection
Closed-Circuit Television (CCTV) cameras






Roadway maintenance (pothole patching, tree trimming, ditch maintenance)
Pavement, bridge, and sidewalk programs
Stormwater flooding investigations
Floodplain Management
Mosquito management* (will not be part of the surtax funds)

Business Operations
Provides fiscal oversight for bi-annual operating budget preparation, monitoring, and reportingin compliance with GAAP/GASB and state, federal and local guidelines. Additional
responsibilities include the following:

Fiscal Team is responsible for bi-annual operating budget preparation, monitoring, andreporting in compliance with GAAP/GASB and state, federal and local guidelinesCustomer service support in resolving incoming PW concerns. Also responsible forcreating streamlined messaging for PW department’s high-profile projects and initiatives

Project Controls Team responsible for capital budget preparation, monitoring andproviding reporting of the County’s CIP delivery processContracts Management support in compliance with County Procurement Policies andProcedures

Maintain and support PW’s Unifier system and responsible for centralized data repository

In addition to PW, the Procurement Services Department will also be key to surtax
administration. Procurement Services is organized into seven separate teams, five of which
specifically address the procurement of goods, services, and construction. One of the
procurement teams focuses on the procurement of construction and professional services
regardless of the client department. The four remaining procurement teams address the
procurement of goods and services (not involving construction or professional services) for
assigned client departments. The two of the seven teams are focused on vendor management,
performance measures and continuous improvement, and administrative support. Confining

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the procurement of construction and professional services to one procurement team helps
standardize and streamline the process by capitalizing on the specialization and collective
experience of this teamFigure 2-2 provides the major work responsibilities for key Public Works staff and also showsthat the majority of positions fall within the SHRM span of control guideline ratio of 1:2 and 1:9.
Major Position Responsibilities Related to the
Surtax Program Areas

Span ofControl

Public Works/AssistantCounty Administrator

 Oversees Engineering and Operations, Capital Programs,
Business Operations.

1:3

Director, Engineering &Operations Department

 Directs and oversees all transportation engineering functions
including asset management, project planning and project
development.
 Directs and oversees all transportation operations,maintenance and repair functions for roadways, bridges,
sidewalks, traffic signals.

1:3

 Oversees and manages routine maintenance activities suchas mowing, tree trimming, cleaning of conveyance systems.
 Oversees operations, maintenance and repairs of traffic
signals, signs, pavement markings, school zones.
 Plans and manages maintenance and repair of roadway
pavement, bridges, sidewalks, pipes.

1:10

 Manages the identification, prioritization, and initialdevelopment of capital projects.
 Orchestrates the development of capital program work
plans.
 Manages engineering standards and technical reviews forcapital projects.
 Oversees condition assessment of infrastructure assets.

1:3

 Oversees department wide responsibility for all department
functions and services.
 Communicates program performance, needs and challenges
to administration.
 Ensures all functions have necessary resources and training
to ensure performance.

1:3

 Oversees team of in-house and consultant project managers
for the construction phase of stormwater and transportation
CIP projects.
 Oversees all necessary tasks related to the construction
phase of projects from Notice to Proceed to final contract
completion and warranty inspections.
 Manages construction phase project budgets and schedules
including updates to budgets and schedules as needed.

1:3

Position Title & County Tenure

Tenure with County:
10 yearsTenure in Current Role:
3 years
Director, Transportation
Maintenance Division
Tenure with County:
21 yearsTenure in Current Role:
11 years
Director, Technical Services
Division
Tenure with County:
7 years
Tenure in Current Role:
3.5 years
Director, Capital Programs
Tenure with County:
8 years
Tenure in Current Role:
5 years
Construction Services
Manager
Tenure with County:
8 years
Tenure in Current Role:
8 years

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Major Position Responsibilities Related to the
Surtax Program Areas

Span ofControl Oversees team of in-house and consultant project managers
for the design phase of stormwater and transportation CIP
projects.
 Oversees all necessary tasks related to the design phase of
projects including design, land acquisition, and projectpermitting and procurement/bid package development.
 Manages design phase project budgets and schedules
including updates to budgets and schedules as needed.

1:3

 Directs over 49 professional, technical and external
consultant staff to accomplish business operation services
functions including the following:- Activities related to monitoring and reporting of theCapital Improvement Program delivery processes.
- Performance measures & process improvements.
- Management of operating ($113M) & capital budget($628M).
- Contract capacity, grants & diversity target reporting fortransportation, stormwater and architectural services
programs.
- Supports innovation & technology development efforts- Oversees PW's customer service and businessadministration teams.

1:6






1:4

Position Title & County Tenure

Design Services Manager
Tenure with County:
3 years
Tenure in Current Role:
3 years

Business Operations
Division Director
Tenure with County:
7 years
Tenure in Current Role:
4 years

Manager/Fiscal Services
Tenure with County:
22 yearsTenure in Current Role:
2 years
Manager/QAQC
Tenure with County:
2 years
Tenure in Current Role:
35 years
Manager/Data Analytics
Tenure with County:
8 years
Tenure in Current Role:
3 years
Data Science
Tenure with County:
7 years
Tenure in Current Role:
4 years

Oversees operating budget oversight.
Oversees financial reporting.
Oversees prompt payment of invoices.
Oversees grants management.

 Manages work orders and requisitions related to operating
and Capital Programs oversight.
 Manages CAP (construction apprentice program) anddiversity target reporting.
 Manages contract management including change orders,modifications, and other related documents.

1:6

 Supports CPD Unifier innovation & technology development
efforts.

1:1

 Drives the development and deployment of the
Department’s data and analytics platform for digital businessand electronic government (Data Warehouse, CIP Viewer).
 Institutes a programmatic approach for enterprise
information management to identify, prioritizes and

1:1

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Major Position Responsibilities Related to the
Surtax Program Areas

Position Title & County Tenure

Span ofControl

executes the data and analytic initiatives with clear line ofsight to enterprise strategies and business outcomes (Unifier,Power BI Reporting).
Manager/Customer
Resolution
Tenure with County:
25 yearsTenure in Current Role:
3 years

Manager/Project Controls
Tenure with County:
2 years
Tenure in Current Role:
2 years
Director, Management andBudgetTenure with County:
23 yearsTenure in Current Role:
3 years
Managing Director,
Management and Budget
Tenure with County:
8.5 years
Tenure in Current Role:
2.8 years
Budget Manager – CapitalTeam
Tenure with County:
21 yearsTenure in Current Role:
7 years

 Ensures coordination of public meetings, public notification,
web content, annual reports, brochures/flyers, or any
communication efforts.
 Conducts virtual or in person community outreach & public
engagements to provide information pertaining to existingand planned capital improvement projects and maintenanceefforts.
 Provides resolution to escalated issues or citizen concerns bycoordinating responses and ensuring that they are addressedor responded to in a timely and professional manner.

1:3

 Provides and prepares fiscal year program planning withManagement and Budget Office.
 Prepares Capital Budget allocation tracking and balancing.
 Prepares encumbrance and spend projections for CIPs.
 Prepares fiscal closeout of PO’s and projects.

1:5






1:6

Prepares revenue estimation.
Prepares overall budget oversight including capital.
Prepares budget preparation and amendments.
Prepares financial policy review and implementation.

 Oversees budget activities of Capital and Operating Budget
teams.
 Ensures budget is compliant with accounting standards, FL
Statutes, and other policies.
 Prepares budget amendments involvement as needed.

1:3

 Completes the annual CIP process and produce relatedmaterials.
 Maintains and provide support for the Projects and Grants
Module of the Oracle ERP System.
 Prepares budget amendments involvement as needed.

1:2

FIGURE 2-2: Position titles and major roles and responsibilities for key individuals who will oversee the Surtax.
Source: Hillsborough County Public Works.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 2.2 – Assess the reasonableness of current program staffing levels given the natureof the services provided and program workload.
OVERALL CONCLUSION
Overall, Hillsborough County meets Subtask 2.2. To come to this conclusion, the MJ Teamassessed current PW vacancy rates overall, which are at approximately 10%, which meetssuggested human resources management professional organization guidelines, such as SHRM.
Additionally, PW provided examples of monthly workload reports for Design ProjectManagement, Construction Project Management, and Inspection, indicating that statistics areevaluated regularly to determine reasonableness of program workload.
ANALYSIS
To address the requirements or this subtask, the MJ Team conducted group interviews with thefollowing positions:

Public Works /Assistant County Administrator

Director of Engineering & Operations



Director of Capital Programs

Director of Management and Budget

Director of Human Resources

The MJ Team also reviewed the following data sources:

Position Incumbent Report (Vacancies and Turnover Rates), Dated 06-01-22

Project Manager Workload Report

AFSCME October 1, 2017 - September 30, 2020Private Developer Inspections Report

Turnover and Vacancies
Figure 2-3 shows PW has a total headcount of 520 full-time equivalent (FTE) employees, which
includes 407 FTEs in Engineering & Operations, 72 FTEs in Capital Programs, and 41 FTEs in
Business Operations. The overall current vacancy rate for PW is 10.19%.

FIGURE 2-3: PW FTE Count, Vacancies, and Vacancy Rates
Source: Hillsborough County Public Works.

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Vacancies and high turnover occurred in Engineering & Operations last year, which has over
300 employees in the Transportation Maintenance Division (TMD). Much of the field workforce
in this division is comprised of entry-level positions such as Transportation workers that arepart of the collective bargaining agreement between Hillsborough County and the American
Federation of State, County, and Municipal Employees (AFSCME) union. These types of
positions historically have high turnover rates, and as such TMD is constantly recruiting andtraining new hires.
PW’s turnover rate for last year had been approximately 18% of total staff and approximately
28% for first year employees. To lower turnover and vacancy rates to the levels where they arethis year, the County recently approved a 3% cost-of-living increase for all employees as of July20, 2022.
The Human Resources Department is currently conducting compensation and labor market
studies to provide recommendations for further compensation adjustments. Along with thisinitiative, Human Resources is working with the AFSCME union, which maintains the County
collective bargaining agreement to identify additional recruitment and retention strategies tomaintain turnover and vacancy rates at current levels or below.
Workload
PW provided examples of workload statistics for three areas as of June 2022, which included
Design Project Management, Construction Project Management, and Inspection.
Figure 2-4 shows that 11 project managers oversaw a total of 189 Design projects valued at$341 million. Figure 2-5 shows that 10 project managers oversaw a total of 241 Construction
projects valued at 198 million.
Both Design and Construction utilize a monthly report that shows the current staff assignments
for each project manager and evaluates the total number of assigned projects and budget
amounts along with overall project complexity. As shown in Figures 2-4 and 2-5 the number ofprojects assigned to both Design and Construction project managers varies widely. The monthly
reports are used to try to balance the workload among the staff. Consultants are brought in by
the section managers on an as needed basis to help balance the workload, as needed.

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FIGURE 2-4: Example of Design Project Management Workload Summary.
Source: Hillsborough County Public Works.

FIGURE 2-5: Example of Construction Project Management Workload Summary.
Source: Hillsborough County Public Works.

Figure 2-6 presents an example of an Inspection workload summary prepared by PW.
Figure 2-6 provides the quantity of zoning inspections performed for North and South Area
projects, the quantity of base inspections performed, the overall average number of inspections
performed per week by inspector and the average number of inspections performed per day byinspector.

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FIGURE 2-6: Example of Inspection Team Workload Summary.
Source: Hillsborough County Public Works.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 3
FINDING SUMMARY
ALTERNATIVE METHODS OF PROVIDING SERVICES OR PRODUCTS.

Overall, Hillsborough County meets Research Task 3.
Hillsborough County (the County) demonstrated that program administrators, through PW’s
Decision Unit, formally evaluate existing in-house services and assess alternative contracting
methods to ensure costs are reasonable. PW demonstrated that it is less costly in certain
cases to utilize in-house inspection staff in lieu of contracted inspection staff. PW madechanges to service delivery methods, when evaluations found that changes would reduce
program cost without significantly affecting the quality of services.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 3.1 – Determine whether program administrators have formally evaluated existing
in-house services and activities to assess the feasibility of alternative methods of providing
services, such as outside contracting and privatization, and determine the reasonableness of
their conclusions.
OVERALL CONCLUSION
Overall, Hillsborough County (the County) met expectations for subtask 3.1. To reach thisconclusion, the MJ Team interviewed program administrators and assessed relevant data of theCounty that will administer and/or benefit from the sales surtax. The MJ Team evaluated traffic
safety inspections and right of way inspection services to determine whether or not this subtask
was met.
ANALYSIS
Traffic Safety Investigations
The MJ Team reviewed Decision Unit forms (DU) which are used to justify County expenditures.
The County’s Decision Unit process conducted during the budget cycle provides departmentswith an opportunity to request additional funding for new or expanded services. The DU form
includes information from the department comparing the expected performance, outcomes,
and measures to those currently funded. It also includes the department’s analysis andproposal of in-house and contracted methods for providing the service.
Each County department submits their requested DUs as part of their budget submittal, andthese are reviewed by the Management & Budget Department as well as the County’s
executive team to determine which services to include in the recommended budget. The DU
request reviewed was in response to an increased workload of customer service for traffic

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safety investigations, and the goal was to reduce the backlog of cases and increase theperformance of completing the annual caseload. Program administrators evaluated in-houseservices and determined that to meet the demand for traffic investigations, a number of new
staff members would need to be added.
Rather than significantly increasing the traffic investigator staffing levels to accommodate this,the DU proposed a balance that included just one full- time equivalent (FTE) combined with
contracted consultant support for the traffic investigations and a second FTE for project
development.
The addition of $550,000 of operating budget covered the cost of 2 FTE engineers ($166,000
salary and $28,000 capital expense) to improve public traffic safety. The forms summarize thebenefits of authorizing the additional requested budget in the following ways:

Measures and outcomes include completion of 90% of safety investigation and safety
project work orders within 180 days in response to 900-1,200 annual caseload andcompletion of 500 case backlog;

Manages 3-7 miles of corridor and 10-20 intersection low-cost safety retrofit projects per
year;



Develops 12-16 school safe walking route projects per year; and

Publishes quarterly and annual County road crash analysis and safety performance
reports.

The result was reducing County costs by placing the heavy staffing required to perform theinvestigations on the consultants. and paying less for these services. This reduced the County’s
long-term commitment to staffing, while leveraging consultant services to meet the increased
demands.
Right of Way Inspection Services
The County evaluated performance and costs to determine whether it was more cost effective
to utilize in-house staff rather than use contracted services for right of way inspection services.
Contracted inspection services utilized for the past three years have been used to observe,
inspect, and approve contracted right of way maintenance activities including roadway mowing,tree trimming, ditch maintenance, drainage pipe repair, fence, guardrail, handrail, street signs,
signals, and pavement markings. The County PW completed DU forms requesting additional
budget to cover the cost of additional inspection staff as shown in Figure 3-1
The County was typically spending over $600,000 annually on contracted inspectors. Figure 3-1
shows in house staffing labor costs resulting in savings compared to contracted services. FY 22
staffing costs are skewed because staff will also be used to conduct stormwater inspections
required by the Southwest Florida Water Management District that will be covered under aseparate budget. This example demonstrates that in house services and contracted services

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have been evaluated to determine the most cost-effective solution, in this case using in houseservices was more cost effective.
Figure 3-1 below, presents the costs for contracted inspection services for Fiscal Years
2019-2022 related to right of way inspection services.
Fiscal Year
PO#
Inspectors
Total

Fiscal Year 2019

Fiscal Year 2020

Fiscal Year 2021

Fiscal Year 2022

219202299

220201797

220201797

ANTICIPATED

4

4-5

4-5

7

$415,313,08$448,879,32$476,082.17$728,000.00

FIGURE 3-1: Costs associated with contracted inspection services, Fiscal Years 2019-2021, Fiscal Year 2022,
anticipated cost.
Source: Hillsborough County, Engineering and Operations Department.

SUBTASK 3.2 – Determine whether program administrators have assessed any contracted
and/or privatized services to verify effectiveness and cost savings achieved and determine
the reasonableness of their conclusions.
OVERALL CONCLUSION
Overall, the County met expectations for subtask 3.2. To reach this conclusion, the MJ Team
interviewed program administrators and assessed relevant data of the County that willadminister and/or benefit from the sales surtax.
ANALYSIS
Data reviewed included reports related to capital programs, engineering, and operations to
document the budgets of in-house versus contracted services for various PW projects.
A form entitled “Inspectors Decision Unit FY23” was used by PW to demonstrate that it is lesscostly to utilize in-house maintenance inspection staff in lieu of contracted inspection staff forright of way maintenance activities. Data reviewed indicated that approximately $602,000 wasused in 2021 and 2022 on County inspections using contracted services ranging from roads andtransportation to stormwater, right of way maintenance and related areas. The form provides
justification for PW to hire additional inspectors in-house in lieu of using contracted services fora total cost of approximately $448,000 per year resulting in a net savings of $154,000 annually.
In this example, the County reevaluated their decision to utilize in house services in lieu ofcontracted inspectors.
This is another Decision Unit example that highlights the formal process that occurs as part of
the County’s budget cycle, whereby services are evaluated for feasibility of alternative methodsof delivery. This particular DU has not yet been submitted (it is prepared for the two-year cycle
next year), but it illustrates how the DU form includes an analysis of the actual costs over the

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last several years of contracting inspection services for maintenance activities, compared withprojected costs of in-house inspection staff.
The County’s procurement manual, specifically Chapter 3 – Section 3.4, outlines the process forevaluating submittals for services, including but not limited to assessment of reasonableness ofcost, feasibility of service delivery method, alternatives, etc. County policy guidelines forassessment of bidder/vendor performance is described in Chapter 6.7 of the County’s
Procurement Manual. Procedures have been developed for vendor/bidder performancemeasures that include contract compliance, fair market price competitiveness, bidder/vendor
performance deficiencies and breach of contract.

SUBTASK 3.3 – Determine whether program administrators have made changes to service
delivery methods when their evaluations/assessments found that such changes would
reduce program cost without significantly affecting the quality of services.
OVERALL CONCLUSION
Overall, the County met expectations for subtask 3.3. To reach this conclusion, the MJ Team
interviewed program administrators and assessed relevant data of the County that willadminister and/or benefit from the sales surtax.
ANALYSIS
Beginning in 2018, Public Works (PW) funded an additional $2 million in operating costs, which
was increased by $2 million annually up to $8 million for Fiscal Year 2021, to provide support
for right of way maintenance performed by both in-house and contractual services. One of themaintenance services identified for improvement was performance mowing of the right of waythat provides for urban area mowing similar to residential mowing. The increase in the level ofservice and improved aesthetics requires small equipment such as small mowers, gas powered
trimmers, edgers and blowers. This equipment requires a high ratio of labor and equipment toarea maintained to operate, as well as intensive and frequent small gas engine maintenance.
Several factors, including the numbers of contractors that mow residentially, the ability for
Minority Business Enterprises (MBE)/Small Business Enterprise (SBE) firms to successfully bid on
the contracts, and the significant Increase in full time labor and equipment necessary for
performance urban mowing contracts were considered when the decision to outsource wasselected.
PW maintains a network of over 7,300 traffic lane-miles of paved roadways. The pavement
condition is assessed annually on a three-year cycle through a visual inspection following ASTM
D6433-18. The condition inventory is critical in supporting budget and project planning. Field
inspection teams typically consist of a two-person team and condition data are electronicallyrecorded via hand-held devices, and then uploaded to data analysis software. Over the past
decade the inspection services were conducted in-house with County forces, however,

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performance of the program struggled, producing inconsistent and incomplete results. Thiswas due to significant turnover in the inspector positions; after being trained, individuals would
often leave for higher paying positions. Over the past two years, the service was performed
using consulting services and has resulted in improved quality, consistency, and completenessof the pavement condition inventory as well as preparation of budgets and projectprioritization.
Another example of changes to the project delivery method resulting in savings involves asection of New Bedford Drive south of Opal Lane to South Pebble Beach Boulevard (South
Section). A localized pavement repair project for this section was planned and included on the
BOCC approved ARP (American Rescue Plan) funds list of transportation projects.
Initially, management selected the approved section to be completed by a private contractor
due to its scope, complexity, temporary traffic control requirements, equipment availability,and prioritization rather than using internal construction forces. A proposal was provided by thecontractor to complete the South Section for $105,766. Subsequently, there was public inquiry
requesting an additional section of New Bedford Drive from Opal Lane north to Flamingo Lane
(Middle Section) to be resurfaced. A cost and re-priority analysis between in-house
construction forces versus private contractor for the resurfacing project was performed todetermine if the additional section could be added to the scope within the approved budget of$160,000.
The analysis concluded that if performed by the Contractor, it would cost approximately$272,000 for both sections and take 4 weeks for the contractor to mobilize. The Contractor’s
estimate was $112,000 more than the approved ARP funding of $160,000. The County internal
construction forces were able to reprioritize its project workload and reduce its costs inequipment rentals and labor to provide the same service close to the original ARP budget of$160,000 and begin immediately.
The County evaluates on a case-by-case basis cost saving alternatives that may or may not
involve contracted services. In Figures 3-2 and 3-3 (BOCC agenda item and Purchase Order),the County determined that it was less costly to utilize contracted landscape services forstormwater areas within the County right of ways. The depth and breadth of services required
resulted in one bidder responding whose bid was approximately 27 percent lower than theestimated cost.

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FIGURE 3-2: Agenda Item Cover Sheet, Right-of-Way and Ponds Landscaping Bulk Purchase Agreement BPA.
Source: Hillsborough County, Engineering and Operations Department.

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FIGURE 3-3: Purchase Agreement, Rights-of-Way and Ponds Landscaping Maintenance Services BPA.
Source: Hillsborough County, Engineering and Operations Department.

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Figures 3-4 and 3-5 demonstrate that the County awarded a contract for roadside ditch andcanal cleaning and grading to a contractor’s bid that was approximately 12 percent lower thanestimated resulting in approximately $1.7 million in savings.

FIGURE 3-4: Purchase Agreement, construction services of roadside ditch, canal cleaning, and grading projects.
Source: Hillsborough County, Engineering and Operations Department.

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FIGURE 3-5: Agenda Item Cover Sheet, Ajax Paving Industries of Florida Contract.
Source: Hillsborough County, Engineering and Operations Department.

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Figure 3-6 is an excerpt of the scope of services for the County utilizing contracted professional
services to prepare Pavement Condition Assessments in lieu of using in-house staff. The
assessments are critical in preparing the County’s roadway paving and maintenance budgets
and require more County staff than is currently available. Utilizing contracted services allows
the County to meet critical deadlines and keep staffing levels lower.

FIGURE 3-6: Pavement Condition Inspection PCI SOW.
Source: Hillsborough County, Engineering and Operations Department.

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Figure 3-7 describes the additional cost saving measures the County implemented by providing
in-house roadway paving for a section of New Bedford Road at a cost of approximately$160,000 versus utilizing a contractor to perform the work at a cost of approximately $272,000.

FIGURE 3-7: New Bedford Drive Resurfacing Project In-House vs. Contractor Analysis Narrative.
Source: Hillsborough County, Engineering and Operations Department.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 3.4 – Identify possible opportunities for alternative service delivery methods thathave the potential to reduce program costs without significantly affecting the quality ofservices, based on a review of similar programs in peer entities (e.g., other counties, etc.).
OVERALL CONCLUSION
Overall, the County met expectations for subtask 3.4. To reach this conclusion, the MJ Team
interviewed program administrators and assessed relevant data of the County that willadminister and/or benefit from the surtax.
ANALYSIS
Hillsborough County monitors 140 remote water level stations and rainfall stations and 40
stormwater pump stations located throughout the County to monitor flooding potential.
Historically, these locations have required County staff to travel to each site and manually
collect recorded data. The County is comprised of 1,266 square miles so the staff and vehicles
required to collect this data daily is substantial. Public Works executive staff identified analternative delivery method using radio telemetry to automatically collect and transmit data
several times a day without needing the staff and vehicles previously used. This project wasadvertised in May 2022 (Invitation to Bid is shown in Figure 3-8) and has not yet been awarded,
so cost information is not available. Intuitively, the initial capital cost of telemetry systeminstallation will be minimized considering the staff time and vehicle costs expended daily. A
major benefit of the telemetry system is the frequency that telemetry data will be collected inlieu of only once per day to improve early detection of flooding.
The County Public Works receives a biennial Florida Stormwater Association (FSA) Stormwater
Utility Report. The FSA surveys most jurisdictions that have a Stormwater Program within
Florida, so that it can produce a report that highlights best management practices and provides
information regarding the administration of Stormwater Programs throughout the state. The
report is used to help management compare program statistics to other municipalities that
include rate structures, revenues, number of full-time employees (FTE), and other practices toensure a successful program. The report highlights how Hillsborough County effectively
administers its Stormwater Program with only six FTEs considering its size and revenues
compared to other municipalities.

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FIGURE 3-8: Stormwater Remote Water Level Rainfall and Pump Station Monitoring Services.
Source: Hillsborough County, Engineering and Operations Department.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 4
FINDING SUMMARYGOALS, OBJECTIVES, AND PERFORMANCE MEASURES USED BY THE
PROGRAM TO MONITOR AND REPORT PROGRAM ACCOMPLISHMENTS.

Overall, Hillsborough County partially meets Research Task 4.
Program goals were clearly stated, measurable, can be achieved within budget and align with
the County’s strategic plan. Although some performance measures such as pavement andbridge condition inspections are sufficient and clearly documented, other performancemeasures such as for bicycle and pedestrian infrastructure are referenced in documents
without a clear statement of relevant performance measures. At least twelve (12%) of thegeneral purpose surtax, if passed, shall be expended on bicycle or pedestrian infrastructure
and related improvements. Internal controls, including policies and procedures, provide
reasonable assurance that program goals and objectives will be met.
The County should ensure that performance measures for bicycle and pedestrian
infrastructure are developed, clearly documented and monitored.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 4.1 – Review program goals and objectives to determine whether they are clearlystated, measurable, can be achieved within budget, and are consistent with the County’s
strategic plan.
OVERALL CONCLUSION
Overall, Hillsborough County (the County) met expectations for subtask 4.1. To reach thisconclusion, the MJ Team interviewed key management and assessed if departmental programs
were clearly stated, measurable, can be achieved within budget, and consistent with theCounty’s strategic plan. Key projects for Fiscal Year 2022 and 2023 in the Adopted Budget
represent priority objectives related to the departments’ goals. The departmental goals wereclearly stated, measurable, and can be achieved within budget and align with the strategic plan
ANALYSIS
In order to address this requirement, the MJ Team reviewed the County’s Strategic Plan and
Fiscal Year 2022 Adopted Budget which includes departmental budgets, program description,accomplishments, core goals, key projects, and examples of three or four performancemeasures. The MJ Team also interviewed the Public Works / Assistant County Administrator
and management team.

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COUNTYThe County’s Strategic Plan was developed by the Board of County Commissioners on
May 15, 2013. It reflects a broad vision, five strategies, and various objectives, which is shownin Figure 4-1.

FIGURE 4-1: The County’s focus areas include five strategies.
Source: County Fiscal Year 2022 Adopted Budget.

PUBLIC WORKS
Public Works maintains an Administration Policy for Organization and Strategic Planning dated
March 5, 2022, which requires alignment with the County’s Strategic Plan. The policy states that
the Public Works staff must ensure alignment with the Mission, Vision, and Values statements,
and with the Hillsborough County Strategic Plan.
The Public Works shall adhere to the County Administrator's Strategic Plan instructions,schedules, and requirements in the preparation and submission of the Department
Strategic Plan.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

Direct reports to the Department Director shall be responsible for the drafting of goals
and measurable objectives that align with the plans and initiatives of the County
Administrator.

Department Goals Achievement Within Budget
In determining if the goals can be achieved within budget, PW management stated that as partof the annual budget process, each department establishes and provides their goals/
objectives/ measures along with their budget submittal. In this way the objectives aredeveloped in conjunction with, and under the constraints of, the available budget. The goals/
objectives/ measures in the Budget Book document include those goals specifically to beachievable within the budget. The budget adoption process includes a review phase, in which
each department submission (containing both the objectives and the budget) is reviewed by
the Budget Office, the Executive team, and the County Administrator. In accordance with BOCC
Policy 03.05.11.00, any change or new budget request must be submitted by the department
through the budget process, and be supported by performance data/metrics. This ensures that
if budget changes are made, performance goals/objectives are adjusted accordingly.
The Decision Unit (DU) process, which is part of the overall budget process, includes requests
for budget changes. One of the DU’s that the Engineering & Operations department included
with its budget submittal for FY23 consisted of additional personnel and spray trucks to expand
larvicide treatment. The DU form includes the budget request as well as the impact on
performance measures – in this case a projected increase in acres treated for mosquito larvae
as shown in Figure 4-2. This presents an example of how goals and performance measures areincorporated in the budget process to ensure that goals can be achieved within budget.

FIGURE 4-2: PW includes the department’s core goals and performance measures in the process for budget change
requests.
Source: Hillsborough County’s PW Department.

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Department Goals versus County Strategic Goals
Figure 4-3 presents the Capital Programs’ departmental goals and key projects, examples of
performance measures, relevant County strategic goals, and the budget to accomplish thedepartments’ goals. Based on our analysis, all three department’s core goals are clearly statedand measurable. Although the first two goals clearly align with the County’s Goal #4 to establish
basic level of services, the third departmental goal regarding safety, lacks clear relevance to theCounty’s strategic goals. According to PW management, the department goal for safety is
primarily focused on ensuring that the work performed both with in-house staff and withvendors in the community is performed safely with no or minimal safety related incidents orproperty damage. This department goal aligns with the overall County goal of Great Places inmeeting the infrastructure needs of the community through the safe execution of capitalprojects which the MJ Team deemed reasonable.

Program: Public Works: Capital Programs
Description

The Capital Programs department oversees the project development, design, andconstruction of the County’s Capital Improvement Program for transportation, stormwater,
and facilities such as parks, libraries, and fire stations. The department is also responsible
for the inspection of developer construction, including subdivision infrastructure and land
alteration, private and public utilities in County right of way, public contributed assets in
County right of way, and commercial property improvements.

