INV-2012-0377

The investigation found the following: (1) A District Engineer did not properly monitor the use of fully operated rental equipment or project costs which ultimately led to a $3.7 million cost overrun on a $1.8 million project. (2) The Haywood County Maintenance Department did not follow policies and procedures for rental equipment contracts. (3) The Haywood County Maintenance Engineer and two Transportation Workers purchased excessive quantities of tools and equipment and the State lost a 35% discount on these purchases because they were not bought from a vendor on state contract. (4) The Haywood County Maintenance Engineer did not approve purchase card transactions as required by policy. (5) The Division 14 Contract Proposal Engineer did not properly disclose a conflict of interest that resulted from her secondary employment with the predominant rental equipment contractor in Division 14. (6) Two Haywood County Maintenance Department timekeepers were the only employees who routinely receive overtime payments which totaled $107,000, representing 46% of their total compensation. (7) The Haywood County Maintenance Engineer approves the timesheets and purchases of a Transportation Worker who is his first cousin in violation of DOT policy. Details about each item are provided in the 'Findings and Recommendations' section of the report.