Risk Matrix
Public Works Engineering &
Inspection Costs

"A" = Actual Control "P" = Proposed Control

          CONTROLS                                                                                                          
THREATS C-1 Trained and experienced personnel C-2 The Department has developed and has provided training on its Project Management Manual. C-3 The experience of project managers in prior projects is utilized, along with objective information, to estimate costs for future projects. C-4 Written policies and procedures C-5 The Capital Quarterly Monitoring Report provides project status and performance (targets to actual dates) to the City Council. C-6 The Mid-Year and Year-End Capital Reports provide project status and financial information to the City Council. C-7 Departmental Monthly Monitoring Reports compare original target dates, revised target dates, and actual completion dates on key project milestones. C-8 The Department conducts monthly project coordination meetings with client departments. C-9 The Department is developing an internal Automated Timekeeping System. (Phase I) C-10 The Department is developing an internal project management system. (Phase I) C-11 The Department plans to develop specific project management reports to provide real-time data on costs for plannning, design, and construction management of projects. (Phase II) C-12 The Department plans to link these management reports directly with engineering project management software. (Phase III) C-13 The Department's Automated Timekeeping System will provide access to real-time financial information about E&I expenditures. C-14 The Automated Timekeeping System will accumulate and report Project Inception-To-Date information to maintain a history of performance to be used for costing future projects. C-15 Staff funded by capital programs will be budgeted by funding source and project similarly to staff funding in the operating budget. C-16 The Annual Operating Budget summary documents include performance measures. C-17 During the budget development phase of typical projects, estimated allocations are: 15% for design engineering, 10% for inspection, and 5-10% for contingency. C-18 Estimated allocations are adjusted on a project-by-project basis considering overall size. C-19 By the time the project is awarded, actual engineering costs are known, inspection costs are projected, and construction contract costs are refined. C-20 Contingency costs are not encumbered; only construction costs are encumbered. C-21 Contingencies are normally limited to 5% of the project's construction costs. C-22 Project managers are required to provide justification for projects with more than 5% estimated contingency costs. C-23 One of the goals of the Department's reengineering effort is to see that the level of E&I is appropriate for the project. C-24 The Department consistently monitors project costs for unauthorized personal charges for E&I services. C-25 The Department has two unique charge number systems - PRJ (project) and DWO (department work order). C-26 The PRJ charge number system improves the Department's ability to separate and track related costs. C-27 The DWO charge number system identifies a specific project and activity for which a cost was incurred. C-28 The DWO rolls all project costs accrued up to the FMS system. C-29 Project managers and analysts review all charges and monitor costs for each project relative to the budgeted amount. C-30 The Department's PAC II Report identifies personnel charging to a project. C-31 The Department's Labor Distribution by Fund/Prime identifies personnel charging to a project. C-32 Costs are moved to the appropriate charge code when an unauthorized or incorrect charge is identified. C-33 The Department prepares an appropriation adjustment, including an explanation of the circumstances generating the request, if the cost of E&I services exceeds the funding source. C-34 Appropriation adjustments are requested for both increases and decreases in required funding. C-35 Cost monitoring reports are reviewed regularly. C-36 Appropriation amendment requests are reviewed for approval by the City Manager and City Council. C-37 Revenue projections are compared regularly with actual revenues received for grant funded projects, with special attention to grant reimbursable projects. C-38 PRJ numbers are set up to track unfunded projects. C-39 Costs on unfunded projects are submitted to the Finance Committee for reimbursements. C-40 E&I services are funded by the specific appropriation approved by the City Council during the annual or mid-year budget process. C-41 The Finance Department will not allow additional payments to be made to a contractor absent Council approval for increased funding. C-42 Project cost overruns are monitored by the Budget Office. C-43 Cost increases are identified and reported by monthly project reports. C-44 Charges are moved to the appropriate project when erroneous charges to a project increase its cost. C-45 Changes resulting in unexpended budget amounts are reported and explained in the Capital Budget Year-End report. C-46 Council agendas and mid-year ordinances list the changes in project estimates. C-47 Adequate cost monitoring information is available on the Department's PAC II system. C-48 Timely cost monitoring information is available on the City's FMS system. C-49 Reports are generated by both PAC II and FMS which show total costs of any project by responsibility center and detail. C-50 Cost information in FMS can be sorted by appropriation. C-51 PAC II reports include costs by position, activity for current month, year-to-date, previous year, and cost to date for the entire project. C-52 PAC II reports provide totals for each project at the end of each activity grouping. C-53 The Director of Public Works reports exception cases regarding E&I services that increase project costs directly to the City Manager's Office or City Council members. C-54 Project budget reports that include costs of E&I services are periodically sent to City Council and City Administration. C-55 All Council awarded construction project reports include a discussion of bids received, estimated E&I, and contingencies. C-56 Total construction management costs are summarized by PAC II and FMS upon the completion of each project and are used as a guide during the budget process to estimate E&I costs for future projects. C-57 The Capital Projects Report by Responsibility Center is produced monthly, and, with some manual modification, may also be used to summarize total construction management costs. C-58 The final PAC II report shows costs by activity so that total costs for design, contract administration, etc., can be determined.
