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Texas Youth Commission Tyc State Audit 2009

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John Keel, CPA
State Auditor

A Follow-up Audit Report on

The Texas Youth Commission
May 2009
Report No. 09-036

A Follow-up Audit Report on

The Texas Youth Commission
SAO Report No. 09-036
May 2009

Overall Conclusion
Since March 2007, the Texas Youth
Commission (TYC) has improved its
investigation of alleged mistreatment,
strengthening its security and monitoring of
youth, and has made progress in improving its
management of agency resources. During this
same time period, the total number of youths
committed to TYC decreased 49.7 percent
from 4,809 on March 1, 2007, to 2,419 on April
15, 2009. Contributing factors for this decline
were legislative mandates in Senate Bill 103
(80th Legislature) that prohibited the
placement of youth who commit
misdemeanors or are between 19 and 21 years
of age in TYC facilities.
TYC has fully or substantially implemented 34
of 47 (72.3 percent) prior State Auditor’s
Office recommendations made in a March
2007 investigative report. Although TYC has
made progress toward implementing these
prior recommendations, as well as Senate Bill
103 reforms, TYC should continue to
strengthen its management of state resources,
including contracts, staffing levels and
facilities, and its intake and investigation
processes.
Specifically, auditors noted the following:

Background Information
Auditors determined the implementation status for 47 of
49 high-risk recommendations to the Texas Youth
Commission (TYC) that the State Auditor’s Office made in
An Investigative Report on the Texas Youth Commission
(State Auditor’s Report No. 07-022, March 2007). See
Appendix 3, page 69, and Appendix 4, page 76, of this
report for the implementation status of
recommendations.
As of January 31, 2009:

ƒ TYC had 4,370 employees, 92.4 percent of whom
worked outside the central office in Austin.

ƒ TYC had 2,508 youths in 11 TYC facilities, 9 TYC
halfway houses, and 12 contract facilities.

ƒ TYC employed 2,419 juvenile correctional officers
(55.4 percent of all TYC employees).

ƒ TYC employed 271 case managers (6.2 percent of all
TYC employees).

TYC’s appropriations for fiscal years 2008 and 2009 were
$315 million and $237 million, respectively.
In response to charges of a sexual abuse cover-up at TYC,
Senate Bill 103 (80th Legislature) mandated reforms at
TYC to ensure the protection and care of youth. These
reforms included changes to the following:

ƒ Placement of youth in TYC.
ƒ The staffing and training of juvenile correctional
officers.

ƒ The security and monitoring of youth.
ƒ Investigations of allegations of abuse, neglect, or
exploitation of youth.

ƒ Rehabilitation and treatment needs of youth.
During fiscal years 2007 and 2008, TYC experienced
several significant events, including changes to its
oversight and leadership, the resignation of its board, and
the consecutive appointments of three different
conservators. See Appendix 2, page 68, for additional
information on TYC leadership changes.

¾

TYC did not competitively bid 11 contracts
totaling $19.5 million that it awarded while the agency was in conservatorship
from March 2007 to October 2008. While the Texas Government Code grants a
conservator a series of powers and duties, it does not specifically exempt a
conservator from complying with state procurement rules.

¾

TYC has not increased the number of certified sex offender counselors in its
treatment programs or retained necessary documentation to support its staffing
projections for juvenile correctional officers for fiscal years 2008 and 2009.

This audit was conducted in accordance with Texas Government Code, Section 321.0132.
For more information regarding this report, please contact Sandra Vice, Assistant State Auditor, or John Keel, State Auditor, at (512)
936-9500.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036

¾

In fiscal year 2007, TYC proposed closing five residential facilities. As a result,
the Legislature reduced TYC’s appropriations for fiscal years 2008 and 2009.
However, TYC continues to operate the Victory Field Correctional Academy and
the West Texas State School, which were two of the facilities that TYC proposed
closing. TYC reported it spent $21.8 million during fiscal year 2008 to operate
these two facilities.

¾

TYC did not ensure that its Office of Inspector General (1) received and
investigated all reported allegations of mistreatment or (2) initiated and
completed investigations of alleged mistreatment within 30 days as required by
agency policy.

Key Points
TYC has fully or substantially implemented 6 of 9 (66.7 percent) recommendations
for improving its investigation of alleged mistreatment.
TYC implemented recommendations to correct weaknesses in its oversight of
alleged youth mistreatment, including:
¾

Transferring responsibilities for the investigation and management of reported
incidents of alleged mistreatment to the Office of Inspector General.

¾

Revising and implementing a new disciplinary policy outlining specific
consequences for employees who mistreat or abuse youth.

¾

Establishing interim panels to review recommendations to extend a youth’s stay
beyond his or her original sentence. As of February 2009, TYC was in the process
of adopting policies and procedures to ensure that it conducts these reviews in a
consistent and transparent manner. (See Chapter 1-A, page 3.)

TYC should ensure that its Office of Inspector General receives, investigates, and
records all incidents of alleged mistreatment.
In June 2007, Senate Bill 103 (80th Legislature) became effective and required TYC
to create the Office of Inspector General, which investigates allegations of abuse,
neglect, or exploitation of youth in TYC facilities. Auditors identified weaknesses
that TYC should address. Specifically:
¾

Management at two of three residential facilities that auditors visited did not
report three incidents of alleged youth mistreatment to the Office of Inspector
General, even though the residential facility management took disciplinary
action against the staff involved in the incidents. (See Chapter 1-B, page 7.)

¾

TYC lacked guidelines specifying when Youth Care Investigators or the Office of
Inspector General can transfer investigations of alleged mistreatment to other
agency staff. Auditors identified nine incidents of alleged mistreatment of youth
that were properly reported to the Office of Inspector General but were

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subsequently investigated by either the Residential Services Division (the division
responsible for housing youths) or the Youth Rights Division. (See Chapter 1-B,
page 8.)
¾

Thirty of 85 investigation files reviewed lacked documentation supporting
(1) that Youth Care Investigators performed an investigation or (2) the reason for
transferring the cases to the Youth Rights Specialists for review. (See Chapter
1-C, page 12)

TYC did not complete investigative reports of alleged mistreatment in a timely
manner.
For fiscal year 2008, TYC took an average of 100 calendar days to complete an
investigative report after an allegation was reported to the Office of Inspector
General. In fiscal year 2006, TYC completed investigative reports in an average of
57 calendar days. TYC requires that an investigative report be completed within
30 days after an allegation is reported. TYC should evaluate whether the Office of
Inspector General has the staffing resources necessary to complete investigations
within required time frames. (See Chapter 1-B, page 9.)
TYC has fully or substantially implemented 11 of 15 (73.3 percent)
recommendations for improving its security and monitoring of youth.
TYC has (1) increased the number of video surveillance cameras in its residential
facilities and (2) reconfigured open-bay dorms at six residential facilities into
single-cell dorms. In addition, TYC reported that it considers a youth’s proximity
to home when making placement decisions. As of February 2009, TYC continued to
work toward implementation of recommendations to maintain a juvenile
correctional officer-to-youth ratio of 1 to 12, conduct contraband searches of
staff, and rotate juvenile correctional officers’ dorm assignments. (See Chapter 2,
page 14.)
TYC has fully or substantially implemented 17 of 23 (73.9 percent)
recommendations for improving its management of agency resources.
TYC has improved its policy and processes for conducting criminal history checks of
its employees, volunteers, and contractors. TYC also developed an extensive
juvenile correctional officer training program that requires 300 hours of on-the-job
training and includes curriculum on proper behavior for juvenile correctional
officers, proper techniques for control and restraint of youths, and understanding
the oversight process for alleged mistreatment. (See Chapter 3, page 21.)
TYC should continue to improve its allocation of staffing resources.
Only 6 of the 27 counselors on TYC’s staff are certified sex offender counselors.
TYC reported that it has developed an agency-wide program for its treatment
counselors to obtain sex offender counselor certifications by 2010. TYC also used a
reasonable methodology for determining staffing needs for juvenile correctional
officers for the 2008-2009 biennium; however, TYC did not maintain

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documentation necessary to support its staffing projections. In addition, TYC
increased the number of central office manager and director positions by 53.7
percent from 41 positions in fiscal year 2007 to 63 positions in fiscal year 2009 (see
Appendix 10, page 92). TYC also reported that it was eliminating 430 agency-wide
positions effective March 1, 2009.
TYC did not competitively bid 11 contracts it awarded while the agency was in
conservatorship.
One of the 11 contracts not competitively bid was a contract that TYC entered into
with Youth Services International. The contract required TYC to pay the
contractor $189.50 per youth per day at a guaranteed number of 119 beds for the
first 90 days, even though no youths were placed with the contractor for the first
90 days. TYC entered into this agreement to provide start-up funds to the
contractor. However, TYC’s policy requires start-up funds to be paid to
contractors based on a proposed budget approved by TYC during the procurement
process. TYC and Youth Services International mutually agreed to terminate the
contract in October 2008. TYC paid Youth Services International approximately
$1.3 million in start-up funds. Youth Services International has invoiced TYC for an
additional $1.2 million. As of February 2009, TYC was working with the Office of
the Attorney General to resolve the matter regarding the amount invoiced. (See
Chapter 4-A, page 30.)
TYC should ensure that it documents the factors it considered when including
minimum payment guarantees in its contract renewals with contract care
providers.
For fiscal year 2009, TYC has contracts with 6 of 12 contract care providers that
include minimum payment guarantees. Auditors were not able to determine the
reasonableness of TYC’s decision to include minimum payment guarantees in these
contracts. TYC lacked documentation showing the factors that it used to determine
the necessity and reasonableness of the contracts’ minimum payment guarantees.
TYC reported that, during the contract renewal process in August 2008, payment
guarantees were negotiated on a case-by-case basis between the contract care
providers and the TYC conservator. (See Chapter 4-C, page 40.)
TYC should ensure that state resources are used efficiently for the operation of
residential facilities.
TYC proposed the closure of five facilities; but as of April 2009, it had closed only
three facilities. It continues to operate the Victory Field Correctional Academy
and the West Texas State School, even though it received a reduced appropriation
for fiscal years 2008 and 2009. TYC used cost savings from the closure of other
facilities and agency-wide job vacancies to pay for the operating costs of the two
open facilities. The cost savings included (1) approximately $14 million from the
closure of the Marlin Orientation and Assessment Unit and the John Shero Juvenile
Correctional Facility prior to fiscal year 2008 and (2) approximately $5.7 million
from job vacancies during fiscal year 2008. (See Chapter 5-A, page 44.) As of

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January 31, 2009, TYC was using 27.7 percent and 37.5 percent of the physical bed
capacity at the Victory Field Correctional Academy and the West Texas State
School, respectively. The physical bed capacity for all TYC facilities including
contract placement was 76.2 percent. (See Appendix 7, page 81 for additional
information.)
In fiscal year 2009, TYC did not meet its targeted costs for institutional and
contract programs.
Through the second quarter of fiscal year 2009, TYC exceeded its performance
target of $299,404 for daily capacity costs for TYC-operated institutional services
by 14.8 percent. TYC’s reported results were lower than its target of $64,978 for
daily capacity costs for contracted correctional services by 50.1 percent. TYC
reported reliable results for four key performance measures related to these
capacity costs that auditors tested for fiscal year 2008 and the first two quarters of
fiscal year 2009. (See Chapter 5-C, page 48.)

Summary of Management’s Response
TYC generally agrees with the recommendations in this report, and it provided the
following summary of its responses:
Management appreciates the Texas State Auditor’s Offices’
acknowledgment of TYC’s many achievements since the March 2007
investigative report, as well as its assessment and identification of areas
where further improvement can be made.
Overall, the agency agrees with most of the conclusions and
recommendations in this report as it identifies important areas where
additional work is needed. Some of the recommendations have been
implemented while others are in progress and anticipated to be completed
soon or are planned to be initiated and completed in the near future.
One of the agency’s greatest challenges is to provide effective
rehabilitation services efficiently. Continuing the operations at these
facilities was a strategic decision in February 2008 based on several
factors: population management and service needs resulting from Senate
Bill 103 impacts; the emphasis on keeping youth in close proximity to their
homes; and the ability to provide services to reduced populations using
existing resources. The populations of both of these facilities have been
significantly reduced and specialized treatment programming has been
added at both locations. When the Legislature removed funding but did
not specify closure of these facilities as it did for other facilities, the
agency chose to down-size the facilities and seek legislative guidance on
the continuation of operations at West Texas and Victory Field. TYC
continues to analyze the best use of resources and downsizing for efficient
staffing.

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TYC’s detailed management responses to the specific recommendations in this
report are presented immediately following each set of recommendations in the
Detailed Results section of this report. TYC’s overall management response is
presented in Appendix 13, page 98.