Core Goals

1. Ensure on-time and within budget delivery of projects in order to address the needs ofthe community.
2. Customer Service: Continue to improve accuracy and response times for CIP-related
customer inquiries.
3. Safety: Reducing at-fault incidents of injury and/or property damage.

FY 22 and FY 23
Key Projects(Objectives)

Core Goal #1: Delivery of Projects and Goal #3: Safety
1. Completion of the construction phase of the Citrus Park Drive Extension.
2. Complete construction of two buildings that help complete mission critical operations
and three new fire stations to provide efficient and secure locations for public works,
public utilities, and public safety responses.
3. Commence and complete constructions of sports complex to provide venues for public
cultural and recreational opportunities.

Relevance toCounty LongTerm Goals

Departmental goals align with the following County strategy.
County Strategy 4: Great Places

 Establish basic level of services for all areas of the County and then develop long term
plan to provide that basic level.

Performance
Measures Repair sidewalks (linear feet) to increase pedestrian safety.
 Culverts (linear feet) to repair and/or replace.
 Roadways resurfaced (lane miles).

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Goals and Key
Projects Clearly
Stated andMeasurable

Goals and key projects (objectives) are clearly stated and measurable. The first two coregoals align with the County’s goals; however, the safety goal lacks clarity in alignment with
the County’s goals. Per PW’s management, this department goal aligns with the overall
County goal of Great Places in meeting the infrastructure needs of the community throughthe safe execution of capital projects which the MJ Team deemed reasonable. The budget
document provides the top three projects which represent objectives related to the coregoals.

Budget Source(s)to Achieve
Objectives

 Capital Budget, page 411, $1.1 57 billion.
 Department Operating Budget, Fiscal Year 2022, page 211, $11.5 million, 72 FTE.

FIGURE 4-3: The budget includes Capital Programs’ goals and performance measures.
Source: Fiscal Year 2022 Adopted Budget.

Figure 4-4 presents the Engineering and Operations’ departmental goals and key projects,
examples of performance measures, relevant County strategic goals, and the budget toaccomplish the departments’ goals. Based on our analysis, all three department’s core goals areclearly stated and measurable and align with the County’s strategic goals.

Program: Public Works; Engineering and Operations
Description

The Engineering & Operations department operates, maintains, manages, and engineers
County roadway systems and rights-of-way to provide functional roads, sidewalks, and trails
for safe travel, stormwater systems to convey runoff and reduce flooding, and mosquito
management to protect public health. The department is responsible for maintaining morethan 3,300 centerline miles of roadway, or 7,250 traffic-lane miles; 275 bridges; 1,300 miles ofpipes; 1,224 miles of ditches; 41,545 drainage structures; 36 pump stations; 17 watersheds(1,354 square miles); 143 miles of channels; 559 traffic signals; more than 145,000 traffic signs;
and over 15,000 mosquito production sites. The department operates from its main office indowntown Tampa and seven satellite facilities to provide timely response for transportationand stormwater maintenance.

Core Goals

1. Develop transportation and stormwater infrastructure projects for advancement to design

FY 22 and FY
23 Key Projects(Objectives)and construction, supporting the annual capital improvement program, and improving
safety and mobility, reducing vulnerability, and preserving transportation and stormwater
infrastructure assets.
2. Continually expand mosquito management program through the acquisition of additional
spray vehicles and boom sprayer attachments to allow a single operator to apply mosquito
larvicide in roadside ditches from the safety of the vehicle cab, increasing efficiencies andsafety.
3. Customer Service: Respond to 99% of all customer interactions within one business day
and continue to reduce the number of active and pending CRM cases. Continue to
implement department-wide communication outreach strategy to disseminate essential
information, as well as opportunities to improve community engagement.
Core Goal #1: Infrastructure Projects:
1. Continue to work toward achieving Vision Zero through safety enhancements such as green
pavement markings to increase visibility of bike lanes, low-cost safety retrofits, anddevelop CIP projects for primary walking routes to schools.
2. Remote flood-monitoring system and web viewer, innovative methods to forecast flood
stages, and support effective community education and outreach initiatives.
3. Connected vehicle-to-traffic-signal technology solution and providing a foundation to
support a future Countywide connected vehicle system.

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Relevance toCounty LongTerm Goals

Departmental goals align with the following County strategy.

Performance
Measures Conduct Stormwater Maintenance (linear feet), including ditch maintenance, pipe repair,

Goals and Key
Projects
Clearly StatedandMeasurable

Goals and key projects (objectives) are clearly stated and measurable. The budget document
provides the top three projects which represent objectives related to the core goals.

BudgetSource(s) to
Achieve
Objectives

Department Operating Budget, Fiscal Year 2022, page 245, $97.8 million, 449 FTE.

County Strategy 4: Great Places Develop strategy and action plan for transportation including pedestrian & bike.
 Adopt comprehensive redevelopment strategy that integrates existing redevelopment
efforts.
 Establish basic level of services for all areas of the County and then develop long term plan
to provide that basic level.
and replacement.
 Localized Roadway Pavement Repairs (lane miles).
 Mosquito Control Aerial Spray Missions (acres sprayed).
 Mosquito Public Awareness and Outreach Events.

FIGURE 4-4: The budget includes Engineering and Operations goals and performance measures.
Source: Fiscal Year 2022 Adopted Budget.

SUBTASK 4.2 – Assess the measures, if any, the County uses to evaluate program
performance and determine if they are sufficient to assess program progress toward meetingits stated goals and objectives.
OVERALL CONCLUSION
Overall, the County partially met expectations for Subtask 4.2. To reach this conclusion, the MJ
Team requested documentation to assess if performance measures are sufficient for the
program areas. Although some performance measures such as pavement and bridge condition
inspections are sufficient and clearly documented, other performance measures such as forbicycle and pedestrian infrastructure are referenced in documents without a clear statement ofrelevant performance measures. To accomplish this requirement, the MJ Team reviewed therelevant performance measures policy and compiled a list of performance measures located invarious PW documents. The MJ Team also interviewed the PW director and management team.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITANALYSIS
Performance Measures Policy
BOCC Policy 03.02.02.15 Performance Measurement states that it is the policy of the BOCC that
performance measures be developed for all organizations to provide information on workload,
efficiency, and effectiveness. Comparative information should be provided in budget
documents for a minimum of three or four years. Selection of measures shall reflect
quantifiable key objectives for each organization, industry standards, and the availability ofdata. It is the responsibility of the management and budget department, under the direction of
the County Administrator, to implement this policy.
Departments’ Performance Measures
The MJ Team reviewed performance metrics documented in various PW reports to determine if
sufficient performance metrics existed for the program areas. Based on our analysis, thedepartment lacks clear performance metrics related to bicycle or pedestrian infrastructure andrelated improvements that make walking and biking safer. The following chart in Figure 4-5
presents an overview of the performance metrics documentation provided by Public Works
staff.
SourcePerformance Measures

Type of Measure

Joint CIP Update:Fiscal Year 2022
Mid-Year Report

Cumulative total and % of projects on schedules and withinbudget and explanation for variances including
Transportation and Stormwater programs.

Cost/schedule

Top 20 June 2022
Report

List of specific projects, projected costs, actual costs, andvariance for top 20 programs.

Cost/schedule

CIP Schedule Monthly
Variance Report for Parks
and Recreation
Transportation Bond
Tracking

List of specific projects and reasons for schedule variancessuch as scope change.

Schedule

List of specific projects, budget, actual expenditures,
remaining to spend.

Cost

Transportation
Maintenance Division(TMD) Quarterly Report
and Year-End ReportMonthly and year to date outcomes compared to the annual
plan:
Maintenance Roadside mowing – Acres
 Ditch cleaning – Linear Feet
 Pothole Patching – Tons
Countywide Construction
 Road resurfacing – Square Yards
 RRX Repair – Each Bridge Repair (Guardrail) – Each
 Guardrail Repair (Not Bridge) – Linear Feet
 Pipe Repair – Linear Feet
 Pedestrian Bridge Repair – Linear Feet

Operations

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

SourcePerformance Measures

Type of Measure

Traffic Operations
 Communication/IT Equipment – Each Signalized Intersection Repair – Each Traffic Signal Cabinet PM – Each
 Crosswalk Install – Linear Feet
Top 10 Report

Top 10 workorder types, total hours, total cost.

Workorder
Analysis

Capital Programs andEngineering andOperations Budget vsActual Spreadsheet

Budget, actual costs, amount and percent remaining.

Cost/schedule

Technical Services
Division (TSD) Fiscal
Year 2023 Monthly
Program Manager’s KPI
ReportPerformance is evaluated through 8 overall division
measures and 194 program specific indicators for
Infrastructure, Stormwater and Transportation. Include KPIs,
target, and FY22 YTD.

KPIs with targeted
performancemeasures.
(See Figures 4-6
and 4-7)

Pavement Condition
Inspections

Compliance with specific metrics as required in the GASB34
materials (86-100 Good; 71-85 Satisfactory, etc.).

Pavement Metrics

Bridge Condition
Inspections

Compliance with specific metrics as required in the GASB34
materials (NBI 9-Excellent, 7-8-Good, etc.) Engineering andOperations’ Bridge policy states the following requirements
for the bridge inventory condition to meet or exceed theCondition Policy established by the Florida Department ofTransportation:
 50% in Good or Better Condition
 Not more than 10% in Poor or Failed Condition
 Not more than 2% in Failed Condition for a period not
to exceed 36 months.

Bridge Metrics

Transportation Workshop
Asset Preservation,
May 2021

Annual Targets:
KPIs with targeted
performance
Pavement Preservation Program Lane Miles
measures.
 At least 50% of roads in Good condition
 Less than 30% of roads in Poor condition
 No roads in Failed condition
Bridges At least 50% of deck area in Good Condition
 Less than 10% of deck area in Poor Condition
Signal & Traffic Control Device Replacement
 Replace signals at an average of 5 intersections per year Conduct annual repairs and maintenance
No Targets
 Sidewalk Miles Regional Trail Miles Pedestrian Crossings School Speed Zones
FIGURE 4-5: Various documents are maintained by PW to demonstrate performance metrics maintained.
Source: MJ Team Review of Public Works Program Documents.

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Figures 4-6 and 4-7 list the relevant key performance indicators documented in the Technical
Services Division (TSD) Monthly KPI Report. This report documents the department’s objectives
for developing projects and tracks the monthly performance towards meeting those targets.

FIGURE 4-6: Transportation Engineering KPIs and year-to-date status, part 1 of 2.
Source: Public Works Examples of TSD Monthly Program Manager’s KPI Report.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT

FIGURE 4-7: Transportation Engineering KPIs and year-to-date status, part 2 of 2.
Source: Public Works Examples of TSD Monthly Program Manager’s KPI Report.

Although, the County reports various performance measures, at least 12% of the general
purpose surtax, if passed, shall be expended on bicycle or pedestrian infrastructure andrelated improvements that make walking and biking safer. The performance measures
show no direct reference to making walking and biking safer which is a significant
component of proposed expenditures.
RECOMMENDATION 4.2 – Ensure that performance measures for bicycle and pedestrian
infrastructure are developed, clearly documented and monitored.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 4.3 – Evaluate internal controls, including policies and procedures, to determine
whether they provide reasonable assurance that program goals and objectives will be met.
OVERALL CONCLUSION
Overall, the County met expectations for subtask 4.3. To reach this conclusion, the MJ Team.
identified internal control practices such as project monitoring and performance management
and reviewed relevant policies and procedures.
This information is discussed in the analysis section below and represents evidence that thesubtask is met.
ANALYSIS
APWA Accreditation
Since 2013, the Hillsborough County’s Public Works (PW) has been accredited by the American
Public Works Association (APWA). This accreditation includes a comprehensive review andevaluation of operational policies and procedures. Successful accreditation demonstratesalignment with accepted industry practices, ensures definitive guidelines are provided to
employees to accomplish their assigned tasks, and provides institutional framework for
decision-making and action. Re-accreditation is required periodically, with the latest completed
in May 2022.
The Public Works maintains policies and procedures which apply to all employees of the three
distinct organizational units – Capital Programs Department, Engineering & Operations
Department, and Business Operations Division. Department Directors are tasked with theresearch, investigation, and analysis of best management practices in the area of public works
administration, with the goal of drafting and recommending proposed policies for
implementation to the Public Works Assistant County Administrator. The MJ Team reviewed
the County’s May 16, 2022, APWA Accreditation letter.
Project Monitoring
As indicated in Subtask 1.1 and 1.2, PW utilizes various tools to monitor and report projectprogress and determine future capital improvement projects. The MJ Team reviewed
documentation of these tools including the following deemed adequate for project
management and achieving program goals and objectives timely and within budget.
Quarterly Joint CIP Update Report (CIP Update) provides program administrators an
overview of the status and costs of projects in progress and projects completed including
project type, number of projects started for each project type, the construction value,
and number of projects completed plus projected procurements for the next six months.

Budget-to-Actual Report prepared by Business Operations staff which programadministrators can use to monitor and control their costs.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITPaver Pavement Management System (PAVER) for data analysis, reporting requirements,and other pavement management tasks. The system uses road condition data to produce
a pavement condition index (PCI) rating to predict current and future road maintenanceand repair needs and costs.

Performance Monitoring
As indicated in Subtask 4.2., the MJ Team reviewed documentation of various tools used by PW
to monitor and report performance monitoring and metrics such as the Transportation
Maintenance Division (TMD) Quarterly Report and Year-End Report and Technical Services
Division (TSD) Fiscal Year 2023 Monthly Program Manager’s KPI Report. Performance measures
represent a key component in assessing whether program goals and objectives have been met.
Policies and Procedures
Policies and procedures are an essential part of any organization. Together, policies andprocedures provide a roadmap for daily operations and standards to ensure compliance withlaws andregulations, give guidance for decision-making, and streamline internal processes. PW
maintains various policies and procedures provide reasonable assurance that program goals
and objectives will be met as presented in Figure 4-8.

Name/Purpose

Effective Date

Countywide Project Delivery
ManualTo summarize the policies andprocedures related to the deliveryof the CIP and to provide consistent
standards for project managers aswell as other staff that work on andsupport its execution

Revised04/2020

Key Specifications to Support Meeting
Program Goals and Objectives












Project Controls: Methods used for tracking
project metrics of scope, schedule, and budget.
Procurement: Presents procedures for the
procurement methods.
Contract Management: Explains how bothconstruction and professional services contracts
are managed.
Project Development, Final Design and Site
Permitting: Discusses processes to be used forthe stages of project development as well as
Design and Permitting.
Land Acquisition: Covers acquisition options
typical timelines for land acquisition which canbe critical to the project schedule.
Construction
Management:
Discusses
construction administration and covers thetasks required by the PM to ensure construction
contract compliance.
Project Closeout: Discusses project closeoutactivities including project documentation,
contract closeout, fiscal closeout, and lessons
learned.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITKey Specifications to Support Meeting
Program Goals and Objectives

Name/Purpose

Effective Date

PWA-0001.0 2022 Organization &Strategic Planning
All Public Works staff must ensurealignment with the Mission, Vision,and Values statements, and with
the Hillsborough County StrategicPlan.

03/05/2022

TMD-0001.0 2022 Standard
Operating Procedure & Guidelines
To establish general policy andguidelines for the best
management practices forinvestigation, work identification,prioritization, planning andscheduling of work and theperformance of operations,maintenance, and repair andreplacement activities.

03/05/2022

Pavement Inspection Procedure &Guideline
To provide concise, andconsistent expectations throughclear and written instructions to
Program Managers for asset
condition inspection andreporting to meet quality andquantity requirements incompliance with GASB34
Modified Approach.

09/08/2020

The asset management system should: Have an up-to-date inventory of eligible
infrastructure assets.
 Perform condition assessments of the eligible
infrastructure assets and summarize the results
using a measurement scale.
 Estimate each year the annual amount tomaintain.
 Conduct inspections using ASTM criteria.

Bridge Policy Manual
To provide concise, andconsistent expectations throughclear and written instructions to
Program Managers for asset
condition inspection andreporting to meet quality andquantity requirements incompliance with GASB34
Modified Approach.

02/2021










The Public Works shall adhere to the County
Administrator's Strategic Plan instructions,schedules, and requirements in the preparationand submission of the Department Strategic
Plan.
Direct reports to the Department Director shallbe responsible for the drafting of goals andmeasurable objectives that align with the plans
and initiatives of the County Administrator.
Documents procedures for Transportation
Maintenance (TMD) to maintain pavements androads and other infrastructures.

Use best management practices to maximize theservice life of the bridge inventory, while
minimizing overall project costs.
Conduct bridge inspections using FDOT criteria.
Maintain an annual inspection plan.

FIGURE 4-8: PW maintains various policies and procedures to enhance internal controls.
Source: County Policies and Procedures.

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 5
FINDING SUMMARY
THE ACCURACY OR ADEQUACY OF PUBLIC DOCUMENTS, REPORTS, AND
REQUESTS PREPARED BY THE COUNTY WHICH RELATE TO THE PROGRAM.

Overall, Hillsborough County meets Research Task 5.
The County prepares and makes available in the public domain financial and non-financial
information that is useful, adequate, and accurate. The County effectively uses internal andexternal data analytics and reports to assess the adequacy of the information it provides tothe public. The Communications & Digital Media Department has developed an effective
assessment tool that measures factors such as social media engagement, citizen
engagement, and productivity, which demonstrates quality service from County
government. The County provided evidence that it has a process in place to ensure financial
data available to the public is accurate as well as a process to ensure that incorrect,
erroneous, and incomplete information is corrected in a timely manner.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 5.1 – Assess whether the program has financial and non-financial information
systems that provide useful, timely, and accurate information to the public.
OVERALL CONCLUSION
Overall, Hillsborough County met expectations for subtask 5.1. To reach this conclusion, the MJ Teamassessed the County’s financial and non-financial information systems that provide useful, timely, andaccurate information to the public.

ANALYSIS
To address the requirements of this subtask, the MJ Team conducted a joint interview with individuals in
the following positions:

Chief Communications Administrator

Director of Communications & Digital Media

Director of Management and Budget

Director of Capital Programs

The County also provided the following information to inform our conclusion:

Link to the County website

Multiple examples of financial and non-financial information

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITMultiple news/press releases published in local newspapers and on social media (e.g.,
Facebook, Twitter, Instagram, Nextdoor, LinkedIn, YouTube and TikTok)

Multiple examples of print and collateral materials used to inform the public about
County program initiatives



Examples of informational road signs in relevant neighborhoods to make residents awareof public engagements and public meetings materials including infographics

Internal communications: Intranet (COIN) and daily COIN News email to all employeesLetters to neighborhood associations informing residents of proposed or upcomingchanges

Examples of advertisements in relevant local publications and at well-trafficked areas in
the community to inform residents of programs and initiatives

Figure 5-1 provides sample financial and non-financial documents available to the public on theCounty’s website, social media platforms, and in print and electronic media. The County’s
website is easy to navigate, and the sample documents provide evidence that the County has
sufficient financial and non-financial information systems that provide useful, timely, andaccurate information to the public.
Sample Hillsborough County Public Works Documents Available to the Public
Financial Information

Description/Purpose

Fiscal Year 2018 –Fiscal Year 2023
County Administrator’s
Recommended Capital
Improvement Program

The Recommended CIP is designed to meet County infrastructure needs
in a strategic and efficient manner over a six-year period. Community
sustainability, environmental considerations and changing conditions
require that the CIP be reviewed and updated annually.

Fiscal Year 2020 –Fiscal Year 2021
Adopted Budget

The County establishes and adheres to a budget calendar, which sets thetimeline for the budget process and completion of an adopted budget.
The County’s budget process identifies available resources and spending
trends for departments (including Public Works), programs, andnoteworthy service statistics. The document also includes PW Core goals
for the current budget year, prior budget year accomplishments,
department innovations, and key projects the department will
undertake. Additionally, personnel information such as the number offull-time equivalent employees is provided in the document.
Based on financial information presented in the overall budget
document, Fitch Ratings and Moody’s upgraded the County’s generalcredit rating to “AAA” as part of a recalibration of U.S. public financeratings, which further demonstrates the accuracy and strength of theCounty’s budget document. Hillsborough County has held an “AAA”
credit rating from Standard and Poor’s Ratings Services since 2006. All

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Final Report
HILLSBOROUGH COUNTY PERFORMANCE AUDITSample Hillsborough County Public Works Documents Available to the Public
three rating agencies reaffirmed their credit ratings recently for theCounty.
Citizen’s Budget in Brief –Fiscal Year 2020 –Fiscal Year 2021

This pamphlet provides a condensed illustrative snapshot of the Fiscal
Year 2020 – Fiscal Year 2021 Adopted Budget. The document highlights
anticipated strategic and provides an overview of County program
spending.

Online Checkbook
Register

The Online Checkbook Register” provides access to information related
to Hillsborough County’s spending. Spending can be viewed by:• Capital Improvements Projects• Vendor & Agencies Spending• Departments
Developed in partnership with the County's Comptroller & Clerk of the
Circuit Court, Hillsborough County government “the checkbook register”
provides a transparent mechanism for the public to view how funds are
disbursed and spent. The information contained in the Online Checkbook
Register is informational. Hillsborough County will make every effort toensure the information provided is accurate, though it may be unaudited.
No reliance should be placed upon it for making legal, business, or otherimportant decisions.

Comprehensive Annual
Financial Report (CAFR),
Fiscal Year Ended
September 30, 2021

The CAFR is prepared timely by the County Circuit Clerk and complies
with the accounting requirements promulgated by the Governmental
Accounting Standards Board (GASB).

Non-Financial Information

Description/Purpose

Capital Improvement
Projects Viewer

The Capital Improvement Projects Viewer allows public access to all
County Improvement Projects through a dynamic map viewer. Public
Works recently added a more advanced viewer which includes On Budget
and On Schedule metrics and has more sophisticated searchfunctionality.

Individual Project
Summary Pages

Individual project summary pages provide: (1) a description of specificprojects, (2) what to expect (e.g., temporary traffic lane closures,
alternate access to impacted businesses), (3) high-level cost and funding
information, (4) anticipated timeline for project completion, (5) contact
information for key project management staff, (6) pertinent additional
information such a project maps, and (7) public meeting notifications.

Project List Search

A search engine within the County’s website that allows an individual tolocate specific Capital Improvement Projects. Project overview, schedule,
current phase, and budget breakdown can be found using this searchfunction as well.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSample Hillsborough County Public Works Documents Available to the Public
Public Meeting Agenda
and Minutes

The County ensures that when public meetings are held an agenda
outlining the anticipated content of the meeting is made available toparticipants and minutes are written or recorded to inform attendees
and non-attendees about what was discussed and what happened during
the meetings.

Public Meeting Video
ReplayThe County provides public meeting video replay for most meetings,
which allows citizens who were unable to attend in person theopportunity to view the contents of the meeting at their convenience.

Social Media

Facebook, Twitter, Instagram, Nextdoor, LinkedIn, YouTube and TikTokplatforms

Infographics

The County uses a wealth of infographics to provide visual
representations of information, data or knowledge that is intended to bepresented quickly and clearly to mass population groups. The County
uses infographics to inform citizens through communications vehicles
such as social media and press releases about upcoming public meetings,
projects, and project status.

FIGURE 5-1: Documents obtained while reviewing Hillsborough County’s website.
Source: Compiled by the MJ Team.

SUBTASK 5.2 – Review available documents, including relevant internal and external reportsthat evaluate the accuracy or adequacy of public documents, reports, and requests preparedby the County related to the program.
OVERALL CONCLUSION
Overall, the County met expectations for subtask 5.2. To reach this conclusion, the MJ Teamassessed relevant internal and external reports that evaluate the accuracy or adequacy of
public documents.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the Director ofCommunications & Digital Media. We also examined internal report analytics related to publicly
available information as shown below in Figure 5-2.
Hillsborough County website analytics

Social media insights for Public Works

Project related public input comments

The Director of Communications & Digital Media oversees the County’s Communications &Digital Media (CDM) Department, which has primary responsibility for crafting key messaging
on behalf of the County. This includes responding to media needs, promoting vital programs

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utilizing both traditional and modern methods of communication such as the website, social
media, news releases, special events, and television station HTV. Leadership from budget andcapital projects ensures financial and program-related information is accessible, accurate, andtimely.
CDM consists of two divisions with various sections s which include: Public Relations &Marketing, Media Relations, Public Relations Production, Internal Organizational
Communications, Visual Design & Brand Identity, Hillsborough TV (HTV), and Analytics &Insights (research, creative and graphics development). The Analytics & Insights section wasadded to the CDM department in early 2019. This section seeks to understand the user
experience with Hillsborough County government. The section instituted the use of several
tools that provide insights into how residents engage on the County’s website. CDM developed
an internal evaluation tool, or service index, which rates the services the department provides.
CDM’s service levels are measured using multiple factors such as social media engagement,
citizen engagement, and productivity (from the vantage point of the citizenry) which
demonstrates communication quality of service provided by the County. Figure 5-3 shows
CDM’s internal evaluation results for May 2021.

FIGURE 5-3: CDM’s service index for May 2021
Source: Hillsborough County Communications & Digital Media webpage.

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Based on interviews conducted, CDM staff members understand the importance of analytics
and evaluation to measure the success of a program to inform improvements to future efforts.
CDM uses Google Analytics and HotJar reports to obtain feedback on its website and social
media. Google Analytics allows users to track and compare metrics over a period of time andHotjar allows users to track and analyze measures real-time using features such as heatmaps
and user feedback services. CDM uses surveys, focus groups, and a tool called Userlytics to gain
useful feedback decision-making. Userlytics is a test platform that allows users to pre-test
survey and focus group questions before going to a live environment.
For example, CDM used Google Analytics to measure the effectiveness of the Public Works
webpage on the County’s website. The webpage had 27,879 page views from January 2021 –July 2022. The average time spent on the page in 2021 was 42 seconds so far in 2022.
The Hillsborough County Engagement and Educational Hub is an excellent example of effective
two-way communication. This tool can be accessed by residents and visitors 24 hours a day,seven days a week. Visitors can get information on survey results as well as learn about key
topics and projects taking place throughout Hillsborough County.
Figures 5-4A and 5-4B show the County’s Engagement and Education Hub, which promotes
public information transparency by allowing users to obtain responses to questions on-line
through the ‘Get updates’ feature. Since inception, this communications tool has had over
70,000 participants, provided 2,195 responses to questions, and over 40,000 subscribers.

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FIGURE 5-4A: Hillsborough County Engagement & Education Hub website.
Source. Communications & Digital Media Department.

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FIGURE 5-4B: Hillsborough County Engagement & Education Hub website.
Source. Communications & Digital Media Department.

The CDM Department uses specialized software called “SiteImprove” to assist the department
with the identification of inaccurate and incorrect information. SiteImprove software detects
broken links, spelling errors and formatting inconsistencies.
Web content coordinators work closely with communications and branding staff to ensure
content is consistent and accurate. CDM also ensures that “plain language” free of overly
technical jargon is carried throughout the architecture and content of the website. Consistent
vocabulary helps to drive the tone and voice of the website as well as with the othercommunication channels to ensure that verbiage is professional and not too casual forgovernmental use. Web content is considered to be the master content, which all othercommunication channels pull to ensure consistency in branding, messaging, and accuracy.
Other communications channels include:Mobile DevicesSocial Media (Facebook, Twitter, Instagram, etc.)

Third Party (e.g., Amazon Echo, Siri SDK, Google Now)

Live or Video Chat (for example, pop-up chat window, Skype/ Facetime)Voice (Phone, for example IVR scheduling)

Other (for example integration of sensor technology, self-service terminals)

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 5.3 – Determine whether the public has access to program performance and cost
information that is readily available and easy to locate.
OVERALL CONCLUSION
Overall, Hillsborough County met expectations for subtask 5.3. To reach this conclusion, the MJ
Team assessed relevant department information to determine the public’s ability to accessprogram performance and cost information.
ANALYSIS
To address the requirements of this subtask, the MJ Team conducted a joint interview with thefollowing positions:

Director of Management and Budget

Director of Capital Programs

Budget Manager Capital TeamThe MJ Team also reviewed performance and cost data from the following sources on theCounty’s website:

Fiscal Year 2018 – Fiscal Year 2023 County Administrator’s Recommended Capital
Improvement Program

The MJ Team identified multiple examples of projects on the County’s website that address thissubtask. Figure 5-5a shows Public Works Capital projects that are in the Request for Proposal(RFP) stage, with awards pending. A description of the project and estimate amount (cost) is
displayed. Figure 5-5b provides more detailed descriptions of the projects along with project
objectives and estimated schedule for completion.

CCNA PROCUREMENT TRACKING SCHEDULE AS OF 7/11/2022

CAPITAL PROGRAM – CCNA & RFO CONTRACTS
Current
StatusStand-Alone(SA)/Work
Orders (WO)

Project

Procurement
ID

Bid
Opening Advertise

Est.
AmountTerm/# ofYears Vendors

Amt. per
VendorAward
PendingSA

Brandon Library
Replacement22436

11/01/21$630,000

1

1$630,000Award
PendingSA

Lithia Pinecrest
Rd Widening(Fishhawk Blvd toLumsden Ave)

22687,2

01/24/22 $5,000,000

1

1$5,000,000

22946

02/04/22 $1,500,000

23$500,000Award
Pending

WO

Misc. Civil Eng.
SBE (Set-Aside)(Replacement for

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CAPITAL PROGRAM – CCNA & RFO CONTRACTS
Stand-Alone(SA)/Work
Orders (WO)

Current
Status

Project

Procurement
ID

Bid
Opening Advertise

Est.
AmountTerm/# ofYears Vendors

Amt. per
Vendor

Bid 16467)(Architecture)Award
Pending

WO

Misc.
Professional CEI(Transportation)

23247

03/09/22 $9,000,000

2

3$3,000,000

Submitted to
Procurement

SA

Progress Village
Regional Drainage
Improvement –Progressive
Design Build

23310

06/27/22 $1,000,000

2

1$1,000,000

Submitted to
Procurement

WO

Professional Misc.
Architecture/Engineering
Services

23513

06/28/22 $12,000,00
0

2

6$2,000,000

Dept.
Drafting &ReviewSA

African American
Arts & Culture
Center

N/A

08/20/22 $1,250,000

1

1$1,250,000

LEGEND
POST-AWARD
AWARD PENDING
ADVERTISE & OPENINGSUBMITTED TO PROCUREMENT
DEPT DRAFTING & REVIEWFIGURE 5-5a: Public Works Capital projects that are in the Request for Proposal (RFP) stage.
Source: Hillsborough County Public Works webpage.

