Bureau of Safety and Regulation

Michigan Office of the
Auditor General
Thomas H. McTavish, C.P.A.
Auditor General

EXECUTIVE DIGEST #6344097
Bureau of Safety and Regulation

INTRODUCTION
This report, issued in January 1998, contains the results of our performance audit of the Bureau of Safety and Regulation, Department of Consumer and Industry Services.

AUDIT PURPOSE
This performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency.

BACKGROUND
The Bureau of Safety and Regulation's primary responsibility is to administer and enforce the provisions of the Michigan Occupational Safety and Health Act (MIOSHA). The purpose of MIOSHA is to provide Michigan employees with safe and healthful work environments free of recognized hazards.

The General Industry Safety Division, Construction Safety Division, and Occupational Health Division conduct inspections and investigations in places of employment to enforce occupational safety and health standards. The Safety Education and Training (SET) Division educates employers and employees to recognize, abate, and prevent hazardous working conditions.

The Standards Division provides the necessary support services in the promulgation and distribution of standards. The Appeals Division represents the Bureau in formal appeals of citations issued as a result of MIOSHA inspections. The MIOSHA Information Division maintains and distributes occupational injury, illness, fatality, and enforcement data.

The Employee Discrimination Division administers and enforces the provisions of MIOSHA that protect employees from discrimination when exercising rights afforded by MIOSHA.

The Wage Hour Division administers the laws which protect the wages and fringe benefits of workers and provide for the safe and legal employment of minors.

As of August 31, 1997, the Bureau had 259 employees. Total Bureau appropriations for fiscal year 1996-97 were approximately $24 million.

AUDIT OBJECTIVES, CONCLUSIONS, AND NOTEWORTHY ACCOMPLISHMENTS

Audit Objective: To assess the effectiveness of the Bureau's efforts to provide Michigan workers with safe and healthful workplaces.

Conclusion: The Bureau was generally effective in providing Michigan workers with safe and healthful workplaces. However, we noted reportable conditions in the areas of continuous quality improvement, priority selection, abatement assurance, complaint inspections, repeat violations, inspectors' performance evaluations, and SET grants (Findings 1 through 7).

Noteworthy Accomplishments: As part of the Bureau's efforts to educate employers and employees in safety and health awareness, the Bureau participates in the annual Michigan Safety Conference and the annual Industrial Ventilation Conference. During the multiday conferences, the Bureau provides employers and employees with extensive safety and health information, introduces the latest safety and health technology, and offers hands-on training and demonstrations. In the last two years, 13,838 people attended the conferences.

Audit Objective: To assess the efficiency of the Bureau's administration of standards promulgation, enforcement, education and training, citation appeals, and the Bureau's information systems.

Conclusion: The Bureau was generally efficient in its administration of standards promulgation, enforcement, education and training, citation appeals, and the Bureau's information systems. However, we noted a reportable condition in the Bureau's processing of employee discrimination complaints (Finding 8).

Audit Objective: To assess the Bureau's compliance with applicable statutes; rules and regulations; and State, Department, and Bureau policies and procedures.

Conclusion: The Bureau was generally in compliance with applicable statutes; rules and regulations; and State, Department, and Bureau policies and procedures.

AUDIT SCOPE AND METHODOLOGY
Our audit scope was to examine the program and other records of the Bureau of Safety and Regulation, Department of Consumer and Industry Services. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances.

Our review and testing of Bureau records and procedures was primarily limited to the period October 1, 1994 through August 31, 1997.

We reviewed the Bureau's system for monitoring the accomplishment of its mission. Also, we reviewed inspection files, analyzed inspection activity, and evaluated inspection response times. In addition, we reviewed the appeals process for effectiveness. Further, we assessed the Bureau's procedures for evaluating the performance of its inspectors and consultants. We evaluated the Bureau's education and training efforts and its effectiveness in contracting for and monitoring safety education and training grants. Finally, we determined the effectiveness of the Bureau's standards promulgation and distribution process.

We determined whether the Bureau was efficient in its inspection, education, and training efforts. Also, we reviewed the Bureau's assignment of work loads for reasonableness. In addition, we determined whether the Bureau was in compliance with MIOSHA; administrative rules and regulations; and State, Department, and Bureau policies and procedures.

We surveyed employers to obtain information regarding the timeliness and quality of services provided by the Bureau. A description of the survey and a summary of survey responses are presented as supplemental information.

AGENCY RESPONSES AND PRIOR AUDIT FOLLOW-UP
Our audit report includes 8 findings and 9 corresponding recommendations. The preliminary response prepared by the Bureau indicated that it agreed with all of our findings and has complied or has taken steps to comply with each of the recommendations.