Summary of Information Technology Review
Auditors examined TYC’s former Alleged Mistreatment Incident (AMI) system,
which TYC uses to track investigations of alleged mistreatment. TYC implemented
a new system to track investigations of alleged mistreatment effective December
1, 2008. Auditors did not examine the controls over the new system. Auditors
identified weaknesses in the former system that TYC should ensure are corrected
in its new system. (See Chapter 6-A, page 54, of this report for additional
information.)
Auditors also examined TYC’s Correctional Care System, which it uses to collect
and manage youth population data for the four key performance measures that
auditors tested. Although TYC has controls over the Correctional Care System that
ensure the reliability of performance measure data, auditors identified
opportunities for TYC to strengthen its controls to provide greater assurances over
the integrity and accuracy of the data. (See Chapter 6-B, page 57, for more
information.)
In addition, auditors examined TYC’s General Accounting System. TYC had the
necessary controls in place to ensure that the system’s financial transactions are
complete, accurate, timely, and authorized. (See Chapter 6-E, page 62, for more
information.)
To minimize the risks associated with public disclosure, auditors communicated
other confidential and sensitive information technology issues to TYC management
in writing.

Summary of Objectives, Scope, and Methodology
The objectives of this audit were to:
¾

Determine the implementation status of selected recommendations from An
Investigative Report on the Texas Youth Commission (State Auditor's Office
Report No. 07-022, March 2007).

¾

Review abuse and neglect allegations and documentation to ensure that the
allegations were properly screened and investigated and that appropriate action
was taken.

¾

Determine whether selected expenditures at TYC comply with state law and are
properly authorized and reasonable for the performance of TYC functions and
the facilitation of legislative reform efforts.

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The audit scope covered TYC’s oversight of the alleged mistreatment of youth and
management of agency resources as of August 31, 2008; allegations of
mistreatment that were identified as a concern by TYC’s Office of Independent
Ombudsman for fiscal years 2007 and 2008; TYC’s contract management processes
while the agency was under conservatorship from March 2007 to October 2008;
TYC’s expenditures related to implementing Senate Bill 103 reforms for fiscal years
2007 and 2008; and TYC’s reported performance measures for fiscal years 2008 and
the first two quarters of fiscal year 2009.
The audit methodology included identifying high-risk recommendations from the
prior State Auditor’s Office’s investigative report. Additionally, the audit
methodology included collecting information and documentation to determine the
implementation status of those recommendations; conducting site visits at three
TYC residential facilities: the Gainesville State School, the Al Price State Juvenile
Correctional Facility, and the Corsicana Residential Treatment Center; performing
selected tests and other procedures; analyzing and evaluating the test results;
interviewing management and staff from TYC; selecting four key performance
measures and auditing the reported results for accuracy; and reviewing controls
over the collection, calculation, and submission of data used in reporting selected
performance measures.

vii

Contents
Detailed Results
Chapter 1

While TYC Has Improved Its Oversight of Alleged Youth
Mistreatment, It Should Complete Efforts to Strengthen
Its Intake and Investigation Processes ............................. 1
Chapter 2

TYC Has Made Progress in Strengthening Its Security and
Monitoring of Youth .................................................. 14
Chapter 3

TYC Has Made Progress Toward Improving Its
Management of Agency Resources ................................. 21
Chapter 4

TYC Should Follow Its Established Procurement Process
to Provide Transparency to Its Procurement Decisions......... 28
Chapter 5

TYC Should Assess Its Facility and Staffing Levels to
Ensure the Efficient Use of State Resources ..................... 43
Chapter 6

TYC Should Strengthen the Security and Management
Over Its Information Systems ....................................... 54

Appendices
Appendix 1

Objectives, Scope, and Methodology.............................. 63
Appendix 2

Significant Events at TYC from March 2007 through
January 2009 .......................................................... 68
Appendix 3

Status of TYC’s Implementation of High-risk
Recommendations .................................................... 69

Appendix 4

TYC’s Self-reported Status of High-risk
Recommendations That Were Not Selected for Follow-up
Audit Work............................................................. 76
Appendix 5

Organizational History of TYC’s Oversight of Alleged
Mistreatment of Youth............................................... 77
Appendix 6

Profile of New Youth Commitments to TYC Facilities
from Fiscal Year 2006 to Fiscal Year 2008........................ 80
Appendix 7

Youth Population at TYC-operated Facilities as of
January 31, 2009 ..................................................... 81
Appendix 8

TYC’s Placement of Youth by Region.............................. 83
Appendix 9

Map of TYC-operated Facilities and Contract Care
Providers, Including Juvenile Correctional Officer (JCO)
and Youth Populations as of January 31, 2009 .................. 84
Appendix 10

TYC Workforce Summary for Fiscal Years 2004 through
2008..................................................................... 87
Appendix 11

TYC’s Contract Care Providers for Fiscal Years 2008 and
2009..................................................................... 94
Appendix 12

State of Texas Contract Management Guide Essential
Contract Provisions................................................... 96
Appendix 13

Overall Management Response from the Texas Youth
Commission ............................................................ 98

Detailed Results
Chapter 1

While TYC Has Improved Its Oversight of Alleged Youth Mistreatment,
It Should Complete Efforts to Strengthen Its Intake and Investigation
Processes
The Texas Youth Commission (TYC) has fully or substantially implemented
six of nine (66.7 percent) high-risk recommendations for correcting
weaknesses in its oversight of alleged youth mistreatment
Alleged Mistreatment
identified in An Investigative Report on the Texas Youth
Alleged mistreatment are those incidents
Commission (State Auditor’s Office Report Number 07-022,
that involve TYC employees, youth, or
March 2007). Specifically:
contractor staff accused of committing
acts of abuse, neglect, or exploitation.
TYC defines abuse, neglect, or exploitation
as follows:

ƒ

TYC transferred responsibilities for the investigation and
management of reported incidents of alleged mistreatment (see
text box for definition of alleged mistreatment) to the Office of
Inspector General.1

ƒ

TYC installed and maintains a filter that limits which Web
pages can be accessed from TYC computers.

ƒ

TYC revised and implemented a new disciplinary policy
outlining specific consequences for employees who mistreat or
abuse youth.

ƒ Abuse – an intentional, knowing, or

reckless act or omission that causes or
may cause emotional harm or physical
injury to, or death of, a youth.

ƒ Neglect – a negligent act or omission,

including failure to comply with an
individual case plan, that causes or may
cause substantial emotional harm or
physical injury to, or death of, a youth.

ƒ Exploitation – the illegal or improper

use of a youth or the resources of a
youth for monetary or personal benefit,
profit, or gain.

ƒ

TYC reported that it established interim panels to review
recommendations to extend a youth’s stay beyond his or her original
sentence. As of February 2009, TYC was in the process of adopting
policies and procedures to ensure that it conducts these reviews in a
consistent and transparent manner.

Although TYC has made improvements in its oversight of allegations of
mistreatment, auditors identified some weaknesses in the oversight process.
Specifically:
ƒ

1

Management at two of three residential facilities that auditors visited did
not report three incidents of alleged youth mistreatment to the Office of

The phrase “alleged mistreatment” is used in this report to be consistent with TYC’s terminology for discussing alleged
incidents of abuse, neglect, or exploitation. The term “grievance” was used in An Investigative Report on the Texas Youth
Commission (State Auditor’s Office Report Number 07-022, March 2007). TYC considers grievances to be concerns by youth,
parents, and other youth advocates regarding the denial of certain rights to youth. In general, grievances are of a less serious
nature than allegations of mistreatment.
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SAO Report No. 09-036
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Inspector General, even though the residential facility management took
disciplinary action against the staff involved in the incidents.
ƒ

TYC lacked guidelines specifying when Youth Care Investigators or the
Office of Inspector General can transfer investigations of alleged
mistreatment to other agency staff to investigate. Auditors identified nine
incidents of alleged mistreatment of youth that were properly reported to
the Office of Inspector General but were subsequently investigated by
either the Residential Services Division (the division responsible for
housing youth) or the Youth Rights Division.

ƒ

TYC did not complete investigative reports of alleged mistreatment in a
timely manner. For fiscal year 2008, TYC took an average of 100 calendar
days to complete an investigative report after an allegation was reported to
the Office of Inspector General. TYC requires that an investigative report
be completed within 30 days after an allegation is reported.

ƒ

Thirty of 85 investigation files reviewed lacked documentation supporting
(1) that Youth Care Investigators performed an investigation or (2) the
reason for transferring the cases to Youth Rights Specialists for review.

Table 10 in Appendix 3, page 69, provides a summary of the implementation
status for each high-risk recommendation that auditors reviewed. Appendix 4,
page 76, provides TYC’s self-reported status of high-risk recommendations
not selected for follow-up audit work.
Chapter 1-A

TYC Has Fully or Substantially Implemented Six of Nine High-risk
Recommendations Regarding Its Oversight of Allegations of
Mistreatment
In its previous investigative report, the State Auditor’s Office recommended
that TYC strengthen its processes to ensure that all allegations of mistreatment
are received and investigated appropriately and in a timely manner. TYC has
fully or substantially implemented six of nine high-risk
recommendations to improve its oversight of these allegations (see
Implementation Status Definitions
text box for implementation status definitions).
Fully Implemented - Successful
development and use of a process, system,
or policy to implement a prior
recommendation.
Substantially Implemented - Successful
development but inconsistent use of a
process, system, or policy to implement a
prior recommendation.

Two recommendations were fully implemented.

ƒ

transferred the management of the Alleged Mistreatment
Incident (AMI) system to the Office of Inspector General (see
Chapter 6-A, page 54, for more information).

Incomplete/Ongoing - Ongoing
development of a process, system, or
policy to address a prior recommendation.
Not Implemented - Lack of a formal
process, system, or policy to address a
prior recommendation.

Recommendation to transfer TYC’s automated grievance system to the
Office of Inspector General. In June 2008, TYC’s conservator

ƒ

Recommendation to perform Web filtering to prevent users from
accessing sexually oriented sites. TYC installed and maintains

a
filter that limits which Web pages staff can access from a TYC
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computer. In addition, TYC computers available for youth use are not
connected to the Internet. TYC stores Internet content it deems
appropriate on its servers, which allows it to limit the content it makes
accessible to computers within TYC’s residential facilities.
Four recommendations were substantially implemented.

ƒ

Recommendation to enforce a disciplinary policy that outlines consequences for
employees who mistreat or abuse youths. TYC revised and implemented a

new disciplinary policy effective December 1, 2008. This policy outlined
specific consequences for employees who mistreat or abuse youth.
Auditors did not test for compliance with the policy because TYC
implemented it during audit fieldwork.
ƒ

Recommendation to ensure that all grievances are received and investigated by
requiring staff to immediately report any suspected mistreatment or abuse of youth
to the Office of Inspector General for investigation. Effective July 2008, TYC

required that all allegations of mistreatment be reported to and
investigated by the Office of Inspector General. However, auditors
identified weaknesses in TYC’s oversight processes (see Chapter 1-B,
page 7).
ƒ

Recommendation to require TYC’s executive director or his or her designee to verify
and approve “phase adjustments” that result in extending a youth’s stay at a
facility. In June 2007, Senate Bill 103 (80th Legislature) became effective

and required TYC to determine whether a youth (1) has completed the
assigned minimum length of stay and (2) should be discharged or released
to parole. TYC reported it established interim panels in August 2007 that
review recommendations to extend a youth’s stay beyond his or her
original sentence, to release the youth to parole supervision, or to
discharge the youth. However, as of February 2009, TYC was still in the
process of adopting policies and procedures for conducting these reviews
in a consistent and transparent manner.
ƒ

Recommendation to monitor employees’ computers to detect storage of
inappropriate images and refer employees to the Office of Inspector General if
inappropriate images are detected. TYC reported that it monitors employees’

computers for inappropriate images upon investigative request only. In
April 2007, TYC installed a Web-filtering system and revised its policy on
the appropriate use of information technology resources. This policy
stated that TYC’s Information Resources Division may monitor any TYC
resource to ensure the appropriate use of state property. However, TYC
reported that investigative requests to monitor employees’ computers have
decreased to almost none since it installed the Web-filtering system. As a
result, TYC is not actively monitoring employees’ computers.

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The implementation of two recommendations was incomplete/ongoing.

ƒ

Recommendation to allow youths to challenge consequences for misconduct
separately from the grievance process.

ƒ

Recommendation to develop and implement a policy that outlines consequences to
youths according to the level and type of their misconduct.

As of February 2009, TYC was in the process of adopting policies and
procedures that define a process to (1) allow youths to challenge
consequences (such as loss of privileges or transfer to a different
residential facility) separately from submitting grievances or complaints
and (2) outline the consequences to youth for misconduct based on the
level and type of misconduct.
One recommendation was not implemented.

ƒ

Recommendation to strengthen password protection on all TYC computers.

TYC
still needs to make improvements to strengthen password protection and
comply with the information security standards in Title 1, Texas
Administrative Code, Chapter 202, on all TYC computers.
Auditors identified additional weaknesses related to the access and
security control structure of TYC’s information systems (see Chapter 6,
page 54, for additional details).