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FIGURE 5-5b: Public Works Capital projects that are in the Request for Proposal (RFP) stage.
Source: Hillsborough County Public Works webpage.

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Figure 5-6 provides a snapshot of the County’s Community Investment Tax Accountability Reportfrom inception through Fiscal Year 2020. The report shows that the County has spent $1.08 billion
on these PW projects and lists the number and types of projects on which funds were spent.

FIGURE 5-6: Snapshot of the County’s Community Investment Tax Accountability Report from inception throughFiscal Year 2020.
Source: Hillsborough County Public Works webpage.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 5.4 – Review processes the program has in place to ensure the accuracy andcompleteness of any program performance and cost information provided to the public.
OVERALL CONCLUSION
Overall, Hillsborough County met expectations for subtask 5.4. To reach this conclusion, the MJ
Team assessed relevant department data and conducted interviews with staff to ensure theCounty has processes in place to ensure accuracy and completeness of any program
performance and cost information provided to the public. The County uses its capital andoperating budgeting processes, which are all documented for the public on the website, as thefoundation for ensuring program performance and cost information provided to the public is
accurate and compete.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the following positions:

Director of Management and Budget

Director of Capital Programs

Budget Manager Capital TeamWe also examined the following documents:County Administrator’s Recommended Capital Improvement Program
Fiscal Year 2021 and 2022 Adopted Budget

The budget processes are publicly available on the County’s website and are outlined below.

 Capital Project Budgets
A Capital Project Initiation request form is used to document new project or change
requests. This form is designed to guide the preparer in providing necessary information
including the reason for the project, proposed location and scope, funding requirementsby fiscal year, proposed project schedule and completion dates, anticipated operating
cost impacts and management approvals. This form helps ensure the accuracy andcompleteness of project cost information presented in the Capital Improvement Program
document each budget cycle.
Operating Budgets
Budget Instructions are sent out every year by the Director of Management and Budget
to the departments to guide their budget requests and are referenced in the Budget
Process and Amendment Process. Guidance is provided on how to submit operating
budget and capital improvement project requests, which includes costs, and the proper
forms to use (Decision Units, Capital Project Initiation Request, and others). This process
helps to ensure the accuracy, completeness, and consistency of County budget
information each budget cycle that is presented in budget documents.

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HILLSBOROUGH COUNTY PERFORMANCE AUDIT Budget Planning ProcessThis process ensures the County complies with specific legal requirements for budget
adoption and levying property taxes. It also describes the four phases and associatedtiming of the County's budget process - planning, preparation, review, and adoption. This
process helps ensure the accuracy, completeness, and consistency of County budget andrelated cost and program information each budget cycle.

 CIP Budget ProcessThis is an extract from the County's Capital Improvement Program (CIP) document andreviews the process of updating the CIP and Capital Budget each budget cycle. It provides
a high-level timeline, forms used, internal processes and legal compliance highlights thatare part of the CIP update process. This process helps ensure the accuracy andcompleteness of County Capital Improvement Program project budget document
information each budget cycle.

 Decision-Unit Instructions
These instructions provide departments with detailed instructions on how to complete
decision unit forms during the annual budget process. This form is discussed in the budget
instructions and is used by County leadership to assess budget requests from thedepartments. This form helps ensure the accuracy and completeness of County budget
information each budget cycle.

 Budget Amendments
After formal adoption of the budget each September by the Board of County
Commissioners (BOCC) for the fiscal year beginning October 1st of each year, changes
may only be made to the adopted budget with a budget amendment. An amendment is
a BOCC agenda item processed to increase or to decrease an existing budget. This processensures the accuracy and integrity of the budget information.
The County’s Capital Project Budget document, Operating Budgets, Budget Planning Process,Decision Unit Instructions, and Budget Amendment process all work together to ensure theaccuracy and completeness of program performance and cost information and these
documents and processes are publicly available on the website.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 5.5 – Determine whether the program has procedures in place that ensure thatreasonable and timely actions are taken to correct any erroneous and/or incomplete
program information included in public documents, reports, and other materials preparedby the County and that these procedures provide for adequate public notice of suchcorrections.
OVERALL CONCLUSION
Overall, the County met expectations for Subtask 5.5. To reach this conclusion, the MJ Teamassessed procedures in place to ensure that reasonable and timely actions are taken to correct
any erroneous and/ or incomplete program information included in public documents and/ orelectronic media. The procedures provide clear instructions for making corrections to various
types of information in the public space and require that immediate action be taken as soon as
the corrections are noticed.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the Director ofCommunications & Digital Media . We assessed CDM’s procedure for correcting erroneous
information and examples of corrected information provided by the County.
During interviews, the MJ Team was told that CDM continually monitors and reviews public
information content that is published and/or promoted on its various platforms such as thewebsite, press releases, and news stories, as well as information that third parties, such as mass
media outlets are publishing. CDM indicated that on occasion, there may be a need to correcterroneous information that has been published by a media outlet or on a County channel. CDM
has established a formal procedure so that all members of the staff responsible for content
have clear instructions to take corrective actions when the need arises.
Figure 5-7 provides CDM’s standard operating procedure (SOP) for correcting public
information and presents examples of information that was corrected using the process notedin the County’s SOP. The SOP provides clear guidance for making corrections to broadcasts,
publications, webpages, press releases, and newsroom stories and requires that the CDM
contact the author, publisher, or broadcaster of the incorrect fact/misinformation and seek animmediate correction to be published/broadcast in the format as the original false item.
Figure 5-8 provides an example where CDM corrected a public information notice promptly
using its SOP.

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FIGURE 5-7: CDM’s Standard Operating Procedure (SOP) for correcting public information.
Source. Communications & Digital Media Department.

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FIGURE 5-8: Example of a document that was provided to the public with incorrect information.
Source: Hillsborough County’s Communications & Digital Media Department.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITRESEARCH TASK 6
FINDING SUMMARYCOMPLIANCE OF THE PROGRAM WITH APPROPRIATE POLICIES,
RULES, AND LAWS.
Overall, Hillsborough County partially meets Research Task 6.

The County employs full time legal staff responsible for providing transactional andgovernance legal services to the County. In this capacity, the attorneys review all contracts
requiring board approval for compliance with legal requirements and board policy. The
County obtains outside legal assistance when necessary. The County stays abreast of federal
and state legislative changes through membership in professional associations and throughcontracts with three lobbying firms that represent the County’s interests at the state andfederal level. Policies and procedures are a key internal control, yet financial policies lack
updates for over 10 years. The County should review and update financial policies, especiallythose over 10 years old. The annual external auditor’s reports reviewed demonstrated thatthe more significant audit findings were corrected and not repetitive indicating overall timely
actions to address any noncompliance with applicable federal, state, and local laws, rules,
and regulations; contracts; grant agreements; and local policies and procedures identified byinternal or external evaluations, audits, or other means. However, the County lacked
implemented corrective action plans for the external auditor’s reported repeat management
letter comments and one current year audit finding. MJ recommends that the Office of Clerk
continue to monitor and implement action plans to correct repeat management letter
comments and resolve the current year audit finding. Finally, program administrators took
reasonable and timely actions to determine whether planned uses of the surtax were incompliance with applicable state laws, rules, and regulations particularly as such laws relate
to Section 212.055(1), Florida Statues- Charter County and Regional Transportation System
Surtax and to the County’s planned surtax uses outlined in Ordinance Number 22-9, adopted
by the BOCC on April 20, 2022.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 6.1 – Determine whether the program has a process to assess its compliance withapplicable (i.e., relating to the program's operation) federal, state, and local laws, rules, andregulations; contracts; grant agreements; and local policies.
OVERALL CONCLUSIONTeam MJ did not divide Subtask 6.1 into separate program areas because the County’s legal
infrastructure applies to all County departments.

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To address the requirements of this subtask, the MJ Team interviewed the senior assistantcounty attorney, the chief administrator for Government Relations & Strategic Services, and the
PW director. We also examined the five components of the County’s legal compliance process.
This information demonstrates that the program has a process to assess its compliance withapplicable (i.e., relating to the program's operation) federal, state, and local laws, rules, andregulations; contracts; grant agreements; and local policies. Therefore, this subtask is met.
ANALYSIS
As illustrated in Figure 6-1, the County’s legal compliance process consists of five spheres ofoperation, which are discussed after the graphic.

FIGURE 6-1: The County’s Legal Compliance process is comprised of five spheres of activity.
Source: Hillsborough County, Staff Interviews.

County Attorney’s Office
The Board of County Commissioners (BOCC) appointed the county attorney who reports to andprovides legal advice to the board, county administrator, and all County departments. The
county attorney also prosecutes and defends legal actions by and against the County as
approved or directed by the BOCC. The officers created under Section I(d) of Article VIII of the

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Florida Constitution (the clerk of the Circuit Court, property appraiser, tax collector, sheriff, andsupervisor of elections) may also use the legal services of the county attorney.
The county attorney also advises the Hillsborough Transportation Planning Organization (TPO),
which is a transportation policy-making board mandated by federal and state law. The TPO
ensures that federal and state expenditures on existing and future transportation projects andprograms are based on a continuing, cooperative, and comprehensive transportation planning
process.
Duties of the County Attorney’s Office (CAO) include, but are not limited to the following:

Reviewing all board agenda items and contracts for legal sufficiency.

Advising departments on developing contractual agreements.

Working with the BOCC and departments on the development of board policies.

Helping ensure that management/department directives are not in conflict with board
policy.

Complying with the County’s Administrative Directive #AD-04, effective September 2021,
which establishes uniform policies and procedures for the preparation and submission of
agenda items and follow-up for regularly scheduled meetings of the BOCC.



Advising the BOCC on state and federal changes in laws that impact the County.

Working with outside counsel when necessary.

These and other duties are executed through the CAO, which, in addition to the county
attorney, consists of 33 attorneys and 24 support staff across six division as summarized in
Figure 6-2.

Division

Number of
Attorneys

Number of
Support Staff

Total Staff

County Attorney

1

1

2

Business Transactions

8

4

12

Litigation

7

7

14

Public Utilities & Utility Regulation

2

4

6

Ethics & Elections

1

1

2

Real Estate & Development

6

3

9

Employment & Regulatory

8

4

12

Total

33

24

57

FIGURE 6-2: The County Attorney’s Office consists of 33 attorneys and 24 support staff.
Source: County Attorney’s Office Organization Chart.

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To confirm CAO involvement with County departments, the MJ Team examined email evidenceof CAO assisting PW staff with a public-private road construction agreement. We also examined
continuing education courses available CAO attorneys noting their relevance to CAO duties.
Topics included Sunshine Law, Public Records and Ethics; City, County, and Local Government
Law Review Course; Annual Public Employment Labor Relations Forum; Public Finance 2021,
Legislative Update 2021, and Land Use 2022.
Government Relations & Strategic Services (GRSS)The GRSS consists of two positions: (1) GRSS division director; (2) Government Relations
Division Coordinator, GRSS. The GRSS provides information to the BOCC about changes inlegislation that impacts the County. GRSS staff attend the legislative session each year.
During the legislative session each year, GRSS staff prepare daily and weekly recaps of theLegislature’s activities and the status of House of Representatives and Senate bill status. GRSS
also prepares a comprehensive report at the end of the legislative session.
Team MJ reviewed the Florida Legislative Session Summary Report-2022, that GRSS staff
prepared at the end of the 2022 legislative session noting that it provided a comprehensive
review of laws passed by the Florida Legislature that could have an operational or fiscal impact
on the County. The report informs and enables the BOCC, departments, and the public tounderstanding and execute relevant new laws.
This report details outcomes regarding the 2022 Hillsborough County State Legislative Program
along with a listing of key legislation by department. When a particular bill affects multiple
County departments or constitutional officers, the bill is cited in each appropriate section toensure attention by appropriate parties. Many parts of this report are hyperlinked to provide
quick and easy access to additional information.
Outside Counsel
The County contracts with outside firms that have a unique legal capability not resident within
CAO. The BOCC, county administrator, and CAO decide when outside counsel in necessary.
When outside counsel is engaged, the CAO could be involved depending on the nature of theengagement. Areas of law in which outside counsel is currently engaged, including thefollowing:administrative law, ethics, federal litigation, intellectual property and real estateeminent domain matterssolid waste collection, disposal and recycling services and other solid waste-related issues

bond counsel services

disclosure counsel services

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Lobbyist
The County contracts with three lobbying firms to represent its interest at the state and federal
level. Two firms provide lobbying services at the state level and one at the federal level. The
state lobbyist performs various services including monitoring and informing the County on stateand federal legislation that impacts the County and informs the County of opportunities thatare in its best interests. The federal lobbyists represent the interests of the County before thelegislative and executive branches of the United States government.
To complement the effort of the lobbyist, the County has a subscription to and use a service
called Lobbytools. This service helps the County identify bills, keywords, and statutes of interest
to better monitor the legislative process. It also provides real-time, hourly or daily alerts oflegislative developments.
Professional Associations
The County and CAO stay abreast of federal and state legislative changes through membershipin professional associations. The Florida Association of Counties (FAC) helps Florida counties
serve and represent their communities through advocacy, collaboration, and education. The
Florida Association of County Attorneys (FACA) provides a forum for research, advice, anddiscussion in the development of local government law, including technical assistance. The
stated mission of the Florida Association of County Engineers (FACERS) is to: “foster andmaintain a high professional spirit among the members, provide instructive and entertaining
programs of interest to the members, and to provide an organization through which the public
works programs may be coordinated among Florida’s Counties, Municipalities and othergovernmental agencies.”

SUBTASK 6.2 – Review program internal controls to determine whether they are reasonable
to ensure compliance with applicable federal, state, and local laws, rules, and regulations;contracts; grant agreements; and local policies and procedures.
OVERALL CONCLUSION
Overall, this subtask is partially met. Although the County maintains an infrastructure with
program internal controls including independent annual external audits, internal audit risk
assessments and periodic monitoring and status reports to the BOCC, capital improvement
project planning and budgeting processes, and purchasing and contract management practices,
the County lacks a clear process to document the review of current local policies andprocedures. Policies and procedures represent a key internal control to document authorizedmanagement directives, support in compliance with laws and regulations, give guidance fordecision-making, and streamline internal processes. Financial policies maintained on theCounty’s website are over 10 years old without evidence of a periodic review.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the County Internal
auditor who reports to the Board of County Commissioners (BOCC) and the Clerk of Court
auditor who reports to the Clerk of the Circuit Court. The County’s program internal controls
include the following categories.
Annual External Audit
An annual Comprehensive Annual Financial Report is completed by the Clerk of the Circuit
Court and County Comptroller consisting of an independent CPA’s firm audit results andevaluation of internal controls. During an audit of a governmental entity, independent auditors
perform procedures and issue reports that address the entity's internal controls.
The auditors identified two areas to improve internal controls during the audits conducted forfiscal years 2020 and 2021. The audit reports indicate that corrective action was taken to
resolve significant or material audit findings with no occurrences of repeat audit findings. The
County's independent auditors issued the reports in connection with their audit, which are
shown in Figure 6-3. The auditors’ Fiscal Year 2021 report included two repeat management
letter observations related to opportunities for improvement in financial reporting.
INDEPENDENT AUDITOR REPORTS FINDINGS
Audited Financial Statements andSupplemental Information
Dated June 24,2022
Year Ended 9/30/2021

Audited Financial Statements andSupplemental Information
Dated April 22, 2021
Year Ended 9/30/2020

Audited Financial Statements andSupplemental Information
Dated June 11, 2020
Year Ended 9/30/2019

Independent
Auditors’ Reporton Internal
Control Over
Financial
Reporting and on
Compliance andOther Matters
Based on an Audit
of Financial
Statements
Performed in
Accordance with
Government
Auditing
Standards

 No exception regarding
compliance with laws,
regulations, contracts, andgrant agreements.

 No exception regarding
compliance with laws,
regulations, contracts, andgrant agreements.

 No exception regarding
compliance with laws,
regulations, contracts, andgrant agreements.

Report on
Compliance for
Each Major
Federal Programand State Project
and On Internal
Control Over
Compliance
Required by the
Uniform Guidanceand In Accordance No exceptions regarding
compliance requirementswith major federal
programs and state
projects.

 No exceptions regarding
compliance requirementswith major federal
programs and state
projects.

Report Description

No exceptions regarding
compliance requirementswith major federal programs
and state projects.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITINDEPENDENT AUDITOR REPORTS FINDINGS

Report Description

Audited Financial Statements andSupplemental Information
Dated June 24,2022
Year Ended 9/30/2021

Audited Financial Statements andSupplemental Information
Dated April 22, 2021
Year Ended 9/30/2020

Audited Financial Statements andSupplemental Information
Dated June 11, 2020
Year Ended 9/30/2019

with Chapter
10.550, Rules of
the Auditor
GeneralSchedule ofFindings andResponses-Federal
Awards and State
Financial
Assistance No findings regarding
internal control overfinancial reporting.
 2021-001 Federal Awards
and State Assistance.
County expenditures
included in schedule offederal and state awards
and overstatement ofexpenditures.

 2020-001 Financial
Accounting: various
accounting corrections due
to insufficient financial
statement preparation andreview procedures.
 2020-002 Depreciation of
Capital Assets: overstatedexpense due to lack ofreview before water fundproject assets are placed
into service and review ofdepreciation expense.
 2020-003 Accounts Payable
Accruals incorrect due toaccruing only liabilities atyear that exceed $50,000.








2019-001 Modified
Approach for Accounting
including transportationand stormwater
infrastructure assets.
2019-002 Financial
accounting and reporting.
2019-003 Significant
assumptions related to post
employment benefits
accounting by the Sheriff’s
office.
2019-004 Complianceregarding eligibility forchildren and families inneed of services.

Repeat Audit
Findings?

 No

 No



No

Management
Letter Comments

 ML 2020-01 Purchase
Method of Accounting forInventory and Prepaid
Items. Repeat Finding.
 ML 2020-2 Renewal andReplacement Reserves: lackof system to clearly trackand document the
maximum amount ofreserves for Water System
Enterprise Fund.

 ML 2020-01 Purchase
Method of Accounting forInventory and Prepaid Items(ML2019-01).
 ML 2020-2 Renewal andReplacement Reserves: lackof system to clearly trackand document the
maximum amount ofreserves for Water System
Enterprise Fund. (ML201903).



ML 2019-01 Purchase
Method of Accounting forInventory and Prepaid Items
including Sheriff’s officedifferent accounting
treatments.
ML 2019-02 Capital Assets
Accounting and Reporting
including delays incommunicating projectcompletion and transferringcosts out of construction inprogress to fixed assets.
ML 2019-03 Renewal andReplacement Reserves:
Water System EnterpriseFund.
ML 2019-04 Workers’
Compensation –Presumptive Illness Claims.







Repeat ML
Comments?

 Yes

 Yes



Yes

FIGURE 6-3: Summary of External Audit Reports Findings – Fiscal Year 2021 and Fiscal Year 2020.
Source: Hillsborough County, Audited Annual Financial Statements.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITBoard of County Commissioners County Internal Auditor’s Office
The County Internal Auditor's Office operates in conformance with the International Standards
for the Professional Practice of Internal Auditing. These Standards require that the County
Internal Auditor's Office plan and perform engagements to obtain sufficient, appropriate
evidence to provide a reasonable basis for the audit comments and conclusions based on theaudit objectives. These standards also require the County internal auditor to communicate
results to parties who can ensure that the results are given due consideration and establish andmaintain a system to monitor the disposition of results communicated to management.
During the annual Risk Assessment & Planning process, the Internal Audit Team reviews theFederal and State Single Audit Report issued by the County’s external financial auditor todetermine whether there are any reoccurring material audit issues reported. According to theinternal auditor, if reoccurring material audit issues are identified, the Internal Audit Team
monitors management’s corrective action and reports quarterly to the County Internal Audit
Committee the status of management’s corrective action.
The MJ Team reviewed the following documentation of processes performed by the County
internal auditor:

Audit Plans for Calendar Years 2020, 2021, and 2022



Example Business Overview and Internal Controls Checklist

Final Communication Tracking SpreadsheetCounty Internal Auditor’s policy on Risk Assessment, Annual Planning and Scheduling last
revised on February 7, 2022



Risk Analysis and Planning Results Calendar Year 2021



Risk Analysis Calendar Year 2022 which includes reference to the external auditor’s repeat
financial audit findings for Fiscal Year 2020

The Clerk’s County Audit Department is established to operate in compliance with thestandards set forth in the International Professional Practices Framework. These standards
require that the Clerk’s County Audit Department communicate the results of audit
engagements to the appropriate parties and monitor the action taken by management inresponse to any audit recommendation.
As part of each annual audit plan, the County Audit Department conducts continuous
monitoring for various expenditures throughout the County. The objective of this continuous
monitoring process is to periodically evaluate whether key financial controls are in place andfunctioning adequately. As part of this effort, the audit team completed a review of
expenditures pertaining to a construction contract and reported the results on November 5,
2020. The contract related to the design-build of the Northwest Regional Water Reclamation
Facility Expansion. The total amount of this contract, after modifications and change orders,
was $193,175,506. The review included expenditures paid since the Notice-to-Proceed date ofApril 1, 2016.
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HILLSBOROUGH COUNTY PERFORMANCE AUDITThe Audit Team identified 54 payments to the contractor and selected a sample of 10 for
testing. The value of the expenditures tested was $36,519,998. This testing included:

Identifying specific requirements and/or deliverables stipulated in the agreement

Reviewing supporting documentation from for each expenditure in the selected sample
of expenditures

Testing supporting documentation for the following attributes:
o The Application for Payment was submitted with a payment requesto Application for Payment was completed accurately and signed by the contractor
o Application for Payment was reviewed and approved by designated County employee,
as evidenced by signature on the Application for Payment. Proper retainage amount
was withheldo Subcontractor’s Statement of Satisfaction was submitted with paymento Requested payment amount was calculated correctly.
o Requested payment amount was supported by the Schedule of Values attached to theApplication for Payment.

The continuous monitoring result indicated no exceptions and identified an isolated
carryforward error in the Schedule of Values which did not result in a payment discrepancy.
While such expenditure reviews are an effective component of the internal control
environment, only one contract was reviewed.
The MJ Team reviewed the following documentation of processes performed by the Clerk’sCounty Audit Department:

Audit Plans for Fiscal Years 2020, 2021, and 2022



Risk Analysis and Planning Results Fiscal Year 2021

The MJ Team reviewed the Clerk’s County Audit Department’s BOCC Status Report dated June24, 2021, which includes the status of management corrective action plans as of the end of thequarter.
Capital Improvement Project Planning and Budgeting The Office of Management and Budget is responsible for developing and maintaining abalanced budget, monitoring, and analyzing ongoing fiscal and operational activity, andproducing management documents and reports to assist leadership and the County
Commissioners in financial planning and maximizing the allocation of resources. The
department generates budget versus actual expenditures reports to monitor the budget
status.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITContract Management
 The Purchasing and Contracts Program serves as the central purchasing office for theCounty and controls the County’s spend on goods, services, and construction while
ensuring compliance with all applicable local, state, and federal purchasing laws inaddition to County policies and procedures. The Program facilitates the procurement
process (formal and informal) as well as the oversight of contracts (negotiation, issuance,
administration) across the County.
Every contractual document goes through legal review before being executed by thevendor, then it goes Legal for final review and ‘approval as to form’ before being
approved/signed by the County Manager or the Commission Chair.

Policies and Procedures
 Key policies related to the potential sales surtax funds include the County’s administrativecodes and departmental policies and procedures manuals.


The County’s Administrative Procedures include the Financial Policies dated over 10 years
ago. As shown in Figure 6-4, documented policies and procedures include the following
policies dated from 1980 without evidence of a periodic review and update.

Policy & Procedure

Last Review Date/
Effective Date

Financial Policies and Procedures
Grants Administration

02/19/2014

Bids for Capital Improvement Projects 10% or More In Excess of EstimatedConstruction Costs

07/02/1980

Capital Budget and Capital Improvement Program

01/17/2001

Performance Measurement

07/08/1998

Departmental Policy and Procedures
Procurement Policy
Procurement Procedures Manual

10/01/2017
10/01/2017 with revisions intrack changes 11/24/2021

FIGURE: 6-4: Key Policies and Procedures.
Source: County Website.
https://mediaweb.hillsboroughcounty.org/Docs/BOCC/Policies/Financial%20and%20Fiscal/03020100.PDF.

Internal Control Questionnaire
In addition to reviewing policies and procedures, the MJ Team submitted an Internal Control
Questionnaire to key management positions. Figure 6-5 presents a summary of the responses
which indicate various internal control strengths. The responses indicated no concerns
regarding the internal control environment.

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Area

Segregation of Duties/
Business Process –Strengths

Additional Comments

Purchasing

Audits have confirmed existence ofcompetitive bidding process.

None

Payroll

Prior audits have confirmed the existenceof workflows within the Oracle Financial
System.

None

Accounts Payable

Expenditure testing is a component of
most audits performed. No material
concerns.

None

Cash Management

No comments.

None

Contracts
Management

Prior audits have indicated that contracts
are reviewed and approved by theappropriate levels of management.

None

Cash Management

No comments.

None

Overall Internal
Controls

N/A

1. Vendor selection using competitive
bidding process and BOCC approval
for purchases greater than $250,000.
2. Oracle segregation of duties between
vendor creation, requisition creation,requisition approval, and invoice
payment.
3. Contract and grant management
activities, i.e., retaining support
documentation, reconciliations,supervisor reviews, etc. performed byindividual departments.
4. Segregation of duties between Board
and Clerk functions, for example,
changes to employee compensationand issuing pay checks, approving
Board invoices and approving
payments.

Aware of any areasof noncompliance?

N/A

No

FIGURE 6-5: Summary of Internal Control Questionnaire Responses.
Source: Responses to MJ Team Internal Control Questionnaire.

As a best practice, some counties schedule an annual meeting on the Board’s calendar toreview and approve revisions to policies and procedures. The first page of the policy includes
the last review date and the new effective date.
RECOMMENDATION 6.2 – County - Review and update financial policies especially thoseover 10 years old.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 6.3 – Determine whether program administrators have taken reasonable andtimely actions to address any noncompliance with applicable federal, state, and local laws,
rules, and regulations; contracts; grant agreements; and local policies and procedures
identified by internal or external evaluations, audits, or other means.
OVERALL CONCLUSION
Overall, this subtask is partially met. To reach this conclusion the MJ Team reviewed theexternal audit reports for Fiscal Year 2021 and Fiscal Year 2020 noting two repeat management
letter comments and also the lack of documentation of implementation of the current year
corrective action plan.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the County Internal
Auditor who reports to the BOCC and the auditor who reports to the Clerk of the Circuit Court .
We also reviewed the audit reports for FY2021 and FY2020 noting two repeat findings.
Figure 6-6 presents the implementation status of the external auditor’s recommendations
including two repeat management letter observations in the following areas:

ML 2020-01 Purchase Method of Accounting for Inventory and Prepaid Items



ML 2020-2 Renewal and Replacement Reserves

External Audit
Report Finding/Management
Letter Comment
ML 2020-01 Purchase Methodof Accounting for Inventory andPrepaid Items: inconsistentaccounting policies by County vs
Sheriff’s Office.
Repeat from 2019-2021.

External Audit
Recommendation

County’s
Response

County Corrective Action(s) and
Date Completed

Review policies andprocedures to identify
GAAP departures andensure consistentaccounting methods.

Concur withrecommendation.

The County is not required to takeaction on management letter
comments even when the County
agrees with the comment.
Therefore, this comment has notbeen addressed – as we are notrequired to.
In addition, this was a finding given
to the Hillsborough County Sheriff
which is a separate legal entity of
the County. This Management
Letter comment was given to theCounty because the Sherriff
financial statements roll up into
the ACFR. The responsibility ofthis lies with the Sheriff.

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External Audit
Report Finding/Management
Letter Comment

External Audit
Recommendation

ML 2020-2 Renewal andReplacement Reserves: lack ofsystem to clearly track anddocument the maximum
amount of reserves for Water
System Enterprise Fund.
Repeat from 2019-2021.

2021-001 Federal Awards andState Assistance. County
expenditures included inschedule of federal and state
awards and overstatement ofexpenditures.
Not a repeat finding.

County’s
Response

County Corrective Action(s) and
Date Completed

Follow up withindependent consultant
to analyze amountrequired to be inrenewal andreplacement account for
Water System.

Concur withrecommendation.

The County is not required to takeaction on management letter
comments even when the County
agrees with the comment.
Therefore, this comment has notbeen addressed – we are notrequired to.

Review policies andprocedures overpreparation andschedule of expendituresof federal awards andstate assistance. Review
procedures should bedesigned to identify thecompleteness andaccuracy of theschedules, including
review expenditures toensure that matchingcosts are not included.

Agrees. Effective for
Fiscal Year 2022, more
procedures added.
Departments will be
required to submit
their report
expenditures versus
grants to County
Finance.

The County has not fully addressed
this finding as we have notprepared the Schedule of
Expenditures of Federal Awards
for FY22. The current plan foraddressing this comment is tosend an email *requiring*departments to submit theirmatching dollars (if applicable) toCounty Finance. Departments withmatching grants will be required tosubmit their report ofexpenditures of matching funds
versus grants funds to County
Finance by a certain date to ensurethat County Finance is reporting
the Schedule of Expenditures ofFederal Awards net of matchingfunds.

FIGURE 6-6: Review of corrective actions for reasonableness and timeliness
Source: Annual Financial Statements for Fiscal Years 2021 and 2020.

