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Monday, October 22, 2018
Auditor Looks at HDoT Energy Savings Contracts
By Hawaii State Auditor @ 1:22 AM :: 3553 Views :: Energy, Hawaii State Government

Follow-Up on Recommendations from Report No. 15-18, Audit of the Department of Transportation’s Energy Performance Contracts: Improved Oversight is Needed to Ensure Savings

A Report to the Governor and the Legislature of the State of Hawai‘i

Hawaii State Auditor Report No. 18-14 October 2018 (excerpts)

Section 23-7.5, Hawai‘i Revised Statutes, requires the Auditor to report to the Legislature annually on each audit recommendation more than one year old that has not been implemented by the audited department or agency. This report presents the results of our review of eleven recommendations made to the Department of Transportation in Report No. 15-18, Audit of the Department of Transportation’s Energy Performance Contracts: Improved Oversight is Needed to Ensure Savings, which was published in December 2015….

Our follow-up on DOT’s implementation of the recommendations made in Report No. 15-18, conducted between February and May 2018, included interviews with selected personnel, examining relevant documents and records, and evaluating whether DOT’s actions appeared to address the recommendations. We found that DOT implemented eight of the recommendations; two recommendations were partially implemented; and one was not implemented as it was no longer applicable (N/A). …

Recommendation 7

The Airports Division deputy director should review the energy savings measures in the contract with Johnson Controls to ensure the anticipated cost savings are reasonable and applicable throughout the contract term.

Not Implemented - N/A

Comments

We based this recommendation on a finding in Report No. 15-18 where we found that one of the energy savings measures called for in the contract would not generate $13.8 million in estimated savings. The Airports Division did not provide us with the recommended review of energy savings measures. However, the division did provide us with a November 9, 2016 Certificate of Final Completion, indicating that Johnson Controls completed all required work in the energy contract. Therefore, with the completion of the measures called for in the contract, this review is no longer applicable. Furthermore, all four annual savings reports filed by Johnson Controls through 2017 indicated that actual savings exceeded energy contract guaranteed savings for each period, which indicates that the anticipated cost savings were reasonable given the measures implemented under the contract. …

read … Full Report

Report 15-18: Audit of the Department of Transportation’s Energy Performance Contracts: Improved Oversight Is Needed to Ensure Savings

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