Recommendation

TYC should continue efforts toward implementing the recommendations
related to the oversight of alleged youth mistreatment reported as
incomplete/ongoing or not implemented.
Management’s Response
ƒ

Enforce a disciplinary policy that outlines consequences for employees
who mistreat or abuse youths. TYC has always had a disciplinary policy,
PRS.35.01, Disciplinary Action, which since 2002 was supported by a
managerial “grid” which was distributed to all managers to identify the
appropriate disciplinary action for employees who mistreat or abuse
youth or have otherwise inappropriate behavior. The revised PRS.35.01,
effective December 2008, formally links the managerial grid to the policy
and expands its content to provide greater guidance in the identification of
rules and the disciplinary actions that should result for such violations. It
also increases the Central Office oversight of the disciplinary process to
ensure consistency of application throughout the agency, timeliness, and
fair and equitable treatment for all agency employees. The revised policy
ensures that employees who mistreat or abuse youth will be disciplined
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appropriately, up to and including termination of employment. Fully
Implemented
ƒ

Require TYC’s executive director or his or her designee to verify and
approve “phase adjustments” that result in extending a youth’s stay at a
facility. As noted in the report, interim review panels were implemented
in 2007; results of these panels are reported on the TYC website in
accordance with SB 103. The policy establishing the Release Review
Panel (RRP) and describing its operations was submitted to the Texas
Register for adoption on April 2, 2009, and will be effective on May 1,
2009. In compliance with requirements of SB 103, the RRP is the only
means by which indeterminate sentenced youth may be assigned an
extension beyond the original length of stay. The RRP’s review will take
place within 30 days of the expiration of the youth’s minimum length of
stay, regardless of the youth’s progress in the rehabilitation program.
The phase adjustments referred to in the March 2007 SAO Report were a
component of the Resocialization program, which is no longer in use at
TYC facilities. The new rehabilitation program, known as CoNEXTions,
includes stage assessments rather than phase adjustments. Because stage
demotions are not allowed under the CoNEXTions program, a youth’s
length of stay may not be extended as a result of demotion in stage.
Substantially Implemented – Projected to be Fully Implemented May 1,
2009

ƒ

Allow youths to challenge consequences for misconduct separately from
the grievance process. Current policy provides that any consequence
imposed through an administrative due process hearing may be appealed
by the youth to the Executive Commissioner.
Additionally, TYC has developed draft policies to redesign the system of
youth rules and disciplinary consequences. Once implemented, these
policies will establish that major consequences may only be assigned via a
Level I or II administrative due process hearing (i.e., the two highest
levels of agency due process hearings afforded to youth).
Under the revised policies, a youth may challenge the imposition of minor
consequences with his multi-disciplinary treatment team. Policy revisions
will clarify that incident reports are merely staff allegations of youth
misbehavior. Under the current rehabilitation program, issuance of an
incident report no longer has any effect on a youth’s stage level or his/her
minimum length of stay date unless the alleged rule violation is proven via
a Level I or II administrative due process hearing. As noted above,
disciplinary consequences imposed as a result of such hearings may be
appealed directly to the Executive Commissioner.

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Youth also have the option of reporting any concern directly to the Central
Office through TYC’s 24-hour hotline. In Progress – Projected to be
Fully Implemented May 31, 2009
ƒ

Develop and implement a policy that outlines consequences to youths
according to the level and type of their misconduct. As noted above, TYC
has developed draft policies that will define major and minor rule
violations, and any resulting major and minor disciplinary consequences.
In Progress – Projected to be Fully Implemented May 31, 2009

ƒ

Strengthen password protection on all TYC computers. Management
agrees with this recommendation. TYC is in the process of strengthening
logon and password security in the agency’s primary database
management system. TYC Information Resources staff submitted a service
request (ticket CRQ52082) for the changes to IBM, as required by the
State’s contract sponsored by the Department of Information Resources
with 27 agencies for consolidation of database management. The
developmental tasks for implementing this recommendation will be
completed by May 31, 2009 with the remainder completed by the end of
fiscal year 2009. In Progress – Projected to be Fully Implemented
August 31, 2009

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Chapter 1-B

TYC Should Ensure That Its Office of Inspector General Receives,
Investigates, and Records All Incidents of Alleged Mistreatment
While TYC has improved its oversight of allegations of mistreatment, it
should continue its efforts toward ensuring that its facility staff report all
allegations of mistreatment to the Office of Inspector General. TYC should
ensure that the Office of Inspector General (1) receives and
TYC’s Office of Inspector General
investigates all reported allegations of mistreatment and (2)
Senate Bill 103 (80th Legislature) required TYC to
has the staffing resources necessary to complete
establish an Office of Inspector General to investigate
criminal violations committed by its employees, youth,
investigations of alleged mistreatment within 30 days as
or contract facilities. The Office of Inspector General
required by agency policy. In addition, TYC should
is organized into three primary areas:
strengthen the Office of Inspector General’s procedures for
ƒ Incident Reporting Center—Operates the TYC
hotline, which is used by TYC youth, family, staff,
ensuring the accuracy of data entered into the Alleged
and others to report complaints, violations, and
Mistreatment Incident (AMI) system (see text box for more
crimes that are committed by TYC youth,
employees, or contractors.
information on the Office of Inspector General).
ƒ Criminal Investigators— Conducts investigations of

(1) crimes committed by TYC employees, including
parole officers employed by or under contract with
TYC, and (2) crimes committed at a facility
operated by TYC or at a residential facility operated
by another entity under contract with TYC.

ƒ Administrative Investigators—Conducts

investigations into allegations of mistreatment that
involve acts that may have violated agency policies.
In June 2008, the TYC conservator transferred Youth
Care Investigators and their responsibilities to the
Office of Inspector General (see Appendix 5, page
77, for more information).

As of February 2009, TYC reported that the Office of
Inspector General had 21 investigator positions and an
operating budget of approximately $1.7 million for
fiscal year 2009.

Residential facilities do not always report allegations of
mistreatment to the Office of Inspector General.

Auditors reviewed TYC’s fiscal year 2008 AMI system data
and the disciplinary action records at three facilities visited.
Fifty-six of 59 incidents of alleged mistreatment reviewed
were reported to the Office of Inspector General, and TYC
management took disciplinary action. Auditors identified
three instances in which allegations of youth mistreatment
were not reported to the Office of Inspector General as
required. In each case, the residential facility disciplined the
employee involved in the incident. Specifically:

ƒ

A youth received emergency room treatment after being found in a
bathtub breathing and alert but unresponsive. The juvenile correctional
officer involved in this incident was placed on probation for 90 days for
improper supervision.

ƒ

A juvenile correctional officer inappropriately used pepper spray on a
youth and received probation for this incident.

ƒ

A juvenile correctional officer was alleged to have threatened a youth with
physical harm and received a reprimand for this incident.

Although they took timely disciplinary action, the facility management did not
report these three incidents to the Office of Inspector General. TYC requires
all employees to report all allegations of mistreatment to the Office of
Inspector General so that it can enter all reported incidents into the Incident
Reporting Center’s automated system. This system assigns each incident a
case number, which staff can use to track an investigation’s progress in the
AMI system. TYC established the Office of Inspector General and
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subsequently transferred to it responsibility for investigating allegations of
youth mistreatment to help ensure that an independent investigation is
conducted into all allegations of youth mistreatment.
TYC lacks guidelines establishing when Youth Care Investigators or the Office of
Inspector General can delegate the investigation of youth mistreatment
allegations to other TYC divisions.

Auditors identified nine allegations of mistreatment that occurred during fiscal
year 2008 in which (1) TYC had taken disciplinary action against juvenile
correctional officers and (2) the case had been initially assigned to either
Youth Care Investigators or the Office of Inspector General but was later
reassigned to the Residential Services Division or the Youth Rights Specialists
for investigation. TYC lacks guidelines that clearly define under what
circumstances Youth Care Investigators or Office of Inspector General
investigators should transfer reported incidents of alleged mistreatment to
other divisions for investigation. Without clearly defined guidelines, there is
an increased risk that allegations may be inappropriately investigated by
agency staff.
These nine allegations included charges that juvenile correctional officers had
inappropriately used pepper spray and/or excessive force on youths.
Residential facility staff reported the allegations to the Office of Inspector
General as required, and the allegations were assigned to either Youth Care
Investigators or the Office of Inspector General for investigation. However,
the management of these areas later reassigned five of the allegations to the
Residential Services Division and four allegations to the Youth Rights
Specialists for investigation. Effective June 1, 2008, the Office of Inspector
General became responsible for conducting investigations of alleged youth
mistreatment. Prior to that date, Youth Care Investigators were responsible
for investigating alleged mistreatment Auditors brought these nine allegations
to the attention of the Office of Inspector General’s management, who
reviewed the incidents and determined the following:
ƒ

Eight incidents occurred prior to June 1, 2008, and were determined to be
policy violations that resulted in either no injury or minor injury to youth.
TYC reported it did not investigate policy violations committed by staff as
alleged mistreatment of youth prior to the transfer of Youth Care
Investigators to the Office of Inspector General.

ƒ

One incident occurred after June 1, 2008, and the Office of Inspector
General reported that it had opened a criminal investigation into the
allegations, even though it had also reassigned the investigation to TYC’s
Residential Services Division. This case is still under investigation by the
Office of Inspector General.

Although the allegations were considered policy violations, the reforms
mandated by Senate Bill 103 established an expectation that all investigations
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of allegations of youth mistreatment would be conducted by investigators
independent of facility management; these would include allegations of policy
violations.
Auditors identified additional cases in which Youth Care Investigators lacked
documentation supporting decisions to transfer cases to the Youth Rights
Division for investigation (see Chapter 1-C, page 12).
TYC may lack an adequate number of investigators to complete administrative
investigations in a timely manner.

In An Investigative Report on the Texas Youth Commission2, the State
Auditor’s Office previously reported that it took TYC an average of 57
calendar days to complete investigative reports on 1,347 allegations of
mistreatment in fiscal year 2006. In fiscal year 2008, TYC took an average of
100 calendar days to complete investigative reports on 1,392 allegations of
mistreatment. Of 665 completed investigations, 118 (17.7 percent) were
closed within 30 days after the Office of Inspector General received the initial
allegation of mistreatment, as required by TYC policy. Table 1 lists the
number of days it took Office of Inspector General investigators to complete
investigations of alleged mistreatment that were opened and closed during
fiscal year 2008.
Table 1

Timeliness of TYC’s Office of Inspector General Investigations
a
Fiscal Year 2008
Number of Days to Complete Investigation of Alleged Mistreatment

Number of Investigations Completed After Incident was Reported

Within 1 Day (24 hours)

4

Within 3 Days

12

Within 10 Days

12

Within 30 Days

90

Within 60 Days

141

Within 90 Days

115

Within 120 Days

86

More than 120 Days

205
Total Complete Investigations

Cases Outstanding

665
727

Total Cases
a

1,392

The data in this table was taken from the Alleged Mistreatment Incident (AMI) system. During fiscal year 2008, both the Office of Inspector
General and the Office of Independent Ombudsman expressed concerns about the accuracy and integrity of the AMI system’s data. However,
this data was the only data available to auditors for assessing the timeliness of completed investigations in fiscal year 2008.
Source: TYC.

2

State Auditor’s Office Report No. 07-022, March 2007.
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The increase in the average number of days needed for the Office of Inspector
General to complete an investigation may indicate that it does not have
sufficient staffing resources to complete investigations in a timely manner.
TYC should ensure the accuracy of data entered into the AMI system.

During fiscal year 2008, TYC’s Office of Independent Ombudsman and the
Office of Inspector General identified concerns regarding the accuracy of
AMI system data. In addition, auditors identified one investigation that the
AMI system showed was opened in November 2008 and closed in May 2008.
The Office of Inspector General determined that a staff person had backdated
the closing of the investigation. Auditors identified additional concerns
related to access controls over the AMI system (see Chapter 6-A, page 54).
Recommendations

TYC should:
ƒ

Provide monthly reports to the Office of Inspector General listing all
disciplinary actions taken against staff for incidents involving youth.
These reports should include a description of the incident and the names of
parties involved.

ƒ

Ensure that the Office of Inspector General defines criteria and
documentation requirements for transferring cases to Youth Rights
Specialists for investigation.

ƒ

Evaluate the Office of Inspector General’s workload to determine whether
it has the staffing resources necessary to efficiently complete
investigations within the required timeframes.

ƒ

Ensure that the Office of Inspector General develops processes for
ensuring the accuracy of data entered into its AMI system.

