In the 1996 report the Legislative Auditor's Office found that the parks system needed to operate more like a business. The lodge parks occupancy had low winter occupancy rates which resulted in operational losses during the winter months. Marketing plans to attract hunters and fishermen and provide additional winter activities was one way of decreasing the winter months operational losses. The goal was to assist the parks to achieve the National Travel Data Research, Inc. national average of 67-70 percent occupancy rate. The recommendations were as follows:
Recommendation 1:
The Director of DNR should assign all resort and lodge parks to a single administrator. This administrator should have both an educational and employment background in resort/hotel/management.
Level of Compliance: Planned Compliance
Lodge Parks District Administrator Has Not Been Selected
The parks system has not officially hired a district administrator that meets the criteria established in the 1996 report. The parks system administration did not recruit individuals for the position until this year. The position has been posted by Parks and they have narrowed their choice down to two candidates. The educational background and experience of the posting for the position does comply with the recommendation.
The revenues for lodge parks has not changed in the past three years. The lack of a district administrator with hotel\motel experience is a contributing factor why the parks have not increased their self sufficiency in this period. Table 2 denotes actual lodge revenues.
TABLE 2 4 Year Comparison of Potential Revenues To Actual Room Revenues of Park Lodges | ||||||
Park | FY
1995 Projected Maximum Revenue | FY
1995 70% Maximum Revenue | FY 1995 Actual | FY 1998 Actual | FY 1997 Actual | FY 1996 Actual |
Blackwater Falls | $1,16 8,971 | $899,3 60 | $578,8 51 | $562,0 56 | $556,5 58 | $562,7 62 |
Cacapon | $953,8 66 | $663,5 34 | $504,7 19 | $524,5 82 | $493,6 21 | $467,7 72 |
Hawks Nest | $621,9 60 | $514,8 33 | $380,1 95 | $353,1 58 | $369,1 85 | $356,0 24 |
North Bend | $558,5 71 | $414,9 32 | $229,3 29 | $210,4 66 | $226,4 76 | $212,8 78 |
Pipestem | $3,17 7,690 | $2,06 3,162 | $2,07 4,742 | $2,22 9,762 | $2,15 2,802 | $2,07 1,630 |
Twin Falls | $395,6 60 | $321,6 75 | $221,6 94 | $192,6 05 | $203,4 32 | $222,3 92 |
Tygart Lake | $372,3 00 | $260,6 10 | $103,1 45 | $105,8 31 | $100,5 41 | $101,5 51 |
Total | $7,24 9,018 | $5,07 4,313 | $4,10 1,672 | $4,17 8,460 | $4,10 2,615 | $3,99 5,009 |
% Increase/ Decrease in Revenues from 1995 | 2% | .02% | -2.6% |
TABLE 3 State Park Lodges Occupancy Rates Fiscal Years 1990-1998 | |||||||
Fiscal Year | Parks System Average | Individual Lodges | |||||
Blackwater Falls | Cacapo
n Lodge | Hawks Nest | North Bend | Pipest
em Lodge | Twin Falls | ||
1990 | 57.2 | 50.4 | 52.6 | 55.7 | 43.8 | 66.1 | 59.7 |
1991 | 58.8 | 54.0 | 54.9 | 56.9 | 46.9 | 65.5 | 64.9 |
1992 | 62.1 | 61.6 | 55.0 | 62.7 | 49.8 | 67.6 | 67.0 |
1993 | 58.4 | 58.8 | 51.0 | 56.0 | 48.2 | 64.4 | 60.4 |
1994 | 57.0 | 58.0 | 47.3 | 57.5 | 44.2 | 63.9 | 58.1 |
1995 | 57.0 | 56.6 | 49.3 | 61.8 | 48.3 | 60.4 | 63.3 |
1996 | 55.0 | 53.3 | 46.9 | 58.8 | 44.7 | 62.6 | 63.6 |
1997 | 55.8 | 52.9 | 48.4 | 64.8 | 47.5 | 63.7 | 57.5 |
1998 | 56.6 | 56.0 | 51.4 | 63.1 | 46.9 | 64.8 | 57.1 |
Recommendation 2:
The Director of DNR should require the Parks system administrator for resorts and lodges to determine what infrastructure needs at the resorts and lodge parks should be developed to increase the occupancy rate during winter months.
