Financial Audit

AOC's recently issued Accountability Report for fiscal year 2003 identifies several material internal control weaknesses reported by the independent auditor of AOC's September 30, 2003, balance sheet. We also understand that the audit of AOC's September 30, 2004, balance sheet is nearing completion.

Question. What is the overall status of AOC's efforts to correct the internal control weaknesses reported from the FY 2003 audit?

Response. The AOC has approved a policy to establish an Internal Control program modeled after the program at the Library of Congress. It has been modified to comply with the intent of the Sarbanes Oxley Act of 2002 and OMB Circular A-123. Development of the policy is partially complete with a target implementation date of September 30, 2005. The program's development is currently being handled by contractors. The program will require additional resources for its implementation.

Question. When does the AOC expect the FY 2004 audit to be completed?

Response. All field work has been completed. The final requirement to complete the audit is for AOC management to sign representation letters which we are in the process of accomplishing.

Question. Will the AOC provide a copy of the FY 2004 audit report to this committee as soon as they receive it from their auditors?

Response. Yes.

Question. Is the AOC expecting any new, significant internal control findings from the FY 2004 audit?

Response. The auditors have not yet provided us with a ranking of the audit findings as to significance. The answer though is clear, there are significant findings. The audit found 15 new findings not all of which were material. There were also 6 repeat findings from the previous year. Most of the significant internal controls findings were weaknesses in the Payroll, Personnel and Procurement areas.

Organizational Alignment and Communications

Question. AOC recently piloted a new project management organization. How will the new organization improve your agency's ability to manage projects? How will you determine whether this new organization is a success?

Response. The pilot organization has established clear performance expectations for delivering high quality design and construction projects on time and within budget. Now that the project and construction management functions reside, for the first time, within the same organization, these expectations can be managed by recognizing success and

poor performance. Internally, the AOC has developed customer satisfaction surveys to measure performance as viewed by the jurisdictions. External customer satisfaction feedback will be sought in the future.

In its transitional state, only a few projects funded in FY 05 have begun the construction phase with the benefits of better planning and scope development. As the organization matures and delivers more design and construction projects, performance results are anticipated to improve.

Question. AOC's organization chart shows a Chief of Staff reporting directly to Alan Hantman. What are the duties of the person in this position? Will there be any overlap in the duties of the Chief of Staff and the Chief Operating Officer?

Response. The Chief of Staff assists both the Architect and COO in a variety of agency outreach communication and Congressional support needs. With the COO 's extensive internal operational functions, on a strategic as well as day to day basis, the support of the Chief of Staff allows the COO to concentrate more fully on these responsibilities. Following are the duties of the COO and Chief of Staff.

The Chief Operating Officer/Deputy (COO) duties are:

Responsible for reviewing and directing the operational functions of the Office of the Architect of the Capitol including: facilities operation and maintenance; safety; design, construction and project management; administration and modernization of information technology systems employed by the Office; productivity and cost-savings measures; strategic human capital management, including performance management and training and development initiatives; financial management, including the integration of operational functions and financial management to ensure that budgets, financial information, and systems support the required strategic and annual plans.

Serves as senior advisor to and representative of the Architect. The individual will provide advice and assistance on all aspects of the management and operations of the AOC; Provides advice on all operational aspects of AOC business functions including facilities operation and maintenance; safety; design, construction and project management; procurement and contracting; budget and financial management; information technology; human resources, and other administrative management matters

Assists the Architect in promoting reform and measuring results, and is responsible to the Architect of the Capitol for the direction, operation, and management of the Office of the Architect of the Capitol. Additionally, the individual is responsible for implementing the Office's mission and goals; and providing organization management to improve the Office's performance.

Responsible for developing, implementing, annually updating, and maintaining a long-term strategic plan covering a period of not less that 5 years.

Responsible for developing and implementing an annual performance plan that includes annual performance goals covering each of the general goals and objectives in the strategic plan and including to the extent practicable quantifiable performance measures for the annual goals.

Responsible for proposing organizational changes and new positions needed to carry out the Office of the Architect of the Capitol's mission and strategic and annual performance goal and will ensure that the AOC's organizational structure promotes efficiency and effectiveness.

The Chief of Staff will:

Assist the Architect and the COO in exploring and developing program and management ideas, evaluating problems and developing suggested course of action in program and policy development and evaluation; Conducts research and provides data to assist the Architect and COO in their review and evaluation or program and policy proposals from staff, incorporates the perspective of Members and or Congressional staff in the evaluation of AOC programs, operations and policy.

Assists the Architect and the COO in day-to-day information management, priority initiatives, meetings and meeting information, and may represent the Architect or the COO in meetings with staff and stakeholders.

Manages legislative affairs; develops and nurtures relations with Members and staff; tracks legislative mandates; facilitates Congressional meetings for the Architect and COO; assists in leading AOC outreach to Congressional staff to help ensure that the Agency is addressing Congressional support needs.

Manages and coordinates Agency communications; assesses agency internal and external communications processes and develops appropriate improvement initiatives; Develop proposals for communications alternatives to address Agency communications gaps or focused initiatives to meet identified needs.

