February 02, 2006 - Audits offer different views

Audits offer different views

OMNITRANS: One report is critical of the agency, while the other gives a positive appraisal.

February 02, 2006

01:19 AM PST on Thursday, February 2, 2006
By IMRAN GHORI / The Press-Enterprise

Omnitrans board members accepted two audits Wednesday that offered varying reports on the transit agency's operations while taking steps to begin an independent review of its management.

A long-awaited performance audit, looking at the management and personnel practices of the agency, which provides bus service to 15 cities and county areas in the San Bernardino Valley, offered a mixed appraisal of Omnitrans.

The audit found that the agency was hampered by leadership vacancies, staff turnover and ineffective financial management software, but also noted improvements in its contracts record-keeping.

The agency was criticized over contracts for the purchase of tires and financial software in 2001 that resulted in costly errors.

The audit includes a list of 37 recommendations, 25 of which the agency already has adopted or is implementing, General Manager Durand Rall said.

The board voted to accept the report while instructing Rall to return to a board committee with an action plan on carrying out the remaining recommendations.

A separate financial audit, part of the agency's annual review, offered a more positive view with an unqualified opinion, a step up from the qualified opinion received last year. An unqualified opinion is the best endorsement in an audit.

Last year's audit, looking at the 2003-04 fiscal year, faulted the agency in its record-keeping for inventory control, grants and capital assets. The 2004-05 financial audit notes improvements in those areas while making recommendations for better tracking procedures.

Finally, the board reviewed a proposal to begin seeking a firm to create a process for conducting an annual internal audit of the agency.

That audit would look at agency management and report directly to the board and its administrative and finance committee.

"I think the outcome will be a healthier organization," said Redlands Councilwoman Pat Gilbreath, president of the Omnitrans board.

San Bernardino County Auditor/Controller Larry Walker, who oversaw the performance audit and will help to establish the ongoing internal audit, said the steps taken will help to improve the agency.

"An internal audit is to some extent somebody looking over your shoulder, but it's looking over your shoulder in a positive way," Walker said.

The separate audits are a response to criticism last year by state Sen. Nell Soto, D-Pomona, and Assemblyman Joe Baca Jr., D-Rialto, who said they were troubled by reports of financial problems at Omnitrans. Both have said that they hope the agency will follow the audit recommendations to establish better financial oversight.

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Audits offer different views

OMNITRANS: One report is critical of the agency, while the other gives a positive appraisal.
February 02, 2006 01:19 AM PST on Thursday, February 2, 2006 By IMRAN GHORI / The Press-Enterprise Omnitrans board members accepted two audits Wednesday that offered varying reports on the transit agency's operations while taking steps to begin an independent review of its management. A long-awaited performance audit, looking at the management and personnel practices of the agency, which provides bus service to 15 cities and county areas in the San Bernardino Valley, offered a mixed appraisal of Omnitrans. The audit found that the agency was hampered by leadership vacancies, staff turnover and ineffective financial management software, but also noted improvements in its contracts record-keeping. The agency was criticized over contracts for the purchase of tires and financial software in 2001 that resulted in costly errors. The audit includes a list of 37 recommendations, 25 of which the agency already has adopted or is implementing, General Manager Durand Rall said. The board voted to accept the report while instructing Rall to return to a board committee with an action plan on carrying out the remaining recommendations. A separate financial audit, part of the agency's annual review, offered a more positive view with an unqualified opinion, a step up from the qualified opinion received last year. An unqualified opinion is the best endorsement in an audit. Last year's audit, looking at the 2003-04 fiscal year, faulted the agency in its record-keeping for inventory control, grants and capital assets. The 2004-05 financial audit notes improvements in those areas while making recommendations for better tracking procedures. Finally, the board reviewed a proposal to begin seeking a firm to create a process for conducting an annual internal audit of the agency. That audit would look at agency management and report directly to the board and its administrative and finance committee. "I think the outcome will be a healthier organization," said Redlands Councilwoman Pat Gilbreath, president of the Omnitrans board. San Bernardino County Auditor/Controller Larry Walker, who oversaw the performance audit and will help to establish the ongoing internal audit, said the steps taken will help to improve the agency. "An internal audit is to some extent somebody looking over your shoulder, but it's looking over your shoulder in a positive way," Walker said. The separate audits are a response to criticism last year by state Sen. Nell Soto, D-Pomona, and Assemblyman Joe Baca Jr., D-Rialto, who said they were troubled by reports of financial problems at Omnitrans. Both have said that they hope the agency will follow the audit recommendations to establish better financial oversight.
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