The Bureau had complied with 8 of the 9 prior audit recommendations included within the scope of our current audit. One finding was rewritten for inclusion in this report.

Full Audit Report - #6344097 - Bureau of Safety and Regulation

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INTRODUCTION This report, issued in January 1998, contains the results of our performance audit of the Bureau of Safety and Regulation, Department of Consumer and Industry Services.

AUDIT PURPOSE This performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency.

BACKGROUND The Bureau of Safety and Regulation's primary responsibility is to administer and enforce the provisions of the Michigan Occupational Safety and Health Act (MIOSHA). The purpose of MIOSHA is to provide Michigan employees with safe and healthful work environments free of recognized hazards. The General Industry Safety Division, Construction Safety Division, and Occupational Health Division conduct inspections and investigations in places of employment to enforce occupational safety and health standards. The Safety Education and Training (SET) Division educates employers and employees to recognize, abate, and prevent hazardous working conditions. The Standards Division provides the necessary support services in the promulgation and distribution of standards. The Appeals Division represents the Bureau in formal appeals of citations issued as a result of MIOSHA inspections. The MIOSHA Information Division maintains and distributes occupational injury, illness, fatality, and enforcement data. The Employee Discrimination Division administers and enforces the provisions of MIOSHA that protect employees from discrimination when exercising rights afforded by MIOSHA. The Wage Hour Division administers the laws which protect the wages and fringe benefits of workers and provide for the safe and legal employment of minors. As of August 31, 1997, the Bureau had 259 employees. Total Bureau appropriations for fiscal year 1996-97 were approximately $24 million.

AUDIT OBJECTIVES, CONCLUSIONS, AND NOTEWORTHY ACCOMPLISHMENTS Audit Objective: To assess the effectiveness of the Bureau's efforts to provide Michigan workers with safe and healthful workplaces. Conclusion: The Bureau was generally effective in providing Michigan workers with safe and healthful workplaces. However, we noted reportable conditions in the areas of continuous quality improvement, priority selection, abatement assurance, complaint inspections, repeat violations, inspectors' performance evaluations, and SET grants (Findings 1 through 7). Noteworthy Accomplishments: As part of the Bureau's efforts to educate employers and employees in safety and health awareness, the Bureau participates in the annual Michigan Safety Conference and the annual Industrial Ventilation Conference. During the multiday conferences, the Bureau provides employers and employees with extensive safety and health information, introduces the latest safety and health technology, and offers hands-on training and demonstrations. In the last two years, 13,838 people attended the conferences. Audit Objective: To assess the efficiency of the Bureau's administration of standards promulgation, enforcement, education and training, citation appeals, and the Bureau's information systems. Conclusion: The Bureau was generally efficient in its administration of standards promulgation, enforcement, education and training, citation appeals, and the Bureau's information systems. However, we noted a reportable condition in the Bureau's processing of employee discrimination complaints (Finding 8). Audit Objective: To assess the Bureau's compliance with applicable statutes; rules and regulations; and State, Department, and Bureau policies and procedures. Conclusion: The Bureau was generally in compliance with applicable statutes; rules and regulations; and State, Department, and Bureau policies and procedures.

AUDIT SCOPE AND METHODOLOGY Our audit scope was to examine the program and other records of the Bureau of Safety and Regulation, Department of Consumer and Industry Services. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances. Our review and testing of Bureau records and procedures was primarily limited to the period October 1, 1994 through August 31, 1997. We reviewed the Bureau's system for monitoring the accomplishment of its mission. Also, we reviewed inspection files, analyzed inspection activity, and evaluated inspection response times. In addition, we reviewed the appeals process for effectiveness. Further, we assessed the Bureau's procedures for evaluating the performance of its inspectors and consultants. We evaluated the Bureau's education and training efforts and its effectiveness in contracting for and monitoring safety education and training grants. Finally, we determined the effectiveness of the Bureau's standards promulgation and distribution process. We determined whether the Bureau was efficient in its inspection, education, and training efforts. Also, we reviewed the Bureau's assignment of work loads for reasonableness. In addition, we determined whether the Bureau was in compliance with MIOSHA; administrative rules and regulations; and State, Department, and Bureau policies and procedures. We surveyed employers to obtain information regarding the timeliness and quality of services provided by the Bureau. A description of the survey and a summary of survey responses are presented as supplemental information.

AGENCY RESPONSES AND PRIOR AUDIT FOLLOW-UP Our audit report includes 8 findings and 9 corresponding recommendations. The preliminary response prepared by the Bureau indicated that it agreed with all of our findings and has complied or has taken steps to comply with each of the recommendations. The Bureau had complied with 8 of the 9 prior audit recommendations included within the scope of our current audit. One finding was rewritten for inclusion in this report.