Facilities Management

Question. AOC has conducted a building services customer satisfaction survey in 2002, 2003, and 2004 with occupants of AOC facilities. What were the results of these surveys? What actions has AOC taken to specifically address deficiencies raised through the survey?

Response. Since June 2002, the Architect of the Capitol has conducted an annual survey among building occupants to measure their satisfaction with the services provided. Responses are translated into dynamic reports for action. In 2004 we obtained the third set of data, allowing us to start identifying trends. Survey results for the three years were published on the AOC Superintendents websites (Capitol Building, House Office

Buildings, Library of Congress, and Senate Office Buildings) to give all building occupants the opportunity to see how we have improved. We also sent letters to House Leadership, Senate Leadership, and the Joint Committee on the Library on December 20, 2004 with a first update on progress.

As for what has been accomplished specifically in the House Office buildings, on April 20, 2005 the Architect mailed to each House mail stop and published on the Superintendent's website the following update on actions taken as a result of customer responses to the survey.

Elevators:

The modernization project, comprising of mechanical/electrical and interior cabin upgrades, is well under way.

⚫ Cannon Building: One elevator remains under construction. It is scheduled for completion this month.

Longworth Building: Only three passenger elevators on the south side of the building are left to upgrade. Estimated completion date is February 2006.

Rayburn Building: The elevator renovation project started in Fall 2003 and is expected to be completed by Fiscal Year 2006. Six of the 29 elevators are completed, and two are currently under construction.

Ford Building: The west bank was completed in December 2004. Work on the east bank is continuing, with an estimated completion date of December 2005. Heating, Cooling, Air Quality:

Campus-wide building condition assessments continue to identify significant mechanical or systems-related initiatives that need to be integrated in the AOC long-term Capitol Complex Master Plan.

Humidifiers in central air handling units are being replaced to better control environment conditions. Seven of eight Ford Building humidifiers have been put into service.

Flag Office:

• The AOC is partnering with the House of Representatives Chief Administrative Officer in this improvement project. We are currently conducting a complete performance assessment, documenting procedures, and looking at customer requirements as well as opportunities for improvement. This initial investigation phase is planned to be completed by December.

Way-finding Signs:

• This project, which involves approximately 2,300 signs for the House Office Buildings alone, is active and progressing. All primary exterior House Office Building identification signs and kiosks are mounted and interior signs will be installed this fiscal year. Strict quality control measures are in place to ensure accurate signage is installed.

Cleanliness:

Our Cleanliness Inspection Procedure continues to reveal an average cleanliness level (satisfactorily cleaned surfaces) for the House Office Buildings of 98%. The procedure contemplates verifying mechanisms that will ensure its effectiveness over time (e.g., cross inspections, managerial inspections).

Recruitment of a New Chief Operating Officer (COO)

Due to continuing management problems, the Architect of the Capitol was directed in 2005 report language to recruit a new COO with the guidance and assistance of a panel consisting of the Comptroller General of the U.S., the U.S. Public Printer, The Chief Administrative Officer of the House of Representatives, and a delegate from the Office of the Senate Sergeant at Arms. This panel brings an enormous amount of private sector business experience to this selection.

Question. Mr. Hantman, you were provided 6 months after the passage of the 2005 bill to complete the recruitment and selection of the new COO.

That places the deadline at June 6th. We are concerned that the panel has not yet met. What has caused the delay? What are your plans to meet this deadline?

Response. As instructed by the Committees, in mid-December, 2004, we initiated contact with several executive employment search firms to identify and select one to conduct a nation-wide recruitment for a new COO. After a review of several executive employment search firms, we contracted with Korn/Ferry International on December 22, 2004.

• Korn/Ferry initiated their recruitment search process and suggested that AOC also initiate a recruitment announcement through the Federal U.S.A. Jobs system.

· AOC staff coordinated the vacancy announcement language with Korn/Ferry and the announcement was posted from January 21 through March 4, 2005.

On March 15, 2005, candidate review criteria, developed by Korn/Ferry for their use to narrow the number of candidates to be referred to the panel, were submitted to the panel for review and input. Received input on the review criteria from each of the panel members, (last one dated March 30, 2005). In addition to the review criteria panel members also suggested steps they would like to follow in completing their review and interview of candidates.

On April 5, 2005, the panel was provided with a matrix documenting their input on the review criteria to be used by Korn/Ferry in completing the candidate review process. The panel was also provided information on suggestions they submitted for “next steps”, and on information they requested from Korn/Ferry for the panel's review and interview of candidates.

On April 14, 2005, the Committees were sent an update on the process, including the matrix outlining the criteria that Korn/Ferry would use in their review of candidates; In addition, we have outlined the "next steps" that the panel wanted to follow for their review and interview of candidates.

While Korn/Ferry was completing their review of the candidates, the AOC began to work with the panel members' staff to block out times when the panel could convene to review and interview the candidates. Based on the initial information received on the panel members' availability, the earliest date when all the members could convene is