Management’s Response
ƒ

Provide monthly reports to the Office of Inspector General listing all
disciplinary actions taken against staff for incidents involving youth.
These reports should include description of the incident and the names of
parties involved. Management agrees with this recommendation. The
first week of each month, the Central Office Human Resources
Department will provide the Office of the Inspector General a report
which will include the facility location, date of incident, description of the
violation, the disciplinary action(s) taken, and parties involved.
Substantially Implemented – Projected to be Fully Implemented May 1,
2009
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ƒ

Ensure the Office of Inspector General defines criteria and
documentation requirements for transferring cases to the Youth Rights
Specialists for investigation. Management agrees with this
recommendation. The Office of the Inspector General implemented
department policies and procedures which include criteria for the Incident
Reporting Center to use when assigning cases. Cases assigned to the
Administrative Investigations Division (AID) are investigated by that
division; cases initially assigned to the Youth Rights Department or the
Residential Services Division that are transferred to the AID require an
explanation of the reason the transfer is needed. Fully Implemented

ƒ

Evaluate the Office of Inspector General’s workload to determine
whether it has the staffing resources necessary to efficiently complete
investigations within the required timeframes. Management agrees with
this recommendation. The agency identified the need for additional
investigators and submitted an exceptional item to the Legislative
Appropriations Request for six full-time equivalents (FTEs); investigator
caseloads are large and continue to grow. In fiscal year 2009 through
March 2009, 1,092 administrative investigation cases were opened,
adding an average of 21 cases per month to each investigator’s caseload.
Since June 2008, when responsibility for the administrative investigations
was transferred to the Office of the Inspector General, processes have
been implemented to reduce the time to close cases and management
actively monitors caseload size and redirects resources as needed. In the
absence of the additional positions requested, the Office of the Inspector
General will continue to monitor workloads and make adjustments as
necessary; however at the current rate cases are being assigned, the 30
day timeframe will be difficult to meet. Fully Implemented

ƒ

Ensure the Office of Inspector General develops processes for ensuring
the accuracy of data entered into its AMI system. Management agrees
with this recommendation. The Office of the Inspector General has
reclassified an Administrative Investigations Division position to a case
administrator and posted another position to perform system support and
quality assurance duties. Part of the responsibilities of these two positions
will include data integrity of the Administrative Investigation Manager
database. In Progress – Projected to be Fully Implemented May 1, 2009

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Chapter 1-C

TYC Should Define Documentation Requirements for Investigations
of Alleged Mistreatment
Auditors reviewed 85 of 564 (15.1 percent) records3 of alleged mistreatment
investigations performed by the Youth Care Investigators during fiscal years
2007 and 2008 and previously reviewed by TYC’s Office of the Independent
Ombudsman and TYC’s Office of Inspector General. Of these 85 files, 55
(64.7 percent) contained supporting documentation that either (1) showed that
an investigation of an incident was performed or (2) provided the reason for
transferring an incident to Youth Rights Specialists for investigation.
However, auditors identified 30 investigation records that lacked
documentation to support the closing of an investigation or the reclassification
of an incident from alleged mistreatment to a youth grievance. Some
investigation records lacked either final investigation reports or
documentation of interviews, reviews of videotapes, or other investigative
procedures that may have been performed. Specifically:

Criteria for Closing Investigations

ƒ

Eighteen investigation records lacked documentation showing
that an investigation had been performed. The Office of
Inspector General reported that these 18 investigations were
closed according to criteria used by Youth Care Investigators
(see text box for criteria). However, the investigation records
lacked documentation that either (1) identified the criteria that
were used to close the case or (2) showed that investigators
reviewed information regarding the incident (such as
interviews with witnesses or staff and videotapes) prior to
closing the investigation. However, Office of Inspector
General management noted that a lack of supporting
documentation did not mean that a preliminary investigation
had not been conducted.

ƒ

Twelve investigation records lacked documentation to justify
the reason for transferring an allegation to the Youth Rights
Specialists for investigation. Youth Rights Specialists review
complaints by youth, parents, and other youth advocates
regarding the denial of certain rights to youth. In general,
these complaints are of a less serious nature than allegations of
mistreatment (see text box on next page).

On May 16, 2008, the Director of Youth
Care Investigators directed investigators
to close investigations that were started
in fiscal year 2007 that met the
following criteria:

ƒ The alleged victim’s account of the
incident does not support an
allegation of abuse, neglect, or
exploitation.

ƒ The investigation was being

investigated by local law
enforcement; however, local law
enforcement had not provided
information confirming the
allegation.

ƒ The alleged victim had been released
or paroled, and attempts to contact
the victim had been unsuccessful.

ƒ The alleged incident occurred a

number of months ago and the
likelihood of collecting evidence was
low.

ƒ The alleged perpetrator was no

longer an employee of TYC and was
not eligible for rehire.

3

Auditors determined that none of the 85 investigations reviewed was from an allegation that was referred by the State Auditor's
Office’s Special Investigations Unit to TYC’s Office of Inspector General. The Special Investigations Unit manages the State
Auditor’s Office’s fraud, waste, and abuse hotline and forwards complaints involving TYC to TYC's Office of Inspector
General. The Special Investigations Unit follows up on TYC referrals until a final disposition is reported to the Special
Investigations Unit.
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TYC Youth Basic Rights
Youths committed to TYC have 14 basic
rights. Specifically:

ƒ The right to equal treatment.
ƒ The right to exercise free speech and
expression.

ƒ
ƒ
ƒ
ƒ

The right to religious freedom.
The right to have personal possessions.

Recommendation

The right to receive visitors.
The right to have access to mail and the
telephone.

ƒ The right to receive earnings and
monetary gifts.

ƒ The right to protection from physical and
psychological harm.

ƒ
ƒ
ƒ
ƒ

In addition, 50 of the 85 (58.8 percent) investigations were not
assigned to investigators within the same workday as the day that
TYC received the allegation, as required by TYC policy. On
average, investigations were assigned to investigators within
approximately three workdays.

The right to medical and dental care.
The right to have access to attorneys.
The right to be informed about care.
The right to accuracy and fairness in
decision-making regarding care.

ƒ The right to confidentiality of their
records.

TYC should establish documentation requirements for Office of
Inspector General investigations of alleged mistreatment. At a
minimum, these requirements should define the documentation
necessary to support (1) the performance of an investigation, (2)
the reason for administrative closure, (3) the disposition or
periodic status of investigations conducted by local law
enforcement, and (4) the reasons for transferring an investigation
to the Youth Rights Specialists.
Management’s Response

ƒ The right to express grievances and appeal
decisions.

If a youth feels that TYC has violated one or
more of these rights, the youth may file a
grievance to remedy the situation and may
expect the Youth Rights Specialists to work
with facility staff to address the concerns.

Management agrees with this recommendation. The Office of the
Inspector General has formalized and implemented internal
policies and procedures that address the documentation
requirements for investigations. Fully Implemented

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Chapter 2

TYC Has Made Progress in Strengthening Its Security and Monitoring
of Youth

In its previous investigative report, the State Auditor’s Office recommended
that TYC strengthen its physical security processes to adequately safeguard
the youths in its care. TYC has fully or substantially implemented 11 of 15
(73.3 percent) high-risk recommendations in this area. TYC has
Implementation Status Definitions
made progress in making its residential facilities more secure
Fully Implemented - Successful development
through structural changes and through policy changes in its
and use of a process, system, or policy to
placement decisions. Specifically, TYC has made progress
implement a prior recommendation.
Substantially Implemented - Successful
toward:
development but inconsistent use of a
process, system, or policy to implement a
prior recommendation.

Incomplete/Ongoing - Ongoing development
of a process, system, or policy to address a
prior recommendation.
Not Implemented - Lack of a formal process,
system, or policy to address a prior
recommendation.

ƒ

Increasing the number of video surveillance cameras in its
residential facilities.

ƒ

Reconfiguring open-bay dorms at six residential facilities
into single-cell dorms.

ƒ

Considering the proximity of committed youths’ homes when
making placement decisions.

As of February 2009, TYC continued to work toward implementation of four
recommendations to improve its management of juvenile correctional officers
and improve its security.
Table 11 in Appendix 3, page 70, provides a summary of the implementation
status for each high-risk recommendation that auditors reviewed.
Four recommendations were fully implemented.

ƒ

Recommendation to consider the addition of some single-cell dorms at facilities. As
of February 2009, TYC was in the process of reconfiguring the open-bay
dorms at six residential facilities into single cells. For fiscal year 2008,
TYC reported that it expended approximately $3.4 million toward
reconfigurations at the following residential facilities: the Al Price State
Juvenile Correctional Facility, the Crockett State School, the Evins
Regional Juvenile Center, the Giddings State School, the McLennan
County State Juvenile Correctional Facility, and the Ron Jackson State
Juvenile Correctional Complex.

ƒ

Recommendation to require investigators to conduct unannounced visits. Senate
Bill 103 established the Office of Inspector General, which has
investigators assigned to each residential facility to perform unannounced
visits as necessary.

ƒ

Recommendation to increase the number and placement of electronic monitoring
devices (surveillance cameras and audio recording devices). TYC reported that
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Page 14

it

installed approximately 11,000 additional surveillance devices in its
residential facilities. However, auditors identified concerns regarding the
installation of the video surveillance equipment (see Chapter 4-B, page
35).
ƒ

Recommendation to evaluate the West Texas State School for possible closure.
Youths could be transferred to other facilities over the next 12 to 24 months, in the
event that a decision is made to close the school. TYC evaluated the West

Texas State School for possible closure and elected not to close the facility
during fiscal year 2008. TYC’s Executive Commissioner continues to
evaluate the continued operation of the West Texas State School and other
residential facilities according to the following factors:
Œ

Location of family resources for the youths in facilities.

Œ

Availability of workforce and specialized treatments.

Œ

Community support and resources.

Œ

Percentage of youths from each region.

Œ

The type of commitments made to each facility.

Œ

Any specialized treatment needs of the youth.

Œ

TYC’s ability to operate a cost-effective facility.

Œ

Other factors related to monitoring.

Seven recommendations were substantially implemented.

ƒ

Recommendation to separate different categories of youths, including (1) separating
youths by age and (2) separating youths by severity of offense. Senate Bill 103

required TYC to separate youths 15 years old or younger from older
youth. TYC drafted policies requiring youths 15 years old or younger to
be separated from older youths in its facilities. TYC separated youths 15
years old or younger from older youths in two of three facilities that
auditors visited. However, one facility did not separate its female youths
by age or youths assigned to its central stabilization unit. TYC also did
not separate youths by severity of offense. However, Senate Bill 103
prohibited the placement in a TYC facility of youths who are convicted of
misdemeanors or youth who are between 19 and 21 years old. Other than
age, TYC reported that the driving factor in its placement decisions is the
treatment needs of the youths. (See Appendix 6, page 80, for additional
information about the offenses committed by TYC youth.). Figure 1 on
the next page shows the total number of youths in TYC facilities during
fiscal year 2008.

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Figure 1
Number of Youth Commitments to TYC
Fiscal Year 2008

3,600
3,400
3,200
3,000
2,800
2,600
2,400
2,200

August 2008

July 2008

June 2008

May 2008

April 2008

March 2008

February 2008

January 2008

December 2007

November 2007

October 2007

September 2007

2,000

Source: TYC.

ƒ

Recommendation to establish and enforce a limit on the number of youths who can
be assigned to an individual, open-bay dorm. While TYC is in the process of

reconfiguring its open-bay dorms into single cells, it continues to house
youth in a limited number of open-bay dorms until those reconfigurations
are complete. As of February 2009, TYC had not established written
requirements regarding the number of youths who can be housed in an
open-bay dorm. However, TYC reported that the physical capacity of its
open-bay dorms is 24 beds, unless bunk beds are used. Auditors reviewed
dorm assignments at the Al Price State Juvenile Correctional Facility, one
of the six facilities with open-bay dorms. Twenty-five of 30 (83.3
percent) daily dorm assignments reviewed complied with TYC’s
established maximum capacity of 24 youths per single open-bay dorm.
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Two dorms exceeded the daily maximum capacity by two youths and
three dorms exceeded the daily maximum capacity by one youth.
ƒ

Recommendation to conduct more frequent and random bed checks.

ƒ

Recommendation to enforce maximum occupancy rates.

ƒ

Recommendation to fill the vacant dog-handler position and evaluate current
resources to determine whether additional positions are necessary to search staff
and visitors for drugs and other contraband. TYC had originally filled all dog-

TYC
requires its juvenile correctional officers to conduct hourly headcounts of
youth. Auditors identified inconsistencies in the frequency of hourly
headcounts at three facilities visited.

During fiscal year 2008,
TYC experienced a significant decline in its youth population after the
enactment of Senate Bill 103. Ten of 11 TYC residential facilities did not
exceed their maximum physical capacity rates during fiscal year 2008.
The Giddings State School exceeded its physical capacity rate by 3 youths
in September 2007. (See Appendix 7, page 81, for information on fiscal
year 2009 physical capacity rates.)

handler positions. However, as of February 2009, TYC had four filled
dog-handler positions and one vacant position. The vacant position did
not become vacant until November 2008. TYC did not evaluate whether
additional positions were necessary to conduct searches of staff and
visitors for drugs and other contraband.
ƒ

Recommendation to (1) maintain surveillance data from monitoring devices for at
least 15 working days or until grievances alleged to have occurred on a particular
day are resolved and (2) consider using digital equipment, which may be more costeffective than the current equipment in use. TYC reported that it maintains

surveillance records or data for six months. However, TYC has not
established requirements or a process for ensuring the retention of the
surveillance data, which increases the risk that surveillance data may be
accidentally or intentionally altered or deleted. In addition, auditors
identified areas for improvement in TYC’s oversight of the video
surveillance equipment used for recording surveillance data (see Chapter
4-B, page 35).
ƒ

Recommendation to place youths in close proximity to their homes or communities,
when possible. TYC reported that it considers a youth’s proximity to home

when making placement decisions; however, the youth’s gender, medical
needs, and treatment needs are also key factors in these decisions. As of
February 2009, TYC was in the process of adopting requirements to make
proximity to a youth’s home a required factor for consideration in
placement decisions. According to data provided by TYC, it placed the
majority of youths in facilities that were in the same region as the region
in which the youths were sentenced by a court (see Appendix 8, page 83,
for more information).