T-1 The Department does not define, gather, and report data that is useful in assessing its efficiency and effectiveness in providing Engineering and Inspection services. A       A A A A P P P P P P P                                                                                      
T-2 The Department does not meet existing performance measure targets related to Engineering and Inspection services. A       A   A                 A                                                                                    
T-3 Project managers do not have sufficient training and experience to be able to accurately estimate the cost of Engineering and Inspection services. A A   A                                                                                                            
T-4 The Department allocates higher Engineering and Inspection costs than required to public works projects thus creating artificial contingencies and tying up funds. A     A                         A A A A A A                                                                        
T-5 Estimates of Engineering and Inspection costs and any contingencies associated therewith are not in accordance with adopted Capital Improvement Plan fiscal policies. A A   A                                                                                                            
T-6 The cost of Engineering and Inspection services as a percentage of project construction costs is too high, particularly for small projects.                                             A                                                                      
T-7 General, administrative, and overhead charges for Engineering and Inspection services to projects are unreasonable.                                                                                                                    
T-8 Costs for DPW Engineering and Inspection services are not competitive with the private sector.                                                                                                                    
T-9 Engineering and Inspection costs are charged to unfunded projects/department work order numbers (DWOs). A                           P                 A A A A A A     A     A     A A                                      
T-10 Unauthorized personnel charge Engineering and Inspection services to projects/department work order numbers (DWOs). A               P           P                 A         A A A A     A                                              
T-11 Budget to actual comparisons of Engineering and Inspection services are not performed. A               P                                       A                                                          
T-12 The cost of Engineering and Inspection services exceeds the funding source monies.                                                                 A A A A A     A A A                     A          
T-13 Engineering and Inspection services are funded by the incorrect funding source.                 P                                       A     A     A     A A A                                    
T-14 Cost overruns for Engineering and Inspection services are not identified, reported, and managed. A                                                       A     A A A A A           A A A     A A         A A        
T-15 Cost overruns for Engineering and Inspection services are the result of bad planning, wishful pricing, or poor coordination. A             A                                                                                                    
T-16 Changes in project estimates for Engineering and Inspection services are not adequately reflected in the budget.         A A                                                     A A   A                 A A                        
T-17 Information regarding the costs of Engineering and Inspection services by project is not available in a single easy to understand report.                                                                                             A A A A A A            
T-18 Financial systems (PAC II and FMS) do not provide adequate information to monitor costs of capital projects.                 P                                       A                                   A A                    
T-19 City Council and City Administration are not receiving periodic management reports to identify key factors related to Engineering and Inspection services that increase project costs.         A A A                                                   A A   A                   A             A A A      
T-20 Total Engineering and Inspection costs for completed projects are not determined and therefore are not available to be used as a guide to costing out Engineering and Inspection services for future projects. A   A           P         P                                                                                   A P A

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