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120908 ComIT AuditPresentation to the City Council December 9, 2008 Lyndon S. Remias, CPA, CIA City Auditor 1.Determine whether amounts charged to departments for services accurately reflect the cost of those services. Result(s) ? We determined that WAN, Emergency Radio Maintenance, and Subscription Services amounts charged to other departments for services accurately reflect the cost of services provided. ? For multi-functional devices, we determined that forFY 08, ComIT charged departments approximately $200K above the vendor direct costs for the use of MFDsas shown below: ? Of the $200K difference, $30K was a result of ComIT using an incorrect click rate per copy of $.008 as opposed to the correct rate of $.007. The remaining $170K is the 20% overhead rate (the standard rate for all services provided by the City/Schools Printing and Mail Services) on the use of MFDsto all departments. Conclusion(s) ? Except as noted above, we determined that amounts charged to departments for services accurately reflect the cost of servicesprovided. Recommendation(s) 1.1We recommend that ComIT begin charging departments the new, renegotiated Xerox contractual click rate of $.007 per image as opposed to the old rate of $.008. This rate was renegotiated in May 2007 but was not passed on to departmental customers. 1.2We recommend maintaining the current overhead rate of 20% for multi- function device (MFD) use at this time, even though when considering this one service by itself the overhead charged does not approximate the cost of administering the service. The MFD lease payments to Xerox Corporation and corresponding charges received from departments are booked in the Print Shop Internal Service Fund. City/Schools Printing is funded by two revenue sources –the MFD charges and individual print jobs for which ComIT charges departments throughout the year. When considering City/Schools Printing Services as a whole (without the knowledge of the effectiveness and efficiency of the entire City/Schools Printing Services operations), it is evident that the enterprisefund needs the excess overhead for its operations. It had an operating loss of $35,238 in the 2007 Comprehensive Annual Financial Report (CAFR). To attempt to predetermine the number and exact cost of anticipated individual departmental print jobs to charge overhead to with more accuracythan is now being done is probably unrealistic. 2.Determine whether IDTs are necessary and/or warranted. Results(s) ? The amount of IDTs initiated by ComIT during FY 08 totaled $2,536,742. ? All IDTswere deemed necessary and warranted. Conclusion(s) ? We determined that the above IDTs initiated by ComIT were necessary and warranted. Recommendation(s) ? None. 3.Evaluate efficiency in responding to departmental needs for equipment, communications, software and other IT-related items. Result(s) We reviewed Citywide IT-related purchasing transactions originating in FY 08. ? The average review by ComIT took 2.5 days to complete. ? 64.4% were reviewed and returned to the Purchasing Division within one day. ? The longest review took 71 days. ? The average resolution time for FY 08 HEAT tickets related to purchase orders was 20.1 days. The HEAT ticket resolution time represents the time it takes to issue a purchase order, accept delivery, configure, image, test and install the item. ? The City contracts with Electronic Systems, Incorporated (ESI) to provide computer-related equipment, peripherals and software that adhere to the standards developed by ComIT in accordance with AD 2.06.All computer-related hardware purchases are subject to a $55 installation fee and/or $25 asset tagging fee. Hardware is configured, imaged, delivered and installed by ESI staff. Survey QuestionYesNo Was the product you received adequate to perform 92%8% your job duties? ? Despite this high percentage, only 45% indicated “Very Satisfied”or “Satisfied”when asked to rate their satisfaction with the overall IT-related purchasing process. 5.Determine whether current policies unnecessarily limit purchasing efficiency and restrictions on printers. ? The contract with ESI provides a selection of nine printers thatmeet the City’s standards for compatibility, reliability and durability. ? During FY 08, the City purchased 89 printers (22 of which were non-City standard desktop models purchased to address specific, unique business needs) from ESI, ranging in price from a small desktop printer for $86 to a high speed network printer for $3,507. Conclusion(s) ? Based on the results of our analysis of procurement cycle data, the stewardship responsibilities placed on ComIT by Administrative Directive (AD) 2.06,Information Technology Infrastructure and Asset Management and the results of the Technology Satisfaction Survey, we do notbelieve unnecessarily