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The implementation of three recommendations was incomplete/ongoing.

ƒ

Recommendation to establish and enforce juvenile correctional officer-to-youth
ratios that provide for a safe and effective environment. Senate Bill 103

mandated a juvenile correctional officer-to-youth ratio of 1 to 12. As of
February 2009, TYC was in the process of adopting requirements to
ensure enforcement of this mandate. However, the juvenile correctional
officer-to-youth ratio continues to vary significantly among individual
facilities. For example, one facility consistently met or was below the
required ratio of 1 to 12, while another facility had a ratio of 1 to 18. (See
Chapter 5-B, page 46, for additional information on TYC’s methodology
for determining the number of juvenile correctional officers needed to
maintain required staff-to-youth ratios.)
ƒ

Recommendation to search staff for drugs and contraband, including staff working
on night shifts, and consider random drug testing. While TYC has policies

allowing it to conduct contraband searches of employees, it has not
defined the documentation requirements for these contraband searches. In
addition, only one of three residential facilities auditors visited could
provide documentation showing that it had conducted contraband searches
on employees during fiscal year 2008. This facility had documented two
contraband searches; the other two facilities could not provide
documentation of contraband searches they reportedly performed. TYC
does not conduct random drug tests; it limits its drug testing to job
applicants and current employees who operate motor vehicles used to
transport youths.
ƒ

Recommendation to rotate juvenile correctional officers’ dorm assignments every
six months so that they do not always work with the same personnel and supervise
the same youths. Senate Bill 103 required the rotation of juvenile

correctional officer assignments at set intervals so that a juvenile
correctional officer is not assigned to the same station for an extended
period of time. However, TYC assigned juvenile correctional officers
permanently to specific dorms during fiscal year 2008. Officers were
reassigned only in instances in which an allegation had been made against
the officer or to ensure adequate coverage of a dorm. As of February
2009, TYC was in the process of adopting policies requiring juvenile
correctional officers to have rotated assignments at regular intervals.
One recommendation was not implemented.

ƒ

Recommendation to replace some solid doors with glass doors to allow staff to
monitor youths more easily. TYC reported that it did not replace any solid

doors; however, it installed additional surveillance cameras to address
concerns about staff’s ability to monitor youths.

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Recommendations

TYC should:
ƒ

Continue efforts toward implementing the recommendations related to the
security and monitoring of youth reported as incomplete/ongoing.

ƒ

Evaluate whether to implement the recommendation related to the security
and monitoring of youth currently not implemented. If management
determines not to implement the recommendation, it should document its
reasoning.

Management’s Response

Management agrees with the recommendation. Several items warrant specific
comments:
ƒ

Establish and enforce juvenile correctional officer-to-youth ratios that
provide for a safe and effective environment. The agency has established
1:12 as the required staff-to-youth coverage ratio and has implemented
processes to monitor compliance with the requirement. Weekly reports
are generated to show ratios by dorm at each facility; the most recent
Compliance Rate Report, which tracks year to date compliance, shows
TYC meeting the 1:12 requirement nearly 90 percent of the time.
Coverage ratios are specified in GAP 105.5, JCO Staffing Requirements,
which was submitted to the Texas Register on November 13, 2008 and is
pending final approval. Substantially Implemented – Projected to be
Fully Implemented May 1, 2009

ƒ

Search staff for drugs and contraband, including staff working on night
shifts, and consider random drug testing. Facilities conduct daily
searches of staff at the entry point as required by PRS.01.04, Search of
Employees, Personal Property and Vehicles, and Agency Property,
including searches of briefcases, bags, and personal belongings to prevent
the introduction of contraband. The Residential and Community Services
Department will develop a form to document when searches of staff and
their personal and/or state issued property contain illegal items or items
of interest. This form will be maintained in the staff's personnel file as
well as in a separate search log at the facility.
The agency has considered random drug testing. The legal principle that
drug testing is a “search” implicating fourth amendment protection
against unreasonableness is well established in both state and federal law.
Two Texas Attorney General opinions, JM-1274 and DM-121, indicate
random drug testing is likely invalid under the Texas constitution. These
same opinions suggest that “reasonable suspicion” drug testing of
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employees in safety-sensitive positions is lawful. Therefore, absent a
reasonable suspicion of possible drug use or misconduct, TYC staff will
not be subject to random drug testing. Substantially Implemented –
Projected to be Fully Implemented May 1, 2009
ƒ

Rotate juvenile correctional officers’ dorm assignments every six months
so that they do not always work with the same personnel and supervise
the same youths. While JCO staff typically work the same dorm, the onduty supervisor shifts their location based on the specific need of the
facility for each shift, providing for variations in dorm assignments. Best
practices in juvenile justice encourage establishing consistent
environments and engagement to effect positive changes in behavior
which provides a better overall success in rehabilitating youth.
Management is working to identify the most efficient, yet least disruptive,
way to ensure the spirit of SB 103 and this SAO recommendation can be
fully implemented and documented. This issue is also addressed in
GAP.105.5. Substantially Implemented – Projected to be Fully
Implemented May 1, 2009

ƒ

Evaluate whether to implement the recommendation related to the
security and monitoring of youth currently not implemented. If
management determines not to implement the recommendation, it
should document its reasoning. This recommendation refers to
replacement of some solid doors with glass doors to allow staff to monitor
youths more easily. With the exception of two dorms at Giddings State
School, viewing panels are in all doors to rooms where youth sleep. These
doors at Giddings were removed to provide a clear view of the youth and
staff at all times. Additionally, the installation of surveillance cameras in
offices and other areas throughout the agency’s facilities has also
increased staff’s ability to monitor youth. Fully Implemented

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Chapter 3

TYC Has Made Progress Toward Improving Its Management of Agency
Resources
In its previous investigative report, the State Auditor’s Office recommended
that TYC re-evaluate its (1) organizational structure, (2) allocation of
resources, and (3) employee hiring and disciplinary practices. TYC has fully
or substantially implemented 17 of 23 (73.9 percent) high-risk
Implementation Status Definitions
recommendations in this area. Specifically:
Fully Implemented - Successful development and
use of a process, system, or policy to implement a
prior recommendation.
Substantially Implemented - Successful
development but inconsistent use of a process,
system, or policy to implement a prior
recommendation.
Incomplete/Ongoing - Ongoing development of a
process, system, or policy to address a prior
recommendation.
Not Implemented - Lack of a formal process,
system, or policy to address a prior
recommendation.

ƒ

TYC improved its policy and processes for conducting
criminal history checks of its employees, volunteers, and
contractors.

ƒ

TYC developed an extensive juvenile correctional officer
training program that requires 300 hours of on-the-job
training, which includes curriculum on proper behavior for
juvenile correctional officers, proper techniques for control
and restraint of youths, and understanding the oversight
process for alleged mistreatment.

However, TYC has not implemented recommendations that would increase
the number of certified sex offender counselors in its treatment programs.
Only 6 of the 27 counselors on TYC’s staff are certified sex offender
counselors.
See Table 12 in Appendix 3, page 73, for a summary of the implementation
status for each high-risk recommendation that auditors reviewed. See
Appendix 4, page 76, for TYC’s self-reported status of high-risk
recommendations not selected for follow-up audit work.
See Appendix 9, page 84, for a map of TYC-operated facilities. See
Appendix 10, page 87, for a workforce summary on TYC and additional
supplemental information on juvenile correctional officer staffing, youth
populations, and central office manager and director positions.
Ten recommendations were fully implemented.

ƒ

Recommendation to establish and implement a policy that prohibits TYC or its
contractors who work with youth from hiring a convicted felon or sex offender.

TYC established policies that prohibit TYC employees and contractors
who work with youth from hiring individuals convicted of felonies.
However, auditors identified weaknesses in TYC’s process for conducting
criminal history checks of contractors (see Chapter 4-A, page 30).
ƒ

Recommendation to require and ensure that contractors that provide services to
TYC’s youth be fingerprinted and undergo criminal background checks prior to their
having contact with the youths. TYC established a standard provision for its
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contracts that requires contractors’ employees and subcontrators to
undergo criminal history checks prior to having contact with youths. One
of six contracts that auditors reviewed involved providing direct care
services to youth. For that contract, TYC conducted criminal history
checks on the contractor’s employees.
ƒ

Recommendation to obtain fingerprints from all employees so that background
checks can be performed using Department of Public Safety (DPS) and Federal
Bureau of Investigation databases. TYC requires its employees, volunteers,

and contractors to provide fingerprints; the fingerprinting is performed by
a contractor with DPS. The contractor sends the results of the fingerprintbased criminal history checks to DPS, which forwards the results to
TYC’s Human Resources Division.
ƒ

Recommendation to require and ensure that post-employment criminal history
checks on TYC employees are conducted at least every two years. In August

2007, TYC established requirements for conducting criminal history
checks on its employees, volunteers, and contractors on an annual basis.
During site visits, auditors confirmed that employees and volunteers
received a criminal history check on an annual basis.
ƒ

Recommendation to establish on-site grievance officers at TYC facilities who report
to the Office of Inspector General. TYC established investigator positions

assigned to each of its residential facilities; these investigators report to
the Office of Inspector General.
ƒ

Recommendation to fill vacant positions for investigators to more effectively handle
the investigation of grievances. As of February 2009, TYC reported it had 21

investigators positions in the Office of Inspector General (11 criminal
investigators and 10 administrative investigators). Two of these positions
were vacant.
ƒ

Recommendation to analyze how juvenile correctional officers are (1) allocated
across facilities, (2) scheduled at individual facilities, and (3) tasked with duties
other than youth supervision to ensure the most effective use of the officers. TYC
conducts weekly assessments of its juvenile correctional officers’
workload, including shift coverage, and officer-to-youth ratios for each
dorm. These assessments were reviewed by the assistant superintendent in
charge of scheduling juvenile correctional officers at each facility. (See
Chapter 5-B, page 46, for additional information on TYC’s process for
determining the number of juvenile correctional officers needed to
maintain a ratio of 1 officer to 12 youth.)

ƒ

Recommendation to develop a core training curriculum that all new juvenile
correctional officers must receive during their first 30 days of employment and
require annual training updates. At a minimum, the curriculum should include (1)
proper behavior for juvenile correctional officers, (2) proper techniques for the
control and restraint of youths, and (3) the grievance process. TYC established

training program and required that its juvenile correctional officers
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a

complete at least 300 hours of training prior to assuming responsibility for
sole supervision of youth. This training program includes courses on
(1) proper behavior for juvenile correctional officers, (2) proper
techniques for the control and restraint of youth, and (3) TYC’s alleged
mistreatment process.
ƒ

Recommendation to identify the minimum equipment and supplies needed at
facilities to operate effectively and ensure that these items are available. From

June 2008 through November 2008, TYC conducted assessments of its 11
facilities. These assessments evaluated juvenile correctional officers’
equipment needs, the condition of safety equipment, and facility
maintenance issues. TYC reported that it is taking corrective actions for
the issues identified during the assessments.
ƒ

Recommendation to require and enforce a code of conduct for facility staff that
models appropriate behavior for the youths. TYC developed and implemented

an Agency Integrity Program in January 2008 that defines a code of
conduct defining the expectations for staff to behave as positive role
models and maintain professional relationships with the youth.
Compliance with the code of conduct is enforced by human resources staff
through TYC’s disciplinary action process.
Seven recommendations were substantially implemented.

ƒ

Recommendation to amend the TYC policy related to criminal background checks so
that the results of these checks are retained in employee files. TYC maintained

documentation in employees’ files showing when it performed criminal
history checks. Auditors identified instances in which TYC lacked
documented criminal history checks; however, TYC had not established a
records retention requirement concerning criminal history checks as of
February 2009. TYC management stated they retain copies of criminal
history checks for 90 days. In addition, TYC retained all electronic data
of criminal history checks it received from DPS since March 2007.
ƒ

Recommendation to require that all contracts between TYC and a contractor contain
a provision requiring the contractor to certify that the contractor does not have an
employee who has been convicted of an offense and that the contractor will take
reasonable steps to become informed of each proposed employee’s criminal
convictions prior to employment and during employment. The contract should be
voidable in the event that TYC discovers that the contractor has violated these
terms of the contract. TYC’s contracts require contractors’ employees and

subcontractors to receive criminal history checks prior to the contractor
delivering services to TYC. However, auditors identified weaknesses in
TYC’s process for conducting criminal history checks of its contractors
(see Chapter 4-A, page 30).
ƒ

Recommendation to clarify promotion and transfer guidelines to include a review of
the history of disciplinary actions, evaluations, and all current and prior grievances.