Although the Fiscal Year 2022 Schedule of Expenditures for Federal Awards is not yet prepared,
the corrective active recommendation includes documenting the policy and procedures toincorporate appropriate review procedures to ensure accuracy and completeness of the
Schedule of Expenditures of Federal Awards and State Assistance. In addition, the lack of acorrective action plan for management letter observations which documents whether
corrective action will be implemented increases the likelihood of repeat comments. In addition,
management’s response for three consecutive years was “Management concurs with therecommendation” which implies that corrective actions planned to be implemented.
RECOMMENDATION 6.3 – Office of Clerk - Continue to monitor and implement action plans
to correct repeat management letter comments and resolve the current year audit finding.

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HILLSBOROUGH COUNTY PERFORMANCE AUDITSUBTASK 6.4 – Determine whether program administrators have taken reasonable andtimely actions to determine whether planned uses of the surtax are in compliance withapplicable state laws, rules, and regulations.
OVERALL CONCLUSION
The MJ Team did not divide Subtask 6.4 into separate program areas because planned uses of
the Surtax being in compliance with applicable state laws, rules, and regulations applies to thewhole County.
To address the requirements of this subtask, Team MJ interviewed the senior assistant county
attorney and the PW director. We also examined a timeline of BOCC meetings relevant to thesurtax; Board of County Commissioners (BOCC) workshop materials related to transportation
issues; s. 212.055(1), Florida Statues-Charter County and Regional Transportation System
Surtax; and Hillsborough County Ordinance Number 22-9, adopted by the BOCC on April 20,
2022. This information demonstrates that program administrators took reasonable and timely
actions to determine whether planned uses of the surtax are in compliance with applicablestate laws, rules, and regulations. Therefore, this subtask is met.
ANALYSIS
BOCC Surtax Deliberations
The BOCC and program administrators took reasonable and timely actions to determine
whether planned uses of the surtax are in compliance with applicable state laws, rules, andregulations as evidenced by their deliberations before adoption of the surtax ordinance.
Figure 6-7 provides evidence of these deliberations.

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FIGURE 6-7: The BOCC and administrators took reasonable and timely actions leading to the adoption of thetransportation surtax.
Source: Synopsis of BOCC regular meeting minutes provided by the County.

The County advertised a public hearing for April 20, 2022, to consider enacting an ordinancelevying a one percent (1%) discretionary transportation system sales surtax and providing for areferendum on the proposed levy of the surtax. The BOCC conducted the following workshops
to discuss issues relevant to the surtax:
1. January 27, 2021, BOCC Workshop – Transportation CIP Overview
Presentation by Management & Budget on financial status of transportation
capital program.

2. May 26, 2021, BOCC Workshop – Transportation Asset Preservation


Details on County goals for preserving existing transportation infrastructure.

3. September 23, 2021, BOCC Workshop – Transportation – Building & Improving the
SystemLong-term plan for building and improving the transportation system, including
process for screening and identifying projects, the goals and outcomes of the
programs, and the necessary funding to achieve them.

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4. March 10, 2022 – Transportation Workshop
Combined workshop including partner agencies. Presentations by County, thethree cities, HART, and the Transportation Planning Organization. Also includes
community comments from open house meetings.

Surtax and Ordinance
The BOCC adopted Ordinance No. 22-9 on April 20, 2022, levying a one percent (1%)
discretionary transportation system sales surtax for thirty (30) years beginning January 1, 2023,
subject to the approval of County voters.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITSECTION 2 – HILLSBOROUGH TRANSIT AUTHORITY

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITHILLSBOROUGH TRANSIT AUTHORITY EXECUTIVE SUMMARY
HART OVERVIEWThis section of the report presents the results of Hillsborough Transit Authority’s (HART) surtax
performance audit. Although HART serves residents of the County and surrounding areas, it is
not an organizational unit of the County. HART is an independent special district created under
Chapter 163, Part V, Florida Statutes. HART was created in October of 1979 to plan, finance,
acquire, construct, operate and maintain mass transit facilities and supply transportation
assistance in Hillsborough County.
Hillsborough County is a member of HART. As such, four Hillsborough County Commissioners
currently serve on the HART Board. However, HART develops its own budget and manages its
own finances separate from the County.
Section 212.055(1), Florida Statutes, authorizes counties to levy a discretionary sales surtax
subject to approval by a majority vote of the electorate of the county. On April 20, 2022, theHillsborough County BOCC adopted Ordinance Number 22-9 to place a one percent sales surtax
on the November 8, 2022 ballot which provides for the amount of surtax funds to be
distributed to HART and how such funds are to be used by HART.
The ordinance stipulates that HART’s surtax-funded public transportation projects are to beconsistent with HART’s Transportation Development Plan, which HART developed in 2017. It
provides a strategic view of transit operations within the service area and HART’s plan todevelop different aspects from service area, routes, maintenance, and infrastructure to support
these efforts over the next 10 years.
As required by the ordinance. the Clerk of the Circuit Court of Hillsborough County, aconstitutional officer separate and apart from Hillsborough County, is required to transfer 45
percent of the surtax proceeds to HART. There is no direct interdependence between theCounty and HART with respect to finances or other resources. Each entity has separate
accountability structures/oversight for the surtax funds, internal control structure, and legal
compliance.
HART provides public transportation for Hillsborough County. The primary responsibilities of
HART are to plan, finance, acquire, construct, operate and maintain mass transit facilities. HARTis comprised of three member jurisdictions: Hillsborough County, the City of Tampa, and theCity of Temple Terrace. HART is the primary mode of public transportation in HillsboroughCounty.
HART provides transportation services, including local fixed route, limited express and express
bus service, MetroRapid North-South line, HARTFlex service, and HARTPlus paratransit services,and operates the TECO Line Streetcar. With a fleet of over 200 buses, HART covers a service
area of approximately 1,000 square miles.
The authorizing legislation provides that HART may contract for the services of attorneys,
engineers, and consultants to provide necessary services including engineering, architectural

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design, management, transportation planning, and other studies concerning the design offacilities and the acquisition, construction, extension, operation, maintenance, and financing oftransportation systems in the HART service area.
HART OPERATING BUDGET OVERVIEW
Figure ES-1 displays HART’s Operating Revenues from the Fiscal Year 2021 Amended Budget
and the Fiscal Year 2022 Adopted Budget. HART’s Fiscal Year 2022 Total Operating Revenues
totaled $105,635,020, representing a $6,3999,630 increase from the Fiscal Year 2021 Amended
Budget.

FIGURE ES-1: HART’s Operating Budget Overview, Fiscal Years 2021 and 2022.
Source: HART’s Fiscal Year 2021 Amended Budget and Fiscal Year 2022 Adopted Budget.

Figure ES-2 displays the Operating Expenses in the Fiscal Year 2021 Amended Budget and the
Fiscal Year 2022 Adopted Budget. HART’s Fiscal Year 2022 Total Operating Expenses totaled$105,635,020, representing a $6,399,630 increase from the Fiscal Year 2021 Amended Budget.

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FIGURE ES-2: HART’s Operating Expenses, Fiscal Years 2021 and 2022.
Source: HART’s Fiscal Year 2021 Amended Budget and Fiscal Year 2022 Adopted Budget.

DISCRETIONARY SALES SURTAX
According to the State of Florida Department of Revenue website, a half-cent infrastructure
tax program funded by a discretionary sales surtax (DSS) is imposed by most Florida counties
and applies to most transactions subject to sales tax. The State of Florida Department of
Revenue collects and distributes the sales surtax to counties and municipalities based on thestate’s sales tax formula. Each county is responsible for administering the funds it receives.
During the April 20, 2022, Commission Meeting, the Hillsborough County BOCC voted 5 to 2 tosend to referendum a proposed one percent transportation surtax ordinance for voter approvalon the November Ballot.
GOVERNANCE IMPLICATIONS OF SURTAX PASSAGE
Under Florida state law, Hillsborough County’s BOCC are responsible for administration of thesurtax funds, if the referendum passes. The referendum provides for the collection, distribution
and use of the sales surtax proceeds that will be used for road improvements, alternativetransportation facilities, and infrastructure.
Hillsborough County Ordinance 22-9 would levy a one percent sales surtax for thirty (30) years,
commencing on January 1, 2023. As permitted by Sales Surtax Law, the Board of County
Commissioners allocates 54.5% of the Surtax Proceeds, also known as the “General Purpose
Portion”, to Hillsborough County and each Municipality in accordance with their relative
populations. At least 27% of the General Purpose Portion shall be expended upon projects that
improve, repair and maintain existing streets, roads and bridges or also reduce congestion andtransportation vulnerabilities. Similarly, at least 26% of the General Purpose Portion shall be
expended to relieve rush hour bottlenecks and improve the flow of traffic on existing roads and

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streets. No less than 12% of this portion is to be expended on bicycle and pedestrian
infrastructure related improvements. And any remaining portions of the Transit Restricted
Portion shall be spent on any project to improve public transportation permitted by Florida
Statutes or Ordinance 22-9.
Another 45% of the Surtax Proceeds, the “Transit Restricted Portion”, would be allocated to
HART for the planning, development, construction, operation, and maintenance of public
transportation projects located solely in Hillsborough County. Of the Transit Restricted Portion,no less than 45% of the funds shall be spent on enhancing bus services. No less than 25% shallbe spent on transit services that utilize exclusive transit right-of-way for at least 50% of theapplicable service. And any remaining portions of the Transit Restricted Portion shall be spenton any project to improve public transportation permitted by Florida Statutes or Ordinance
22-9.
The remaining .5% of the Surtax Proceeds is allocated by the Clerk for the “Planning andDevelopment Portion”. This includes data collection, analysis, planning, and grant funding toassist other Agencies carrying out the projects.
AUDIT OBJECTIVE
McConnell & Jones LLP (the MJ Team) completed a performance audit of the County and HART.
The objective of the audit was to fulfill the requirements of s. 212.055(11), Florida Statutes. This
statute requires that Florida local governments, with a referendum on the discretionary sales
surtax held after March 23, 2018, undergo a performance audit conducted of the programassociated with the proposed surtax adoption. The audit must be conducted at least 60 days
before the referendum is held.
Specific audit objectives are consistent with the requirements of the statute, which are toevaluate the program associated with the proposed surtax adoption based on the following
criteria:
1. The economy, efficiency, or effectiveness of the program;
2. The structure or design of the program to accomplish its goals and objectives;
3. Alternative methods of providing services or products;
4. Goals, objectives, and performance measures used by the program to monitor andreport program accomplishments;
5. The accuracy or adequacy of public documents, reports, and requests prepared by theCounty which relate to the program; and6. Compliance of the program with appropriate policies, rules, and laws.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITPROJECT SCOPE
In accordance with s. 212.055(11), Florida Statutes, and Government Auditing Standards (2018
Revision) issued by the Comptroller General of the United States, the certified public
accountant must conduct a performance audit of Hillsborough County and HART program areas
within the administrative unit(s) which will receive funds through the referenda approved in theCounty’s final resolution.
The performance audit must evaluate the following program areas:
1) County administrative units responsible for planning, development, construction,
operations, and maintenance of roads, bridges, sidewalks, intersections, and public
transportation;
2) HART planning, development, construction, operations and maintenance of public
transportation, including enhancing bus services and expanding public transit options.
METHODOLOGY
Fieldwork was conducted from July 7-July 29, 2022. The MJ team conducted over 30 interviews
and focus groups with executive and management-level staff from Hillsborough County
Administration, Public Works (PW,) and HART. In addition, audit team members reviewed
relevant operational and financial data and reports in order to document and report findings
and conclusions.
Because the referendum has not actually been voted on or passed, we identified projectfunding similar to the surtax, such as Community Investment Tax funds, and examined projects
supported by those funds as a means of determining the adequacy of the County’s stewardshipfor managing and overseeing public dollars. The Community Investment Tax (CIT) rate is .5
percent, while the sales surtax rate will be 1 percent. The CIT is a one-half percent sales tax on
the price of taxable goods, as defined by state statute, sold within the County. Approved for athirty-year period by public referendum in 1996. Use of this tax is restricted to acquiring,
constructing, and improving infrastructure and purchasing equipment with a useful life of atleast five (5) years to promote the health, safety, and welfare of Hillsborough County residents.
This tax expires on November 30, 2026.
The CIT closely mimics the discretionary surtax in terms of how it is received, distributed, andreported. Should the referendum pass in November 2022, the County processes, procedures,
systems, and controls that currently exist to administer CIT funds will be employed toadminister and provide accountability over the discretionary surtax funds. Accordingly, ourfieldwork review focused on existing processes, procedures, systems, and controls. It is thesestructures and systems to which the CIT is currently subject and to which the discretionary
surtax will be subject.
For HART, the audit team reviewed federal and state grants with comparable administrative
guidelines. These grants were funded by the Federal Transit Administration and the Florida
Department of Transportation.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 1 – The Economy, Efficiency, or Effectiveness of theProgram.
Finding Summary: Overall, the Hillsborough Transit Authority (HART)
meets Research Task 1.
The MJ Team reviewed HART operations associated with the surtax and determined that all
program managers use various reports and data on a regular basis and that the information isadequate to monitor program performance and costs. HART has developed a rich portfolio of
key performance indicators (KPIs) and uses them to periodically assess program performanceand costs. HART evaluates performance and costs based on reasonable measures, including
best practices. The cost, timing, and quality of current projects was evaluated using a sample offive projects. Except for one project which exceeded the planned contract date, projects werecompleted well, within budget, timely, and for reasonable costs compared to estimates.
However, MJ determined that HART program administrators had not taken reasonable andtimely actions to address findings and recommendations included in all audit reports. HART
should establish a policy that requires development of a corrective action plan in response tofindings and recommendations in any relevant internal or external report on program
performance and cost. The plan should describe the findings and recommendations,management’s responses, staff responsible for implementation, timeline, resource
requirements, and other pertinent information. Lastly, HART demonstrated that it hasestablished written policies and procedures to take maximum advantage of competitive bids.
FIGURE ES-2
SUMMARY OF HART RESEARCH RESULTS
Research Subtask

Conclusion

Recommendation

1. The Economy, Efficiency, or Effectiveness of the Program
1.1

Met

None

1.2

Met

None

1.3

Met

None

1.4

Partially Met

RECOMMENDATION 1.4 –HART should provide evidence that the findings in
the Florida Department of Transportation Safety
and Security Audit Streetcar Department have beenaddressed.

1.5

Met

None

1.6

Met

None

1.7

Met

None

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 2 – The Structure or Design of the Program to
Accomplish its Goals and Objectives.
Finding Summary: Overall, HART meets Research Task 2.
HART maintains an organizational structure that has clearly defined units, minimizes
overlapping functions, and has no excessive administrative layers. The current turnover rate fornon-bargaining positions (non-union) is 28% and the vacancy rate is 20%, which is high basedon human resources best management practices. The employees covered under the collective
bargaining agreement (union) make up nearly 83% of the current workforce at HART. As of July
2022, there are currently 37 vacant bus operator roles and the turnover rate based on a rolling
12-month period (July 1, 2021, through June 30, 2022) is at 20%. Strategies are underway tofocus recruiting efforts on positions that are critical to providing and supporting thecontinuation of services to the community and business units, such as bus drivers. To address
high turnover and vacancy rates, HART should continue to evaluate salary and wage rates toensure they are competitive and refine recruitment and retention strategies and consider
establishing goals to lower turnover and vacancy rates for all non-bargaining and collective
bargaining employees to the suggested guideline of 10%.
FIGURE ES-3
SUMMARY OF HART RESEARCH RESULTS
Research Subtask

Conclusion

Recommendation

2. The Structure or Design of the Program to Accomplish its Goals and Objectives
2.1

Met

None

2.2

Partially Met

RECOMMENDATION 2.2 –Continue to evaluate salary and wage rates toensure they are competitive and refine
recruitment and retention strategies andconsider establishing goals to lower turnoverand vacancy rates for all non-bargaining andcollective bargaining employees to thesuggested guideline of 10%.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 3 – Alternative Methods of Providing Services or
Products.
Finding Summary: Overall, HART meets Research Task 3.
HART program administrators have formally evaluated existing in-house services and activities
to assess the feasibility of alternative methods of providing services. An example described by
HART staff was the decision to contract out payroll services rather than using in-housepersonnel. This decision saved approximately $500,000 annually and reduced the risk of noncompliance. Additionally, program administrators have made changes to service delivery
methods when their evaluations/ assessments found that such changes would reduce program
cost without significantly affecting the quality of services. The example of this approach is thereview of the consultant contract for the preparation of the Transit Development Plan. Upon
review, HART administrators determined in-house personnel would be able to perform certain
tasks better and more cost effectively than having the consultant conduct such work. HART has
a long tradition of working with its peers in the Tampa Bay area. HART has taken the lead incoordinating with Tampa Bay peers in procuring a regionwide fare system. The Flamingo Pass isin the final stages of implementation and will allow riders to use the same fare card throughout
Tampa Bay. HART has also been the lead agency in the common fuel procurement contract,which is now entering its third option year for the current contract.
FIGURE ES-4
SUMMARY OF HART RESEARCH RESULTS
Research Subtask

Conclusion

Recommendation

3. Alternative Methods of Providing Services or Products
3.1

Met

None

3.2

Met

None

3.3

Met

None

3.4

Met

None

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 4 – Goals, Objectives, and Performance Measures
Used by the Program to Monitor and Report Program Accomplishments.
Finding Summary: Overall, HART partially meets Research Task 4.
Program goals and objectives for Transportation Operations and the Project Management
Office are included in the Success Plan and are clearly stated, measurable, and consistent with
HART’s Transit Development Plan (TDP) or strategic plan. However, documentation was notprovided to determine if goals and objectives can be achieved within budget. While HART uses
various performance measures which provide progress toward meeting program goals andobjectives, additional performance measures required in the TDP and Success Plan are notused to evaluate program performance and the Success Plan’s Performance Scorecard lacks
updating since Fiscal Year 2020. HART should ensure that all required performance measures
are reported at least annually and document the required Capital Development performancemeasures including completing projects within schedule and budget. Internal controls such aspolicies and procedures provide reasonable assurance that program goals and objectives will be
met.
FIGURE ES-5
SUMMARY OF HART RESEARCH RESULTS
Research Subtask

Conclusion

Recommendation

4. Goals, Objectives, and Performance Measures Used by the Program to Monitor and Report Program
Accomplishments
4.1

Partially Met

RECOMMENDATION 4.1 –Maintain documentation verifying that
goals and objectives can be achieved withinbudget.

4.2

Partially Met

RECOMMENDATION 4.2 –Ensure that all required performancemeasures are reported at least annuallyand document the required Capital
Development performance measures
including completing projects withinschedule and budget.

4.3

Met

None

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 5 – The Accuracy or Adequacy of Public Documents,
Reports, and Requests Prepared by HART, which Relate to the Program.
Finding Summary: Overall, HART meets Research Task 5.
HART prepares and makes available in the public domain financial and non-financial
information that is useful, adequate, and accurate. HART uses some internal data analytics toassess the adequacy of the data it provides to the public; however, a more formal evaluation
process (report) to periodically evaluate the adequacy and accuracy of data is needed. Thisevaluation should address factors such as whether the information is relevant, useful, andreached its intended audiences. HART’s website provides both adequate program performanceand cost information. HART provided evidence that it has a process in place to ensure financial
data available to the public is accurate and also has a process in place to ensure that incorrect,
erroneous, and incomplete information is corrected in a timely manner.
FIGURE ES-6
SUMMARY OF HART RESEARCH RESULTS
Research Subtask

Conclusion

Recommendation

5. The Accuracy or Adequacy of Public Documents, Reports, and Requests Prepared by HART which, Relate to
the Program
5.1

Met

None

5.2

Partially Met

RECOMMENDATION 5.2 –Develop and implement a formal evaluation
process (report) to periodically evaluate theadequacy and accuracy of data provided to the
public after publication. This evaluation should
address factors such as whether the information isrelevant, useful, and reached its intended
audiences. Evaluation standards should be createdby all staff responsible for developing public
documents.

5.3

Met

None

5.4

Met

None

5.5

Met

None

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 6 – Compliance of the Program with Appropriate
Policies, Rules, and Laws.
Finding Summary: Overall, HART meets Research Task 6.
HART has a process to ensure compliance with applicable federal, state, and local laws, rules,
and regulations; contracts; grant agreements; and local policies. HART has developed
procedures manuals to comply with federal and state grants management requirements. HART
prepares a five-year major Transit Development Plan (TDP) and completes an annual update in
the form of a progress report each year. The TDP is required by the Florida Department ofTransportation (FDOT) of transit agencies receiving federal and state grant programs. Federaltransit grant recipients are required to obtain the services of an independent auditor to
conduct a single audit each year. The CAFR completed on September 30, 2021, independent
auditor did find a material weaknesses for the internal control over financial reporting. HART
staff acknowledged the deficiencies, indicated acceptance, and documented the action taken to
resolve the deficiency. The corrective action plan prepared by HART management to address
the findings in the single audit demonstrates that management takes reasonable and timely
actions to address any noncompliance identified by an external audit. HART has taken
reasonable and timely actions to determine whether planned uses of the surtax are incompliance with applicable state, laws, rules and regulations. The Independent OversightCommittee has been established to ensure HART is meeting the requirements of the ordinance.
FIGURE ES-7
SUMMARY OF HART RESEARCH RESULTS
Research Subtask

Conclusion

Recommendation

6. Compliance of the Program with Appropriate Policies, Rules, and Laws
6.1

Met

None

6.2

Met

None

6.3

Met

None

6.4

Met

None

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITPROGRAM DESCRIPTION AND MANAGEMENT
During the April 20, 2022, Commission Meeting, the Hillsborough County BOCC voted 5 to 2 tosend to referendum a proposed one percent transportation surtax ordinance for voter approvalon the November Ballot. Should voters approve the referendum, the HART departments
presented in Figure ES-8 will manage oversee, and use, the funds for the indicated programs.
FIGURE ES-8
SURTAX FUND PROGRAMS BY HART UNIT
Department

Programmatic Use

Transit Administration and Maintenance& Transportation Operations

Forty-five percent (45%) of the Surtax
proceeds, the “Transit Restricted Portion”, willbe allocated for the planning, development,
construction, operation, and maintenance of
public transportation projects located solely in
Hillsborough County. Of the Transit Restricted
Portion, no less than 45% of the funds shall bespent on enhancing bus services. No less than
25% shall be spent on transit services thatutilize exclusive transit right-of-way for at least
50% of the applicable service. And any
remaining portions of the Transit Restricted
Portion shall be spent on any project toimprove public transportation permitted by
Florida Statutes or Ordinance 22-9.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 1
FINDING SUMMARY
THE ECONOMY, EFFICIENCY, OR EFFECTIVENESS OF THE PROGRAM.

Overall, HART meets Research Task 1.
The MJ Team reviewed HART operations associated with the surtax and determined that all
program managers use various reports and data on a regular basis and that the informationis adequate to monitor program performance and costs. HART has developed a rich portfolioof key performance indicators (KPIs) and uses them to periodically assess program
performance and costs. HART evaluates performance and costs based on reasonablemeasures, including best practices. The cost, timing, and quality of current projects wasevaluated using a sample of five projects. Except for one project which exceeded the planned
contract date, projects were completed well, within budget, timely, and for reasonable costs
compared to estimates. However, MJ determined that HART program administrators had nottaken reasonable and timely actions to address findings and recommendations included in all
audit reports. HART should establish a policy that requires development of a corrective action
plan in response to findings and recommendations in any relevant internal or external reporton program performance and cost. The plan should describe the findings andrecommendations, management’s responses, staff responsible for implementation, timeline,
resource requirements, and other pertinent information. Lastly, HART demonstrated that it
has established written policies and procedures to take maximum advantage of competitivebids.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 1.1 – Review any management reports/data that program administrators use on aregular basis and determine whether this information is adequate to monitor program
performance and cost.
OVERALL CONCLUSION
Overall, HART meets Subtask 1.1. To reach this conclusion, the MJ Team met with HART
program administrators and examined the Monthly Report; Transportation, Maintenance, andService Development Report; Maintenance Department Monthly Summary; and Streetcar
System Performance Report all of which demonstrate that HART program administrators use
reports and data on a regular basis to monitor program performance and cost.
ANALYSIS
To address the requirement of this subtask, the MJ Team interviewed individuals in thefollowing positions: Chief Delivery Officer, Capital Development
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Chief of Maintenance & TransportationDirector of Transportation, Bus Operations



Director of Streetcar Operations



Director of Fleet Maintenance & FacilitiesManager of Bus Operations, Bus Operations

The reports that HART program administrators provided in support of this subtask are discussed
below.
MONTHLY REPORTThe Monthly Report is an update of HART’s activities and provides a summary of customer
service statistics; status of ongoing basic transit infrastructure projects; a summary of thecommunications and marketing efforts for the month; and risk management costs such as
bodily injury, property damage, and worker’s compensation. The monthly report also tracks
ridership, maintenance, customer service, and capital development.
The MJ team reviewed the May 2022 monthly report, which shows operating statistics andprogram activities. The report also provides an overview of the Risk Department,
Communications and Marketing, and COVID-19 activity updates.
Figure 1-1 provides an example of customer service statistics from the May 2022 Monthly
Report. It shows that nearly half of customer complaints are related to employee behavior andthe Flamingo Fares program. Flamingo Fares is a payment system that allows a rider to pay
using a reloadable smart card or smartphone app and can be used across participating transit
agencies in the region.
Customer Service

FIGURE 1-1: HART’s monthly report provides a variety of information that program administrators use on a regularbasis and determine whether this information is adequate to monitor program performance and cost.
Source: May 2022 Monthly Report.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITTRANSPORTATION, MAINTENANCE, AND SERVICE DEVELOPMENT REPORT
HART staff also produce an abbreviated report from the Monthly Report entitled theTransportation, Maintenance, and Service Development Report. Program managers use theabbreviated report to monitor program performance for the Transportation, Maintenance andService Departments. Each month, HART staff present this report to the board of directors as an
overview of monthly operating statistics. The report includes statistics such as bus on time
performance (OTP), mean distance between failures for bus/van, fleet/facilities sanitation,
number of preventative maintenance inspections, and passenger amenities.
In the Service Development section of the report, HART records ridership by mode as well as
year-to-date and monthly metrics. This report enables program administrators for each of thethree departments to focus on program performance for their particular area of responsibility.
Figure 1-2 provides an example of the May 2022 Transportation, Maintenance, and Service
Development Report. It shows operational statistics as well as fleet and facilities maintenanceinformation.

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FIGURE 1-2: Transportation, Maintenance, and Service Development Report-May 2022.
Source: HART’s Facilities Maintenance Department.

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MAINTENANCE DEPARTMENT MONTHLY SUMMARY
HART staff produce a Maintenance Department Monthly Summary that provides maintenancestatistics, program component comparisons, performance measures, and cost variables. The
report is a compilation of 50 charts and graphs displaying maintenance performance inmanpower, parts inventory, vehicle maintenance by fleet, vehicle cleaning and sanitization,road call data, vehicle mileage by fleet, and work order analysis. The report also provides acapital replacement summary that shows estimated replacement costs, work order count by
job type, cost per mile by bus model year, monthly overtime costs, and costs by type of fuel.
The report provides outside contracted costs and other information that programadministrators use to monitor program performance and costs.
The report is rich in charts and graphs to enhance comprehension. The report shows month-tomonth details allowing the maintenance department to focus on differences in program
performance and costs at various levels. The director of Fleet Maintenance develops the reportand provides it to the chief of Transportation & Maintenance. The MJ Team determined that
the Maintenance Department Monthly Summary report is adequate to enable programadministrators to monitor performance and costs effectively.
Figure 1-3 is a sample graph from the Maintenance Department Monthly Summary report thatshows monthly maintenance cost for compressed national gas (CNG) fueled vehicles againstmonthly maintenance cost for diesel fueled vehicles. The comparison is made for the period
October 2021 through May 2022 and shows that HART spent less on CNG from October 2021
through February 2022 than it did on diesel. However from March through May 2022 HART
spent more on CNG than it did for deisel.

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FIGURE 1-3: The Maintenance Department Monthly Summary report compares costs for compressed national gas
fueled vehicles against monthly maintenance cost for diesel fueled vehicles
Source: Maintenance Department Monthly Summary, May 2022.

STREETCAR SYSTEM PERFORMANCE REPORT
HART staff produce a monthly Streetcar System Performance Report that shows system
performance statistics, service details, ridership, and vehicle and infrastructure maintenance.
The report provides a month-to-month synopsis of the operation and maintenance of thestreetcar system. The report enables HART staff to track missed trips and the cause, OTP,
monthly ridership trends, and service highlights. The director of streetcar operations develops
the report and uses it to monitor monthly program performance. HART also presents the reportto the Tampa Historic Streetcar, Inc., Board of Directors each month. The report is also available
to anyone through the streetcar website at www.tecolinestreetcar.org.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITSUBTASK 1.2 – Determine whether the program is periodically evaluated using performance
information and other reasonable criteria to assess program performance and cost.
OVERALL CONCLUSION
Overall, HART meets Subtask 1.2. To reach this conclusion, the MJ Team interviewed thepositions listed in Subtask 1.1 and examined KPIs that HART administrators use to performperiodic evaluations of program performance and costs.
ANALYSIS
HART’s Transit Development Plan (TDP) contains a rich portfolio of KPIs including a descriptionof the nature and purpose of each KPI. In 2017, HART administrators developed the TDP, whichis the agency’s strategic guide to provide public transportation over a 10-year period from Fiscal
Year 2018 through Fiscal Year 2027. It represents the community’s vision for public
transportation across HART’s service area.
Additionally, the TDP provides an action plan to reach transportation goals through Fiscal Year
2027. The plan describes HART’s services in Hillsborough County and its connectivity to
adjacent areas. It provides long-range plans for transit and mobility needs; cost and revenue
projections; and community transit goals, objectives, and policies. Figure 1-4 illustrates the
TDP’s eight public transit services goals and objectives.

FIGURE 1-4: HART’s TDP contains eight overall public transit services goals and objectives.
Source: Ten-Year Transit Development Plan-2017.

The TDP contains KPIs and statistical information that HART program administrators use toevaluate the transportation program. Each month, program administrators collect and compile
the data to compare KPI goals to actual performance. HART administrators developed the KPIs
in the past and have used them to evaluate program performance since they were developed.
When the 2017 TDP was completed, HART had been collecting and using KPIs to assess program
performance and costs. Since that time, collection of KPI data and program evaluations havecontinued.