Level of Compliance: In Compliance
A "West Virginia State Park and Recreation System Facility Profile, Needs and Potential" manual was produced in 1991 and was intended to cover a five year span. This manual breaks down the current status of state parks, forests and wildlife areas plus plans for further development of each. Although this manual is dated, the Parks system knows its need for an updated version and has kept infrastructure needs in focus.
A lodge expansion feasibility study was completed for Pipestem in 1997, a Master plan for Cass Scenic Railroad was completed in 1997 and a facilities expansion study was done for Cacapon State Park. The $49,000,000 in bond proceeds have been put to use at different sites; the following, Table 4, provides a list of resorts and lodges that received infrastructure improvements:
TABLE 4 Resort and Lodge Infrastructure Projects | ||
Resort/Lodge | Project | Funds |
Blackwater Falls | Accessible Cabin | $130,000.00 |
Blackwater Falls | Cabin Sewage Treatment Plant Replacement | 200,000.00 |
Blackwater Falls | Lake Bathhouse Replacement | 125,000.00 |
Cacapon Resort | 2 Accessible Cabins | 260,000.00 |
Cacapon Resort | Conference Center | 1,650,000.0 0 |
Canaan Valley Resort | Water Wells | 50,000.00 |
Pipestem Resort | Accessible Cabin | 130,000.00 |
Pipestem Resort | Conference Center | 2,000,000.0 0 |
Pipestem Resort | Golf Course Irrigation System | 300,000.00 |
Pipestem Resort | Water Line Extension to PSD | 300,000.00 |
Stonewall Jackson Lake | Lodge, Conference Center, Golf Course | 10,000,000. 00 |
Twin Falls Resort | Water System Connection to PSD | 400,000.00 |
Twin Falls Resort | Accessible Cabin | 130,000.00 |
Tygart Lake | Accessible Cabin | 130,000.00 |
Tygart Lake | Lodge Elevator | 200,000.00 |
Tygart Lake | Lodge Sewage Treatment Plant Replacement | 200,000.00 |
Total | $16,205,0 00.00 |
The Director of DNR should require the Parks System
administrator for resorts and lodges to develop an overall
strategic business plan for the Parks System's resorts and
lodges. This plan should include an individual marketing
plan for each resort and lodge park.
Level of Compliance: In Compliance
The Parks Division has created a "1998 Strategic Marketing Plan"and had a "WV State Parks Plan" prepared by the marketing firm Doe Anderson Advertising after the 1996 evaluation by the Legislative Auditor. The State Parks System has developed an Internet Site for visitors to receive information on the sites and how to contact WV State Parks. The strategic plan has eight sections to explain what the State Parks goals are, strategy to achieve the goals and the results of a 1996 customer survey. The Parks plan denotes the performance measures used to determine the effectiveness of their strategies. Based on Park's revenues, the strategic marketing plan has not shown an effect yet. This may also be attributed to not hiring a lodge/resort administrator.
Recommendation 4:
The Director of DNR should require the Parks System to begin aggressively marketing its lodges and resorts to hunters and fisherman. This should include considering: a) DNR establishing temporary game checking stations at the parks; b) lodge restaurants having an early breakfast at 4:00 a.m. during hunting season; c) lodges should offer special rate hunting packages; d) building game storage facilities on park premises, but away from the lodges; e) training lodge employees in the hunting opportunity in the areas surrounding their individual park; and, f) DNR offering hunting seminars and classes, on subjects such as deer tracking and turkey calling, at the Parks System's lodges.
Level of Compliance: Partial Compliance
The Parks System had a "Sportsmen Special" for the past two years which allows for a 20% discount on lodging for anyone with a valid WV hunting or fishing license. The special is advertised statewide and nationwide in magazines. The advertisements appear November 30, through May 20. This period coincides with the Deer (Bucks Only) Season and virtually all seasons except Bear (Archery) Season and Wild Boar (Gun) Season. West Virginia Trout fishing is also popular during this same time period of the year. In addition to the special, there are also special events that are growing which are "Becoming an Outdoors Woman" administered by the Wildlife Section of DNR and a "Beginners Fly Fishing Package" at Cacapon Resort State Park.