TYC revised its promotion and transfer guidelines as of June 2008 to
reference applicable selection and hiring forms used for an employee’s
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transfer or promotion. The forms require a review of the employee’s
history of disciplinary actions, evaluations, and all current and prior
grievances. Five of seven transfer records auditors reviewed included
documentation confirming that (1) TYC human resources staff reviewed
disciplinary actions and grievances and (2) department supervisors
reviewed prior evaluations prior to approving a transfer.
ƒ

Recommendation that after grievances involving staff are confirmed, local human
resources staff, central office human resources staff, and the central office general
counsel should determine disciplinary actions based on a policy that outlines a range
of disciplinary actions. TYC implemented a new disciplinary action process

effective December 1, 2008. The new process outlined consequences to
employees according to the level and type of misconduct. However,
auditors did not test compliance with the policy because TYC
implemented it during audit fieldwork.
ƒ

Recommendation to ensure that employee performance evaluations better reflect
employee performance by allowing a greater range of rating levels (such as
excellent, satisfactory, needs improvement, and unsatisfactory) and that these
evaluations take disciplinary actions into account. TYC revised its employee

performance evaluations to include a rating level and consideration of
disciplinary actions in the performance reviews for Juvenile Correctional
Officer II, III, and IV positions. These positions have direct responsibility
for monitoring youths. However, TYC did not adopt these revisions for
performance reviews of supervisor positions (Juvenile Correctional
Officer V and VI positions). These positions are responsible for oversight
of juvenile correctional officers and treatment programs for youth.
ƒ

Recommendation to require juvenile correctional officers to attain a “satisfactory”
rating on at least 75 percent of the required elements to receive an overall
“satisfactory” rating. As of May 2008, TYC’s performance evaluations for

Juvenile Correctional Officer II, III, and IV positions (which have direct
responsibility for monitoring youth) required employees to attain a
satisfactory rating on at least 80 percent of performance requirements.
However, Juvenile Correctional Officer V and VI positions (which are
primarily managerial positions) were not evaluated according to this rating
system. The supervisor positions continued to be evaluated using TYC’s
prior evaluation form.
ƒ

Recommendation to prepare employee performance evaluations at least annually.

TYC established requirements that performance evaluations be conducted
six months after an employee’s date of hire, again at 12 months after date
of hire, and every year thereafter. However, 40 of 93 (43.0 percent)
performance evaluations auditors reviewed were not performed within the
required timeframes.

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The implementation of five recommendations was incomplete/ongoing.

ƒ

Recommendation to establish on-site certified sex offender counselor positions at
TYC facilities. As of February 2009, TYC had not hired any additional

certified sex offender counselors for its residential facilities. Although
TYC reported it had a staff of 27 treatment counselors, only 6 were
certified as sex offender counselors. TYC reported that it has developed
an agency-wide program for its treatment counselors to obtain a sex
offender counselor certification; participants in the program are expected
to obtain certifications in 2010. TYC added that competition from the
private sector has made it difficult to hire certified sex offender
counselors.
ƒ

Recommendation to reallocate central office staff resources to the highest priority
functions. TYC conducted an analysis of its organizational structure.

However, TYC lacked documentation describing what changes were made
to its organizational structure or explaining why changes were made. (See
Appendix 10, page 92, for information on additional manager and director
positions TYC created during fiscal year 2008.)
ƒ

Recommendation to analyze TYC’s juvenile correctional officers, including a review
of overtime and the ability of employees to use accrued leave. TYC reported that

it provided weekly overtime reports on juvenile correctional officer staff
to each facility’s superintendent. However, auditors were not able to
determine how superintendents used these reports for reviewing overtime
or the ability of employees to use accrued leave.
ƒ

Recommendation to establish and enforce a policy to assign staff younger than 21
years of age to facilities that house younger youths. As of February 2009, TYC

was in the process of adopting a policy to require at least a three-year age
difference between a juvenile correctional officer and the youths the
officer supervises.
ƒ

Recommendation to review rehabilitation programs to improve their effectiveness.
As of February 2009, TYC reported it was in the process of implementing
a new rehabilitation program, CoNEXTions. TYC reported its Research
Department will be conducting a Process Evaluation of the program to
ensure that it is being implemented as designed, as well as an outcome
evaluation to determine its effect.

One recommendation was not implemented.

ƒ

Recommendation to administer reading comprehension and writing tests to facility
staff and require passing scores prior to extending a job offer. TYC management

decided not to implement this recommendation.

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Recommendation

TYC should continue efforts toward implementing the recommendations
related to improving its management of agency resources.
Management’s Response

Management agrees with the recommendation. Several items warrant specific
comments:
ƒ

Require juvenile correctional officers to attain a “satisfactory” rating on
at least 75 percent of the required elements to receive an overall
“satisfactory” rating. As discussed in this report, the JCO II-IV
evaluation form was revised and implemented effective May 1, 2008. The
revised form establishes the requirement that at least 75 percent of the
required elements must be attained for a “satisfactory” rating. The JCO
V and VI evaluation forms are currently being revised; these positions are
also subject to being required to attain “satisfactory” ratings for 75
percent of the required elements for an overall “satisfactory” rating.
Substantially Implemented – Projected to be Fully Implemented May 1,
2009

ƒ

Establish on-site certified sex offender counselor positions at TYC
facilities. The agency has identified 21 positions for Licensed Sex
Offender Treatment Providers (LSOTP). Due to the limited availability of
qualified LSOTPs, the market for these staff is very competitive. TYC has
implemented several efforts to recruit individuals already holding this
credential. The Human Resources Department: mailed 425 letters to
individuals identified on the Department of State Health Services’ website;
advertised in multiple newspapers in the areas surrounding the Giddings
State School and the McLennan County Juvenile Correctional Facility;
posted to Yahoo Hot Jobs; and has had job postings open since December
12, 2008 on the agency’s website and listed with the Texas Workforce
Commission on Work in Texas to no avail. There are currently six
LSOTPs on staff. To increase this number, TYC has implemented a
development program to provide training and clinical supervision for case
managers who are on staff and eligible to attain sex offender licensure by
October 2010. Currently ten staff are in the program and delivering
services to youth in the sex offender treatment programs. In Progress –
Projected to be Fully Implemented September 1, 2009

ƒ

Reallocate central office staff resources to the highest priority. The
Executive Commissioner continues to evaluate the organization of the
Central Office to ensure that functions are assigned as appropriate. In
November 2008, 30 central office positions and additional positions in
February 2009 were eliminated in an effort to “right size” the
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organization for significantly reduced youth populations and budgetary
limitations. Further significant adjustments are anticipated no later than
summer 2009 as all central office functions are reviewed during the
budget development process for the upcoming fiscal year. The lack of
documentation for the organizational analysis referenced in the audit
report occurred prior to the Executive Commissioner’s appointment. In
Progress – Projected to be Fully Implemented August 31, 2009
ƒ

Analyze juvenile correctional officer overtime and the ability of
employees to use accrued leave. TYC policy PRS.27.24, Scheduling JCO
Work Hours, was developed and implemented to provide guidance to
management staff for scheduling overtime. Within the seven-day work
cycle, supervisors may require JCOs to use time worked during the period
that would accrue as overtime. Once the work cycle in which the time was
earned has passed, the supervisor may no longer mandate the use of the
overtime leave. Additionally, successful recruitment efforts during 2008
are now resulting in greater availability of JCOs to meet coverage needs.
Availability, in turn, will allow greater use of accrued leave. Fully
Implemented

ƒ

Establish and enforce a policy to assign staff younger than 21 years of
age to facilities that house younger youth. TYC policy GAP 105.5, JCO
Staffing Requirements, provides guidelines for assigning staff to
workstations, including one based on requiring at least a three-year age
difference between staff and the youth they are assigned to supervise. The
agency also implemented a management tool to monitor the age of youth
assigned to a particular dorm and the age of the staff assigned to that
workstation. This quality assurance measure helps to ensure compliance
with SB 103 as well as GAP 105.5. Substantially Implemented –
Projected to be Fully Implemented May 1, 2009

ƒ

Review rehabilitation programs to improve their effectiveness.
Management agrees with this recommendation. Section 61.0315 of the
Texas Human Resources Code mandates that TYC annually review the
effectiveness of its programs for the rehabilitation and reestablishment in
society of children committed to the commission, including programs for
sex offenders, capital offenders, children who are chemically dependent,
and emotionally disturbed children. This mandated report has been
completed each year since the law became effective in 1996. The current
review is available on the agency’s website.

ƒ

TYC implemented the new rehabilitation program CoNEXTions in
February 2009. The Treatment Division staff routinely monitors the
program, and the Research Department is preparing to conduct a process
evaluation to ensure the program is implemented as designed and an
outcome evaluation to determine program impacts. In Progress –
Projected to be Fully Implemented January 31, 2010
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Chapter 4

TYC Should Follow Its Established Procurement Process to Provide
Transparency to Its Procurement Decisions
TYC has an established procurement process that was developed to ensure
that its contract award decisions are fair, efficient, practical, and achieve
TYC’s procurement objectives. However, TYC did not competitively bid 11
contracts it awarded while the agency was in conservatorship from March
2007 to October 2008. TYC should (1) improve its procurement process to
ensure that it complies with state requirements and (2) provide greater
oversight of its inventory, specifically over new video surveillance equipment
in its residential facilities.
In addition, TYC lacked documentation showing the factors it considered to
determine the necessity and reasonableness of minimum payment guarantees
that it included in its contracts with 6 of 12 contract care providers.
Chapter 4-A

TYC Should Ensure That Its Contract Procurement and
Management Activities Comply with State and Agency
Requirements
While TYC has established contract procurement processes, it should improve
its contract management processes to ensure that it complies with state and
agency requirements. During fiscal years 2007 and 2008:
ƒ

TYC did not use a competitive bidding process, as required by Texas
Government Code, Section 2155.063, to award 11 contracts totaling $19.5
million.

ƒ

TYC did not follow its policies and procedures for start-up funds for one
contract awarded.

ƒ

TYC did not perform criminal history checks on employees of two
contractors, as required by Senate Bill 103. However, TYC asserted that
these contract employees did not have direct access to youth.

ƒ

TYC did not ensure that two contracts for information resource services
included provisions that protect and safeguard the transmission and
management of confidential and sensitive data, as required by Title 1,
Texas Administrative Code, Chapter 202.

ƒ

TYC’s procurement procedures did not ensure that essential contract
provisions, such as specifications and termination provisions, from the
State of Texas Contract Management Guide were included in its contracts
with five contractors, as required by Texas Government Code, Section
2262.052.
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By complying with state requirements, TYC can ensure that its contract
management processes protect the State’s interests.
TYC did not competitively bid 11 contracts it awarded while the agency was in
conservatorship.

From March 2007 to October 2008, TYC was placed under a series of
conservators whose role included approving contracts deemed necessary to
quickly implement agency reforms outlined by TYC’s rehabilitation plan and
Senate Bill 103 (see Appendix 2, page 68, for more information on TYC
conservators). The conservators did not competitively bid 11 contracts
totaling $19.5 million that TYC entered into during this period. While the
Texas Government Code grants a conservator a series of powers and duties, it
does not specifically exempt a conservator from complying with state
procurement rules. Table 2 lists the descriptions and values of these 11
contracts.
Table 2

Non-competitively Bid Contracts Awarded by TYC Conservators
(March 2007 to October 2008)
Vendor

Description of Services
a

Contract Period
June 1, 2008 – June 30, 2009

Maximum
Contract Value

Arise Foundation

Staff Training

Assessments.com

Web-hosted Automated Juvenile
Assessment System

June 26, 2008 – June 30,
2009

887,604

332,229

Autogov

Automated System for Assessment,
Classification, and Placement

June 1, 2008 – June 30, 2011

222,167

114,183

Autogov

Automated System for Assessment,
Classification, and Placement

August 23, 2007 – August 30,
2008

275,000

268,817

Daniel C. Murrie, Ph.D.

Consulting

June 1, 2007 – December 31,
2008

95,000

19,261

Pablo E. Martinez, Ph.D.

Consulting

July 1, 2007 – August 31,
2007

10,000

5,900

Peter Scharf, Ph.D.

Consulting

July 1, 2007 – August 31,
2007

14,000

14,000

Positive Solutions
Associates

Staff Training

January 15, 2008 – December
31, 2008

141,992

137,106

Robinson Consulting
Services

Staff Training

January 1, 2008 – December
31, 2008

12,760

75,655

The Sigma Learning
International

Staff Training

May 19, 2008 – December 31,
2008

42,500

42,500

Youth Services
International

Residential Services

July 7, 2008 - August 31,
2011

17,810,631

1,262,828

$19,536,654

$2,295,684

Totals
a

$

25,000

Amount Expended
(As of March 2009)
$

23,205

As permitted by the Employees Training Act (Texas Government Code, Chapter 656), contracts for the training and development of TYC employees
do not require competitive bidding if TYC has on file with the Governor’s Office an approved plan for training and education assistance.

Sources: TYC and the Uniform Statewide Accounting System.

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TYC should ensure that it negotiates start-up funds in accordance with agency
policy.