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Figure 1-5 provides an example of how HART used KPIs to assess program performance andcosts prior to the 2017 TDP. HART program administrators divided KPIs into efficiency andeffectiveness categories and used arrows to illustrate the desired trend. An assessment, basedon the percentage change from 2011 to 2016, indicated whether the KPI showed improvement
or not. For example, in Figure 1-5, vehicle miles per capita shows improvement while passenger
trips per capital does not.

FIGURE 1-5: Prior to 2017, HART program administrators used trend analysis with arrows showing the KPIs thatwere improving and those that were not
Source: Ten-Year Transit Development Plan-2017.

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Figure 1-6 provides an overview of the KPIs that HART program administrators currently use toevaluate program performance and costs as was done before the 2017 TDP was completed. The
MJ Team examined worksheets demonstrating that these KPIs are collected monthly, comparedagainst goals and actual performance, and rated as pass or fail each month and annually.
Key Performance
Indicator

Definition

Used to Evaluate Program
Performance and/or Costs?

Ridership

Number of passengers who board
a public transportation vehicle.

Yes

Revenue miles
between road
failuresTotal number of miles driven
divided by vehicle failures in aperiod of time.

Yes

On-time
performance

When a bus arrives at a bus stop
within a certain time of its
scheduled arrival. Never earlyand no later than 5 minutes, andis calculated by real time data
captured on bus actual arrivals.
Total number of riders divided bytotal revenue service hours
provided.

Yes

Riders per
revenuemile

Total number of riders divided bytotal revenue service miles
provided.

Yes

Operating cost
per trip

Total Operating cost divided bytotal ridership.

Yes

Operating cost
per revenue
hour

Total cost divided by revenue
service hours.

Yes

Riders per
Revenue Hour

Yes

Evaluation Benefit/Opportunity

By evaluating this KPI HART is able
to better plan service to meetridership needs.
By evaluating this KPI, HART canidentify maintenance issues thatcause breakdowns and develop aplan to reduce the reoccurrenceof the issues.
By evaluating on-timeperformance, HART can makeservice adjustments and schedulechanges to meet customer’s
reliability expectations.
By evaluating riders per revenue
hour periodically, HART has theability to evaluate service andmake timely service hour
increases and decreases where
needed.
By evaluating riders per revenue
mile periodically HART has theability to evaluate service andmake timely route changes.
By evaluating operating cost per
trip periodically by route, HARThas the ability to quickly identify
inefficient service and makenecessary changes to improveoverall system performance.
By periodically evaluating cost per
revenue hour by route, HART is
can identify inefficient service andmake appropriate service
changes.

FIGURE 1-6: HART administrators use KPIs to evaluate transportation program performance and costs.
Source: Ten-Year Transit Development Plan-2017 and monthly KPI evaluation worksheets.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITSUBTASK 1.3 – Review findings and recommendations included in any relevant internal orexternal reports on program performance and cost.
SUBTASK 1.4 – Determine whether program administrators have taken reasonable andtimely actions to address any deficiencies in program performance and/or cost identified inmanagement reports/data, periodic program evaluations, audits, etc.
OVERALL CONCLUSION
Subtasks 1.3 and 1.4 are assessed together in this section because they are so closely related.
Overall, HART meets Subtask 1.3 since external audit reports were provided; however, Subtask
1.4 is partially met. To reach this conclusion, the MJ Team interviewed the positions listed in
Subtask 1.1 and reviewed findings and recommendations in various audit reports that included
findings and recommendations. We determined that HART program administrators had nottaken reasonable and timely actions to address findings and recommendations included in all
audit reports, which are discussed in the analysis section below.
ANALYSIS
Federal Transit Administration Fiscal Year 2022 and 2018 Triennial Review
The Federal Transit Administration (FTA) performs triennial reviews of recipients of Urbanized
Area Formula Program funds. This program makes federal resources available to urbanizedareas for transit capital, operating assistance in urbanized areas, and transportation-relatedplanning. The triennial review is one of FTA’s tools for examining grantee performance andadherence to FTA requirements and policies. It occurs once every three years and examines
how recipients of Urbanized Area Formula Program funds meet statutory and administrativerequirements. FTA performed a triennial review of HART in 2018 and 2022 and issued its 2018
report on May 21, 2018, and its 2022 report on June 10, 2022.
The 2022 Triennial Review focused on HART’s compliance in 23 areas. Due to COVID-19, FTA
expanded their 2022 review to assess HART’s compliance with grant requirements related to
COVID-19 relief funds that HART received. No deficiencies were found with FTA requirements in
15 of these areas. However, the FTA found six deficiencies in three categories: (1) Financial
Management and Capacity, (2) Procurement, and (3) Disadvantaged Business Enterprise (DBE).
FTA’s report indicated that HART had implemented two of six corrective actions after FTA
auditors had conducted their virtual site visit. HART had no repeat deficiencies from the Fiscal
Year 2018 Triennial Review.
FTA issued its 2018 report on May 21, 2018. The report included findings and recommendations
related to whether HART was administering grant funds in accordance with the requirements offederal public transportation law. FTA made the determination by examining a sample of award
management and program implementation practices.
The 2018 review focused on HART’s compliance in 20 areas. HART had deficiencies in five areas
including Satisfactory Continuing Control, Disadvantage Business Enterprise (DBE),

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Procurement, Americans with Disabilities Act (ADA)-General and ADA-Complimentary
Paratransit. See Figure 1-7 for an overview of HART’s response to FTA’s 2022 and 2018 Triennial
reports.
FDOT Triennial Review 2021 Hillsborough Transit Authority (HART) Triennial Report
FDOT performs a triennial review of recipients of transportation funds under various state andfederal programs. FDOT also uses the triennial review process to provide technical assistance torecipients. In 2021, FDOT performed a triennial review of HART in the following areas:Grant Management and ComplianceProcurement



Asset Management



Vehicle MaintenanceSafety Compliance

FDOT’s report, dated October 7, 2021, cited 13 deficiencies, 7 areas of concern, and 2
observations/recommendations. See Figure 1-7 for an overview of HART’s response to thereport.
FDOT Triennial Safety and Security Audit of Hillsborough Transit Authority Streetcar-2019

FDOT’s Triennial Safety and Security Audit of HART Streetcar is an external review conducted
every three years that provides recommendations and findings on HART’s streetcar
performance. FDOT and a safety, security, and operations consulting firm specializing in public
transportation conducted a safety and security audit of HART’s streetcar department in 2019.
The safety audit included a review of relevant documents, physical inspection of facilities andequipment, observations of service operations, and interviews with employees. The audit
report, dated, October 4, 2019, identified 5 deficiencies, 14 areas of concern, and 14
observations.
FDOT found that HART had made significant improvements in safety, operations, andmaintenance programs since FDOT had performed the prior 2012 and 2016 Triennial Audits.
Upon delivery of the final 2016 report, HART had 30 calendar days, until August 31, 2016, todevelop a corrective action plan and submit it to FDOT for approval. See Figure 1-7 for an
overview of HART’s response to the 2019 report.
FDOT Vehicle Preventative Maintenance, Bus System and Security Reviews, Substance Abuse
Reviews-2018

In 2018, FDOT conducted an external review of HART’s vehicle Preventative Maintenanceprogram, Bus System and Security program, and Substance Abuse Management policies andprocedures. The purpose of the review was to identify strengths and weaknesses within HART’s
maintenance, safety, and substance abuse management procedures and practices and toprovide recommendations for improvement.

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FDOT reviewed maintenance files, vehicle inspections reports, transportation operatingprocedures, safety inspections, driver qualifications and training, drug and alcohol policies,
operational and driving requirements, and the Transportation Operating Procedures manual.
The review, performed in April 2018, identified 6 maintenance findings, 11 safety findings, andno substance findings. HART was required to complete corrective actions within 60 days of
acceptance of the findings letter. See Figure 1-7 for an overview of HART’s response to thereport.
Figure 1-7 provides an overview of these audit reports as well as whether HART programadministrators took timely and reasonable actions to address the recommendations in thereports.
Audit Report Name
Federal Transit Administration (FTA)
Fiscal Year 2022 Triennial Review,
June 10, 2022

Reasonable and Timely Actions Taken?
No
Date of Report: June 10, 2022
Date of Corrective Actions: August 10, 2022
Actions Taken: 2 of 6 recommendations closed out. The absence ofevidence that HART administrators took reasonable actions toaddress all recommendations supports a finding of partially met forthis subtask.

FDOT-Vehicle Preventative
Maintenance, Bus System and Security,
Substance Abuse Reviews,
April 2018

Yes
Date: April 16, 2018
Date of Corrective Actions: April 2018
Action Taken: HART incorporated its corrective action plan in the
final report.

FDOT Triennial Review 2021
Hillsborough Transit Authority(HART) Triennial Report, October
2021

No
Date of Report: October 7, 2021
Date of Corrective Actions: HART provided no evidence of
implementation of the recommendations in the report.
Actions Taken: The absence of evidence that HART administrators
took reasonable actions to address the recommendations supports afinding of partially met for this subtask.

FDOT Triennial Safety and Security
Audit of Hillsborough Transit
Authority Streetcar,
October 2019

Yes
Date: October 4, 2019
Date of Corrective Actions: January 2022
Actions Taken: the MJ Team examined a FDOT HART Streetcar
Department meeting agenda item that stated that FDOT had
received the two remaining open corrective action plans andrecommended closure of the review.

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Audit Report Name
Federal Transit Administration (FTA)
Fiscal Year 2018
Triennial Review,
May 2018

Reasonable and Timely Actions Taken?
No
Date of Report: May 21, 2018
Date of Corrective Actions: HART provided no evidence of
implementation of the recommendations in the report.
Actions Taken: The absence of evidence that HART administrators
took reasonable actions to address the recommendations supports afinding of partially met for this subtask.

FIGURE 1-7: HART operations have been assessed in various external reports that included findings andrecommendations for compliance and/or improvement.
Source: Indicated reports were provided by HART administrators in the initial data request.

RECOMMENDATION 1.4 – Establish a policy that requires development of a corrective action
plan in response to findings and recommendations in any relevant internal or external reporton program performance and cost. The plan should describe the findings andrecommendations, management’s responses, staff responsible for implementation,
timeline, resource requirements, and other pertinent information.

SUBTASK 1.5 – Evaluate program performance and cost based on reasonable measures,
including best practices.
OVERALL CONCLUSION
Overall, Subtask 1.5 is met. To reach this conclusion, the MJ Team interviewed the HART
program administrators listed in Subtask 1.1, examined HART’s assessment of OTP, andevaluated OTP using available data.
ANALYSIS
On-time performance (OTP) is a KPI that transit organizations use to measure service reliability.
HART considers a bus on time when it arrives at a bus stop no more than 1 minute prior toscheduled arrival time, and no more than 5 minutes later than scheduled arrival time.
HART uses Computer-Aided Dispatch/Automated Vehicle Location (CAD/AVL) to calculate andreport OTP. HART buses have Global Position Satellite (GPS) systems that record each buses’
actual arrival at a scheduled bus stop. HART’s CAD/AVL records bus arrival data for every bus
by stop and route on a daily basis. Each week and month, the senior project planner downloads
OTP data and prepares a report for distribution to the leadership team, operations and safetycommittee members, and board of directors.
HART program administrators analyze, monitor, and evaluate OTP data by route and operator.
HART staff document OTP trends over a given period to identify strengths and weakness in thetransportation program. HART also uses a digital dashboard that provides on-time performance

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data for each route and for the system as a whole. The digital dashboard will display OTP databy route in the following three categories:Green Level is OTP above HART’s goal of 80 percent
Yellow Level is OTP below HART’s goal of 80 percent but above 70 percent
Red Level is OTP below 70 percent

Figure 1-8 provides an example of the systemwide OTP dashboard for June 2022, while
Figure 1-9 provides the dashboard for one route.

FIGURE 1-8: HART program administrators present OTP data for the entire system using a graphic dashboard that
rates OTP against HART’s internal standard.
Source: Monthly Report, June 2022.

FIGURE 1-9: HART program administrators present OTP data for each route using a graphic dashboard that rates
OTP against HART’s internal standard.
Source: Monthly Report, June 2022.

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HART evaluates program performance and costs based on OTP. HART uses CAD/AVL to collectand report OTP data. Moreover, HART employs best practices and industry standards whenadministering and evaluating its OTP program. Industry standards dictate that each transit
system develop its own goal for OTP based on system variables such as traffic, urban density,
ridership, and past experiences. HART developed a system-wide OTP for fixed route bus service
at 80 percent. According to the Operations, Maintenance, Safety Metrics Report for March andApril 2022, prepared by HART’s manager of transit logistics, the industry standard for OTP is 77
percent, which means that HART has established stricter guidelines that the industry standard.
The MJ Team analyzed HART’s OTP data for the period February through April 2022, and June
2022. May 2022 OTP data was not available due to a lack of CAD/AVL OTP data.
Figure 1-10 presents the MJ Team’s analysis of OTP for the four months assessed. The figure
shows that only 22 percent of HART’s routes met its 80 percent OTP standard during February
through April 2022, while 50 percent met the HART standard in June 2022.
During February through April 2022, 25 to 38 percent of routes met the OTP industry standardof 77 percent while 63 percent met the industry standard in June 2022. HART’s overall system
did not reach its internal OTP during the four-month period and only met the industry standard
in June 2022.
These data underscore the importance of analyzing all underperforming routes and operators
to determine underlying causes. Such analyses could lead to changes that will improve program
performance and costs. For example, a more in-depth analysis of routes would reveal why
there was significant improvement between April 2022, and June 2022 as shown in the
Figure 1-10 below.
February
2022

March
2022

April
2022

June
2022

Number of Routes at or Above HART OTP Standard
HART OTP Standard
Number of Routes Below HART OTP Standard
Percentage of Routes at or Above HART Standard

7
80%
25
22%

7
80%
25
22%

7
80%
25
22%

16
80%
16
50%

Number of Routes at or Above Industry OTP Standard
Industry OTP Standard
Number of Routes Below Industry OTP Standard
Percentage of Routes at or Above Industry Standard

8
77%
24
25%

10
77%
22
31%

9
77%
23
28%

20
77%
12
63%

Total System
Total HART System OTP
At or above HART Standard?
At or above Industry Standard?

72%
No
No

69%
No
No

71%
No
No

79%
No
Yes

Description

FIGURE 1-10: During the period February through June 2022, excluding May, the OTP for most routes was below
HART and industry standards.
Source: Operations, Maintenance, Safety Metrics Report for March and April 2022.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

National Express Group (NEG is a leading transportation provider delivering services in the
United Kingdom, Continental Europe, North Africa, North America and the Middle East. NEG
has identified the following five best practices for improving on time performance:Measure itAnalyze and compareBe proactive
Streamline
Consider bigger changes

HART provided a June 2022 management presentation demonstrating how HART uses thesebest practices. The MJ Team reviewed the presentation and determined that HART is employing
best practices in its OTP program and evaluating OTP program performance and costs.
HART uses CAD/AVL data in its evaluation of OTP by route and operator to determine variancesin performance. HART analyzes route performance and factors in weather, road conditions,accidents, routing, and choke points.
HART prioritizes low performing routes and makes schedule, routing, and service changes toimprove OTP. HART’s designs routes to operate on a schedule that has a fixed amount of pay
for the route operator. When a route is late, the operator must be paid overtime. Therefore,
HART’s evaluation of OTP impacts not only program performance but also program costs.

SUBTASK 1.6 – Evaluate the cost, timing, and quality of current program efforts based on areasonably sized sample of projects to determine whether they were of reasonable cost andcompleted well, on time, and within budget.
OVERALL CONCLUSION
Overall, HART met expectations for subtask 1.6. To reach this conclusion, the MJ Team selected
five projects for review from the list of eleven capital projects undertaken during Fiscal Years
2020 to 2022 that were substantially complete or 100% complete.
Although project costs were within budget and reasonable, there was one project that did notcomply with the timeliness requirements of the Project Management Standard Operating
Procedure Manual and the Federal Transit Administration Project and Construction
Management Guidelines. The cause of the delay was due to the pandemic and the challenges itbrought to the inspector and HART did not complete a contract modification to address the lastdelay.
The sample was selected based on the project type, total cost, project expense, project startand completion dates. The total budget for the five projects reviewed totaled $6,301,875. and100 percent of the projects are within or under budget. Also, as noted in Figure 1-11 below,
four projects were on schedule, and one is behind scheduled as the contract has expired.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

Status

No. Projects

Percent

Projects ahead of schedule00%

Projects on schedule

4

80%

Projects behind schedule

1

20%

TOTAL

5

100%

No. Projects

Percent

Projects over budget00

Projects under budget

2

40%

Projects within budget

3

60%

StatusTOTAL

Explanation

COVID and other material delay

Explanation

100%

FIGURE 1-11: Summary of Transportation Projects with Performance Metric Calculations.
Source: the MJ Team developed chart based on the summary of projects reviewed below and supporting
documentation.

The MJ Team had interviews with project managers, project coordinator, and the director ofEnterprise Project Management, to discuss the process and support received. The HART teamhas an established manual and process, but the documentation the MJ Team received lacked
evidence of policy compliance for one project.
ANALYSIS
The audit procedures for the sample projects included reviewing project files from thedepartment including the invitation to bid, board agenda item, board approval documentation,
sealed bid tabulation, recommendation letter from Procurement, approved project
management plan, examples of periodic site inspections, and certificates of substantial andfinal completion. We conducted these reviews to ascertain whether the project was completed
well and for compliance with sections of the department’s Project Management Standard
Operating Procedures and with the Federal Transit Administration (FTA) Project andConstruction Management Guidelines.
Figure 1-12 presents a summary of the results indicating that the projects were of reasonable
cost in comparison to the selected vendor’s bid amount and completed well, within budget andif the project was ongoing, no issues were reported. The department’s estimate is compared tothe bid estimate at the beginning of the project and to final costs at the completion of the
project to determine if costs were reasonable.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

Project Cost
Reasonable?

Project
Completed
Well?

Project
Completed on
Time?

$165,000

Yes

Yes

Yes

Yes

Reviewed thefollowing:
Information
Sheet,
Resolution,Award Analysis
Form, Estimate,
Solicitation,
Notice toProceed,Acceptance
Certificate$2,475,296.00 $2,422,164.98

Yes

Yes

No

Yes

Contract
expired without
finalizing thecloseout
procedures.

$222,984.44

Yes

Yes

Yes

Yes

Reviewed thefollowing:
Resolution,
Notice of Award
Executive
Contract,Award Analysis
Form,
Engineer’s
Opinion of
Probable Cost,
Acceptance
Certificate

R2020- 21st
09-28 Avenue
CampusAngel Trax
CameraProject$1,900,000.00 $1,727,581.39

Yes

Yes

Yes

Yes

Reviewed thefollowing:
Resolution,
Notice of Award
Executive
Contract,Award Analysis
Form,
Engineer’s
Opinion of
Probable Cost,
Acceptance
Certificate

R2019- Marion
07-23 Transit
Center,Concrete
Rehab$1,560,000.00 $1,452,660.39

Yes

Yes

Yes

Yes

Reviewed thefollowing:
Resolution,
Notice of Award
Executive
Contract,Award Analysis
Form,
Engineer’s
Opinion of

Project
NumberProject
Name

202109-44

Northwest
Transfer
CenterOperator
Breakroom

R2020- TECO
01-01 Historic
Streetcar
Rehabilitat
ion
R2021- University
07-33 Area
TransitCenter
ADA
Sidewalk
Improvem
ents

Initial Contract
Awarded Amount$165,000$222,298.44

Expenditures
as of FY22

Project
Documentation
Completed
Examined/Analysis
within Budget?
Performed

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

Project
NumberProject
Name

Initial Contract
Awarded Amount

Expenditures
as of FY22

Project Cost
Reasonable?

Project
Completed
Well?

Project
Completed onTime?

Project
Documentation
Completed
Examined/Analysis
within Budget?
Performed

Probable Cost,
Acceptance
Certificate

FIGURE 1-12: HART Summary of Capital Development Projects Reviewed.
Source: HART.



The review of the files indicated that: Project costs were within budget, for reasonable
costs, timely and completed well overall.

However, one project exceeded the contract date without a required contract
modification. The MJ Team discussed the requirement to ensure closeout procedures arefollowed and contract modifications completed in a timely manner. HART agreed that themodification should have been completed. Based on the results of the other four projects
tested, no further recommendation was made.

SUBTASK 1.7 – Determine whether HART has established written policies and procedures totake maximum advantage of competitive procurement, volume discounts, and special
pricing agreements.
OVERALL CONCLUSION
Overall, HART meets Subtask 1.7. To reach this conclusion, the MJ Team interviewed HART
program administrators and reviewed the following manual and regulations which aredescribed in the Analysis section below. Based on the review, HART has established written
policies and procedures to take maximum advantage of competitive procurement, volume
discounts, and special pricing agreements.
ANALYSIS
To address the requirements the MJ Team interviewed the director of Procurement &Contracts, and the manager of Procurement and reviewed the procurement manual andregulations, which are described below:2022-04 Procurement Manual; and

Project Management Office – Standards Operating Procedures (SOP)

2022-04 Procurement Manual
HART staff established the procurement manual currently used by the agency. The
procurement manual establishes detailed policies and procedures for competitive
procurements and discusses techniques for analyzing price and costs in procurement bids. The
manual also discusses how HART can participate in cooperative purchasing and/or joint

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

procurement agreements when it may be economically advantageous. The manual includes
twelve chapters of which the chapters relevant to the subtask are outlined in Figure 1-13.
Chapter

Topics1: General Provision

3: Source Selections
and Contract
Formations

This section establishes the criteria for the following:

The purpose of this Procurement Manual (this “Manual”) is to prescribe andpromulgate necessary rules, regulations, policies, and procedures related to the
procurement, management, control, contract administration, and disposal of
supplies, services and construction and to define the terms in and implement theprovisions of Chapter 163, Florida Statutes, and the Amendment andRestatement of the Charter of the Authority. To the extent required by law or
agreement, this Manual is also intended to be consistent with all applicable laws,
rules, and regulations of the United States Department of Transportation(“USDOT”), Federal Transit Administration (“FTA”), Florida Department ofTransportation (“FDOT”), State of Florida, and other applicable federal, state or
local laws, rules and regulations.



Scope of Section: This Section establishes the criteria for establishing
independent cost estimates and sets forth the pricing policies which areapplicable to contracts of any type and any price adjustments there under whencost or pricing data are required to be submitted. The provisions of this Section
requiring submission of cost or pricing data do not apply to a contract let bycompetitive sealed bidding (including multi-step bidding) or small purchases.
However, cost or pricing data may be required under a contract let bycompetitive sealed bidding when price adjustments are subsequently made insuch a contract.



Independent Cost Estimate: An Independent Cost Estimate (ICE) is a cost estimate
developed by the requisitioner, based on the requirements of the specifications
or statement of work and their historical experience, without the influence ofprospective offerors in developing the ICE. It is a “should cost” assessment, which
is used to support the Contracting Officer’s price or cost reasonablenessdetermination.

Price Analysis Techniques: Price analysis is used to determine if a price isreasonable and acceptable. It involves an evaluation of the prices for the same orsimilar items or services. Examples of price analysis criteria include but are notlimited to: (a) price submission of prospective bidders or offerors in the current
procurement; prior price quotations and contract prices charged by the bidder,offeror, or contractor for the same or similar items; prices published in catalogues
or price lists; prices available on the open market; and in-house estimates of cost.



Cost Analysis Techniques: Cost analysis includes the appropriate verification of
cost or pricing data and the use of this data to evaluate: specific elements ofcosts; the necessity for certain costs; the reasonableness of amounts estimatedfor the necessary costs; the reasonableness of allowances for contingencies; thebasis used for allocation of indirect costs; the appropriateness of allocations ofparticular indirect costs to the proposed contract; and the reasonableness of thetotal cost or price.

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Chapter

Topics4: Specifications



These policies set standards for the preparation, maintenance, and content ofspecifications for supplies, services, and construction required by the Authority.

The purpose of a specification is to serve as a basis for obtaining a supplies,
service, or construction adequate and suitable for the Authority's needs in a costeffective manner taking into account, to the extent practicable, the costs ofownership and operation as well as initial acquisition costs.

Contract Clauses. The Chief Executive Officer shall promulgate procedures
permitting or requiring the inclusion of clauses providing for adjustments inprices, time of performance, or other contract provisions as appropriate covering
the following subjects: the unilateral right of the Authority to order in writing:changes in the work within the scope of the contract; and

temporary stopping of the work or delaying performance; and variations
occurring between estimated quantities of work in a contract and actual
quantities.

7. Cost Principles



The cost principles and procedures contained in this Chapter shall be used todetermine the allowability of incurred costs for the purpose of reimbursing costs
under contract provisions which provide for the reimbursement of costs,
provided that if a written determination is approved by the Chief Executive
Officer, such cost principles may be modified by contract.

10: Intergovernmental
Relations

The Authority may participate in, sponsor, conduct, or administer a Cooperative
Purchasing agreement or Joint Procurement for the procurement of any supplies,
services, or construction with one or more public entities in accordance with anagreement entered into between the participants. Such Cooperative Purchasingor Joint Procurement may include, but is not limited to, joint or multi-party
contracts between participating entities and open-ended contracts madeavailable to participating parties.



All Cooperative Purchasing and Joint Procurement conducted under this Chapter
shall be through contracts awarded through full and open competition, including
use of source selection methods substantially equivalent to those specified in
Chapter 3 (Source Selection and Contract Formation) of this Manual.

It may be economically advantageous for the Authority to enter into a joint
procurement with others that have similar needs. The public entity responsible
for undertaking the joint procurement may, upon contract award, assign to theother participants responsibilities for administering those parts of the contractaffecting their property or services. Participation in a joint procurement,
however, does not relieve the Authority from the requirements andresponsibilities it would have if it were procuring the property or services itself,
and does not relinquish responsibility for the actions of other participants merely
because the primary administrative responsibility for a particular action resides
in an entity other than itself.

6: Modifications andTerminations ofContract Supplies andServices

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Chapter

Topics11: DBE and SBE
Initiatives

It is the policy of the Authority that disadvantaged and small businesses have theopportunity to compete for and participate in the performance of contracts or in
the purchase of supplies, services and construction procured by the Authority. In
addition, contractors performing work for the Authority shall ensure that thesebusiness concerns have the opportunity to participate in the performance ofcontracts without discrimination on the basis of race, color, national origin or sex.

FIGURE 1-13: Contents of the HART Procurement Manual, 2022-4.
Source: Hart Procurement Manual.

In addition, the Procurement Manual outlines steps for conducting invitations for bids, multistep sealed bidding, proposals, small purchases, and other procurement types. HART Legal
Services administrators and Procurement staff stated the Procurement Manual is consistent
with the federal procurement regulations and Florida law.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 2
FINDING SUMMARY
THE STRUCTURE OR DESIGN OF THE PROGRAM TO ACCOMPLISH ITSGOALS AND OBJECTIVES.

Overall, Hillsborough Transit Authority (HART) meets Research Task 2.
HART maintains an organizational structure that has clearly defined units, minimizes
overlapping functions, and has no excessive administrative layers. The current turnover rate
for non-bargaining positions (non-union) is 28% and the vacancy rate is 20%, which is highbased on human resources best management practices. The employees covered under thecollective bargaining agreement (union) make up nearly 83% of the current workforce at
HART. As of July 2022, there are currently 37 vacant bus operator roles and the turnoverrate based on a rolling 12-month period (July 1, 2021, through June 30, 2022) is at 20%.
Strategies are underway to focus recruiting efforts on positions that are critical to providing
and supporting the continuation of services to the community and business units, such as
bus drivers. To address high turnover and vacancy rates, HART should continue to evaluate
salary and wage rates to ensure they are competitive and refine recruitment and retention
strategies and consider establishing goals to lower turnover and vacancy rates for all nonbargaining and collective bargaining employees to the suggested guideline of 10%.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 2.1 – Review program organizational structure to ensure the program has clearly
defined units, minimizes overlapping functions and excessive administrative layers, and haslines of authority that minimize administrative costs.
OVERALL CONCLUSION
Subtask 2.1 is met overall. To reach this conclusion, the MJ Team assessed HART’s programorganizational structure to ensure it has clearly defined units that minimize overlapping
functions, has lines of authority that minimize administrative costs, and no excessive
administrative layers.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the following positions:

Chief Financial Officer

Chief Customer Experience Officer

Chief of Maintenance & TransportationDirector of Transportation, Bus Operations



Director of Streetcar Operations

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Director of Enterprise, Project Management

Project Manager III, Enterprise Project Management



Chief Delivery Officer, Capital Development



Chief Strategy Officer, Strategy

Director of ProcurementDirector of Facilities MaintenanceDirector of Safety & Security

Director of Human Resources, Human Resources

The MJ Team also reviewed the organizational charts for Transit Administration at theexecutive level and Maintenance & Transportation Operations.
Key Personnel Primary Job Functions and Managerial Span of Control
The MJ Team also compared the recommended span of control ratio for higher-level director
positions using Society of Human Resource Management guidelines (SHRM). The recommended
span of control ratio for higher-level directors and managers is between 1:2 and 1:9 or slightly
higher. The span of control ratio for lower-level managers and supervisors is 1:15 to 1:20.
Several factors influence span of control guidelines, as described below:

Organizational size. Large departments tend have a narrow span of control, whereas
smaller departments often have a wider span of control. This difference is usually due tothe costs involved with more managers and the financial resources available to anorganization.



Workforce skill level. The complexity or simplicity of the tasks performed by theemployees will affect the number of desirable direct reports. Generally, routine tasks
involving repetition will require less supervisory control of a manager, allowing a wider
span of control, whereas complex tasks or dynamic workplace conditions may be best
suited for a narrower span of control, where managers can provide more individualized
attention.

Director’s and Manager's responsibilities. Departments and organizational units’
expectations allow may managers to be effective with the number of direct reports they
have, especially related to individual responsibilities, departmental planning, andtraining. For example, executives often have fewer direct reports than other managers in
the organization.

