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CHAPTER 3: STEWARDSHIP & OVERSIGHT METHODS

The FHWA Ohio Division Office and Ohio DOT will utilize a balanced approach involving several stewardship and oversight techniques to ensure Federal-aid funds are used efficiently and effectively in Ohio. The Ohio stewardship and oversight program consists of the following components: risk assessments and program assessments; project reviews; quality improvement reviews (QIR); quality assurance reviews (QAR); Financial Integrity Review and Evaluation program; peer reviews; partnering activities; task force activities; as well as other techniques such as Performance Plan development, reviewing ODOT reports, participation in project/program meetings, certification reviews, and day-to-day interactions. The Division Leadership Team and Quality Program Manager have the overall responsibility for tracking the accomplishments of the Ohio Division's Performance Plan activities and initiatives.

Risk Assessment and Program Assessment

Risk Assessments are performed annually by Division staff for the various program areas (e.g. planning, environment, design, construction, etc), and it identifies the level of risk (high, medium, and low) for each area. Once drafted, the Risk Assessments are coordinated with appropriate ODOT program personnel. The Risk Assessments provide key input in identifying the Division's major initiatives and activities in the Performance Plan, including the selection of the Division's Quality Improvement Reviews. In addition, it assists the Division with resource planning (e.g. personnel, budget, priorities, etc).

Program Assessments are conducted in conjunction with the Risk Assessments for the various program areas. Division staff is responsible for preparing the Program Assessments, and the primary purpose of the Assessments is to identify the strengths and opportunities for improvement of the various program areas (i.e. provide the current state of the various programs). In addition, it documents the risk rating for the established risk criteria, and discusses the future direction and goals for the programs.

Project Reviews

Project reviews are designed to focus on evaluating and improving current activities and following-up on unresolved issues from previous reviews. If possible, issues should be resolved during the time of the review. Each FHWA Transportation Engineer and FHWA Program Specialist will devise a method of ensuring proper follow-up. The degree of project review activity is established by the FHWA Director of Engineering and Operations, in discussions with the individual Transportation Engineer and appropriate Program Specialist, based on risk, comfort level, and resources to conduct reviews.

Project reviews also give the Ohio Division a general understanding of individual ODOT Districts' oversight. In addition, project reviews help feed the selection process for future QIRs. The Ohio Division may also utilize various other project review techniques, including participation in project-related meetings, participation in value engineering teams, partnering activities, and telephone contacts.

Quality Improvement Reviews (QIR)

The Ohio Division utilizes a QIR Program to evaluate all phases throughout the life of a project. The primary purpose of the QIR program is to provide the Ohio Division with a control technique that documents and assures FHWA that Federal-aid funds are being spent in accordance with Federal laws, regulations, and policies. In addition, QIRs will evaluate the effectiveness of the processes, procedures, and products developed by ODOT in all phases of a project, as well as the internal operations of the Ohio Division. Based in part on these reviews, assurances can be made that a program is being implemented as intended and is producing a quality product.

Division staff lead QIRs in their respective program areas, and participation by ODOT staff is encouraged. QIRs are selected as a result of the Division's annual risk assessment process (those generally rated High Risk), as well as identified special emphasis areas. Quality Improvement Reviews can be conducted on a statewide, area-wide, or program basis. The QIR program coverage is applicable to Title 23 and non-Title 23 activities on all Federal-aid projects, regardless of route designation [i.e., National Highway System (NHS) or non-NHS] or Federal-aid funding category.

Quality Assurance Reviews (QAR)

Quality Assurance Reviews assist both ODOT and FHWA in the stewardship and oversight of the Federal-aid program. The QARs establish or improve ODOTcontrol processes and documents for functional areas of responsibility (environment, design, construction, etc.). ODOT Central Office personnel lead these compliance-based reviews, and Ohio Division personnel are encouraged to actively participate in these reviews.

Financial Integrity Review and Evaluation Program

The Ohio Division has implemented the Financial Integrity Review and Evaluation (FIRE) program to ensure that Federal-aid funds are properly managed and effectively used in accordance with Federal policies, and that safeguards are in place to minimize fraud, waste, and abuse. In addition, the FIRE program ensures that proper internal controls are established and followed, with objectivity and a separation of financial duties in conducting the Agency's day-to-day operations. The Division's Financial Management Team is responsible for completing the FIRE activities on an annual basis, and they coordinate with ODOT personnel and Division staff, as necessary. The FIRE activities consist of the following: 1) Financial Quality Improvement Reviews; 2) Improper Payment Reviews; 3) Inactive Federal-aid projects Reviews; 4) Single Audit Review; 5) Other Federal Audit Findings Review (as applicable); 6) Annual Certification & Certification Validation; and 7) Administrative Reviews [Fund Authority; Purchase Orders & Administrative Contracts; Travel-Related Transactions; Credit Cards & Convenience Checks; Property Inventories & Capitalized Assets; and Collections & Sensitive/Controlled Documents].

ODOT conducts various financial audits (involving respective program staff, as applicable) of external agencies receiving Federal-aid funds to ensure the proper use of these funds and that Federal and State requirements are met.

Peer Reviews

The peer review is designed to have an outside team meet with the host agency to discuss and review its management processes/practices in a particular program area. Information on the host agency and team members' policies and procedures are exchanged with the intent to improve the overall program process. The information gathered from the exchange is presented to agency management for process improvement.

Partnering Activities

Partnering is an effective management technique used to improve communications and enhance the resolution of conflicts during project development and construction. Active participation in partnering activities has resulted in high payoffs relative to improved communications and working relationships between FHWA, ODOT, Federal and State Resource Agencies, and industry.

Task Force Activities

Ohio Division staff may participate in joint FHWA/ODOT teams under the purview of value-added, re-engineering, or quality improvement. These activities can bean effective method of oversight, an opportunity to strengthen the FHWA/ODOT partnership, and an effective means of adding value and effecting change to a particular program.

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