TYC entered into a contract with Youth Services International to establish a
contract care facility near Houston to serve youth from the region. This
contract was considered to be part of the conservator’s plan to place an
increased number of youths closer to home. The contract between TYC and
Youth Services International stated that TYC would pay $189.50 per youth
per day for a minimum guaranteed amount of 119 beds for the first 90 days.
TYC entered into this payment arrangement to provide start-up funds to the
contractor. However, TYC reported that none of its other current contracts
involve funding arrangements that provide contractors with start-up funds.
While TYC policy allows for the payment of start-up funds, the payment
methodology it negotiated with Youth Services International did not comply
with TYC’s policy. Specifically, the payment arrangement gave the
appearance that TYC was paying Youth Services International for the care of
youth; however, no youths were placed with the contractor during the first 90
days of the contract. In addition, TYC did not define how the funding could
be spent by the contractor. TYC’s policy requires start-up funds to be paid to
contractors based upon a proposed budget approved by TYC during the
procurement process. In addition, start-up funds are to be restricted to the
amount necessary for the contractor’s program to become operational. Under
TYC’s policy, allowable expenditures of start-up funds include those for
salaries; travel expenses; training; equipment purchases; TYC-approved
renovations; rental of buildings, vehicles, or equipment; and other reasonable
and necessary direct costs.
TYC and Youth Services International mutually agreed to terminate the
contract in October 2008. TYC paid Youth Services International
approximately $1.3 million in start-up funds. Youth Services International has
invoiced TYC for an additional $1.2 million. As of February 2009, TYC was
working with the Office of the Attorney General to resolve the matter
regarding the amount invoiced by Youth Services International.
In addition, TYC has requested an accounting of how start-up funds were
spent. TYC’s policy requires a financial audit of all start-up funding used by
a contractor before a contract can be closed.
TYC should ensure that it performs criminal history checks of all its contractors’
employees and subcontractors as required by Senate Bill 103.

Senate Bill 103 required TYC to perform criminal history checks on all
contract employees. TYC implemented processes to ensure that it conducts
criminal history checks of employees, volunteers, and contractors who
provide residential contract care services. However, TYC has not developed a
process to ensure that employees of contractors providing services other than
residential contract care services receive criminal history checks.
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TYC did not perform criminal history checks for vendor staff of two of the
five contractors auditors reviewed. Of the two contractors for which TYC did
not perform checks, one contractor provided information processing services
for the development of youth treatment programs and the second contractor
provided training services for a TYC rehabilitation program.
Information Security Standards
Title 1, Texas Administrative Code, Section 202.21
Title 1, Texas Administrative Code, Section 202.21, defines
responsibilities for state agencies and contractors that
provide outsourced information resource services. These
include:

ƒ Implementing the controls specified by the owner(s) of
the information.

ƒ Providing physical and procedural safeguards for the
information resources.

ƒ Assisting owners in evaluating the cost-effectiveness of
controls and monitoring.

TYC should include contract provisions to ensure the
security of information systems used to process
confidential and sensitive TYC data, as required by
Title 1, Texas Administrative Code, Section 202.21.

Two of TYC’s information technology contracts did
not include specific provisions requiring the
contractors to ensure that confidential data received
and maintained in automated information systems is
protected from potential loss or misuse. Specifically,
the two contracts:

ƒ Implementing monitoring techniques and procedures for
detecting, reporting, and investigating incidents.

In addition, Title 1, Texas Administrative Code, Section
202.25, identifies the following types of controls that should
be in place:

ƒ Access controls over information resources to ensure
authorized use.

ƒ Controls to protect the confidentiality of data and
systems.

ƒ Identification/authentication controls.
ƒ Encryption for storage and transmission of information
based on documented state agency security risk
management decisions.

ƒ Audits of automated system processes.
ƒ Documentation of systems development, acquisition, and
testing.

ƒ

Did not define security requirements for the
transmission of data.

ƒ

Did not specify processes the contractors must
follow to ensure that confidential and sensitive
data they receive is protected from potential loss,
misuse, or abuse.

Title 1, Texas Administrative Code, Section 202.21,
requires contractors that provide information resource
services to state agencies to provide safeguards
necessary to monitor the security of data that the
contractors receive from state agencies (see text box).

TYC should ensure that its contracts include all essential contract provisions
required by the State of Texas Contract Management Guide.

The contracts between TYC and the contractors reviewed included most, but
not all, of the essential contract provisions required by the State of Texas
Contract Management Guide. (See Appendix 12, page 96, for a complete list
of the essential contract provisions.) Texas Government Code, Section
2262.051(d), requires that all essential contract provisions must be included in
state agency contracts to protect the interests of the State. The following
essential provisions were not consistently included in the TYC contracts with
the five contractors that auditors reviewed:
ƒ

Abandonment or default.

ƒ

Affirmation.

ƒ

Antitrust.
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ƒ

Buy Texas.

ƒ

Contract specifications.

ƒ

Force majeure.

ƒ

Funding out.

ƒ

Intellectual property indemnification.

ƒ

Payment.

ƒ

Rights to data, documents, and computer software.

ƒ

Technology access.

ƒ

Termination.

TYC processed payments for one contractor’s invoices, even though program
staff had not reviewed and approved the invoices as required by agency policy.

Auditors reviewed the payment processes for four contractors selected for
testing. TYC requires that accounting staff receive program staff approval
prior to processing invoices for payment. TYC processed invoices for
payment correctly for four of the five contracts. However, program staff did
not review and approve invoices for one contract prior to the payments being
processed. TYC’s accounting staff stated that the contractor’s invoices were
for a monthly fixed amount of $15,500, and therefore, it was not necessary for
program staff to review and approve each invoice prior to payment. The six
monthly invoices tested for this contract totaled approximately $83,000. (One
invoice was for a $5,500 development fee.) Although the payments that TYC
processed were valid and for allowable costs, state agencies are expected to
ensure that all invoices are reviewed and approved by program staff prior to
payment to ensure that (1) the invoice is only for goods or services received
by an agency, (2) goods and services have been accepted, (3) invoices are
correct and comply with the terms and conditions of the contract, and (4) total
payments do not exceed the contract limits.
Recommendations

TYC should:
ƒ

Evaluate and determine whether contracts awarded while the agency was
under conservatorship and that are still in effect provide the best value to
the agency in implementing legislative reforms. If TYC determines that a
contract is not a best value or does not protect the State’s interests, it
should consider canceling, restructuring, or rebidding the contract.

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ƒ

Ensure that its payment methodology for providing start-up funds to a
contractor complies with agency policy.

ƒ

Perform criminal history checks for all contractor employees and
subcontractors.

ƒ

Ensure that provisions requiring contractors to secure and protect
confidential and sensitive data they receive from the risk of loss, abuse,
misuse, or fraud are included in all information technology contracts.
These provisions should include periodic audits of the security controls of
the information system.

ƒ

Ensure that all essential contract provisions required by the State of Texas
Contract Management Guide are included in all contracts.

ƒ

Ensure that program staff review and approve invoices prior to the
invoices being processed for payment.

Management’s Response
ƒ

Evaluate and determine whether contracts awarded while the agency
was under conservatorship and are still in effect provide the best value to
the agency in implementing legislative reforms. If TYC determines a
contract is not a best value or does not protect the State’s interests, it
should consider cancelling, restructuring, or re-bidding the contract.
Management agrees with this recommendation. Of the eleven contracts
awarded under conservatorship without competitive bids, seven were
completed, two were cancelled, and two are being evaluated to determine
best value. Completion of the evaluation of the two remaining contracts is
anticipated no later than May 31, 2009. In Progress – Projected to be
Fully Implemented May 31, 2009

ƒ

Ensure its payment methodology for providing start-up funds to a
contractor complies with agency policy. Management agrees with this
recommendation. The issue that resulted in this recommendation relates
to a single contract awarded during conservatorship. New executive
management is ensuring that contracts fully comply with all relevant laws,
regulations, agency policies, and generally accepted best practices.
Finance Division staff is revising contract approval procedures to include
a requirement for the Contracts Manager in the Procurement Department
to certify that a proposed contract complies with all relevant requirements
prior to final approval for award, including specified agency policy
relating to payment methodology. Additionally, in response to evolving
public expectations regarding contract start-up funding, TYC policy GAP
111.11, Start Up Funds, is under review to identify any opportunities for
strengthening and to evaluate whether there will be a continuing need for
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such payments, even on an exceptional basis as currently used. In
Progress – Projected to be Fully Implemented August 31, 2009
ƒ

Perform criminal history checks for all contractor employees and
subcontractors. Management agrees that criminal history checks should
be performed on all contractor employees and subcontractors who will
have direct contact with youth and/or who handle sensitive youth data.
The agency is in the process of requiring compliance for information
services contract employees. A strict interpretation of the statutory
language supports the recommendation for all contractors, regardless of
youth contact, to be checked for criminal history. As the agency gains
experience implementing this new requirement, however, it is learning
that conducting such checks for several types of contracts may critically
impede the achievement of certain agency objectives without any clear
potential benefit to youth. Contract examples relate to construction
services and local small business contractors for plumbing services, raw
food delivery, vending machine supply, and lawn maintenance. These
contract employees provide important services for maintaining safe and
secure facilities, but they do not interact with or otherwise have contact
with TYC youth. In the absence of a clearly defined risk to youth for such
routine business services, vendor resistance to the requirement risks the
availability of these services as well as job schedule delays and cost
increases without any apparent protective benefit to TYC youth.
Substantially Implemented – Projected to be Fully Implemented May 31,
2009

ƒ

Ensure contract provisions requiring contractors to secure and protect
confidential and sensitive data they receive from the risk of loss, abuse,
misuse, or fraud are included in all information technology contracts.
These requirements should include periodic audits of the security
controls of the information system. Management agrees with this
recommendation. While the two contracts reviewed did not contain a
provision specifically requiring data security, both service providers were
required to demonstrate their methodology for securing TYC data. The
Legal Division, Information Resources Department, and Procurement
Department are collaborating to develop standardized language,
including requirements for security controls audits, for inclusion in all
current and future information technology contracts. Completion is
anticipated during the fourth quarter of FY 2009. In Progress – Projected
to be Fully Implemented August 31, 2009

ƒ

Ensure that all essential contract provisions required by the State of
Texas Contract Management Guide are included in all contracts.
Management agrees with this recommendation. Contract development
tools have been updated to include all essential contract provisions for
future contracts. Existing contracts will be reviewed to establish the
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priority for amending the agreements for these changes. In Progress –
Projected to be Fully Implemented August 31, 2009
ƒ

Ensure that program staff review and approve related invoices prior to
the invoices being processed for payment. Management agrees with this
recommendation. Administrative Services staff has initiated development
of a contracts user guide that will clarify the roles and responsibilities of
program staff for developing, managing, and monitoring contracts,
including appropriate invoice processing. The guide will contain relevant
policies and procedures, which are also being reviewed for clarity.
Claims payment staff in Administrative Services has been directed to
release payment authorizations only after documented review and
approval by program staff. In Progress – Projected to be Fully
Implemented August 31, 2009

Chapter 4-B

TYC Should Strengthen its Accountability and Management of Its
Video Surveillance System
The 80th Legislature appropriated $20 million to TYC in fiscal year 2007 for
acquiring additional video surveillance equipment to monitor TYC’s youth
facilities. In addition, the Office of Inspector General uses video footage from
these cameras in its investigations of alleged mistreatment of youth.
As of December 31, 2008, TYC had expended approximately $12.6 million of
the $20 million (63.0 percent) for the purchase and installation of video
equipment in its facilities and halfway houses. TYC’s video surveillance
project was planned in two phases. Specifically:
ƒ

Phase I included installation of internal video surveillance equipment at
the Al Price State Juvenile Correctional Facility, the Corsicana Residential
Treatment Center, the Crockett State School, the Evins Regional Juvenile
Center, the Gainesville State School, the Giddings State School, the
McLennan County State Juvenile Correctional Facility, the Ron Jackson
State Juvenile Correctional Complex, and the West Texas State School.

ƒ

Phase II includes installation of internal and external video surveillance
cameras at the Victory Field Correctional Academy, all halfway houses,
and parole offices and installation of external cameras at all TYC facilities
listed in phase I.

TYC has installed approximately 11,000 video surveillance cameras in its
facilities since June 2007, and it plans to complete the video surveillance
project by June 2009. However, TYC should improve its accountability and
management of the video surveillance equipment. Specifically:

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ƒ

Certain surveillance cameras installed at one residential facility were not accessible
by the Office of Inspector General through the surveillance monitoring system.