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Organizational Structures
Figure 2-1 depicts HART’s Transit Administration executive and director-level organizational
structure.

FIGURE 2-1: HART’s Transit Administration executive and director-level organizational structure.
Source: HART.

A summary of Transit Administration’s executive and director-level primary job functions alongwith their organizational span of control (ratio of staff that they directly oversee) are shown in
Figure 2-2.
Figure 2-2 also shows that the SHRM recommended span of control ratio for executive andhigher-level directors is between 1:2 and 1:9 and all the HART’s executive-level positions thatare critical to the surtax fall within that guideline.

Position Title
Chief Executive Officer,
Executive
Tenure with HART:
1.5 years
Tenure in Current Role:
1.5 years

Major Position Responsibilities Related
to the Surtax Program Areas

Span ofControl

Plans, administers, directs, oversees, and evaluates theactivities and operations of Hillsborough Transit Authority
including the Bus, Rail, administrative Departments/Offices.
Establishes and maintains fiduciary responsibility for HART and
its budget.
Develops programs to address and accommodate the diverse
ridership needs of the service area community.

1:6

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITPosition Title
Chief Financial Officer

Tenure with HART:
1.2 years

Tenure in Current Role:
1.2 years

Director of Financial
Operations, Accounting
Tenure with HART:
10 months
Tenure in Current Role:
10 months
Director of Procurement &Contracts
Tenure with HART:
17 years









Tenure in Current Role:
8 months

Chief Customer Experience
Officer
Tenure with HART:
1.5 years
Tenure in Current Role:
1.5 years

Director of Safety & SecurityTenure with HART:
18 months

Tenure in Current Role:
18 months

Major Position Responsibilities Related
to the Surtax Program Areas

Span ofControl

Develops, manages, supports, and guides the fiscal
sustainability and strategy efforts of the organization.
Manages the agency’s finances to deliver initiatives andprojects that have impact on the region’s mobility andeconomic impact.
Provides CEO timely financial strategic advice based on changes
in the financial environment to implement effective strategies
to ensure sound fiscal management.

1:4

Directs and co-ordinates all accounting and finance functions of
the Agency.
Oversees all financial reporting which includes monthly andexternal audit and ACFR preparation.
Assists in annual budget process and all other audits as needed.

1:4

Conducts and administers procurements.
Conducts negotiations, PO issuance, contract awards andcontract kickoff meetings.
Manages contract administration from inception through final
closeout, which includes Monitors the contractor activities toensure compliance with the provisions of the contract;approves payments; contract interpretation; resolution of
disputes; modifications and change-order actions as necessary.
Ensures that all procurements are conducted in accordancewith Federal, State and HART’s Procurement Manual
guidelines.

1:5

Drives continuous improvement of service levels and increasecustomer satisfaction through measuring and observing
customer usage and satisfaction.
Leads and develops a diverse, cross-functional team as they
oversee and coordinate with other departments on systems,
processes, communications, and partnerships to enable HARTto deliver on growth expectations.
Leverages cross-functional relationships to maintain andenhance customer confidence in HART.

1:3

Acts as gatekeeper for the SOP development and review of theapproval process.
Serves as point of contact for the Federal Transit Administration
regarding safety & Security, Florida Department oftransportation regarding safety & Security.
Collects all safety and security data including key performance
Indicators (KPI) for these areas
Manages all Safety & Security aspects of projects.
Provides direct oversight for safety and security compliance.

1:2

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITPosition Title
Chief of Maintenance &Transportation



Tenure with HART:
3.5 years
Tenure in Current Role:
1 yearDirector of Facilities
MaintenanceTenure with HART:
12 years

Tenure in Current Role:
8 months

Chief Delivery Officer, Capital
Development
Tenure with HART:
1.5 months

Tenure in Current Role:
1.5 months


Director of Digital Solutions



Tenure with HART:
7 years

Major Position Responsibilities Related
to the Surtax Program Areas

Span ofControlWorks under the authority granted by the Chief Executive
Officer to lead, manage, and direct the Hillsborough Transit
Authority’s, core business in Fixed Route Bus & Paratransit
Operations, Streetcar Operations, and Fleet & Facilities
Maintenance.
Develops annual department budget and ensures compliancewith budget targets. Manages alignment between budgets.
Provides direct oversight for the management of all Authority’s
fleet and facilities assets.

1:3

Identifies equipment needs, creates a statement of work andidentifies funding source for Capital projects and equipment at
all transit facilities.
Manages projects from kickoff to completion within thefacilities department for new equipment installations or repairs
and modifications to existing equipment.
On call 24/7 to respond to any facility emergency to trouble
shoot and determine corrective action plan for the mostefficient resolution to support operations.

1:4

Oversees Capital Projects, Program Management, Digital
Solutions, and Planning & Scheduling
Involves other departments, such as operations, maintenance,
finance, procurement, and safety throughout all phases ofplanning and project delivery to ensure alignment withorganizational goals, obtain critical insights and ideas, andfoster more seamless transition of projects from planning andconstruction to implementation.
Builds relationships among key internal and external
stakeholders to develop mid and long-range programs designed
to improve transit service and build necessary infrastructureand facilities in accordance with customer and community
priorities.

1:3

Ensures that all IT procurements follow HART’s supported
infrastructure and Cyber Security standards.
Identifies IT infrastructure needs and resources, based theagency’s departments future growth.

1:7

Develops and recommends the Agency’s strategic and longrange goals.
Monitors and evaluates results of existing plans to ensure
growth and operational effectiveness and adjusts as necessary.
Oversees day-to-day operations, including human resources,
and legal.

1:1

Tenure in Current Role:
5 years
Chief Strategy Officer,
Strategy
Tenure with HART:
1 monthTenure in Current Role:
1 month

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITPosition Title
Director of Human Resources

Tenure with HART:
5 months

Tenure in Current Role:
5 months

Director of Legal Services,
Legal Services

Tenure with HART:
5 months
Tenure in Current Role:
3 weeks
Director of Capital
Development, ProjectManagement






Tenure with HART:
10 years

Major Position Responsibilities Related
to the Surtax Program Areas

Span ofControl

Directs and manages the human resources operations andprograms for HART.
Provides recommendations, including structure and resources,
for the development of department strategic work plans.
Develops, administers, maintains, and oversees thedepartment’s annual budget and makes recommendations,forecasts for future funds needed for staffing, equipment,materials, and supplies; reviews and approves department’s
expenditures and implements adjustments when needed.
Reviews, develops, recommends, and administers costefficient, appropriate, and competitive benefits programs for
the Agency.

1:5

Provides legal support for all departments in the Agency.
Leads analysis of proposed legislative actions to determines
potential impact on the Agency. Collaborates with seniorleadership in the establishment of Agency strategies, polices,and plans, to ensure they align with government law,regulations, and standards.
Reviews and authorize legal compliance for all Agency funding.

1:7

Delivers the Capital Projects as identified in the Surtax program.
Provides monthly detailed, accurate reporting as required.
Ensures project controls are established and followed for strict
adherence to project scope, budget, schedule, and quality.

1:6

Directs Fleet Maintenance, and Technical Services
Managers. Provides direction to managers and other direct
reports on both short- and long-range priorities and evaluates
job performance.
Directs the fleet maintenance operations, safety and efficiencyof all personnel, and coordination with outside supplier,vendors, and consultants.
Assists the Chief of Maintenance & Transportation with
developing and managing the Maintenance operational
budget, capital budget, key policies, and initiatives.
Establishes procedures, programs, and activities to execute andaccomplish goals and policies set by the Chief of Maintenance& Transportation and the Authority's Board of Directors; setspriorities within the departments.

1:4

Tenure in Current Role:
5 years
Director of Fleet Maintenance,
Maintenance & Facilities
Tenure with HART:
3.5 years
Tenure in Current Role:
3.5 years









FIGURE 2-2: HART’s Transit Administration executive and director-level primary job functions critical to theadministration of the surtax funds.
Source: HART.

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Figure 2-3 depicts HART’s Maintenance & Transportation organizational structure, which is also
referred to as Transit Operations.

FIGURE 2-3: HART’s Maintenance & Transportation organizational structure.
Source: HART.

A summary of the primary job functions along with the organizational span of control (ratio ofstaff that they directly oversee) are shown in Figure 2-4 for HART’s Maintenance &Transportation key staff who will work closely with the surtax related functions.
Figure 2-4 shows that the (SHRM) recommended span of control ratio for higher-level directors
is between 1:2 and 1:9 and all the HART’s Maintenance & Transportation key positions that are
critical to the Surtax fall within that guideline.

Position Title
Director of Transportation,
Bus Operations
Tenure with HART:
7 months
Tenure in Current Role:
7 months

Major Position Responsibilities Related
to the Surtax Program Areas

Span ofControl

Provides leadership for the Transportation Department (520
employees) by maintaining authority over financial, statistical,
and operational requirements within Bus, Dispatch, and Road
Supervisory bargaining unit classifications.
Develops and manages the transportation operational budget,
capital budget, key policies, and initiatives for theTransportation Department.
Prepares statistics and reports on key performance indicatorsand other transportation operations, variances, and staffing
data.

1:5

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Major Position Responsibilities Related
to the Surtax Program Areas

Span ofControl

Analyzes bus routes and bus schedules.
Prepares bus route schedules for customers published on thewebsite and on buses.
Provides bus routes and schedules for bus drivers.
Develops daily reports of bus operations, which shows the listof routes operated.
Develops paysheets for drivers (the time the buses leave the bus
garage and return to the bus garage) that determines how
drivers are paid.
Analyzes on-time performance and customer comments andwork closely with planners to make bus route changes, asnecessary.

1:5

Oversees all operational areas of the Streetcar System,
including long term planning, and special events.
Directs all maintenance functions for the system, including
preventative maintenance and identifying long term capitalneeds for the vehicles and right of way.
Serves as a subject matter expert for the current planned
expansion of the system for the Agency.

1:1

Position Title
Director of SchedulingServices (TBD)
Tenure with HART:
vacantTenure in Current Role:vacant









Director of Streetcar
Operations
Tenure with HART:
5 years
Tenure in Current Role:
5 years

FIGURE 2-4: HART’s Maintenance & Transportation primary job functions critical to the administration of surtax thefunds.
Source: HART.

SUBTASK 2.2 – Assess the reasonableness of current program staffing levels given the natureof the services provided and program workload.
OVERALL CONCLUSION
Overall, HART partially meets subtask 2.2 because of high turnover and vacancy rates. To cometo this conclusion, the MJ Team reviewed turnover, vacancy, and workload information
provided by HART for both non-bargaining (non-union) and collective bargaining (union)
employees. We determined that HART has systems in place to monitor turnover, vacancies, andworkload for certain employee position titles. However, turnover and vacancy rates are higher
than the suggested guideline of 10% recommended by nationally recognized human resource
professional management organizations.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the following HART
leadership positions:

Chief Delivery Officer, Capital Development

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

Director of Streetcar Operations



Director of Enterprise, Project Management

Project Manager III, Enterprise Project Management



Chief Strategy Officer, Strategy

Director of Human Resources

Additionally, to address this subtask, the MJ Team reviewed and evaluated the following
documents:
Workload, Vacancy, and Turnover dataCollective bargaining agreement



HART Human Resources Department Recruitment and Retention Strategies

Vacancy and Turnover/Non-Bargaining (Non-Union) Agreement Employees
The HART leadership reported to the MJ Team that the average turnover rate across allindustries in the US for 2021 was 47.2%, as provided by the Bureau of Labor Statistics.
According to this same source, the transportation industry experienced an average turnover of
54.5% as of 2021. The MJ Team believes these statistics are not directly comparable to HART
because they are not limited to public bus transit. These statistics encompass theTransportation and Warehousing sector which includes industries providing transportation ofpassengers and cargo, warehousing and storage for goods, and scenic/sightseeing
transportation (mainly tourism which had exceptionally high turnover and vacancy rates
because of the COVID-19 pandemic).
HART leadership also reported that because of unprecedented turnover and given the current
labor climate over the last two years, the agency is re-evaluating processes to address turnoverand vacancies and has not finalized targeted turnover or vacancy rate goals at this time.
Hiring new employees with the appropriate experiences and qualifications is essential to thecontinued success and profitability and/or financial sustainability of nearly every U.S. employer.
Employing a targeted turnover and vacancy rate guideline of 10% regardless of the industry
generally has a positive impact on hiring and recruitment functions. (The 10% targeted
guideline was found in HR Morning-HR news and Insights and on various other web-based blogs
and websites and is not specific to the transit industry). Accordingly, these factors should beconsidered.


It takes 36 to 42 days to fill an average position in the United States.
It can cost up to 40% of an employee’s base salary in administrative time to recruit, hire,
and train a new employee with benefits.

In the case of bus operations, driver and safety training is highly specialized and as
turnover and vacancy rates reach higher levels the agency may have to require
involuntary overtime which increases labor costs. Moreover, if involuntary overtime
reaches excessive levels, it may result in lower employee morale for this category of

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

employees. Additionally, higher turnover rates for bus drivers may result in the agency
having to alter routes and schedules.


On average, it can take up to 12 weeks for a new hire to become fully productive at work.

Vacancy and Turnover Rates/Collective Bargaining (Union) Agreement Employees
Employees covered under the collective bargaining agreement primarily include bus operators,
mechanics, maintenance workers, fleet custodians, service attendance, and maintenancesupervisors. These employees make up nearly 83% of the current workforce at HART and are
represented by two unions, Amalgamated Transit Union (ATU) and Teamsters.
Data provided by HART shows that the vacancy rate for employees covered under the collective
bargaining agreement is based on a rolling 12-month period and was at 20%, as of June 30,
2022. The primary driver of HART’s vacancies for employees covered under the collective
bargaining agreement was attributable to 37 vacant bus operator positions as of that samedate.
Workload/Non-Bargaining and Collective Bargaining
HART provided two examples of how it uses workload staffing guidelines to determine thenumber of staff needed. One example was provided for Human Resources Department staff,
which are non-bargaining employees, and another example was provided for Transportation
Operations employees, which are covered under the collective bargaining agreement.
Employees are assigned to the Human Resources Department using the recommended staffing
ratio from SHRM, which is the ratio of one Human Resources staff member for every 100
employees. The staffing ratio is calculated by dividing the number of full-time equivalent
Human Resources Department employees by the total number of full-time equivalent
employees as a baseline. Factors that affect this number are determined by the complexity ofprocess (manual vs. automated) relative to data maintenance, employee onboarding andprocessing, and associated compliance activities for a Transit agency. For HART, this current
ratio is determined to be 1.2:100 for Human Resource Department personnel to staff.
Transportation Operations employees’ workload requirements are determined by a schedule ofbuses that will actually be operated or in-service over a certain period of time and/or crewscheduling (run-cut), collective bargaining agreement factors, (e.g., the number of drivers
required to operate specific bus routes) and unplanned absenteeism projections. This involves
the following: The base transit run-cut determines the minimum number of bus operators needed forservice, which considers revenue hours (the time that the bus is collecting fares forpassenger service), deadhead hours (any time the bus is not in revenue service), andplanned overtime.


To ensure all service is operated when bus drivers are on vacation, sick, or other types ofplanned or unplanned absences, extra bus driver assignments are calculated to accountfor planned and unplanned call outs.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

Employees covered under the collective bargaining agreement impacts to the workload
varies with absenteeism. Vacancies and callouts are covered by overtime. HART has
established an employee absenteeism incentive program that drives positive
performance as it relates to attendance. HART continues to conduct hiring events to
attract new candidates which addresses the turnover issues.

Excessive absenteeism related to employees covered under the collective bargaining
agreement has the potential to negatively impact workload. Both absenteeism (callouts) andvacancies are covered by overtime. HART has established an employee absenteeism incentive
program that drives positive performance as it relates to positive attendance rates for
employees.
Surtax Workload Impact
HART leadership provided documentation that indicated the agency can effectively manage
Transit Administration and Transportation Operations (Bus, Streetcar, Maintenance, andScheduling) if the surtax passes. To ensure staffing is adequate, the following strategies havebeen or will be implemented:









Any staff additions for Transit Administration and/or Maintenance & Transportation
Operations) will be based on process improvement efforts and/or any compliancemandates that would require the addition of staff to manage a specific program thatwould otherwise not be able to be absorbed by a current team or staff member due tocomplexity or compliance requirements.
For Maintenance & Transportation Operations (Bus, Streetcar, Maintenance, andScheduling), HART will make additional overtime available when staff shortages arise.
HART leadership has been continuously recruiting, hiring, and training bus operators andmechanics, in particular. HART held a hiring event on June 11, 2022, with over 80
attendees and over 50 offers were made. The next hiring event is scheduled for
September 2022 when there will be another push to hire to fill vacancies for bus operatorsand maintenance positions.
HART partnered with Hillsborough County, local radio stations, and other internal/
external advertisements to recruit. HART’s Human Resources Department is also involved
in local hiring events focused on advertising the agency. Hiring information cards werecreated to hand out to the community to help direct candidates to the Human Resources
Department webpage.
Pay increases of at least 3% were established for all collective bargaining unit employees
as of June 21, 2022. The pay increases will allow HART to be more competitive in themarketplace in hopes of better recruitment and retention of employees and potential
candidates.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

HART leadership has increased its focus on employee engagement to gain a morecohesive environment that involves 360 feedbacks for both Transit Administration andTransportation Operations employees. This is a process in which employees receive
feedback from the people who work around them. This includes the employee's manager,
peers, and direct reports. HART indicated to the MJ Team that this practice has fosteredan improved work environment overall.

Recommendation 2.2 – Continue to evaluate salary and wage rates to ensure they arecompetitive and refine recruitment and retention strategies and consider establishing goals
to lower turnover and vacancy rates for all non-bargaining and collective bargaining
employees to the suggested guideline of 10%.

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 3
FINDING SUMMARY
ALTERNATIVE METHODS OF PROVIDING SERVICES OR PRODUCTS.

Overall, HART meets Research Task 3.
HART program administrators have formally evaluated existing in-house services andactivities to assess the feasibility of alternative methods of providing services. An example
described by HART staff was the decision to contract out payroll services rather than using
in-house personnel. This decision saved approximately $500,000 annually and reduced therisk of non-compliance. Additionally, program administrators have made changes to service
delivery methods when their evaluations/ assessments found that such changes would
reduce program cost without significantly affecting the quality of services. The example ofthis approach is the review of the consultant contract for the preparation of the Transit
Development Plan. Upon review, HART administrators determined in-house personnel
would be able to perform certain tasks better and more cost effectively than having theconsultant conduct such work. HART has a long tradition of working with its peers in theTampa Bay area. HART has taken the lead in coordinating with Tampa Bay peers in procuringa regionwide fare system. The Flamingo Pass is in the final stages of implementation and willallow riders to use the same fare card throughout Tampa Bay. HART has also been the leadagency in the common fuel procurement contract, which is now entering its third option year
for the current contract.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 3.1 – Determine whether program administrators have formally evaluated existing
in-house services and activities to assess the feasibility of alternative methods of providing
services, such as outside contracting and privatization, and determine the reasonableness of
their conclusions.
OVERALL CONCLUSION
Overall, HART meets subtask 3.1. To come to this conclusion, the MJ Team interviewed
program administrators and reviewed the award of a contract for the provision of payroll
services instead of continuing this service with in-house personnel.
ANALYSIS
HART uses its Board-approved Procurement policies, Section 10-102, which allows for thecontracting of services. The Authority may participate in, sponsor, conduct, or administer a
Cooperative Purchasing agreement or Joint Procurement for the procurement of any supplies,
services, or construction with one or more public entities in accordance with an agreement

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT

entered into between the participants. Such Cooperative Purchasing or Joint Procurement may
include, but is not limited to, joint or multiparty contracts between participating entities andopen-ended contracts made available to participating parties.
In Fall 2017, HART explored contracting out payroll services. ADP, LLC presented their suite ofsolutions to select HART executives and staff. The staff used their presentation along with athird-party analytics firm, Strategic Business Solutions, Inc. (SBSI), to make a sound businessdecision. Moving to the ADP, LLC solution was projected to save HART approximately $500,000
in direct and indirect costs annually after project implementation. There was also an element ofrisk reduction in terms of compliance and error rate that translate into potential cost avoidancein millions of dollars. The ADP, LLC solution proved that it could potentially save millions ofdollars over the life of
the contract. Thisevaluation is provided
in the staff report from
September 25, 2017,shown in Figure 3-1.
The contract wasawarded using thecontract vehicle The
Cooperative Purchasing
Network Contract#R151901.
The contract for
managed business/
operational services
and solutions wasawarded to ADP, LLC
for a base term
beginning in FY 2018 ofa three-year fixed pricewith two one-year
options in the amountof $252,500 for project
implementation andoperating costs of$1,820,160 (five years),
for a total not-toexceed amount of$2,072,660.
FIGURE 3-1: Staff report to Board recommending the award of the payroll contract to ADP, LLC.
Source: HART.

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITSUBTASK 3.2 – Determine whether program administrators have assessed any contracted
and/or privatized services to verify effectiveness and cost savings achieved and determine
the reasonableness of their conclusions.
SUBTASK 3.3 – Determine whether program administrators have made changes to service
delivery methods when their evaluations/assessments found that such changes would
reduce program cost without significantly affecting the quality of services.
OVERALL CONCLUSION
Overall, HART meets Subtask 3.2 and Subtask 3.3. These subtasks and the analysis are closelyrelated and the findings are presented together. To come to this conclusion, the MJ Team
interviewed program administrators and reviewed the award of the contract to prepare theTransit Development Plan. This plan was originally contracted to an outside consulting firm;
upon assessment of the contract, HART determined that it could achieve costs savings bymaking changes to the contract to reduce the program cost without significantly affecting thequality of service.
ANALYSIS
HART’s Chief Delivery Officer, Capital Development, is a recent hire, having begun work in 2022.
Upon arriving at HART, he reassessed the contract award for the preparation of the Transit
Development Plan (TDP). This reassessment determined that HART’s existing staff had therequisite skill set and availability to bring some tasks assigned to the consultant back in-house.
This scope change was negotiated with the consultant and resulted in several tasks beingtransferred to HART staff, resulting in a reduction in the project cost of $38,446, or 21.5%.
Figure 3-2 shows the spreadsheet that compares the original budget with the revised budget
after transferring tasks to HART staff.

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITTask Description

Task 1

Project Management

1.1
1.2
1.3

Kick-off Meeting
Project Management Plan
Project Administration

Principal

Project
Manager

SeniorPlannerEngineerInternPlanner

Admin
Asst

Project
Manager$276.70$217.12$193.01$118.18$95.06$73.51$177.30

6
2
2
2

20
2
2
16

34
4
6
24

12

12
4
8

11
2
1
8

10
2

9

13

50

40

78

24

1

2

8

8

16

1
1
4
2

4
2
2
1
2

12
6
8
8
8

2
8
8
2
12

4
1
1
2

6
2
2
2

20
8
6
6

5
1
1
1
2

7
2
1
1
1
2

10
2
2
2
2
2

SeniorOutreach
OutreachSpecialist
Specialist$139.00$85.11

Task Totals
Hours

Fee

0

0

105
16
23
66

$17,705$2,642$3,452$11,611

38

76

102

2

4

10

12

430
0
63

$54,852$0$7,989

4
16
10
16
16

2
12
2
4
2

8
6
6
8
6

16
12
10
20
8

24
16
12
28
10

73
79
62
87
66

$9,910$9,311$8,603$10,394$8,645

34
16
12
6

80
40
24
16

10
4
4
2

0

0

0

154
71
49
34

$18,628$8,242$5,863$4,523

26
4
4
6
6
6

46
4
16
10
10
6

74
6
24
16
16
12

9
1
2
2
2
2

0

0

0

167
18
47
36
36
30

$21,056$2,600$5,309$4,502$4,502$4,143

16
2
4
4
4
2

42
8
8
8
12
6

46
12
8
8
12
6

88
20
16
16
24
12

10
4
1
1
2
2

0

0

0

212
48
39
39
56
30

$28,885$6,145$5,506$5,506$7,585$4,143

4
1
1
2

5
1
2
2

14
4
4
6

10
4

4
1
1
2

0

0

0

6

16
4
2
10

53
15
10
28

$7,891$2,192$1,747$3,952

5
1
2
2

10
4
4
2

26
10
10
6

30
12
12
6

48
16
20
12

6
2
2
2

0

0

0

125
45
50
30

$17,122$6,161$6,818$4,143

2
1
1

4
2
2

24
20
4

40
32
8

108
100
8

2

0

0

0

2

180
155
25

$21,195$17,859$3,336

4
2
1
1

8
4
2
2

22
10
6
6

34
24
4
6

44
32
4
8

4
1
1
2

0

0

0

116
73
18
25

$15,585$9,304$2,795$3,486

4
8

8

Task 2a Public Involvement
2a.1
2a.2
2a.3

2a.4

Public Involvement Plan
Summary of Previous HART Outreach Activities
New Public Involvement Activities (listed below)
Stakeholder Interviews (up to 15)
Public Online Survey
Discussion Workshops (up to 2)
Transit/Transfer Center Drop-Ins (up to 4)
Public Involvement Chapter Document

Task 2b Baseline Conditions Assessment
2b.1
2b.2
2b.3

Existing Conditions
Transit Market Assessment
Baseline Conditions Chapter Document

Task 2c Existing Services & Performance Evaluation
2c.1
2c.2
2c.3
2c.4
2c.5

Existing System Profile & Performance (HART staff)
Existing Transportation Services Inventory
Trend Analysis of Existing Transit Service
Peer Review of Existing Transit Service
Existing Svcs. & Perf. Evaluation Chapter Document

Task 2d Situation Appraisal
2d.1
2d.2
2d.3
2d.4
2d.5

Local Plans & Documents Review
Transit Information Technology Assessment
Agency Organizational Assessment
Situational Appraisal Preparation
Situational Appraisal Chapter Document

Task 2e Goals & Objectives (mostly HART staff)
2e.1
2e.2
2e.3

Situation Appraisal & Public Input Integration
Draft Goals & Objectives Development
Goals & Objectives Chapter Document

Task 2f

Mobility Needs & Analysis of Alternatives

2f.1
2f.2
2f.3

Transit Needs Development & Assessment
Alternatives Identification & Evaluation
Mobility Needs & Analysis of Alts. Chapter Document

Task 2g Transit Demand Assessment
2g.1
2g.2

Transit Services Demand Estimation
Transit Demand Chapter Document

Task 2h FY 2023-2032 Ten-Year Implementation Program
2h.1
2h.2
2h.3

Ten-Year Implementation Plan
Ten-Year Financial Plan (HART staff)
Performance Monitoring

Task 3Document Production & Delivery
8
4
2
2

20
8
8
4

16
8
4
4

32
16
8
8

24
2
10
12

0

0

Draft TDP Report
Draft TDP Executive Summary
Final TDP Documents

6
2
2
2

0

3.1
3.2
3.3

106
40
34
32

$13,954$5,579$4,500$3,875

Total Direct Labor (all tasks, all consultants)

55

97

278

308

580

104

48

76

102

1,648

$216,873

226$27,756

Sub-Consultants
Valerin - Public Outreach and Engagement (DBE)

Total Fee
DBE Budget (Valerin)
Percent DBE$216,873$27,756
12.80%FIGURE 3-2: Spreadsheet comparison showing savings from transferring tasks to HART staff.
Source: HART’s Chief Delivery Officer, Capital Development.

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITSUBTASK 3.4 – Identify possible opportunities for alternative service delivery methods thathave the potential to reduce program costs without significantly affecting the quality ofservices, based on a review of similar programs in peer entities (e.g., other counties, etc.).
OVERALL CONCLUSION
Overall, HART meets subtask 3.4. To come to this conclusion, the MJ Team interviewed
program administrators and reviewed the cooperative contracts HART entered into with its
peer agencies to develop a new regional fare instrument and joint fuel purchase.
ANALYSIS
HART has a long tradition of working with peer agencies in the Tampa Bay area to find creative
ways to implement cost-effective approaches to procure goods and services. Two examples ofthis were provided by HART staff – Flamingo Fares, a new regional fare card, and the
Cooperative Fuel Delivery contract.
Flamingo Fares
In November of 2012, HART convened a Regional Working Group consisting of transit agencies
and transit providers from Florida Department of Transportation (FDOT) District 7(Hillsborough, Pinellas, Pasco, Citrus and Hernando Counties) and District 1 (Sarasota, Polk, andManatee Counties). This group was convened to develop a regional approach to revenue
collection to, not only modernize the process of the collection of fixed-route fares, but alsoenhance the mobility of passengers between its respective jurisdictions.
This discussion continued for two years and during 2014, the Regional Working Group refined
the vision to accelerate the delivery of a Regional Smart Card and regional fares to customers
using a variety of modern channels including mobile payments and a robust third-party sales
network. The Regional Revenue Collection and Inter-Jurisdictional Mobility Project-Concept ofOperations report was issued on November 14, 2014.
The goal is to create an electronic fare payment infrastructure that will be deployedregionwide; using third-party produced and distributed prepaid cards and contactless devices
such as smart cards, credit and debit cards, RFID tags, secure bar codes and NFC devices. The
new state-of-the-art, integrated, electronic fare payment, distribution, collection andprocessing system will utilize best practices of modern technologies in the consumer and farepayment sectors, capable of interfacing with both bank and non-bank financial clearing systems
for transaction processing and settlement. Figure 3-3 shows the planned graphical look for the
new Flamingo cards.

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITIn 2016, the project moved into the
procurement phases, with design
work commencing. Implementation
began in 2017, with the initialonboard installations. Testing workand refinements continued in the next
few years, with the base system
accepted at the end of 2020. As of
July 16, 2022, the project information
sheet shows the project is 94%
complete and within budget.

FIGURE 3-3: Planned Flamingo Card.
Source: HART.

