The city could save as much as $6.8 million annually and operate the Houston Emergency Center (HEC) far more efficiently, according to a performance audit released this week by City Controller Annise Parker.

The review found a lack of consistent policies, an ineffective organizational structure, high absenteeism, low employee morale, insufficient staffing, potential gaps in overall security and a lack of technical management direction.

“The potential cost savings were a big surprise; the operational problems were a serious concern,” she said. “There is an obvious disconnect between management's perceptions and employee reality. Just like the 911 calls received by HEC dispatchers, these findings deserve immediate attention.”

The report, prepared for the Controller's Office by Jefferson Wells International, an accounting firm, makes 55 recommendations.
____________________________________

    Address the “us vs. them” mentality that
    contributes to significant morale issues
   and a pervasive “air of divisiveness" ____________________________________

In its formal response, HEC management generally agreed with 42 percent of the recommendations. Another 20% have been taken under advisement.  Report  findings include:

• The most critical issue is the existence of three separate organizations with unique cultures and management styles. The report recommends implementation of a single unified organizational structure. This would not only optimize service, it would reduce annual payroll by $1.8 million.
  
• Address the “us vs. them” mentality that contributes to significant morale issues and a pervasive “air of divisiveness.”  This should involve management spending more “face time” with employees, changes in the holiday policy, an effective Employee Concerns Review Program and an action plan that addresses issues.
  
• Staff shortages, exacerbated by excessive forced overtime and absenteeism, combined with a frequently confrontational work environment, may jeopardize the delivery quality and reliability of critical emergency services.

Despite the problems, the auditors commended the center for keeping the dispatch system up and running 99.8% of the time. This is very close to the center's goal of a 99.99% reliability rating.

This month's  Money Matters  highlights the audit as the city controller welcomes guests David Fowler of JWI and City Auditor Steve Schoonover. Money Matters can be seen at 2 a.m., 8 a.m., 2 p.m. and 8 p.m. every Monday on the Municipal Channel (Warner Cable 16, Kingwood 14, TCI 16, Phonoscope 2 and TvMax 20). 

The audit is available at:  www.houstontx.gov/controller/audit.html

The Safe Clear program will cost the city about $300,000 more in FY06 than previously estimated, City Controller Annise Parker has announced.

“Although lower than our numbers, the administration’s cost estimates are reasonable,” she said. “Both of us agree there is a funding gap that will need to be bridged.”

The Controller’s Office audit concluded that Safe Clear would cost the city about $1.1 million for the six months ending June 30. FY06 expenses not covered by METRO or tow truck operator fees are estimated to be $878,000,  or $278,000 greater than earlier estimates from the administration and HPD. The estimate is based on a review of revenues and expenses since Safe Clear's inception in January.

The limited audit was conducted to provide City Council with an independent assessment of program costs before passing the FY06 budget, which was approved in late June.   A complete performance review is planned for the future.

“There has been a lot of confusion about this program among city council members and the public,” Parker said. “It was rolled out without being adequately vetted. In addition, HPD was unprepared for the administrative burden."

She said most problems will be addressed through procedural improvements at the Police Department and program changes negotiated with the towing industry.

"I remain a strong supporter of Safe Clear and believe it's having a significant impact on improving mobility and highway safety,”  Parker said.

Statistics released by Mayor White indicate Safe Clear cut freeway accidents by nearly 10% during in its first four months compared to the same time period in the two previous years.