KPMG Audit of CONRAC - October 2007
KPMG Audit of the Airport's Consolidated Rental Agency Complex
Released October 2007
Download our transmittal letter here
Download the Full Report here
We contracted with KPMG to conduct this review of the Department of Aviation’s Consolidated Rental Car Facility Project (CONRAC) at the request of the City Council. The City Council passed Ordinance 07-O-0976, as amended by the Finance/Executive Committee, requesting an independent evaluation of the project, after the Aviation General Manager reported at an April 2007 joint work session of the Council’s Transportation and Finance/Executive committees that the CONRAC element would require approval of additional funds.
Released October 2007
Download our transmittal letter here
Download the Full Report here
We contracted with KPMG to conduct this review of the Department of Aviation’s Consolidated Rental Car Facility Project (CONRAC) at the request of the City Council. The City Council passed Ordinance 07-O-0976, as amended by the Finance/Executive Committee, requesting an independent evaluation of the project, after the Aviation General Manager reported at an April 2007 joint work session of the Council’s Transportation and Finance/Executive committees that the CONRAC element would require approval of additional funds.
Findings and recommendations include the following:
- Management controls described in HJDP policies and procedures are mostly in line with industry standards, but procedures and organizational structure appeared to be in flux and procedures were not consistently followed in managing the CONRAC
- Delays occurring prior to the start of construction – particularly in design and procurement – pushed the construction phase of the CONRAC into a period of higher inflation and local labor shortages, resulting in significant cost increases.
- Scheduling poses the most critical risk currently facing CONRAC. Current completion schedules project about a six-month delay in completing the Customer Service Center, a key interface between the two major contractors working on the project.
- HJDP risk management procedures have been inadequate for a program the size and complexity of CONRAC.
- And more......