Figure 3-4 shows the tracking spreadsheet used to monitor project status.
REGIONAL INTER-JURISDICTIONAL MOBILITY PROJECT (Flamingo Fares)
UPDATE DATE:
Project Start Date:
Director & Project Manager:

2016-03-03

Project Completion Date:

Lynda Crescentini

Department:

2022-07-16

2022-12-01* Percent Complete - Value:

94%

Finance, Operations & PMO* Percent Complete - Schedule:

94%

Major Stakeholders: HART/PSTA/The Bus
Flamingo Fares is a regional electronic fare collection system that will allow interoperability within FDOT District 7 (Hillsborough, Pinellas, and Hernando), while providing a seamless common faremedia for its passengers throughout the Tampa Bay region. This common fare media will not only modernize the process of fare collection by allowing riders pay electronically, but also will enhance
the mobility of passengers between its respective jurisdictions by alleviating the need for customers to carry multiple fare medias with different county specific products on them. The Flamingo Fares
system will offer customers the ability to purchase a plastic, reloadable smart card that they can load money onto to pay their transit fare, and manage using an online account/mobile app.

Project Objective

Mobile App. Feature: Riders can simply tap their card or scan their app onto a validator every time they ride instead of having to carry a paper ticket or pass, or carry exact change. Customers can add
money to their Flamingo Fares card or app anywhere, anytime, and save money with pay-as-you-go passes day passes and monthly passes. Customers will also have the option of stored value loading.
Customers will be able to purchase a physical Flamingo Fares Card at transit centers and retail locations.
Expected Outcomes- Reduced costs associated with cash and coin handling and reconciliation, and sales and management of paper fare, and institutional accounts.
- Improved operational efficiencies, technology and modernization of on-board equipment, and transit center customer workstations.
- Improved service by reducing boarding times and fare evasion, gaining aggregate data, and improving inter-regional mobility.
- Increases options and convenience for customers to pay transit fare that result in increased ridership and more riders by choice.

FIGURE 3-4: Project spreadsheet tracking milestones and budget.
Source: HART.

Cooperative Fuel Contract
HART works with peer agencies to identify ways to control costs. For example, HART has been
the lead agency for cooperative diesel and unleaded fuel contracts for the past 13 years.
Participating agencies are:

HART as the lead agency

Hillsborough County; Polk County

City of St Petersburg; Pinellas Suncoast Transit Authority



Lakeland Area Mass Transit

The current contract was entered into in 2019 for a one-year term, with four one-year options.
The FY 23 contract renewal was exercised in July 2022.

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITA specific assessment of the savings was not provided, but the bulk purchase allows for
economies of scale. The contract price for 2023 varies depending upon vendor but the bulk
purchase allows the consortium to realize a price of $0.14-$0.15 over the OPIS (Oil Price
Information Service) price per diesel gallon for Transport Truck Delivery. This pricing advantage
allows the consortium to achieve a price per gallon at a small premium over the wholesale rack
rate, and lock in the rate for a year. Locking in the rate allows the participating agencies to havea known fuel cost during the contract year and isolates the agencies from price swings. During
periods of rising fuel costs, the savings during the year can be substantial.

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Final Report
HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 4
FINDING SUMMARYGOALS, OBJECTIVES, AND PERFORMANCE MEASURES USED BY THE
PROGRAM TO MONITOR AND REPORT PROGRAM ACCOMPLISHMENTS.

Overall, Hillsborough Transit Authority (HART) partially met this research objective.
Program goals and objectives for Transportation Operations and the Project Management
Office are included in the Success Plan and are clearly stated, measurable, and consistent
with HART’s Transit Development Plan (TDP) or strategic plan. However, documentation was
not provided to determine if goals and objectives can be achieved within budget. While
HART uses various performance measures which provide progress toward meeting program
goals and objectives, additional performance measures required in the TDP and Success Plan
are not used to evaluate program performance and the Success Plan’s Performance
Scorecard lacks updating since Fiscal Year 2020. HART should ensure that all required
performance measures are reported at least annually and document the required Capital
Development performance measures including completing projects within schedule andbudget. Internal controls such as policies and procedures provide reasonable assurance that
program goals and objectives will be met.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 4.1 – Review program goals and objectives to determine whether they are clearlystated, measurable, can be achieved within budget, and are consistent with HART’s strategic
plan.
OVERALL CONCLUSION
Overall, this subtask is partially met. Program goals and objectives for Transportation
Operations and Project Management Office are included in the Success Plan and are clearlystated, measurable, and consistent with HART’s strategic plan. However, documentation was
not provided to determine if goals and objectives can be achieved within budget. To address
the requirements of this subtask, the MJ Team interviewed senior management and reviewed
the goals and objectives maintained in HART’s Transit Development Plan and Success Plan.
ANALYSIS
Transit Development Plan Update (Strategic Plan)
A Transit Development Plan (TDP) is a multi-year financial and operating plan for a transit agency.
The Florida Department of Transportation (FDOT) requires public transit providers receiving Statefunding to develop and adopt a TDP as explained in Chapter 14-73.001, Florida Administrative
Code. All transit agencies are required to prepare a five-year major TDP and an annual update in

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the form of a progress report each year. The HART Board adopted the last major TDP update on
September 25, 2017. The plan established eight goals to focus the organization’s efforts:

Goal 1: Continue to Enhance the Financial Condition
OBJECTIVES:
 Manage system costs effectively
Regularly evaluate system/route productivity and implement route, area, and/or
system- based efficiency improvements



Seek additional funding for services and programs

Identify and evaluate other opportunities to enhance revenues

Incentivize private-sector and community transit investments

Goal 2: Improve Mobility and Accessibility
OBJECTIVES:
 Provide faster, more frequent services (bus every 10-15 minutes during peak travel
times) in areas with high existing ridership and higher population and employment
densities streamlining routes and facilities


Provide basic, low-frequency (bus every 30-60 minutes) transit service in areas of
low existing ridership and lower densityIncrease transit ridership by maximizing operational performance and efficiency

Participate in planning efforts evaluating strategies to serve a greater portion of theCounty’s mobility needs by focusing on high-capacity corridorsCoordinate with surrounding transit providers and regional agencies to address
customer needs and connectivity, in particular as part of the identified regional spineand gateway areasImprove access to employment centersComplete accessibility improvements at stops and facilities



Ensure that the service addresses the mobility needs of transit dependentpassengers



Coordinate with local jurisdictions, planning agencies and the development
community to encourage transit-supportive development patterns and investments

Connect transit services with mixed use centersSupport community initiatives that align affordable housing with transit service

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Goal 3: Enhance Customer Focus
OBJECTIVES:
 Continue to improve service reliability and on-time performance.
Expand fare payment options.



Enhance the user-friendliness of customer information and expand its availability
while ensuring that traditional modes of communication are not neglected.

Expand focus on customer service on all fronts (customer service center, buses, andtransit centers).



Expand the application of transit signal priority (TSP) to applicable corridors.



Seek funding to implement energy and environmental initiatives.

Goal 4: Develop Effective Partnerships
OBJECTIVES: Coordinate with other transit agencies and governmental agencies on consortium
purchases.
Pursue partnership opportunities with the business community, particularly withlarge employers and employment centers.



Coordinate with the City of Tampa in its pursuit of achieving a higher level of transit
service to at least 80% of homes and businesses in the city.



Coordinate with the City of Tampa in its pursuit of preserving and acquiring right-ofway for transit corridors.



Support transit projects that promote economic development and job creation.

Promote regional and local cooperation on transit issues and needs.

Goal 5: Deliver Capital Projects
OBJECTIVES:
 Prioritize multimodal accommodations when planning transit centers and ROW uses.
Ensure that fleet, facilities, and infrastructure are maintained in a good state of
repair.



Seek funding to implement energy and environmental initiatives.



Pursue the modernization of the TECO Streetcar service.

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Goal 6: Maximize the Safety and Security of Employees, Passengers and the Public
OBJECTIVES: Maintain an up-to-date and comprehensive System Safety Program Plan (SSPP).


Maintain an up-to-date and comprehensive System Security and Emergency
Preparedness Plan (SSEPP).

Reduce the number of accidents.

Continue to implement improvements at facilities and stops to enhance safety andsecurity throughout the system.

Use appropriate planning and design criteria to promote community cohesion andavoid or minimize negative impacts to residential neighborhoods.

Goal 7: Foster a Thriving Internal Environment
OBJECTIVES: Pursue the expansion of HART’s wellness program as well as partnerships within thecommunity to enhance HART’s brand as a healthy lifestyle choice.


Identify the means to ensure that HART staff remain engaged with the local
community on a regular basis.



Develop a model for local employers to use for educating and encouraging
employees on transit use and possible commuter benefits/incentives programs.

Goal 8: Embrace Innovative Practices and Systems
OBJECTIVES: Pursue the adoption of innovative technologies and innovations immediately andremain at the forefront of the adoption curve.


Invest to position HART as a pioneer of new technologies across the organization by
supporting technology-driven transit services such as HyperLINK and other novel
services.

Implement programs and technology to make the service more attractive and easier
to use.

HART’s Success Plan FY2021
HART’s Success Plan is comprised of three sections, each aligned with components of theperformance management process described below:
1. Definitions of Success, which includes outcomes that signal success for the fiscal year
ending September 30, 2021.
2. Performance Scorecard, a quarterly scorecard to monitor and report on how HART is
performing in efforts to achieve its outcomes.

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3. Work Plan, an actionable strategy tied to budget that enables HART teams to deliver
the outcomes.
The plan includes a performance scorecard that can be used to measure and monitor
performance at all levels of the organization. An important objective of the scorecard is toshare with employees and stakeholders how HART is performing each quarter of the year inachieving its goals and outcomes. The scorecard provides measures of performance in each of
HART’s four key areas of focus:
1. Customer Experience: Customer-centric initiatives, increasing customer satisfaction
2. Community Value: Community sentiment, partnerships
3. Employee Success: Organization realignment, engagement, talent development
4. Financial Performance: Financial sustainability, improving service productivity
Figure 4-1 presents the performance scorecard for the Customer Experience focus area.

FIGURE 4-1: HART developed a performance scorecard to assess program performance.
Source: HART Fiscal Year 2021 Success Plan.

Program Work Plans and Goals per Success Plan Align with TDPWith clarity of success outcomes and key areas of focus, specific tactics have been identified fororganizational alignment on activities to contribute to successful program outcomes. Tactics are
assigned an owner within the agency responsible for spearheading activities and driving the
project to completion. Several tactics outlined in each of the four key area work plans include
quarterly milestones detailed. These milestones help to keep the project on schedule andbudget.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITThe following Success Plan goals apply to the Customer Experience focus area for bus
operations, streetcar operations, paratransit operations, and capital project management. The
overall objective to achieve annual increases in customer satisfaction and department goals areclearly stated, measurable, and consistent with the TDP strategic goal #3 Enhance Customer
Focus.
1.1 Customer Experience: On-Time Performance – Bus Operations
Goal: Measure how closely routes operate to schedule to ensure customers arrived on time andare able to connect to other routes on time.
Goal: Buses will arrive at scheduled time points no more than 1 minute early or 5 minutes late
– 77% or better.


Track arrival times to schedules time points and evaluate factor affecting timely
arrivals.



Routes will be adjusted by mark-up as a result of on-time performance data.

Implement markup for appropriate route enhancements to improve on-time
performance.

Update and implement internal/external communication campaign.

Conduct bi-weekly markup review meetings.



Evaluate performance and establish goal for Fiscal Year 2022.

1.2 Customer Experience: On-Time Performance – Streetcar
Goal: Measure how closely service runs to schedule. Departures are considered on-time, if
made between 1 and 5 minutes after the scheduled departure times – 99% or better.


Track arrival times to scheduled time points and evaluate factors affecting timely
arrivals.



Evaluate streetcar schedules for better connectivity with HART fixed routeschedules.



Implement markup to enhance streetcar schedules if needed.



Evaluate performance to establish goal for Fiscal Year 2022.

1.3 Customer Experience: Paratransit Operations Productivity
Goal: Measure percentage of Mobility customer pick-ups made within the 30-0 minutes fromscheduled pick-up.
Operations and Service Development will conduct a quarterly report to establish the
On Time Performance of the Department. Through the use of the data collected fromthe onboard Mobile Data Terminals and the Trapeze software. Current On Time
Performance goal is 90%.

Once collected, analysis of the data and corrective measures established to improve
the performance, should actions be warranted.

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Analyze travel trainers’ campaign to develop strategies for Fiscal Year 2022.

1.4 Customer Experience: Project Management Office
Goal: Complete tactics/projects as submitted to the Independent Oversight Committee (IOC)pending transportation funding availability.
Planning & Design Support for Capital Projects: Project Management Office provides
architectural and engineering services.



Bus Transit Infrastructure Improvements: Project Management provides design services
bus bays, shelters and pad, sidewalk continuity, and drainage and survey support.



Farebox Technology Upgrades: This project will develop and implement acomprehensive and secured Farebox system.

As indicated in Figure 4-2, the goals in the Success Plan areas align with the goals in the Transit
Development Plan.
Goals Per Transit
Development Plan

Goals per Success Plan and Program Owners/LeadContinue to Enhance the
Financial Condition including
manage system costs effectively

Financial Performance: HART financial performance at the end of the year is
consistent with the Financial Plan and actual revenues.
 Implement a strategically-aligned budget, and report budget results(monthly and quarterly): Finance Engage in partnerships and sponsorships to increase non-traditional,
discretionary revenues: Government Relations
 Complete projects as submitted to the Independent Oversight Committee(including permanent fueling, vehicle repair and equipment programs,
maintenance software, and enterprise resource planning): PMO,
Maintenance, Service Development, Procurement

Improve Mobility andAccessibility including faster,
more frequent services

Deployment of Autonomous Mobility Service: Service Development
 On time Performance: Bus, Streetcar, Paratransit Operations

Enhance Customer Focus
including service reliability andon-time performance

Customer Experience: HART achieves annual increases in Customer
Satisfaction on a comprehensive basis.
 Deployment of Autonomous Mobility Service: Service Development
 On time Performance: Bus, Streetcar, Paratransit Operations
 Productivity - Paratransit
 Customer Concerns Response Time: All Departments
 Customer Satisfaction Survey: Paratransit
 Compressor Station/Equipment/Transit Center: Maintenance, ProjectManagement Office (PMO) Call Center Renovation/Transit Center: Operations-PMO, Maintenance Safety and Security Events: Safety
Bus Stops and Shelters Program/Electric Buses/Vehicle Sanitation:
Operations
 E-Fare Revenue Collection: Finance

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Goals Per Transit
Development Plan








Goals per Success Plan and Program Owners/LeadIntelligent Transportation System/Radio Communications: MaintenanceStreetcar Rehabilitation: Streetcar Operations
Right of Way Infrastructure Upgrades: Operations/PMO
Transit Asset Management (TAM) Policy: Maintenance
Vehicle Availability: Maintenance
Mean Distance Between Failure: Maintenance
Projects submitted to the Oversight Committee including Planning &Design Support for Capital Projects, Infrastructure Improvements,
Farebox and Vehicle Technology Improvements: Project Management
Office (PMO), Information Technology

Develop Effective Partnerships



Engage in partnerships and sponsorships to increase non-traditional,
discretionary revenues: Government Relations

Deliver Capital Projects
including infrastructure
maintained in a good state of
repair and modernization ofstreetcar serviceSupport for Capital Projects, Infrastructure Improvements, Farebox andVehicle Technology Improvements: Project Management Office (PMO),
Information Technology

Maximize the Safety andSecurity of Employees,
Passengers and the PublicEnhancement of Physical Security Infrastructure:
Communications & Marketing
Security Surveillance Systems on Facilities: Safety

Foster a Thriving Internal
Environment

Employee Success: HART achieves annual increases in Employee
Engagement levels.
 Critical Network Infrastructure Replacements and Software Upgrades:
Technology
 Employee Engagement: Communications & Marketing Enhancement of Physical Security Infrastructure: Operations,
Communications & Marketing Operator Control Center Remodel Project: Operations, Maintenance,
PMO Security Surveillance Systems on Facilities: Safety
 Professional Development: Human Resources
 Transit Supervisor Vehicle Computers Upgrade: Technology,
Maintenance Operations
 Projects as Submitted to the Independent Oversight Committee:
Maintenance, Technology
Community Value: HART achieves annual increases in customer satisfaction
on a comprehensive basis.
 Improve Customer Amenities: Operations, Safety, PMO
 CSX Facility Study: Service Development, PMO
 Increase Awards to Qualifying Disadvantaged/SBE Firms: Community
Engagement
 Tampa Arterial Corridor Study: Service Development, PMO
 TOD Pilot Plan: Service Development

Operations,

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Goals Per Transit
Development Plan

Embrace Innovative Practices
and Systems including newtechnologies to make service
more attractive and easier to
use.




Goals per Success Plan and Program Owners/Lead
Quarterly Covid Ridership Updates: Service Development
Projects submitted to the Independent Oversight Committee includingElectric Bus Infrastructure & Employee Parking Satellite Facility, Vehicle
Replacements, Facility and Fleet Storage Expansions: PMO and
Maintenance
Vehicle Technology Improvements: Project Management Office (PMO),
Information Technology
Transit Supervisor Vehicle Computers Upgrade: Technology,
Maintenance Operations

FIGURE 4-2: Examples of alignment of Success Plan operations’ goals with the Transit Development Plan.
Source: HART Fiscal Year 2021 Success Plan and Transit Development Plan.

Although program goals and objectives in the Success Plan align with the TDP (Figure 4-2)
documentation was not provided to demonstrate whether goals and objectives can be achieved
within budget.
RECOMMENDATION 4.1 – Maintain documentation verifying that goals and objectives canbe achieved within budget.

SUBTASK 4.2 – Assess the measures, if any, HART uses to evaluate program performance anddetermine if they are sufficient to assess program progress toward meeting its stated goals
and objectives.
OVERALL CONCLUSION
Overall, this subtask is partially met. While HART’s departments maintain and report various
performance measures, the Success Plan’s Performance Scorecard lacks updating since Fiscal
Year 2020. To address the requirements of this subtask, the MJ Team interviewed senior
management and reviewed the performance measures documented in various reports andfiles.
ANALYSISAs shown below in Figure 4-3, performance measures and outcomes are provided in thereferenced documents.
Transit Development
Plan Metrics

Passengers Per Revenue
Hour

TDP
FY2017
Target21.8

Success Plan Performance
Card FY2021 Target

None

Annual Financial
Statement Metrics

None

Other Reports

None

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITTransit Development
Plan Metrics

TDP
FY2017
TargetSuccess Plan Performance
Card FY2021 Target

Annual Financial
Statement Metrics

Other Reports

Operating Cost per
Revenue Mile

$7.10

None

Operating Cost per
Revenue Mile

N/A

Collisions per 100,000
Revenue Miles
Complaints Per 100,000
Passengers

0.55

Less than 1

None

None

None

90% resolved in 10
days

None

None

Mean Distance Between
Failures

7,749+None

None

MaintenanceDept. Monthly
Summary Report:
Bus and Van
MDBF andMonthly Board
ReportOn-Time Performance

81.5%

Bus: 77%
Streetcar: 99%
Paratransit: 90%

None

Monthly Board
Report for Bus
and Van;Streetcar
Performance
ReportAnnual Investment per
CapitaRider per Revenue Mile

None

None

None

None

None

None

Ridership per Revenue
Mile

N/A

Operating Cost per Capita

None

None

None

None

Operating Cost per
Passenger Trip

None

Bus: $7.50
Streetcar: $2.60
Paratransit: $26.00

Operating Cost per
Rider

N/A

Operating Cost per
Passenger Mile

None

None

Operating Cost per
Total Mile

N/A

Farebox Recovery (%)

None

None

Percentage ofPassenger Fare to
Operating Cost

N/A

Revenues Miles per Total
Vehicles
Vehicle Miles Per Gallon

None

None

None

None

None

None

None

MaintenanceDept. Monthly
Summary Report:
Bus and Para
MPG

Average Fare

None

None

Average Fare per Rider

N/A

FIGURE 4-3: Examples of Performance Measures.
Source: Transit Development Plan and Financial Statements.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITCapital Project Performance Measures
The MJ Team reviewed the Capital Development Projects spreadsheets which contain vital
information regarding the project status. The spreadsheet is used by the Capital Development
Team to monitor if projects are completed on time and within scope and budget. The
spreadsheets show the preliminary schedule versus actual schedule for milestones such as
project start date and completion date in addition to the final budget versus total cost status.
Although the Transport Development Plan (TDP) and Success Plan include goals and objectives
for Capital Projects Delivery, the documents lack identification of specific performancemeasures.
Operations - Fleet Maintenance Monthly Performance Report
Fleet Maintenance issues a monthly report of actual and historical costs and performance
metrics for over 30 different attributes. Management stated that the monthly report is tomonitor outcomes for trend analysis and the status of meeting benchmarks, as well as to
identify opportunities for improvement. Although most of the report contains monthly
comparisons of outcomes, it includes the bus and van mean distance between failures trend
analysis and bus and paratransit miles per gallon comparison. The report includes two areas
benchmarked either against industry standards or Federal standards as shown in Figure 4-4.
Criteria

HART’s Goal

BenchmarkAM Pull-Out Asset (Fleet) Availability

85%

Industry Standard: 80%

FY2022 Preventative Maintenance Inspection
Compliance100%

FTA and FDOT 80% on-time

FIGURE 4-4: The Operations Department benchmarks some performance measures versus external sources.
Source: Maintenance Department Monthly Summary, May 2022.

HART also includes performance metrics in the annual financial statements report as shown in
the following Figures 4-5 through 4-7.

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FIGURE 4-5: HART uses performance measures to assess program performance.
Source: HART Fiscal Year Y2021 Annual Comprehensive Financial Report.

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FIGURE 4-6: HART uses performance measures to assess program performance.
Source: HART Fiscal Year 2021 Annual Comprehensive Financial Report.

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FIGURE 4-7: HART uses performance measures to assess program performance.
Source: HART Fiscal Year 2021 Annual Comprehensive Financial Report.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITTransportation, Maintenance & Service Development Monthly Board Report
This report provides monthly performance data to the board. Fleet, Facilities, Transportationand Service Planning Departments collaborate to generate the report. Figures 4-8 and 4-9
presents excerpts from the May 2022 report included in the July 2022 board packet.

FIGURE 4-8: HART uses performance measures to assess operations performance.
Source: July 2022 Monthly Board Report.

FIGURE 4-9: HART uses performance measures to assess operations performance.
Source: July 2022 Monthly Board Report.

Streetcar System Performance Report
Operations staff present the Streetcar Performance Report to the Tampa Historic Streetcar
Board of Directors monthly. The report provides a synopsis of monthly operations andmaintenance results of the streetcar system. Figure 4-10 presents an excerpt from the June
2022 report.

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FIGURE 4-10: HART uses performance measures to report the outcomes of streetcar operations.
Source: June 2022 Streetcar System Performance Report.

As indicated in Figure 4-3, additional performance measures identified in the TDP and Success
Plan are not used to evaluate program performance including the following:

Passengers per revenue hourCollisions per 100,000 revenue milesFor customer complaints, 90% resolved in 10 days

Annual Investment per capita

Operating cost per tripOperating cost per revenue hour

RECOMMENDATION 4.2 – Ensure that all required performance measures are reported atleast annually and document the required Capital Development performance measures
including completing projects within schedule and budget.

SUBTASK 4.3 – Evaluate internal controls, including policies and procedures, to determine
whether they provide reasonable assurance that program goals and objectives will be met.
OVERALL CONCLUSION
Overall, HART met this subtask. Internal controls such as policies and procedures provide
reasonable assurance that program goals and objectives will be met. To accomplish therequirement, the MJ Team interviewed senior management and reviewed the following
documents in the analysis.
ANALYSIS
HART uses various reports and policies and procedures to provide reasonable assurance that
program goals will be met as follows.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITPerformance Management Monitoring and Reporting
The Success Plan includes a Performance Scorecard to monitor and report on how HART is
performing in efforts to achieve its outcomes. The plan also includes metrics, goals, and results
for the following areas.
Project Management Standard Operating Procedures ManualThis manual is effective December 22, 2021, and states that the Project Management Office(PMO) is responsible for the centralized and coordinated management of all projects. Key
requirements in meeting program goals and objectives include the following:Project controls such as monitoring and assessing overall project status in meeting the
project schedule, budget, and quality.



Design management consisting of design standards to comply with HART Design Criteria
and also governed by federal, state, and local laws and regulations, including federally
mandated Americans with Disabilities Act (ADA) requirements.

Procurement/Contracts approach as governed by various HART policies and proceduresand FTA’s Best Practices Procurement Manual.

Construction management including monthly report meetings, inspections, progress
payments, and contract close-out procedures.



Quality management to provide independent review of quality control procedures andfinal product quality.

HART Board Policies
Figure 4-11 displays the key components for HART’s board policies and program goals.

Board Policy

Key Specifications in Meeting
Program Goals

120.7 Strategic Planning

The Board develops and adopts a strategic plan as a guide for
implementing HART’s vision, mission, core values and goals andcover a five-year period. Reviewed and updated as needed
concurrent with preparation of the annual budgets.

920 General Fiscal Policies

Annual operating budget shall balance the public transit needsof the community with fiscal capabilities with the intent toachieve the goals and objectives established by the Board andpursuant to the Transit Development Plan (TDP).

Capital Improvement Budget

HART shall implement a Capital Improvement Budget whichschedules the funding and construction of projects for a fiveyear period. The CIP Program shall balance the needs for
improved public facilities as identified in the TDP.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITKey Specifications in Meeting
Program Goals

Board Policy

940 Capital Improvement Program& Policy

The 5-year CIP shall be updated as part of the annual budget.
Revisions shall be consistent with established strategic goals
and objectives and intent of the TDP.

FIGURE 4-11: HART Board Policies and Program Goals.
Source: HART Board.

SOP Operations
HART maintains SOPs for activities in operations, maintenance, planning, scheduling, andemergency plans. The primary SOP state goals for HART related to the operation of service andprocedures for meeting those goals.
Maintenance and Transportation Budget Monthly Report
The Budget Monthly Report was developed to analyze and review department budgets fortrends and efficiencies. The Budget Monthly Report is created using the Jet Hub application to
generate a budget to actuals report on the 15th of each month when Finance closes out HART
monthly financials. The Budget Monthly Report extracts from the budget to actuals is thegeneral ledger accounts for each department within Maintenance and Transportation andsummarizes a monthly Spend and Target Percentage Comparison.
Examples of how the Budget Monthly Report is used follows:Prepare cost analysis for planning and justification; fleet, facility equipment services,
repairs, replacements, transportation program and grants.



Identify proficiencies and streamline processes for procedure development andimprovement.

Streetcar Operations Tracker
The Monthly/Annual NTD reporting spreadsheet tracks streetcar performance actual daily
outcomes. Information tracked daily includes:Service Lost

Extra Service

MileagesMean Distance Between Failures (MDBF)Preventive Maintenance and Repair Trends

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITTransit Development Plan
Transit Development Plan Update Fiscal Years 2021-2030. A Transit Development Plan (TDP) is amulti-year financial and operating plan for a transit agency. The Florida Department ofTransportation (FDOT) requires public transit providers receiving State funding to develop andadopt a TDP as explained in Chapter 14-73.001, Florida Administrative Code. All transit agencies
are required to prepare a five-year major TDP and an annual update in the form of a progress
report each year. The HART Board adopted the last major TDP update on September 25, 2017.
HART’s TDP update emphasizes the following requirements of the annual update under Florida
Statute 341.052 (Chapter 14-73).


Past year’s accomplishments compared to the original implementation program.



Analysis of discrepancies, if any, between the plan and its implementation for the past
year and steps that will be taken to attain original goals and objectives.



Any revisions to the implementation program in the past year.



Added recommendations for the new tenth year of the upcoming plan.



Any revisions to the financial plan.

A revised list of projects or services needed to meet the goals and objectives.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 5
FINDING SUMMARY
THE ACCURACY OR ADEQUACY OF PUBLIC DOCUMENTS, REPORTS, AND
REQUESTS PREPARED BY HART WHICH RELATE TO THE PROGRAM.

FINDING SUMMARY – Overall, HART met expectations for Task 5.
HART prepares and makes available in the public domain financial and non-financial
information that is useful, adequate, and accurate. HART uses some internal data analytics
to assess the adequacy of the data it provides to the public; however, a more formal
evaluation process (report) to periodically evaluate the adequacy and accuracy of data isneeded. This evaluation should address factors such as whether the information is relevant,useful, and reached its intended audiences. HART’s website provides both adequate
program performance and cost information. HART provided evidence that it has a process inplace to ensure financial data available to the public is accurate and also has a process inplace to ensure that incorrect, erroneous, and incomplete information is corrected in atimely manner.
SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 5.1 – Assess whether the program has financial and non-financial information
systems that provide useful, timely, and accurate information to the public.
OVERALL CONCLUSION
Overall, HART met expectations for subtask 5.1. To reach this conclusion, the MJ Team assessed
HART’s financial and non-financial information systems that provide useful, timely, andaccurate information to the public.
ANALYSIS
To address the requirements of this subtask, the MJ Team conducted a joint interview withindividuals in the following positions:

Director of Customer ExperienceManager of Marketing & CommunicationsBoard Administrator



Chief Financial Officer

During interviews, it was stated that HART recently made a strategic change to move teams
that communicate with the public under the Customer Experience Department to demonstrate
the agency has a serious commitment to providing useful, timely, and accurate public

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information. In interviews, HART leadership stated that they are committed to transparency
and making information available to the public in an easily accessible and understandable
format.
HART’s website (WWW.GOHART.ORG) is the main tool where the agency keeps a wide range of
information. The website includes “Transparency Pages”, which are accessible, clearly labeled,easy to find and include several years of:

Financial Policies: http://www.gohart.org/Pages/trans-fin-policies.aspx

Budget Documents: http://www.gohart.org/Pages/trans-budget.aspx

Financial Reports: http://www.gohart.org/Pages/trans-fin-reports.aspx

Expenditures: http://www.gohart.org/Pages/trans-exp.aspx

Figure 5-1 provides sample financial and non-financial documents available to the public on
HART’s website.
Financial Information

Description/Purpose

Fiscal Year 2026
Transportation
Improvement Program

The Transportation Improvement Program (TIP) is a list of major transportation
projects to be funded over the next five years, and priorities for the next projects
to be funded in the future. The TIP is the “short-range” component of the MPO’s
Long Range Transportation Plan. HART updates these priorities on an annual basis
to maintain a new fifth year.