The marketing for hunters and fisherman though does not include any amenities available to them other than the discount. If a hunter or fisherman is shopping for his next hunting or fishing trip he may choose the private hunting lodges or fishing lodges located throughout WV because they advertise their available options such as pre dawn breakfasts, guides and meat preparation. The Parks System may help the current occupancy rates during off seasons by including these amenities especially for the out of state market.
Recommendation 5:
The Parks System should immediately modify its policy of not
paying travel agents the standard industry fee for making
reservations for guests.
Level of Compliance: In Compliance
The parks system established a 10% commission to all licensed and bonded travel agents who make bookings for lodge rooms in all state park lodges in July, 1996. There is also a commission available for travel agents on cabin rentals from November through March.
Recommendation 6:
The Legislature should consider changing statutory law to
specifically allow the Parks System to pay its employees who
work at Resort/Lodge Parks on a partial incentive pay basis.
If such legislation is adopted, the Director of DNR should
immediately see that an incentive pay plan is developed for
the staff at all resort and lodge parks. Such a plan should
pay all of the individual park's employees a significant
bonus whenever monthly occupancy rates exceed the previous
year's rate.
Level of Compliance: In Compliance
The Chief of Parks has completed a proposal dated May 14, 1998 for an incentive package which gives superintendents and assistants 10% of their total annual salary, not to exceed 10% of the actual dollar value to the state of the improvement in financial performance. On August 20, 1998, the State Personnel Board approved the proposal as a pilot program for one year. It became effective July 1, 1998 with the understanding that the agency fully evaluate the program and make a status report on the program to the Board.
Issue Area 2: The Chief, Deputy Chief and District Administrators have managed the Parks system by monthly reports and few site inspections
The analysis of travel by top management showed little direct management in the field. Instead, management by the superintendents to the Acting Chief of Parks has been used. Moreover, seven parks were not visited in fiscal year 1995.
Recommendation 7:
The Chief and Deputy Chief should be required to visit each
park at least once per year with additional visits to the
parks that have decreasing self-sufficiency rates or have a
low consumer satisfaction percentage, which can be
ascertained from the quarterly reports and consumer comment
card summary reports. Following the consolidation of
administrative functions, the current parks' management
structure should have more time to provide on-site technical
assistance and guidance to all parks.
Level of Compliance: Non Compliance
The Chief and Deputy Chief have increased their visits to the parks; However, each park was not visited by the Chief and Deputy Chief. Based on travel records and memos, 55% of the parks or 28 of the parks did not receive a visit by the Acting Chief or Deputy Chief. The visits by the Chief and Deputy Chief were generally for grievances, legislative tours or business at hand regarding the site. The Acting Chief visited approximately 10% of the parks in the past 2 years; 9 visits at 4 parks in 1998 and 6 visits at 5 parks in 1997. The Deputy Chief showed improvement on park visits by visiting 25% of the parks in the past two years; 24 visits at14 parks in 1998 and 15 visits at 14 parks in 1997. Table 5 below shows the past 2 years of park visits.
TABLE 5 Park Visits For Acting Chief and Deputy Chief | |||||
Parks In System | 1998 Parks Visited | 1998 Parks Not Visited | 1997 Parks Visited | 1997 Parks Not Visited | |
Acting Chief | 49 | 4 | 45 | 5 | 44 |
Deputy Chief | 49 | 14 | 35 | 14 | 35 |
In addition to the Chief of Parks and Deputy Chief, the District Administrators have increased their site visits. The three district administrators visited all of the 49 parks each year in past 2 years. Table 6 summarizes the site visits by fiscal year.
TABLE 6 District Administrators Summary of Site Visits 1997 Through June 1998 | |||
Fiscal Year | District Administrator 1 | District Administrator 2 | District Administrator 3 |
1998 | 18 | 40 | 34 |
1997 | 29 | 67 | 58 |
Total | 47 | 107 | 90 |
Recommendation 8:
The Chief should be required to provide a quarterly summary
of park activities to the DNR Director. The information to
be provided in this report should be determined by the
Director of DNR.
