Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
GENERAL:
Transportation is a vital support service that
requires sound management. Capital investments
in bus fleets and annual expenditures required for
maintenance and operation are substantial.
However, the goal of any school transportation
operation is to safely transport students to and
from school and other school related activities in a
timely manner. Although numerous state
regulations govern transportation services, districts
have the flexibility of establishing procedures that
can enhance operations such as setting bell
schedules,
designing
efficient
routes
and
establishing sound maintenance procedures.
Additionally, many factors affect the service
provided to students, including bus replacement
and maintenance programs, driver recruitment and
training, driver and passenger safety, service
evaluation, and purchasing procedures.
OBJECTIVES:
1. Comprehensive policies and procedures,
practices, and internal controls have been
established for transportation services and are
adequate;
2. Ensure that all district vehicles are properly
tracked, obtaining proper maintenance,
insurance, etc;
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
3. Ensure that district vehicles taken home by
employees have adequate justification and
approval;
4. Ensure the process by which vehicles are disposed
is adequate;
5. Ensure that driving records are properly obtained
and evaluated on all drivers;
6. The District is in compliance with all applicable
regulations;
7. Transportation staff have the proper credentials
required to perform their duties;
8. District vehicles are accounted for and
safeguarded;
9. District vehicles are adequately maintained and
replaced according to District guidelines;
10. Equipment and supply inventory is monitored and
accurately recorded;
11. Gasoline usage is effectively controlled and only
authorized users access the facility;
12. Bus routes and extracurricular trips are scheduled
to achieve efficiency;
13. Transportation measures are accurately reported
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
to the state so the District can receive all revenue
due;
14. The department is operating within budgetary
constraints;
15. The parts operation for efficiency and
effectiveness;
16. Test fuel inventory and control program;
17. The District is operating efficiently and effectively
for actual time versus standard time for repairs.
18. The District is operating efficiently and controls
are in place for work orders.
PLANNING (Planning Section):
1. Prepare an engagement memo to announce the
audit.
2. Obtain an understanding of the auditee’s
operations through research and interviews.
Document the system of the area being audited,
this includes all significant day-to-day operations
and processes as it relates to contract
administration; verify the accuracy of your
understanding with auditee.
3. Perform a general overview of the internal control
environment and establish the scope of the audit,
document in the Transportation Walkthrough.
4. Ensure that management has considered
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
potential fraudulent activities by inquiring with
management about their knowledge of fraud
opportunities within the department and the
steps they have taken to minimize these
opportunities.
5. Develop appropriate audit tests to provide
assurance that management’s objectives are
being met, and that fraudulent activities have not
occurred. Document in audit work program.
INITIAL AUDIT PROCEDURES (Section A):
1. General
a. Obtain the following, where applicable:
i) Policies and Procedures (P&P)
ii) Organizational Charts
iii) Prior Audit Reports
iv) External Auditor Management Reports
v) Regulatory Examination Reports
vi) Related Information Regarding Laws and
Regulations
vii) List of district vehicles – including year,
make, model, VIN, vehicle tag number,
purchase date and current mileage.
Obtain one from Transportation and one
from Fixed Assets
viii) List of personnel assigned or associated
district vehicles
ix) List of district vehicles that are taken
home – name and address
x) List of district vehicles purchased within
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
the last two years
xi) List of district vehicles disposed of within
the last two years
xii) List of district vehicles from each
department (i.e. child nutrition,
warehouse, police, etc..)
xiii) All accident reports for the past three
years
xiv) List of all work orders for the testing
period
b. Review all information above to ensure:
 Compliance with all relevant policies and
procedures;
 Ensure that all relevant policies and
procedures have been communicated to
the appropriate personnel;
 Proper segregation of duties exists (org
chart + system doc);
 Corrective action plans to address noted
deficiencies in prior examination reports
or by external auditors have been
implemented;
 Compliance with all relevant regulatory
laws and guidelines.
INFORMATION UTILIZED (Section B):
1. Obtain a copy and list all forms utilized [where
applicable]
a. Obtain copies of all forms used by the
department/within the area of the audit.
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
b. Evaluate for adequacy and effectiveness.
c. Review forms used and practices to ensure
that redundancies or inefficiencies do not
exist.
2. Generated Reports [where applicable]
a. Obtain copies or samples of all reports
generated for the vehicle usage, etc. and
determine their use and distribution. Include
system reports and manual reports if
necessary. Ensure that the information
presented in these reports is tested or
analyzed at some point in the audit program.
AUDIT TESTING (Section C):
1. Vehicle Listing
a. Review current list of vehicles from
Transportation and Fixed Assets Department.
b. Import all information into IDEA and compare
list from Transportation Department to the
Fixed Asset Department vehicle list.
c. Import all information into IDEA and compare
the list from Transportation Department and
Fixed Assets Department to information
obtained from departments.
d. From the results listed in b and c, research the
discrepancies and document.