current IT-procurement policies limit departmental access to hardware and software. ? We do, however, believe that the timeliness of new department technology related initiatives implementation is somewhat impacted by the process. ? Given the purchase information provided above and the stewardship responsibilities placed on ComIT by AD 2.06, we do not believe current unnecessarily policies limit purchasing efficiency, nor do they place unnecessary restrictions on a department’s ability to purchase printers. Recommendation(s) 3.1We recommend ComIT continually monitor and review their processes to ensure efficiency with regard to approving departmental IT-related purchases, and their role in the delivery, configuration, imaging, testing and installation of technology-related items. Some improvements suggested by survey respondents include: ? Require the City’s hardware vendor to prestock popular peripherals to reduce delivery time. ? Make information readily available to user departments regarding requirements and the approval process for purchasing “non-standard” items. ? Provide a link to information concerning proper account coding on beachnet (City’s intranet). ?“Sponsor an annual Technology Fair to share ideas about new technology and receive input from operational divisions on what hardware and/or software to make ‘City standards’.” 5.1We recommend that Administrative Directive 2.06, Information Technology Infrastructure and Asset Management, adopted in June 2001, be updated to reflect the current operating structure and practices within the City. 5.2We recommend ComIT provide additional (easy to find) informationto its customers with regard to their ability, and the requirements necessary, to purchase “non-standard”computer-related hardware, software, and peripherals in the form of “Frequently Asked Questions”or “How To”on beachnet. 4.Evaluate efficiency in responding to HEAT ticket calls. Result(s) ? ComIT resolved 26,302 calls for service during FY 08. ? 52.3% of all calls were resolved within one day. FY 08 Resolution Hours by Priority Level Calls that Met or Exceeded Response Goal AverageMedian Number%Number% PriorityHoursResponse of Callsof Callsof Callsof Calls Per CallHours 1115 0.4%6.472.252 45.2% 2845 3.2%15.902.761272.4% 318,710 71.1%25.066.014,371 76.8% 46,632 25.3%77.6819.74,950 74.6% TOTAL26,30219,985 76.0% ? With regard to problem resolution and requests for services, we asked the respondents to rate their level of satisfaction in the followingareas: Support Center Satisfaction Dissatisfied/ Very Satisfied/ Survey AreaNeutralVery Satisfied Dissatisfied Speed in reaching the HELP Desk74%16%10% Timeliness of problem/request resolution70%18%12% Knowledge and technical abilities of staff76%17%7% Courtesy and helpfulness of staff87%10%3% ? Sixty-six percent (66%) selected “Always”or “Usually”when asked whether their problems were resolved in a satisfactory manner. Less than 1% responded “Never”. Conclusion(s) ? Based on the results of our review of FY 08 call resolution dataand the satisfaction ratings provided in the Technology Satisfaction Survey, we found the technology-related support services provided by ComIT to be operating efficiently and effectively. Recommendation(s) 4.1We recommend that ComIT consider the following activities (many of which were suggested by the respondents to the survey) to enhance the City’s experience related to ComIT support: Evaluate increasing the hours of available support to meet the needs of its ? customers. Provide the customer an estimated response time based on the call type. ? Provide an online means of reporting issues and checking call status. ? Have Support Center staff answer the telephone during normal business ? hours, when feasible, rather than the calls going to automated answering/voice mail. Quickly acknowledge receipt of calls/requests left on voice mailand/or ? received via email. Enhance beachnet to include frequently asked questions and resolutions ? for common problems (and make them easier to find). Revisit the call closing process to ensure the information is useful and ? beneficial to all parties. An option may be to confirm the technician’s closing of the call via email or voice message and, then to periodically send a short customer service satisfaction survey to a randomly-selected sample of customers. Provide periodic staff development and customer service trainingto all ? levels of ComIT staff. Evaluate solutions for further developing individual departmental ? knowledge and direct relationships within City departments. We believe that by doing so, ComIT, as well as the rest of the City, will benefit from the shared understanding of operations, issues and needs. This would result in enhanced quality and responsiveness of services provided both internally by ComIT and externally by the operating departments. Recommendation(s) 5.1We recommend that Administrative Directive 2.06, Information Technology Infrastructure and Asset Management, adopted in June 2001, be updated to reflect the current operating structure and practices within the City. 5.2We recommend ComIT provide additional (easy to find) informationto its customers with regard to their ability, and the requirements necessary, to purchase “non-standard”computer-related hardware, software, and peripherals in the form of “Frequently Asked Questions”or “How To”on beachnet. 