Level of Compliance: In Compliance
The Chief has completed quarterly summaries of parks activities based on monthly reports submitted by the Parks. The reports to the Director of DNR summarizes the work performed, new items built or refurbished, occupancy rates and financial information from the 49 parks. Also the summary denotes what factors are increasing or decreasing attendance and how its effects the parks as a whole.
Issue Area 3: Parks has failed to Standardize or Complete Inspection Reports
The district administrators in 1996 did not complete field inspection reports for site visits. The inspection reports provides management with information for completing the quarterly summary to the Director of DNR, provides the park superintendent with instrument to correct shortcomings in the park, provides documentation that the district administrators are performing their duties as assigned and provides a document to used on the next site visit.
Recommendation 9:
The Director of DNR should establish and implement
standardized reporting procedures for on-site visits by all
district administrators. The Director should also require
that each park be inspected at least quarterly by the
district administrators. Reports should be summarized
quarterly, detailing what problems were found and what
actions had been taken to remedy problems encountered during
previous site inspections. These reports should be submitted
to the Chief of Parks in a timely manner. Summaries should
also include travel time and expenses incurred for
inspections.
Level of Compliance: In Compliance
The District Administrators now use standard "Site Inspection Reports" during their visits to various facilities. The inspection reports must also be completed for one facility only; there were some reports which had multiple facilities included on them. Not all parks have been inspected each quarter as recommended.
Issue Area 4: Internal Controls Governing Revenues are
Weak and the Sparse Field Inspections create
a Weakly Controlled Revenue Environment with
Potential Loss of Assets
The parks system is a semi-revenue driven system. The 1996
transfer of the parks system from Tourism to the Department of
Natural Resources found weaknesses in the various forms and
reports prepared by the parks. DNR conducted in-house audits and
revealed that a written manual for accounting policies and
procedures did not exist.
Recommendation 10:
The Director of DNR should adopt accounting procedures and
managerial procedures which should be compiled in an
operations manual. The manual should also provide
standardized forms and reports, in addition to guidelines for
District Administrators to recognize possible illegal acts
and the course of action to be administered. A course for
reporting findings should be defined in the manual.
Level of Compliance: Partial Compliance
The accounting procedures were discussed with members of DNR accounting section and it was determined that this was being implemented. The Legislative Auditor's Office is in receipt of the first draft of the accounting procedures but the draft has limited managerial procedures sections. The accounting procedures detail the collection procedures for different revenues, handling of returned checks, revenue and consumer sales tax refunds. There are also empty sections on weekly revenue reports, forms and weekly revenue reports. The manual is incomplete but if completed will comply with the aspect of the accounting procedures recommendation and partially comply with the managerial procedures.
Recommendation 11:
The Director of DNR should conduct a cost/benefit analysis of employing an internal auditing staff or contracting with a CPA firm and if implemented, consider what role the district administrators should play in the internal audit function. If DAs are to be retained, additional training is needed to assist them in identifying circumstances warranting corrective action.
Level of Compliance: In Compliance
An accounting firm was hired to review accounting procedures
and make recommendations for improving controls on revenues and
time reporting. There were three audits recently completed with
several recommendations, but there was apprehension among the
superintendents regarding available personnel to implement these
recommendations within the responses to the audits. These
recommendations by the CPA firm were included in the Parks
accounting controls and procedures handbook to a degree. These
recommendations included virtually every phase of significant
revenue collection and reconciliation of financial records;
separation of duties, limiting access to cash or receipt tickets,
weekly reconciliation, use of a cash register, developing an
accounting procedures manual, surprise audits, opening of mail,
better documentation from vendors under concessionaire agreements
and daily deposits were the majority of recommendations The
reports also recommended time keeping procedures for park
employees such as signing their time sheets. There were
variations to the actual recommendations such as not doing daily
deposits due to logistical expenses and separation of duties due
to limited employees.
It was noted that the administration of the Department of
Natural Resources wishes to not continue the contract with a CPA
firm. This was due to the fact that the internal auditors were
more in touch with the system's capabilities.