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
2. Vehicle Test
a. Select a sample of vehicles from
Transportation Department, and Dept lists,
and testing the following:
i) Vehicle is recorded in Fixed Assets?
ii) Verify that the district has the title to this
vehicle.
iii) Document this vehicle was located in the
district.
iv) The vehicle is clearly marked as an SISD
vehicle.
v) The license plate matches what is on file.
vi) Maintenance and inspections are
performed timely.
vii) The numbers tagged on vehicles.
viii) The Vin # was recorded correctly.
ix)
b. Categorize the age of the buses as 1 to 5
years, 6 to 10 years, and over 10 years.
Conclude on the percentage of the fleet over
10 years.
c. Physically inspect a sample of vehicles and
document the condition to ensure they
match to the fleet records.
d. Determine whether vehicles are adequately
secured after business hours
i) Stored in a locked area
ii) Keys stored in a secured area
within the building
iii) All vehicles accounted for prior
to closing
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
e. Examine insurance records to ensure that
all buses are covered. Note any
discrepancies
f. All vehicles have the proper updated
insurance card.
g. All vehicles have a fire extinguisher and first
aid kit.
h. All vehicles have the required forms (i.e.
accident report form, district map, fuel card,
etc…)
3. Auction Vehicles
a. Document the process for auctioning vehicles.
b. Obtain a list of vehicles recently sent to
auction. Randomly select a sample and
ensure the titles have been transferred and
the vehicles have been removed from Fixed
Assets.
4. Approved Drivers Testing
a. Document the process for the Driver Training
course (i.e. who pays for this?)
b. Randomly select a sample to ensure drivers
on the approved drivers list have in fact
passed this course and verify that proper
checks of their driving record have been
obtained and evaluated.
c. Ensure drivers passed and have the proper
drug testing records.
5. Take Home Vehicles
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
a. From the information obtained in Step 1.
Select a sample of drivers that take home
their assigned vehicles and verify that this was
properly charged to their W2.
b. Document how bus driver certifications and
licenses are monitored.
c. Determine whether other employees in the
transportation department or district
(coaches, teachers, etc..) drive buses. If so,
make sure they meet the same licensing
requirements.
d. Randomly select a sample to ensure drivers
on the approved drivers list have passed the
course(s) and verify that proper checks of
their driving record have been obtained and
evaluated.
e. Ensure the following documents are available
and current in their respective file:
iv) Criminal background
v) Valid commercials drivers license
vi) Texas Education Agency (TEA)
school bus driver certification
vii) Annual physical
viii) Alcohol and drug test clearance
6. Vehicle Maintenance and Replacement
A. Document what type of bus retirement and
replacement plan exists.
B. Physically inspect a sample of vehicles and document
the criteria used to retire or replace vehicles.
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
Compare the results to the replacement/retirement
plan
Document what steps are taken when a vehicle is
retired and how vehicles are disposed.
Inquire and document if there is a policy in place for
preventive, routine, and emergency maintenance.
Inquire and document the system in place to
document repairs.
Obtain and review schedules developed for vehicle
maintenance.
Obtain and review logs maintained for vehicle
maintenance and determine if work was performed as
scheduled, maintenance was completed and
evidenced by a signature, and supervisor
inspection/approval was obtained.
Select a random sample of buses and ensure that
routine maintenance was performed in accordance
with the schedule.
Obtain a list of vehicles that are under warranty.
Review to see if any of those warranty vehicles had
maintenance work.
Determine if mechanics document on the work order
opinions of operator abuse of the vehicles.
Prepare a report to identify vehicles which have had
problems with repairs being done right the first time.
The report should identify vehicles with repair dates
within 3 months of each other at a minimum.
Prepare a table showing the department’s
maintenance hours, vehicle mileage and fleet mix to
assess whether mechanic staffing levels are adequate.
7. Equipment, Tools, and Supplies
A. Document the procedures for maintaining equipment
and tools
B. Obtain a list of equipment, tools, and supplies
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
C. Ascertain whether periodic inventories are performed
to confirm items on hand.
D. Review inventory documentation and determine
reasonableness.
E. Document how supply levels are determined to
ensure major parts are available when needed.
F. Document the system used to monitor stock levels.
G. Conduct a walk-through and inspect the parts storage
facilities, and the transportation bays. Assess the
following:
i) Security measures implemented
to protect supplies and
equipment.
ii) Liquids and other consumable
items are properly labeled.
iii) Hazardous materials are properly
labeled and stored.
iv) Tools and equipment are in safe
working condition (no frayed
cords, damaged shields, etc..)
H. From the list of supplies select a sample and verify the
contents on the floor
I. Select a sample from the floor and trace them to the
list.
J. Obtain a list of equipment replaced during 2011 to
date. Review documentation and support to replace
the asset.
K. From the equipment list, select the most frequently
replaced model and reason for replacement.
L. Obtain a list of all parts carried by the Parts operation
and determine how often the items on the list are
physically verified.
M. Obtain listing of parts that have been unusable for any
reason and document what was done with them.
