STATE OF MICHIGAN STATE TRANSPORTATION COMMISSION LANSING RICK SNYDER GOVERNOR December 16, 2014 The Honorable Rick Snyder Honorable Members Governor of Michigan Michigan House of Representatives P.O. Box 30013 and Michigan State Senate Lansing, Michigan 48909 Lansing, Michigan 48909 Subject: Annual State Transportation Commission Report to the Legislature Dear Governor Snyder and Members of the Michigan Legislature: Public Act 286 of 1964, Section 13 (MCL 247.813), states, “The commission shall keep accurate records of all its acts and proceedings, and a complete account of all financial transactions of the department in accordance with the accounting laws of the state. In addition to other reports required by law, the commission shall submit to the governor and the legislature, on or before January 1 in each year, an annual report of its activities.” The State Transportation Commission provides records of its meetings, waivers, and actions on its website, at www.michigan.gov/transcommission, in compliance with the Open Meetings Act (Public Act 267 of 1976). In addition, notification of the posting of meeting documents is sent to the Legislature and State Budget Director to comply with Public Act 59 of 2013, Section 31. Pursuant to state laws, the State Budget Office (SBO) reports all financial transactions of the department in the Comprehensive Annual Financial Report and Monthly Financial Reports. The SBO posts these reports publicly on the SBO website at www.michigan.gov/budget under “Financial Reports.” Also, the department annually prepares its own Comprehensive Annual Financial Report. The department posts these reports publicly on the department website at www.michigan.gov/mdot under “Reports, Publications, and Specs.” In addition to Commission acts and proceedings, Commission activities comprise Office of Commission Audits (OCA) engagements. OCA reports directly to the Commission and is charged with the overall responsibility to supervise and conduct audits and related activities for the department. During fiscal year 2013-14, OCA audits and related activities included 28 departmental-consulting engagements, 36 audit-liaison services, 193 prequalification reviews, 452 agreement reviews, 15 pre-award reviews, 392 authorization reviews, 75 consultant risk-based analyses, 747 contract/consultant project audits/examinations, 17 contract-approval reviews, 11 receivables reviews, and 7 contract- modification reviews. A detailed report is enclosed. Sincerely, Signed Original on File Jerrold M. Jung Commission Chair Enclosure cc: MDOT Director Commission Auditor State Transportation Commission MDOT Office of Governmental Affairs Commission Advisor • Jerrold M. Jung, Chair • Todd Wyett, Vice Chair • Angelynn A. Afendoulis • Ron J. Boji • Michael D. Hayes • Charles F. Moser • MURRAY D. VAN WAGONER BUILDING • P.O. BOX 30050 • LANSING, MICHIGAN 48909 www.michigan.gov/transcommission • 517-373-2110 ANNUAL REPORT OFFICE OF COMMISSION AUDITS Fiscal Year Ending September 30, 2014 DETAIL REPORT OF AUDITS AND RELATED ACTIVITIES PERFORMED STATE TRANSPORTATION COMMISSION • Jerrold M. Jung, Chair • Todd Wyett, Vice Chair • Angelynn A. Afendoulis • Ron J. Boji • Michael D. Hayes • Charles F. Moser • Jack Cotter, Commission Auditor MICHIGAN DEPARTMENT OF TRANSPORTATION MURRAY D. VAN WAGONER BUILDING • P.O. BOX 30050 • LANSING, MICHIGAN 48909 www.michigan.gov/transcommission • 517‐373‐2110 Office of Commission Audits Departmental‐Consulting Engagements Fiscal Year 2014 Project Name OCA Job Number Completed Aeronautics Financial Statement Analysis 44314031043 8/13/2014 ACL use October for Accounting Services Division 44313014000 11/8/2013 ACL use November & December for Accounting Services Division 44313014000 1/17/2014 ACL use April for Accounting Services Division 44313014000 5/15/2014 ACL use January for Accounting Services Division 44313014000 2/24/2014 ACL use February & March for Accounting Services Division 44313014000 4/11/2014 ACL use May for Accounting Services Division 44313014000 6/18/2014 ACL use June for Accounting Services Division 44313014000 7/22/2014 ACL use July for Accounting Services Division 44313014000 8/19/2014 ACL use August for Accounting Services 44313014000 9/25/2014 Advisor to MDOT for Job Closeout Process Improvement Action 44313014000 1/15/2014 Analysis ‐ Construction Cost 44314064000 8/2/2014 Austin Morgan Companies Tax and Accounting 44313014027 3/14/2014 Austin Morgan Company Tax Issues 44313014027 3/6/2014 BBF Engineering, PC ‐ Estimate of Audit Adjustments 54314011045 7/15/2014 Bridge Inspection Program 40314014000 8/7/2014 Contract Services Division – E‐Invoice 50012084013 4/1/2014 Contract Services Division – Prequalification Research 44313014000 5/15/2014 Contract Services Division – ProjectWise 50012084013 4/1/2014 Construction Field Services Division Performance Audit 40314014000 8/26/2014 Construction Permits and Billboard Programs 40314014000 8/15/2014 Construction Permits and Billboard Programs 40314014000 9/4/2014 Description of County Maintenance Audit External Audit Services 6/6/2014 DTMB Mobile Security Audit 40314014000 9/5/2014 Procurement Card Review – Grand Rapids 44313014058 11/20/2013 Procurement Card Assessment Report 40113034000 1/28/2014 Procurement Card MDOT Audit Procedures 40113034000 3/31/2014 SBO Material Weakness Follow‐up 30613001007 6/19/2014 Grand Total Completed 28 12/15/2014 Page 2 Office of Commission Audits Audit‐Liaison Services Fiscal Year 2014 OCA Job Completed/ Project Name Number Implemented OAG Performance Audit Memos Rail Response Memo 1‐ Performance Measures 44313014000 6/24/2014 Rail Response Memo 3‐ Monitoring of Maintenance Deficiencies 44313014000 7/8/2014 Rail Response Memo 4‐ Capital & Maintenance Expenditures 44313014000 7/2/2014 Rail Response Memo 5‐ Maintenance Inspections 44313014000 8/28/2014 Rail Response Memo 6‐ Sales Tax Exemptions 44313014000 7/22/2014 Rail Response Memo 7‐ Approved Project Budget Costs 44313014000 7/21/2014 Rail Response Memo 8‐ Lack of Timely Invoice Review 44313014000 8/18/2014 Rail Response Memo 9‐ Railroad Crossing Safety System 44313014000 7/29/2014 Rail Response Memo 10‐ Lease/Refurbish. Train Cab & Coach Cars 44313014000 8/30/2014 Rail Response Memo 10 Revised‐ Lease/Refurbish. Train Cab & Coach Cars 44313014000 9/22/2014 OAG Performance Audit Reports Review of OED’s Potential Responses to the OAG 44313014000 2/13/2014 OED Finding & Audit Objective Comparison 44313014000 2/18/2014 OED 60‐day Response 44313014000 9/8/2014 Economic Development Fund 44313014000 9/8/2014 OAG Statewide Single Audit (SSA) Memos MDOT's Response SSA Memo‐ Centralized Sub‐recipient Monitoring 44313014000 5/16/2014 Aero Response SSA Memo 19.3‐ Improvement Program Period of Availability 44313014000 5/29/2014 Aero Response SSA Memo 19.4‐ Improvement Program Reporting 44313014000 6/3/2014 Rail Response SSA Memo 23.1‐ Reporting 44313014000 5/22/2014 Rail Response SSA Memo 23.2‐ Matching 44313014000 6/2/2014 MDOT's Response to Draft Single Audit Report 44313014000 6/13/2014 Statewide Single Audit 44313014000 6/26/2014 OAG Statewide Single Audit (SSA) Reports MDOT's Single Audit 60‐day Response 44313014000 8/13/2014 SBO Comprehensive Annual Financial Reports (CAFR) Coordinate Submittal of Material Weakness Corrective Action Plan to SBO 44313014000 12/6/2013 SOMCAFR 44313014000 12/21/2013 Preliminary Response for FY2013 CAFR Audit Memo to SBO 44313014000 4/29/2014 MDOT's CAFR Audit 60‐day Response 44313014000 8/18/2014 Miscellaneous Liaison Services AASHTO Develop Audit Program for Transit 40314031052 5/19/2014 AASHTO Internal Audit Subcommittee 40314041052 3/31/2014 Act 431 of 1984 Review 60212051042 4/25/2014 Disputed Audit Resolution Team‐ Follow‐up Efforts for One Auditee 54112001008 3/11/2014 Michigan Business One Stop 44313014000 12/5/2013 Legislative Request‐ Performance‐Based Outcome Measures 44313014000 8/19/2014 Legislative Request‐ Rep. McMillin‐ Funding for Department Services Provided to Local 44313014000 10/21/2013 Response to Illinois Question about Amtrak n/a 9/10/2014 Response to Commission Request ‐ OPT JARC Grantees 44313014000 7/16/2014 Verify Prequalified Consultants with CPA Audited Overhead Rates 44313014000 10/23/2013 Grand Total Completed 36 12/15/2014 Page 3 Office of Commission Audits Prequalification Reviews Fiscal Year 2014 Consultant Name Completed Abonmarche Consultants, Inc. 6/25/2014 Access Engineering, Inc. 5/29/2014 Advanced Geomatices 1/28/2014 Advanced Geomatices 8/11/2014 AECOM USA of Mich., Inc. (formerly known as CTE) 5/22/2014 Aerocon Photogrammetric Services, Inc. 5/20/2014 Alpine Engineering, Inc. 5/27/2014 AMEC Engineerng and Consulting of Michigan, Inc. 6/17/2014 Anderson, Eckstein, and Westrick, Inc. 1/28/2014 Applied Payment Technology, IL 6/12/2014 Applied Science 12/11/2013 Applied Science 6/12/2014 ASC Group Inc. 8/21/2014 ASTI Environmental 10/3/2013 ASTI Environmental 7/1/2014 Atkins North America, Inc. 7/31/2014 Ayres Associates 5/29/2014 Baker & Associates 10/7/2013 Baker & Associates 8/5/2014 Beckett & Raeder, Inc. 6/24/2014 Bergmann Associates, Inc. 6/18/2014 Boldt, McLeod & Johnson, Inc. 5/20/2014 Boss Engineering 12/4/2013 Buckland & Taylor, Ltd. 6/18/2014 Capital Consultants, Inc. dba C2AE 6/6/2014 Cardno TBE Michigan 5/22/2014 Carter and Associates Engineering, LLC 12/11/2013 CC Land Surveying 6/5/2014 CDM Smith Michigan, Inc. 8/28/2014 CH2M Hill, Inc. 6/12/2014 Coleman Engineering Company 3/4/2014 Coleman Engineering Company 5/20/2014 Collins Engineers, Inc. 10/1/2013 Collins Engineers, Inc.