Auditors issue report on a CT school transportation system. What it said.
A report by a Connecticut municipal Internal Audit Department found that the auditors “in general” determined student transportation operations were satisfactory, but also made recommendations for improvements.
The city of Hartford auditors recently completed the exam of the Hartford Public Schools Student Transportation department.
The auditors noted their aim was to “evaluate and test internal accounting and operating controls, the accuracy and propriety of transactions processed, the degree of compliance with established operating policy and procedures, and to recommend improvements where required.”
“We are pleased, but not surprised, that the audit of our transportation operations was rated as satisfactory,” said Jesse Sugarman, Hartford Public Schools spokesman. “The minor procedural recommendations noted in the audit are either a return to previous processes or already in development.”
Among background shared in the audit:
- Hartford Public Schools provides transportation services to about 10,000 students to and from school each day.
- According to state of Connecticut mandated guidelines, students, depending on their age and grade, are entitled to receive transportation services based on distance from home to respective schools.
- Transportation is provided for students with medical conditions and students with home displacement issues covered under the Connecticut Department of Children and Families, as well as students who lost their housing and are living in shelters.
- Most special education students are transported in specially equipped vehicles and receive door-to-door service from their residences to school.
- The Transportation Department coordinates routes and other transportation arrangements with the transportation vendor, Autumn Transportation.
- During the fiscal year ended June 30, 2023, HPS spent more than $20 million for student transportation services, of which more than $13 million was for special education students.
Sugarman also noted that, “The transportation department continues safely moving thousands of students throughout the district daily while maintaining high levels of customer satisfaction.
“Even throughout the pandemic, HPS provided uninterrupted services for our students and will continue to improve our already proficient transportation operations and technology as we move into the future,” he said.
The scope of the audit included review of the two independent bus company vendors’ contracts, one for special education and one for regular education students, it said. Audit procedures and tests performed were reviews of the vendor contracts; reviews and evaluations of policies, procedures and controls; and analysis and tests of transportation expenses and payments made to transportation vendors, it said.
“We look at everything very carefully, with great concern, for the benefits of Hartford residents,” said Bruce Rubenstein, the chairman of the Internal Audit Commission, noting that “any of these changes have to do with the previous administration and not this one.”
Recommendations
The audit said there was a test of a sample of student transportation expenses paid during the fiscal year ending June 30, 2024, and they “noted that supporting documentation received substantiating invoice totals is not being attached to the MUNIS financial system as required.”
This meant invoice totals could not “be validated during the accounts payable process which results in non-compliance of the Accounts Payable procedures.”
The audit said a discussion took place with William Mason, the district director of transportation, and he reported that the department was told that the backup did not have to be “submitted as long as it was maintained in case of any questions.”
The audit recommended that supporting documentation received to validate student transportation invoices be attached to MUNIS in “accordance with HPS and City procedures,” and that Mason said the department would “revert to attaching the supporting documentation to the invoice in MUNIS.”
Further, according to the audit, a system is not in place to log or monitor customer complaints. The audit noted “based on discussions with the Director of Transportation, about 50 calls are received daily in the department along with multiple emails from schools and families.”
“Complaints or comments received could relate to vendor performance, however, without a system in place, potential problems are not adequately tracked and properly addressed as necessary.”
The audit also noted that, according to Mason, an upgrade to the transportation system is currently underway and that is complete, Mason “plans to create a Customer Relationship Management (CRM) system to track phone calls and type of call.”
“We recommend implementing a CRM system to effectively track and efficiently ensure vendor performance. In addition, the system could substantiate penalties being imposed to ensure payments made support performance received,” the audit says.
The audit notes that Mason said, “over the course of the last 2 years, the department has prioritized operational effectiveness. The transportation system was migrated from the desktop to cloud-based version and a real-time, bus route tracking system was implemented. In doing so, the ability to monitor performance of transportation services was significantly increased.
“In SY 24-25, efforts will continue to include the development and rollout of Customer Relationship Management System (CRM). The use of customer experience and service performance data will provide the metrics to monitor the overall delivery of transportation services. “
The audit also reports that monitoring procedures relating to vendor contract compliance are “only performed at the beginning of the school year and may not detect problems that could arise during the school year. In addition, penalties as stipulated in the vender contract for performance issues, have not been imposed where applicable”
“A one-time vendor review only ensures compliance at that time and may not accurately reflect on-going vendor performance or potential problems,” the audit said, also recommending “performing reviews throughout the school year to ensure compliance with contract terms. In addition, penalties, as allowed in the vender contract, should be imposed when appropriate performance standards are not met.”
The audit notes that Mason’s response was that the “transportation contract requires the contracted vendor to monitor compliance throughout the term of the contract. At the start of the school the department engages in a review of the driver’s credentials, vehicle insurance and safety equipment.
“In the upcoming years, we will request 2 additional reviews in the winter and spring to ensure performance and compliance standards are being met. If issues are identified, the appropriate penalty will be levied and evidence of the remedy must be submitted.“