6.Determine whether the final decision by ComIT on radio, in-vehicle computers, and related purchases superseded recommendations from end-users . Results Radio Replacement ? The decision to select the Motorola XTS 2500 radio as the publicsafety standard in 2002 was made after extensive review and stakeholderinput. ? The decision was directed by the then Chief of Operations and discussed and agreed upon by the public safety Chiefs at a meeting in December 2002. ? A multitude of factors was considered before the decision was rendered.Among these factors were: the budget of $6.7 million, future migration, cost differences between the units, expandability, and the needs of the user agencies. Mobile Data Terminal (MDTs) Replacement ? In late 2006, the City began the process of selecting new MobileData Terminals (MDTs) to replace the keyboard data terminals (KDTs) in public safety vehicles. ? As part of the process, representatives of Police, Fire and EMS were afforded the opportunity to provide application functionality and hardware specifications.They were asked to evaluate sample units from multiple manufacturers to determine the most desirable features. ? The RFP evaluation criteria included functional aspects as well as provider qualifications, service level ability, performance history, and other criteria deemed appropriate, including unit cost and cost of all associated accessories and required services. ? User departments requested USB ports and optical drives for use in accessing Field Guides and other information needed while in their vehicle. ? The new MDTshave USB ports, but they are not currently accessible, due to virus/vulnerability issues. ? Optical drives (for use reading field manuals) were not provided. ? There are many public safety technology upgrade projects either actively underway or in the planning stages that will greatly enhance theability of public safety providers to communicate and operate in the field. ? The first step was to replace the MDTs. ? The decisions made by ComIT to ensure data integrity and security relating to the use of the MDTscould have been better communicated to the stakeholders. Conclusion(s) While there may have been some communication issues, we do not believe the final decision by ComIT on radio, in-vehicle computers, and related purchases superseded recommendations from end-users. Recommendation(s) None. 7.Review areas of concern regarding connectability between fire stations. Conclusion(s) ? It is our conclusion (as well as ComIT and Fire Administration) that the issue of network connectivity between fire stations has been addressed. ? All fire stations have network connectivity capabilities via Frame Relay or Cox Business Internet. ? Responses from eight stations and one Battalion Chief indicated agreement that the connectivity provided allowed them to access the City’s wide area network, and seven of the eight agreed that the connectivity was adequate to perform their job functions.Two respondents reported recurring problems (one that the connection was too slow; and, the other reported issues with printing). Recommendation(s) ? None. 8.Review areas of concern regarding internet access at EMS stations: Conclusion(s) ? We contacted all squads and substations and determined that all,with the exception of Creeds and First Landing, have internet access. Recommendation(s) ? None. 9.Evaluate employee efficiency, turnover, and morale of Emergency Communications since ComIT took control of the VB 9-1-1 Call Center. Result(s) Efficiency of Service Delivery ? The results of our VB 9-1-1 Employee Survey (with 62% of employees responding) show employees are generally satisfied with the Center’s performance and their job responsibilities. ? Employees believe VB 9-1-1 rates “Excellent”or “Above Average” when it comes to call response times, dispatch times, citizen satisfaction, public safety (Police, Fire and EMS) customer satisfaction and efficient call management. ? VB 9-1-1 has consistently received high satisfaction ratings as part of the City’s Citizen Satisfaction Survey conducted every two years. Citizens reported a satisfaction rating of 97.3% in 2007 and 96.4% in 2005. VB 9-1-1 Internal Customer Satisfaction ? We met with representatives of each Public Safety Department to discuss their issues and concerns; and ? Used the 