Hillsborough Transit
Authority Policy Manual

HART is committed to financial transparency that provides comprehensive andunfiltered information about its fiscal and financial operations. Financial policies
and procedures have been established to direct the day-to-day financial activities
of HART.

Fiscal Year 2022 Adopted
Operating and Capital
BudgetHART’s budget documents provide the means for allocating financial resources tomeet organizational goals and priorities. As part of its commitment, HART wants
citizens to be informed about the budget process, sources of revenue andspending priorities.

2021 Monthly
Expenses

Expenditures are broken down into four different categories: accounts payable,
payroll, electronic transfers and purchasing card (P-Card) transactions. The data
is raw data and therefore may not agree to any audited or published financial
statements.

Fiscal Year 2021
Success Plan

The plan is in keeping with the performance management process, which isdesigned to drive employee engagement on work that contributes to HART’s
status as a best-in-class transit agency. This document is comprised of three
sections, each aligned with components of the performance management
process described below:
1. Definitions of Success, which includes outcomes that signal successfor the fiscal year ending September 30, 2021.
2. Performance Scorecard, a quarterly scorecard to monitor andreport on how HART is performing in efforts to achieve ouroutcomes.

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Financial Information

Description/Purpose
3.

Work Plan, an actionable strategy tied to budget that enables HART
teams to deliver the outcomes.

Fiscal Year 2021
Productivity and Ridership

The Productivity and Ridership workbook include information on ridership
subtotaled for all HART services, compared by fiscal year annually and monthly,
as well as calculations for ridership changes. The ridership reports provide
information on HART program performance for the public.

Comprehensive Annual
Financial Report (CAFR),
Fiscal Year Ended
September 30, 2020

HART’s basic financial statements have been audited by Cherry Bekaert LLP, afirm of licensed certified public accountants. The goal of the independent audit
was to provide reasonable assurance that the financial statements of HART for
the fiscal year ended September 30, 2020, are free of material misstatement. The
independent audit involved performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements; evaluating theappropriateness of accounting policies used and the reasonableness of significant
estimates made and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit, that there was reasonablebasis for rendering an unmodified, “clean” opinion that HART’s financial
statements for the fiscal year ended September 30, 2020, are fairly presented inconformity with GAAP.

Non-Financial Information

Description/Purpose

Transit Development Plan
2018-2027

The Transit Development Plan (TDP) is a strategic guide for improving public
transportation in Hillsborough County over the next 10 years. The TDP includes
funded and unfunded needs, service and capital priorities, and implementationand financial plans. The TDP must be updated annually in order to receive State
Public Transit Block funds from the Florida Department of Transportation, and amajor update is required every five years.

OneBusAway App

Smartphone application that provides real-time bus schedule information to
riders. Detours and important alerts are also announced through this mobile app.

Social Media

Facebook, Twitter, Instagram, Nextdoor, LinkedIn, YouTube and TikTokplatforms.

EthicsPoint

EthicsPoint provides an anonymous and confidential process to voicesuggestions, concerns, or report misconduct. HART values input and encourages
submitting feedback and reports to maintain HART as an ethical company.

2022 HART Board/
Committee Meeting
Schedules and Agendas

HART ensures that when public meetings are held an agenda outlining the
anticipated content of the meeting is made available to participants and minutes
are written or recorded to inform attendees and non-attendees about what was
discussed and what happened during the meetings. PowerPoint presentations
and board documents are included in the meeting packets and made available
after the meetings.

Public Meeting Video
ReplayHART provides public meeting video replay for most meetings on the official
HART YouTube channel, which allows citizens who were unable to attend inperson the opportunity to view the contents of the meeting at their convenience.

FIGURE 5-1: Documents obtained while reviewing HART’s website.
Source: the MJ Team.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITSUBTASK 5.2 – Review available documents, including relevant internal and external reports,that evaluate the accuracy or adequacy of public documents, reports, and requests preparedby HART related to the program.
OVERALL CONCLUSION
Overall, HART partially met expectations for subtask 5.2. To reach this conclusion, the MJ Teamassessed relevant internal and external reports that evaluate the accuracy and adequacy of
public documents. Our interviews and data analysis showed that while the Customer
Experience Department provided sufficient evidence of how it uses website analytics tomeasure adequacy of data, no formal report or process is in place to evaluate the adequacy andaccuracy of the HART’s public information overall.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the following positions:

Director of Customer ExperienceDirector of Digital Solutions

Manager of Marketing & Communications

Additionally, HART provided the following information to inform our analysis:Data analytics regarding the website

In-person feedback from customer contact meetings

HART’s Customer Experience Department is primarily responsible for evaluating public
documents for accuracy and adequacy. The department is comprised of five teams as shown in
Figure 5-2.
Department Descriptions
Department

Description

The Customer Service
Team

Handles all incoming customer calls. The team assists customers witha variety of requests including bus route information and schedules,
route familiarization, explaining policies and procedures, logging
commendations, suggestions, and complaints, providing real-time bus
information, entering public records requests, and booking trips forparatransit transportation.

The Paratransit Eligibility
Team

Conducts face-to-face interviews to determine eligibility for theparatransit program. Travel Trainers provide in person training topeople with disabilities who want to learn how to ride.

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Department Descriptions
The Community & Business
Engagement Team

Conducts outreach through participation in presentations, group travel
experiences and represents HART in various committees and public
community events.

The Marketing andCommunications Team

Develops promotional and informational content that is available tothe public. Develops most of the internal employee communications.
Duties include writing press releases, web content, social media
content, creating and implementing marketing campaigns. Monitorsand evaluates success of their programs and services. Updates and is
the main point of contact for website updates.

The Creative Services
Team

Develops all graphics and promotional material for internal andexternal use.

FIGURE 5-2: Customer Experience Department Teams.
Source: Customer Experience Department.

Timely handling of customer requests is critical in the transit industry. Customer Service
Representatives are trained on a variety of Standard Operating procedures to handle calls overthe phone to respond to information requests and meet weekly to learn about new agency
transit initiatives. This ensures that information is accurate, timely, and reliable. Calls orrequests for information that cannot be answered or need further investigation are logged into
the ClickFix software and escalated to the appropriate department.
HART has established a goal that 90% of customer requests must be addressed within 10
working days. Requests that are not answered within that timeframe are automatically
escalated to managers and directors of the respective areas. Through this process, customers
who provide an email address receive a copy of their question/request and updates. Customers
who do not provide email addresses can contact the call center team to receive updates on
their requests.
Analytics All Web Site Data Audience Overview
HART provided the MJ Team with data analytics to demonstrate how it evaluates website andsocial media traffic. Figure 5-3 shows that during the month of June 2022, HART’s website
received over 18,800 new users, over 74,000 page views and each user spent on average over
2 minutes on the site during their visit. During interviews, HART told the MJ Team that the“Maps and Schedules” webpage is consistently the first or second busiest page on the website.
HART also monitors usage of its OneBusAway real-time App, which is a major resource for the
public who want to find out more information regarding bus ridership. Data analytics provides
an indication that the webpage is adequate. In contrast, data analytics do not measure whether
or not data is accurate.

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FIGURE 5-3: 2022 Google Analytics.
Source: Customer Experience Department.

While the Customer Experience Department provided examples of how it uses website
analytics to measure adequacy of data, no formal report or process is in place to evaluate theadequacy and accuracy of the HART’s public information overall.
The U.S. Government Accountability Office Agency Guidance to Establish Comprehensive Data
Inventory, (Dashboards) dated October 2020, suggest that public sector/governmentalorganizations need best practice standards for accurate and timely information to: 1) ensureaccountability, 2) manage service effectiveness, and 3) prioritize the best use of resources. An
example of the application of this best practice would be to conduct a regular evaluation/audit

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDIT(e.g., bi-weekly, monthly, or quarterly depending on the function) of the content of
information.
The Director of Customer Experience should develop a process for establishing quality
standards and a formal process for public data integrity. This process should involve a “sweep”
of the content by navigating website and social media pages to ensure the content remains
useful and accurate.
Figure 5-4 presents the type of criteria HART should consider when evaluating/auditing its
website, social media postings and news releases, print and digital media materials as well asother information published in the public domain.
Evaluation/Audit Criteria

Description

Identify Potential Data Integrity
Deficiencies

Determine if data has been altered, deleted or lost without management
detecting how, when, and by whom.

Determine Whether
Data/Information is Correct and/orComplete

Determine if the data is still relevant. As content ages, facts and data thatwere once accurate can become inaccurate.

Determine Common Data Threats

Determine if the information has been subjected to human error,
unintended information transfer errors, misconfiguration and security
errors, malware, insider threat, cyberattack, and compromised
hardware.

Determine Whether Content is
Effective/ Still Serving
Original/Intended Purpose

Determine if the content is useful and if it is reaching its intended
audience.

Train Users and Maintain Training
Records

Ensure users are properly trained on systems, policies, and procedures.

Conduct Audits and Reviews

Conduct periodic audits, evaluate controls, and promote compliancepolicies and procedures.

FIGURE 5-4: Sample Process to Evaluate Adequacy and Accuracy of Public Documents.
Source: the MJ Team’s Best Practices Database based on The U.S. Government Accountability Office andDashboards’ best practices.

RECOMMENDATION 5.2 – Develop and implement a formal evaluation process (report) toperiodically evaluate the adequacy and accuracy of data provided to the public after
publication. This evaluation should address factors such as whether the information isrelevant, useful, and reached its intended audiences. Evaluation standards should be createdby all staff responsible for developing public documents.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITSUBTASK 5.3 – Determine whether the public has access to program performance and cost
information that is readily available and easy to locate.
OVERALL CONCLUSION
Overall, HART met expectations for subtask 5.3. To reach this conclusion, the MJ Team assessed
relevant department information to determine the public’s ability to access program
performance and cost information. The MJ Team identified program performance and cost
information in the Comprehensive Annual Financial Report (CAFR) Fiscal Year ended September
30, 2020, which was accessible online and easy to locate. Examples of cost information included
operations costs per mile and revenue cost per mile. Examples of performance information
included ridership per revenue mile and percentage of passenger fare to operating cost (farerecovery).
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the following positions:

Chief Financial Officer

Director of Customer ExperienceBoard Administrator

The MJ Team evaluated performance and cost data from the following sources on the HART
website:

Fiscal Year 2026 Transportation Improvement Program

Fiscal Year 2022 Adopted Operating and Capital Budget

Fiscal Year 2021 Success PlanTransit Development Plan 2018-2027

Comprehensive Annual Financial Report (CAFR), Fiscal Year Ended September 30, 2020

Figure 5-5 provides an example of transit-related program performance and cost data that waseasily accessible in HART’s CAFR for Fiscal Year 2020.
KEY OPERATING INDICATORS
Operating Cost per Total Mile

$23.06$25.26$19.10$22.01$20.56

Operating Cost per Revenue Mile

$23.22$26.09$19.57$22.10$21.20

Ridership per Revenue Mile

3.86

5.01

7.41

5.64

5.74

Operating Cost per Rider

$6.01

$5.21

$2.64

$3.92

$3.69

Average Fare per Rider

$1.96

$1.09

$0.01

$0.00

$0.00

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITKEY OPERATING INDICATORS
Percentage of Passenger Fare to
Operating Cost (Fare Recovery)

32.6%

20.9%

0.3%

0.0%

0.0%

FIGURE 5-5: Public Works Project Analytics.
Source: HART CAFR 2020.

SUBTASK 5.4 – Review processes the program has in place to ensure the accuracy andcompleteness of any program performance and cost information provided to the public.
OVERALL CONCLUSION
Overall, HART met expectations for subtask 5.4. To reach this conclusion, the MJ Team assessed
relevant department data and conducted interviews with staff to ensure HART has processes inplace to ensure accuracy and completeness of any program performance and cost information
provided to the public.
ANALYSIS
To address the requirements of this subtask, the MJ Team interviewed the following positions:

Chief Financial Officer

Chief Delivery Officer

The MJ Team evaluated the following data to perform our analysis:Hillsborough Transit Authority Policy Manual (Financial and Budgeting Polices andProcesses and General Fiscal Policies (Sections 900 and 920)

2022 HART Board/Committee Meeting Schedules and Agendas

Fiscal Year 2022 Adopted Operating and Capital BudgetComprehensive Annual Financial Report (CAFR), Fiscal Year Ended September 30, 2020

HART uses the budget procedure outlined in the Financial and Budgeting Polices and Processes
and General Fiscal Policies as the foundation for ensuring the accuracy and completeness ofprogram performance and cost information. HART’s annual budget process is outlined below:
Overview of Budget Development
BUDGET PROCESS AND CALENDAR

Each year, the Chief Executive Officer sets forth the procedures and guidelines to befollowed by departments in developing budget requests for the following fiscal year.
Departmental budget requests are then reviewed, analyzed, and aggregated into
budget recommendations that will reflect the strategic objectives and policies of the
HART Board. Budgets are then established and expended to reflect as accurately as

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possible all costs related to activities of each program, department, or cost center.
Figure 5-6 provides a graphic depiction of HART’s budget process that is presented to
the HART Board and adopted in accordance with Florida law.

FIGURE 5-6: Annual Budget Calendar Tasks.
Source: Budget Department.

With adoption of the budget, the HART Board approves a broad policy plan as well as
the estimated funding needs at the program, department, and organizational level andprovides statutory authorization for the expenditure of HART public funds.

This process provides a complete picture of the agency’s projected expenditures. Budget
control is exercised at the cost center level. Budget line items that show negativebalances, cannot be exceeded. Budget performance is evaluated based on budget andactual amounts monthly, quarterly and at fiscal year-end. This process provides HART
with a complete overview of the agency’s projected financial picture.

INTERNAL BUDGET ADJUSTMENTS/TRANSFERS

Budget adjustments/transfers exist for very specific reasons. They are used to balance a
department's budget each month. Operating within the available budgetary resources
is a managerial responsibility, and one which should be taken seriously. The approved,
final budget is a financial plan (based on an operations and strategic plan) and can be

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adjusted as circumstances change or by the Board of Directors directive; however, it
must be adhered to as closely as possible, and deviations need to be approved at theChief Executive Officer level.
HART was the recipient of the Government Finance Officers Association’s (GFOA) Certificate ofAchievement for Excellence in Financial Reporting Award for fiscal year 2020. This award isnoted in the County’s Fiscal Year 2020-2021 Adopted Budget, which is on the County’s website.
The GFOA award validates accuracy and completeness of information provided to the public.
Meeting the criteria for this award means HART goes beyond the minimum requirements ofgenerally accepted accounting principles to prepare annual comprehensive financial reportsthat evidence the spirit of transparency and full disclosure.
The GFOA award recognizes contributions to the practice of government finance that exemplify
outstanding financial management. The awards stress practical, documented work that offers
leadership to the profession and promotes improved public finance.

SUBTASK 5.5 – Determine whether the program has procedures in place that ensure thatreasonable and timely actions are taken to correct any erroneous and/or incomplete
program information included in public documents, reports, and other materials preparedby HART and that these procedures provide for adequate public notice of such corrections.
OVERALL CONCLUSION
Overall, HART met expectations for Subtask 5.5. To reach this conclusion, the MJ Team assessed
steps that are taken to ensure reasonable and timely actions are taken to correct erroneous
and/or incomplete information included in public documents and found these processes inplace to be adequate.
ANALYSIS
Based on interviews with the Manager of Marketing & Communications and information
provided to the MJ Team, processes and procedures are in place to ensure information that is
published in the public domain is accurate and complete and facilitates correction of
information when inaccuracies occur.
During interviews, HART reported that all public notifications/materials go through a review
process that includes:

Idea/text submission by requesting department

Overall text and concept development by the Manager of Marketing and Communications

Artwork development and layout by the Creative teamFinal approval by the Director of Customer Experience and the director of the requesting
department

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITThe Manager of Marketing & Communications reviews and proofs every public information
document produced by the department for accuracy and adequacy of content. Secondary
reviews as a cross-check are completed by staff. These reviews for accuracy and correctness
include readability of documents, proper punctuation and grammar, legibility of text andgraphics, calling listed phone numbers to ensure they are correct, and testing website links toensure they are active. As a result, very few errors are produced. The MJ Team was told during
interviews that errors that are found are occasionally made on board items or identified bycustomer service. Errors made on public documents are given top priority and corrected assoon as they are noticed.
Figure 5-7 provides
an example of theRequest for
Correction of theErroneous/
Incomplete
Information form.
Figure 5-8 provides
an example of aboard agenda itemthat required acorrection, which is
circled in red. The
Agenda item wascorrected on thenext agenda
posting.

FIGURE 5-7: Request for Correction of Erroneous/Incomplete Information Form.
Source: Customer Experience Department.

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FIGURE 5-8: Sample Board Agenda Item.
Source: Customer Experience Department.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITRESEARCH TASK 6
FINDING SUMMARYCOMPLIANCE OF THE PROGRAM WITH APPROPRIATE POLICIES,
RULES, AND LAWS.
FINDING SUMMARY – Overall, HART meets expectations for Task 6.
HART has a process to ensure compliance with applicable federal, state, and local laws, rules, andregulations; contracts; grant agreements; and local policies. HART has developed procedures
manuals to comply with federal and state grants management requirements. HART prepares a fiveyear major Transit Development Plan (TDP) and completes an annual update in the form of a progress
report each year. The TDP is required by the Florida Department of Transportation (FDOT) of transit
agencies receiving federal and state grant programs. Federal transit grant recipients are required toobtain the services of an independent auditor to conduct a single audit each year. The CARF
completed on September 30, 2021, independent auditor did find a material weaknesses for theinternal control over financial reporting. HART staff acknowledged the deficiencies, indicatedacceptance, and documented the action taken to resolve the deficiency. The corrective action plan
prepared by HART management to address the findings in the single audit demonstrates thatmanagement takes reasonable and timely actions to address any noncompliance identified by an
external audit. HART has taken reasonable and timely actions to determine whether planned uses ofthe surtax are in compliance with applicable state, laws, rules and regulations. The Independent
Oversight Committee has been established to ensure HART is meeting the requirements of theordinance.

SUBTASK CONCLUSIONS, ANALYSIS AND RECOMMENDATIONSSUBTASK 6.1 – Determine whether the program has a process to assess its compliance withapplicable (i.e., relating to the program's operation) federal, state, and local laws, rules, andregulations; contracts; grant agreements; and local policies.
OVERALL CONCLUSION
The subtask 6.1 is met. To address the requirements of this Subtask the MJ Team interviewed
the Director of Legal Services and Deputy Attorney and reviewed the following:Hart’s Legal Services Organization Chart;

Hillsborough Transit Authority Policy Manual; andStandard Operating Procedures.

HART’s Legal Services Department provides support to all departments and programs to ensurecompliance with applicable federal, state, and local laws, rules, and regulations; contracts;
grant agreements; and local policies.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITANALYSIS
HART’s Legal Services Department organization chart includes the following staff as noted in
Figure 6-1: Director of Legal Services, Deputy Attorney, three Paralegals, two Litigation Staff
Attorneys, Manager of Risk, Workers Compensation Specialist, Risk Adjuster II, Board
Administrator, and Manager of Labor Relations.

FIGURE 6-1: HART’s Legal Services Departments organizational chart.
Source: HART’s Legal Services Department.

HART’s Transit Authority Policy Manual states the following requirements and identifies the
HART General Counsel/Legal Services responsibilities:
Hillsborough Transit Authority Policy Manual:

140.03 General Counsel:
1) The General Counsel shall be the chief legal counsel to the Board of Directors of
HART and shall have cognizance over legal affairs. The General Counsel's direct
responsibility shall be those matters requiring authorization or approval by the
Board of Directors and such other matters as assigned by the Board of Directors
or the CEO. The General Counsel shall serve at the pleasure of the Board of
Directors. If the General Counsel is not a HART employee, then the GeneralCounsel shall be selected by the Board of Directors through an open andcompetitive process.
2) In addition to the General Counsel, HART may retain legal counsel as employees
of HART or as contract legal counsel. The CEO may hire staff counsel as employees
of HART. Contract counsel retained by HART shall be approved by resolution of
the Board of Directors consistent with the procurement process provided in
Chapter 500 herein. HART legal counsel shall regularly provide to the Board of
Directors a report of all pending litigation and other significant pending legal
matters. All resolutions, contracts, and other instruments shall be approved as to

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form by the General Counsel, staff counselor such other legal counsel as thedesignated by the General Counsel and the CEO.
3) All legal counsel employed by or contracting with HART shall represent the entire
agency consistent with the provisions in Florida Bar Rule of Professional Conduct
4-1.13. Legal counsel serving as the "local government attorney", shall be subject
to Florida's Code of Ethics Standards as codified in Chapter 112, Part III, Florida
Statutes.
4) Specific Authority: Law Implemented: [20. 52(1)(b), I63.568(2)(k) FS. Jl2.3Jl et seq.;
163.567(12) FS. EFFECTIVE DATE FOR REVISION 11/20/20.


140.04 Auditor
The Board of Directors of HART, by resolution of the Board, shall employ an
independent certified public accountant to annually audit the accounting andbudgetary records of HART, and who shall submit their findings to the Board. The
Board shall provide a copy of the annual audit to each member of HART.

The following Standard Operating Procedures also address procedures to ensure compliance withlaws and regulations, agreements, and local polices as follows.
Standard Operating Procedure 140.1
 Section 2.0 Purpose: The purpose of this Standard Operating Procedure (SOP) is toprovide instructions on the management of all Agency SOPs. This SOP provides guidanceon the series of procedure collectively known as Records Management. Records
Management ensure that records produced through the course of doing business aremanaged in a systematic, verifiable manner. Procedures include Document Creation,
Version Control, Approval, Protection, Review/Retrieval, Storage, and Destruction.
Section 7.0 Procedure: Document Control Procedures: Every HART employee is tasked
with sharing in the responsibility for ensuring that the Agency records are maintained inaccordance with standards set by the Agency Records Management Program. The
Records Management Liaison Officer provides oversight to the handling of all Agency
records and will monitor compliance by:
A. Establishing clear procedures.
B. Monitoring the Records Management, the Records Retention Schedule, SOP
Processes and Procedures, and other relevant policies and procedures forcompliance.
C. Providing Annual Training on Records Management to Department Point ofContract (DPOC).
D. Providing ongoing support to Department Point of Contracts and other
employees, as needed.

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E. Reviewing and auditing departmental records on a periodic basis and making
adjustments as necessary.
Standard Operating Procedure SOP-140.2
 Section 2.0 Purpose: The purpose of this SOP is to provide instructions on how to develop,
approve and revise all HART SOPs.


Section 7.0 Procedure:o 7.1 New or Revised SOP: A Template and Number:
1. For new or revised SOP and new softcopy SOP Template Form shall be
used;
2. SOP Templates are available on the V share drive;
3. A release/change authority number shall be obtained from the SOP Master
Log; and4. Unique SOP identification numbers shall be created by and managed theRecords Management Liaison Officer and posted on the SOP Master Log.

The Hillsborough Transit Authority Policy Manual and Standard Operating Procedures define
the process in place to ensure compliance with applicable federal, state, and local laws, rules,
and regulations; contracts; grant agreements; and local policies.

SUBTASK 6.2 – Review program internal controls to determine whether they are reasonable
to ensure compliance with applicable federal, state, and local laws, rules, and regulations;contracts; grant agreements; and local policies and procedures.
OVERALL CONCLUSION
The subtask 6.2 is met, based on the Policy Manual and SOPs documentation above (seeSubtask 6.1), the MJ Team concludes HART has reasonable internal controls to ensurecompliance with federal, state, and local laws, rules, and regulations.
To address the requirements of this subtask, the MJ Team interviewed the Director of Legal
Services and Deputy Attorney and reviewed the following:

HART Responses to the MJ Team’s Internal Control Questionnaire

FTA Quarterly Reports

ANALYSIS
The MJ Team facilitated an internal control questionnaire to obtain management’s evaluationof the internal control infrastructure.

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HILLSBOROUGH TRANSIT AUTHORITY PERFORMANCE AUDITInternal Controls Questionnaire
The internal control questionnaire is designed to help assess HART’s internal control
environment. The results conclude there is adequate segregation of duties among the following
processes:


Purchasing

Payroll

Accounts Payable

Accounts ReceivableCash Management & Investment



Third Party Relations & Contract Management



Information System Security

Information System Access

Information System Backup & Recovery

Additionally, it confirmed that HART has effective processes in the expenditure cycle, including
purchasing, payroll, accounts payable, cash management and investment, and contract
management. While the MJ Team did not evaluate those internal controls, we did confirm thepresence of established policies, procedures, and practices.
FTA Quarterly Report
FTA grantees must submit quarterly reports to FTA on all open line items in federal grants. The
HART Budgets and Grants Departments file quarterly Milestone Progress Reports or FTA grants
and monthly progress reports for FDOT grants. The Grants Department coordinates with theassigned project managers as well as with the Finance Department to prepare the reports. The
latest report HART submitted was June 30, 2022 for the third quarter.

SUBTASK 6.3 – Determine whether program administrators have taken reasonable andtimely actions to address any noncompliance with applicable federal, state, and local laws,
rules, and regulations; contracts; grant agreements; and local policies and procedures
identified by internal or external evaluations, audits, or other means.
OVERALL CONCLUSION
The subtask 6.3 is met. To address the requirements of this Subtask, the MJ Team interviewed
the director of Legal Services and the deputy attorney regarding knowledge of any
noncompliance; and reviewed the actions taken on the Single Audit findings.
Based on the follow up and review of prior single audits, HART has taken reasonable and timely
actions to address any noncompliance with applicable federal, state, and local laws, rules, and

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regulations; contracts; grant agreements; and local policies and procedures identified byinternal or external evaluations, audits, or other means.
ANALYSIS
As noted in Subtask 6.1, HART has a policy that requires an independent certified public
accountant to annually audit the accounting and budgetary records and is required by FTA
grant recipients.
Single Audit
FTA grant recipients are required to obtain the services of an independent auditor to conducta Single Audit each year in conformance with 2 CFR part 200, subpart F. HART documents theSingle Audit each year in the Comprehensive Annual Financial Report (CAFR)
The independent auditor includes a section in the CAFR for Compliance Reports. The MJ Teamreviewed the CAFR for the Fiscal Years ended September 30, 2021 and 2020 noting thefollowing independent auditor’s results:Financial Statement Section – A material weakness for the internal control over financial
reporting was identified.

Federal Awards Programs and State Projects Section- No internal control weaknesses
were identified.

HART staff acknowledged the deficiencies, indicated acceptance, and documented the action
taken to resolve the deficiency. The corrective action plan prepared by management to address
the findings in the report related to internal control deficiencies demonstrates thatmanagement is taking reasonable and timely actions to address any noncompliance identified
by the independent auditor.
SUBTASK 6.4 – Determine whether program administrators have taken reasonable andtimely actions to determine whether planned uses of the surtax are in compliance withapplicable state laws, rules, and regulations.
OVERALL CONCLUSION
Subtask 6.4 is met. To reach this conclusion, the MJ Team assessed this subtask for HART andfor Hillsborough County. Chapter 163 Part V, Florida Statutes, deems HART to be a special tax
district and authorizes it to levy an ad valorem tax. The statute does not authorize HART to levy
sales surtaxes neither does HART’s charter authorize it to do so. Section 212.055(1), Florida
Statutes, authorizes counties to levy a discretionary sales surtax subject to approval by amajority vote of the electorate of the County. As a result, the County, not HART, had to takereasonable and timely actions to determine whether planned uses of the surtax were incompliance with laws, rules, and regulations. Upon making such determination, on April 20,

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2022, the Hillsborough County BOCC adopted Ordinance Number 22-9 to place a one percent
sales surtax on the November 8, 2022, ballot.
Accordingly, in the Hillsborough County section of this report, the MJ Team determined that
Hillsborough County administrators took reasonable and timely actions to determine whether
planned uses of the sales surtax were in compliance with applicable state laws, rules, andregulations. To make this determination, the MJ Team outlined actions leading to the adoptionof the Hillsborough County Ordinance No. 22-9 that are depicted in Figure 6-4 of theHillsborough County surtax performance audit report. The MJ Team performed the following
procedures for Hillsborough County: Interviewed the senior assistant county attorney and the PW director.
 Examined the following documents:o timeline of BOCC meetings relevant to the surtax;
o BOCC workshop materials related to transportation issues;o s. 212.055(1), Florida Statues-Charter County and Regional Transportation System
Surtax; ando Hillsborough County Ordinance Number 22-9.
ANALYSIS
To assess this subtask for HART, we examined Section 4 of Ordinance No. 22-9 noting that it
requires that HART receive 45 percent of the surtax proceeds from the County. The ordinancealso stipulates that HART spend its allocation of the surtax for the planning, development,
construction, operation, and maintenance of public transportation projects located solely in
Hillsborough County. We examined the HART Board presentation, dated April 4, 2022, where
the HART Board members considered planned uses of its 45 percent allocation of the surtax.
We also examined Hillsborough Board of County Commissioners board minutes where HART’s
45 percent allocation of the surtax was discussed and determined.
The ordinance stipulates that HART’s surtax-funded public transportation projects are to beconsistent with HART’s TDP, which was developed in 2017. We examined HART’s TDP, notingthat it provides a strategic view of transit operations within the service area and HART’s plan todevelop different aspects from service area, routes, maintenance, and infrastructure to support
these efforts over the next 10 years. HART updates the TDP annually with minor changes andevery five years with a major revision. The MJ Team reviewed the 2017 TDP, noting that its
goals and objectives are consistent with HART’s planned uses of the surtax. For example, Goal
5: Deliver Capital Projects, is consistent with planned uses of the surtax. The objectives
associated with this goal are as follows:Prioritize multimodal accommodations when planning transit centers and rights-of-way.
Ensure that fleet, facilities, and infrastructure are maintained in a good state of repair.
Seek funding to implement energy and environmental initiatives.
Pursue the modernization of the TECO Streetcar service, which is Tampa’s streetcar
system.

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