N. Obtain a listing of regular parts needed but not on
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
O.
P.
Q.
R.
S.
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
hand that had to be emergency ordered.
Obtain a listing or summary of parts returns that were
made for parts orders.
Summarize total parts expense for fiscal 2011 to date
and determine if all expenses were charged back to
the users department.
Determine if mechanics document on the work order
opinions of operator abuse of equipment.
Prepare a report, sorted by operator name, number of
repairs by user to identify possible equipment
abusers.
Calculate the inventory turnover ratio for fiscal year
2011-2012 and 2012 through present.
8. Fuel Usage
Document how fuel is obtained. If an onsite storage
facility is used, inquiry whether specific environmental
regulations must be followed. If so, is the district in
compliance?
Obtain a transaction listing from the fuel system.
Document how fuel usage is controlled.
Document “override” procedures.
From the fuel listing determine is any of the
transactions were “override” transactions
Document the physical controls used at the pumps
and ensure that only authorized users access the
facility. Physically examine and document the fuel
area.
Ascertain whether other entities are allowed to use
the fuel. If so, document how cost-sharing is
structured.
Measure and document the amount of gas in the
storage tanks and compare to the inventory system.
Document how often tanks are measured and refilled.
Review the fuel reports, note any illogical trends.
Select a sample of district vehicles and fuel receipts.
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
K. Review the receipts for gallons, dates, mileage and if
the gallons to refill are reasonable.
L. Document who reconciles the fuel receipts to the
A.
B.
C.
D.
statements.
9. Routing and Scheduling
Document how bus routes are scheduled
Compile a list of all routes showing the average
ridership, ride times, and the number of miles driven
per route.
Prepare a chart showing overtime worked by each
position typed in hours and dollars. Analyze trends
for the past 3 years and determine whether overtime
is reasonably controlled.
Document the procedures for overtime.
10. Supplemental Transaction
A. Document procedures for scheduling and pricing
extracurricular trips.
B. Document the process for scheduling, routing,
and pricing the trips (especially for Medicaid
reimbursements for special instruction students
and reimbursements for career and technology
trips).
C. Document procedures for assigning extra trips to
bus drivers.
D. Document how these trips impact bus availability
and bus driver availability for normal routes.
E. Select a sample of extracurricular trips taken
within the current year and recalculate pricing
according to the guidelines.
F. Compile the extracurricular mileage, ridership,
costs and reimbursements for the last three
years. Analyze any trends.
11. State Reporting and Funding
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
The transportation Department of TEA requires each school
district to submit certain transportation reports annually.
From these reports, TEA determines the district’s funding.
A. Document the tracking and reporting process
used by the district including compiling riders and
miles, how counts are taken, how data is verified
before reporting, etc..
B. Prepare a chart to show the district’s linear
density and state reimbursement rates for the
past five years to identify if linear density is
increasing or decreasing.
C. Schedule the districts total transportation miles
driven, ridership and cost for regular, special
education, career and technology, hazardous
miles, etc. and compare to the state
reimbursement for each category of expense.
Then evaluate against peer districts to determine
if the district is recovering a higher, lower, or
similar percent of its costs.
12. Budget
A. Review the Transportation Department’s budget for
the past three years. Note any significant
fluctuations.
B. Obtain the Transportation Department’s budget
reports as of the most recent month end. Review for
unusual transactions, significant overdrafts, or serious
fluctuations.
C. Test a sample of transactions for proper approval,
accuracy, reasonableness, and adequacy of supporting
documentation.
13. Miscellaneous
A. Determine if the department holds any cash on the
premises. If so, count the funds and reconcile
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
balance.
B. Chart all accident reports for the past three years and
determine whether a trend exists.
C. Review the accident reports and procedure process
for accidents. Sample and test that each accident and
consequences agree to district penalties.
D. Test other areas as determined necessary.
E. Obtain the list of car seats and verify the seats are in
proper working order, on the correct bus, and are not
out not out of expiration date.
REPORTING:
1. Document summaries of all audit findings as soon
as exceptions are noted.
2. Recommend to auditee any appropriate
adjustments, internal control or operational
recommendations as a result of the review.
3. Determine whether to include each audit finding
in final audit report based on the audit
disposition, the overall materiality to the audit
and the relative risk exposure.
4. Prepare the draft audit report for review by
auditee.
5. Distribute tentative and preliminary report to
management for review.
6. Conduct closing conference with auditee and
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
obtain corrective action plan.
7. Compile final audit report.
8. Submit final report to distribution list.
POST AUDIT:
1. Organize all relevant workpapers in a clear and
logical and manner and cross reference audit
steps to their corresponding workpapers.
2. Compile and securely store audit CYA files for
reference if needed.
3. Update Audit Index with audit information.
Auditor Signature:
Date:
Date
Spring Independent School District
Internal Audit Work Program
AUDIT NAME: Transportation
AUDIT PERIOD:
Program Based on Presumed or Anticipated Conditions
WP Ref
Date