321` respondents to our Technology Satisfaction Survey reporting to have used emergency dispatch services. Seventy-six percent (76%) of those responding reported their overall satisfaction level with emergency dispatch services as “Very Satisfied” or “Satisfied”. Only 13% indicated “Dissatisfied”or “Very Dissatisfied”. Staffing/Turnover ? The ECCS Division has 125 approved FTEs for FY 09. ? There were 16 vacancies as of July 1, 2008.This represents 13% of the total approved FTEs. ? Vacancy rates have declined from 19% in FY 02 to 13% in FY 08, due in large part to the enhancements made to the recruitment and training processes by ComIT management. Comparison of Budget to Actual FTEs 140 125125125 120120 117117 109109 105 103 102102 101 100100 95 FISCAL YEAR 8888 87 80 60 40 23 21 2020 19 16 15 14 13 7 0 FY00FY01FY02FY03FY04FY05FY06FY07FY08 NUMBER OF FTES BUDGETED FTEsPOSITIONS FILLEDVACANCIES ? While employees rated the Center’s performance with regard to its ability to adequately retain existing employees as “Poor”or “Very Poor”, the retention rate for experienced employees remains over 90%. ? VB 9-1-1 employee turnover has increased over the last five years primarily due to the increased number of academies and recruits that fail to complete the probationary (training) period. ? Eleven (11) employees retired during the five-year period, accounting for approximately 27% of the experienced employees who have left. Employee Satisfaction Levels 5.00 4.00 3.00 Average 2.00 1.00 - Respect Empowerment Teamwork TrustMorale Compensation Overall Opportunity for Advancement Communication Physical Environment Employed Prior to Move Employed After MoveAll Employees Morale of VB 9-1-1 Operational Employees ? Of all ECCS respondents, almost 60% of the respondents evaluatedmorale as “Poor”to “Very Poor”. ? Seventy-one percent (71%) of respondents indicated they believe that employee morale is declining. Based on the survey results, the comments provided and our interviews with staff, it appears that morale is impacted by the following: ? Decision by City Management to move VB 9-1-1 from the Police Department. ? Lack of recognition of VB 9-1-1 as a public safety function and its organizational placement. ? Management decisions and interactions with staff. ? Shift level staffing deficiencies. ? Required overtime ? Inconsistencies in supervisory practices. ? Interaction and conflict with co-workers. ? Compensation. ? Lack of employee recognition and teambuilding activities. Organizational Placement ? The current administrative placement and reporting relationship through the City’s Department of Communications and Information Technology does not accurately reflect the largely public safety nature of the work performed by the Emergency Communications Center. ? The function has evolved significantly since its inception, and should be recognized for making a direct contribution to the delivery of public safety services to citizens. ? The current placement places the Center in a reactive position for handling policy, practice and procedural changes within public safety agencies that directly or indirectly impact the “work on the operations floor”. ? Additionally, the current placement also creates natural conflicts between service delivery and technology support roles within ComIT. ? Placement within one of the Public Safety departments does not effectively represent (and/or address) the diversity of VB 9-1-1’s multiple customer base and the broader service delivery needs of all affected departments. ? Studies show placement within one agency creates both perceived and real bias when communication needs and issues conflict. ? Placement within one of the Public Safety departments also causes an internal “struggle”(within the department) for the resources necessary to sustain and improve operations. ? Placement within one of the Public Safety departments administrative chain- of-command is not representative of the largely operational nature of the services provided or of the broader organizational role of public safety communications service delivery. Conclusion(s) ? Given the challenges associated with operating in a 24/7, emergency operations environment, VB 9-1-1 provides an efficient level of service that helps to ensure the safety of the City’s citizens and first responders due in large part to the commitment and dedication of its management, administration and employees. ? The overall turnover rate is better than national 9-1-1 turnover trends and has been held relatively consistent over the last two fiscal years. ? Despite improvements to the physical environment, compensation, increased staffing and enhanced recruitment efforts, employee morale remains problematic. Recommendation(s) 9.1We recommend, in conjunction with ComIT leadership, the City consider designating VB 9-1-1 as a public safety activity and making the communication functions within the Emergency Communications and Citizen Services Division an independent City department (outside the customer agencies it serves) with a reporting structure similar to the City’s other public safety agencies. ComIT would continue to provide support to the technology components of the division. 