OCA Audit Reports

Issued: October 2007

SUMMARY

The purpose of this audit of the Austin Energy (AE) Tree Trimming Contracts was to determine if AE is in compliance with laws and regulations regarding tree trimming, determine whether the contract monitoring system is providing assurance that contracts are being managed properly, and determine whether tree trimming contractors are providing service in a way that achieves the goals of the program.

AE uses third party contractors to perform much of its maintenance, one-time installations, and certain essential operations. Currently, AE has outsourced the tree trimming activity for distribution lines to Asplundh Tree Expert Company and Davey Tree Surgery. Additionally, AE has outsourced the tree trimming for transmission lines to Asplundh. The total contract authorization for tree trimming services amounts to approximately $60 million for distribution lines and $15 million for transmission lines for the most recent 5-year funding allocation for a two-year contract with three one-year extensions for both contractors.

We found that AE has implemented policies and procedures that provide assurance of compliance with federal, state, and local laws and provide guidance for the tree trimming program. In addition, AE has controls in place to provide reasonable assurance that tree trimming work is being done to AE’s satisfaction, although internal communication could be improved. However, the performance measures for the tree trimming program are not adequate to determine whether the objectives of the program are being met.

We have issued two recommendations that address the need for AE to improve communication between the AE contract compliance and line clearance groups and develop a better system of performance measurement to be used to hold contractors accountable.

Download the entire text of our AE Contracts: Tree Trimming audit report (Size: 441 KB) in Adobe Acrobat. You will need Adobe's Acrobat Reader to view these files. Or request a hard copy of this audit report, No. AU07112, by submitting this audit report request form.

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