9.2We recommend the City create a Public Safety Advisory Board composed of representatives from Police, Fire, EMS and Emergency Communications to provide input and guidance with respect to Emergency Communications, and that the Board be chaired by the City Manager. 9.3We recommend services to internal customers be managed through written Memoranda of Understanding (MOU) or other formal processin order to clearly define the customers and VB 9-1-1’s needs and expectations for service delivery. 9.4We recommend that ComIT work with a professional facilitator to provide VB 9-1-1 staff an open forum to express, discuss, and resolve workplace concerns. 9.5We recommend that ComIT evaluate utilization of 12 hour shifts for VB 9-1-1 operations. 10.Perform analysis of pertinent employee suggestions. Results ? Feb 2005 –Mar 2005: Reviewed the master list of suggestions and hard copy detail (now with Management Services). Determined that suggestions were logged, reviewed and monitored until final disposition. ? Mar 2005 –Dec 2006: We were unable to determine if any suggestions during this time period were logged, reviewed, or monitored. ? Jan 2007 –To current: Reviewed the master list of suggestions. Determined that suggestions were logged, reviewed and monitored until final disposition. Note: Five (5) of 77 suggestions received to date relate to ComIT. Conclusion(s) ? The City Auditor concluded that there is an employee suggestion program forum in place whereby employees can make suggestions concerning technology and other issues. Recommendation(s) 10.1The “My Idea Works Program”should continue to operate in its present form. 11.Perform confidential interviews with employees and volunteers regarding ComIT. Conclusion(s) ? Based on confidential interviews conducted and comments receivedfrom theCitywide Technology Satisfaction Survey many respondents acknowledged the challenges that ComIT faces in serving the entire City’s IT needs. ? Many comments received praised ComIT’s courtesy and professionalism. ? However, one overarching theme that resonated from the interviews and comments was that ComIT should recognize their role as that of asupport department supporting, rather than determining a department’s technology needs. ? In addition, the survey revealed that employees are not aware ofcommon ComIT tools that can help them with IT/computer-related questions. ? Detailed results of the survey our included in Appendix 2 and Appendix 3 Recommendation(s) 11.1We recommend that ComIT thoroughly review the results of the City of Virginia Beach Technology Satisfaction Survey and the VB 9-1-1 Employee Survey and develop an action plan to address those areas which need significant improvement. 11.2We recommend that ComIT develop a plan to make employees more aware of the common ComIT tools that can help users with IT/computer related questions. 12.That if the City Auditor concludes that it would be prudent and cost effective to retain on a contract basis the services of an outside technology consultant or auditor with technological expertise, and the City Auditor concludes that additional funds are needed to procure those services, then the City Auditor shall submit an appropriations ordinance for consideration by City Council. Conclusion(s) ? The City Auditor determined that the current audit staff possessed the expertise and experience to effectively address City Council concerns expressed in items one through six of the City Council Resolution. However, the scope of this audit did not include the City’s Capital Improvement Program (CIP) for Communications and Information Technology (CIT) which contains numerous projects totaling approximately $107 million. In addition, the scope does not address the need for a comprehensive Citywide Technology Plan. The technical skills, expertise and experience needed to address these needs would have to come from outside the organization. Recommendation(s) 12.1We agree with City management that the City should engage an external Information Technology consultant with established expertise to develop a Citywide Technology Plan. The level of expertise and sophistication required to develop an effective technology plan for an organization of our size and complexity will no doubt require significant resources.We recommend ComIT coordinate with the Office of the City Auditor, appropriate City staff and City Council to develop the specific deliverables and associated cost estimates that will meet City Council’s expectations for such an endeavor.