TYC reported that 721 of 1,329 operational video cameras at the
Gainesville State School were not accessible for real-time viewing by the
Office of Inspector General. TYC’s Information Resources Division
reported that many of the fiber optic cables in the Gainesville facility were
old and brittle. As a result, the cables could not be used to connect video
surveillance equipment to the TYC network. TYC staff reported that the
recorded surveillance data is stored and can be provided to the Office of
Inspector General during an investigation. The Office of Inspector
General’s inability to have real-time access to certain surveillance data
could hinder its ability to actively monitor staff under investigation.
ƒ

TYC had not documented the placement and location of additional cameras installed
at each facility. TYC management focused on ensuring that additional

surveillance cameras were installed as quickly as possible and did not
ensure that all cameras’ locations were documented. Documenting the
camera locations would provide a useful tool to the Office of Inspector
General and allow it to more effectively locate a specific camera during an
investigation, rather than relying on facility staff to verify camera
locations.
ƒ

TYC had not developed retention requirements for video surveillance data. The
prior State Auditor’s Office investigative report recommended that TYC
ensure that surveillance data is maintained for at least 15 working days or
until an allegation of abuse, neglect, or exploitation is resolved. However,
as of February 2009, TYC’s Information Resources Division and Office of
Inspector General had not met to outline the retention requirements. The
lack of clear requirements could result in the accidental or inappropriate
alteration or deletion of surveillance data.

ƒ

TYC staff members who confirmed the receipt of video equipment were not always
the employees who physically received and inspected the shipment. TYC has

established a process to ensure that payments are not processed until the
agency receives a documented confirmation of receipt of the goods or
services. Auditors reviewed the payment records for 30 of 97 (30.9
percent) purchase orders for equipment and installation services purchased
from June 2007 through December 2008. Thirteen of the 30 (43.3
percent) payment records contained documentation showing that the
equipment had been received by a manager with oversight responsibilities
for the surveillance camera project for multiple residential facilities.
However, this manager did not physically inspect the shipments. Instead,
the manager relied on project staff located at each of the facilities to
confirm the actual receipt of the equipment. In addition, 6 of 30 (20.0
percent) payment records reviewed indicated that the shipment had been
received in full; however, TYC subsequently made several additional

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partial payments on the purchase orders, indicating that additional
equipment was shipped at a later date.
ƒ

TYC did not conduct an inventory of video surveillance equipment.

TYC reported
that it included an overage of approximately 10 percent when it began
ordering video surveillance equipment in June 2007. This equipment
included items such as digital video recorders, cameras, and flash drives.
TYC reported that equipment not installed was either stored in facility
warehouses or securely stored in TYC staff offices. However, as of
February 2009, TYC had not conducted an inventory to account for all
equipment in storage, as well as equipment installed in the residential
facilities. TYC reported it planned to conduct an inventory of all
surveillance camera equipment at the end of the project.

In addition, TYC did not ensure that vendors providing installation services
received criminal history checks. Along with equipment purchases, TYC
purchased professional services for the installation of video surveillance
equipment in its residential facilities. TYC used vendors that participate in
the Department of Information Resources’ Information and Communication
Technology Contracts Program to provide both equipment and installation
services. Senate Bill 103 required TYC to conduct criminal history checks of
all individuals who are contractors working in TYC facilities. However, TYC
did not conduct criminal history checks of vendors that provided installation
services because TYC staff stated they thought the Department of Information
Resources had performed the criminal history checks. According to the
Department of Information Resources, it does not conduct criminal history
checks on vendors.
Recommendations

TYC should:
ƒ

Replace fiber optic cabling at the Gainesville State School to ensure that
all video cameras are accessible for real-time viewing by the Office of
Inspector General.

ƒ

Develop a map that shows the location of all video cameras for each of its
facilities and halfway houses.

ƒ

Develop and implement requirements for retaining video surveillance
data.

ƒ

Ensure that only authorized staff who perform the actual physical
inspection of shipments confirm the receipt of goods.

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ƒ

Perform a complete inventory of its video surveillance equipment. At a
minimum, TYC should complete an inventory of all equipment purchased
in fiscal years 2007 and 2008.

Management’s Response
ƒ

Replace fiber optic cabling at the Gainesville State School to ensure all
video cameras are accessible for real-time viewing by the Office of
Inspector General. Management agrees with this recommendation.
Cabling at Gainesville is underway and anticipated for completion in May
2009. In Progress – Projected to be Fully Implemented May 15, 2009

ƒ

Develop a map that shows the location of all video cameras for each of
its facilities and halfway houses. Management agrees with this
recommendation. The video surveillance project was one of the highest
priority agency reforms resulting from SB 103 and one of the largest
information resources efforts ever undertaken by TYC staff. Coordinated
installation of miles of cabling and thousands of cameras throughout the
TYC system had to be completed within two years due to the scheduled
expiration of $18 million in project funding. Management understands the
importance of the camera maps; however, ambitious installation goals for
a small staff under very aggressive deadlines required difficult choices for
the best use of limited resources. The staff responsible for completing the
drawings also must complete the installation of cameras at halfway houses
and parole offices by the end of the fiscal year. Camera mapping is
currently underway with Network Support Specialists conducting camera
audits and submitting results to appropriate staff; however, with limited
resources the process is slow. The decision to delay mapping was
reasonable given the capability of facility staff to verify camera locations
until the maps can be completed. Delayed availability of these camera
maps is also related in part to the construction project for reconfiguring
open bay dormitories into single cell units at TYC institutions. Although
cable and camera installations have already occurred there, room
reconfigurations are requiring camera repositioning. Camera and
cabling installation timelines could not accommodate mapping and
remapping at these institutions. In Progress – Projected to be Fully
Implemented, August 31, 2009

ƒ

Develop and implement requirements for retaining video surveillance
data. Management agrees with this recommendation. The Office of the
Inspector General, the Legal Division, and the Information Resources
Department are developing clear requirements to ensure the retention of
these records for at least 15 working days or until the resolution of an
allegation of abuse, neglect, or exploitation. The Information Resources
Department anticipates implementing the decision during the fourth

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quarter of FY 2009. In Progress – Projected to be Fully Implemented,
August 31, 2009
ƒ

Ensure that only authorized staff who perform the actual physical
inspection of shipments confirm the receipt of goods. Management
agrees with this recommendation. Management is clarifying the roles and
responsibilities of authorized facility warehouse staff for documenting the
receipt of goods following visual inspection. When authorized warehouse
staff is unable to verify that the received equipment is consistent with the
requisition description, program staff will be notified to perform the visual
inspection and documentation. Additionally, warehouse receiving staff
must notify procurement staff to review the requisition for any equipment
description issues that might have contributed to warehouse staff’s
inability to verify equipment receipt. Substantially Implemented –
Projected to be Fully Implemented May 15, 2009

ƒ

Perform a complete inventory of its video surveillance equipment. At a
minimum, TYC should complete an inventory of all equipment
purchased in fiscal years 2007 and 2008. Management agrees with this
recommendation. Inventories for purchases in each fiscal year will be
completed during the fourth quarter of FY 2009. Planned – Projected to
be Fully Implemented August 31, 2009

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Chapter 4-C

TYC Should Ensure That It Documents the Factors It Considered to
Determine the Reasonableness of Minimum Payment Guarantees in
Contracts with Contract Care Providers

For fiscal year 2009, TYC has contracts with 6 of 12 contract care providers
that include minimum payment guarantees. Auditors were not able to
determine the reasonableness of TYC’s decision to include
Minimum Payment Guarantee
minimum payment guarantees is these contracts. TYC lacked
documentation showing the factors that it used to determine the
TYC pays its contract care
providers a daily unit rate for the
necessity and reasonableness of the contracts’ minimum
care and treatment of youth placed
payment guarantees. TYC reported that, during the contract
with the provider. A minimum
payment guarantee ensures that a
renewal
process in August 2008, payment guarantees were
provider will be paid for a
negotiated on a case-by-case basis between the contract care
minimum number of youth, as
specified in a contract, at the
providers and the TYC conservator. Table 3 lists the minimum
agreed-upon unit rate.
youth placement guarantees that TYC included in contracts with
six contract care providers and the average monthly daily youth
population that TYC placed with each provider. See Appendix 11, page 94,
for additional information on TYC’s 12 contract care providers.
Table 3

TYC Contract Care Providers That Have Minimum Payment Guarantees
Guaranteed
Minimum Youth
Placement

Average Monthly
Youth Placement
Fiscal Year 2008

Average Monthly
Youth Placement
a
Fiscal Year 2009

4

10

10

Mel Matthews Vocational Center

32

30

30

Garza County Juvenile Detention
Center

40

59

39

Southwest Key Supervised
Apartment Living

10

12

4

Associated Marine Institute – Rio
Grande Marine Institute

32

30

27

Associated Marine Institute –
c
W.I.N.G.S. for Life, Inc.

1

9

10

Provider
Byrd’s Foster Group Home, Inc.

a
b

b

From September 1, 2009, through February 28, 2009.
TYC reported that Byrd’s Foster Group Home, Inc.’s prior contract included a minimum payment guarantee.

c

The contract with the Associated Marine Institute – W.I.N.G.S. for Life, Inc. was amended in April 2008 to include a
minimum payment guarantee for youth placements not to exceed 14 youths. Associated Marine Institute – W.I.N.G.S.
for Life, Inc. provides infant care and parenting programs for teen mothers committed to TYC.
Source: TYC.

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Table 4 lists the minimum payment amounts that TYC agreed to pay six
contract care providers based upon minimum youth placement guarantees.
Table 4

Comparison of Guaranteed Monthly Payment Amounts and Estimated Actual Payment Amounts
Fiscal Year 2009

Provider

Guaranteed
Monthly
Payment
b
Amount

Guaranteed
Minimum
Youth
Placement

Contract
Rate per
Day

Estimated Monthly
Payment Based on
Actual Average
Monthly
Population

Difference
Between
Guaranteed
Minimum Monthly
Payment and
Payment Based on
Actual Average
Monthly
Population

$100.00

4

$ 12,000

$ 30,000

Mel Matthews
Vocational
Center

$155.00

32

$148,800

$139,500

9,300

111,600

Garza County
Juvenile
Detention Center

$125.00

40

$150,000

$146,250

3,750

45,000

Southwest Key
Supervised
Apartment Living

$76.00

10

$ 22,800

$ 9,120

13,680

164,160

Associated
Marine Institute Rio Grande
Marine Institute

$101.96

32

$ 97,882

$ 82,588

15,294

183,528

c

1

$ 91,241

$ 91,241

0

0

Total Differences

$42,024

$504,288

a
b

$3,041.36

0

Annual Difference
Between
Guaranteed
Payment and
Payment Based on
Actual Average
Population

Byrd’s Foster
Group Home,
Inc.

Associated
Marine Institute W.I.N.G.S. for
Life, Inc.

$

a

$

0

This comparison is based on the contracted providers’ actual average monthly youth populations.
For purposes of this comparison, payments are based on a 30-day calendar month.

c

This rate is paid per day for youth placements not to exceed 14 youths. Associated Marine Institute – W.I.N.G.S. for Life, Inc. provides infant care
and parenting programs for teen mothers committed to TYC.
Source: State Auditor’s Office analysis.

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Table 5 lists additional data about the average youth population at select
contract care providers during the first six months of fiscal year 2009.
Table 5

Monthly Average Youth Population of Select Contract Care Providers
September 2008 through February 2009

Provider
Byrd’s Foster Group
Home, Inc.

September
2008

October
2008

November
2008

December
2008

January
2009

February
2009

Monthly
Average for
Fiscal Year
a
2009

Guaranteed
Minimum
Youth
Placement

9.8

9.6

9.4

9.7

9.8

9.5

9.6

4.0

Mel Matthews
Vocational Center

30.4

28.7

31.8

30.4

30.0

30.1

30.2

32.0

Garza County
Juvenile Detention
Center

44.6

38.0

37.7

36.6

36.7

38.0

38.6

40.0

Southwest Key
Supervised Apartment
Living

3.4

4.0

4.0

3.9

5.4

4.6

4.2

10.0

Associated Marine
Institute - Rio Grande
Marine Institute

28.1

25.8

29.8

27.1

26.1

26.6

27.3

32.0

Associated Marine
Institute- W.I.N.G.S.
for Life, Inc.

9.5

10.5

9.7

9.9

9.8

9.6

9.8

1.0

a

From September 1, 2008, through February 28, 2009.

Source: TYC.

Recommendation

Prior to entering into or renewing contracts containing minimum payment
guarantees, TYC should document the factors it considered to determine the
necessity and reasonableness of these guarantees.
Management’s Response

Management agrees with this recommendation. Agency policies will be
modified to specify documentation as a requirement. Planned – Projected to
be Fully Implemented August 31, 2009

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Chapter 5

TYC Should Assess Its Facility and Staffing Levels to Ensure the
Efficient Use of State Resources
Auditors reviewed TYC’s use of state resources in (1) its operation of the
Victory Field Correctional Academy and the West Texas State School and (2)
its process for determining the number of juvenile correctional officers needed
to maintain a staff-to-youth ratio of 1 to 12 for the 2008-2009 biennium. TYC
should ensure that it uses state resources in a cost-efficient manner in the
continued operation of the Victory Field Correctional Academy and the West
Texas State School. TYC also should ensure that it maintains supporting
documentation used in developing its staffing projections for juvenile
correctional officers.
TYC reported reliable results for the following four key performance
measures tested for fiscal year 2008 and the first two quarters of fiscal year
2009:
ƒ

Average Daily Population: Institutional Programs.

ƒ

Average Daily Population: Contract Programs.

ƒ

Capacity Cost in Institutional Program per Youth Day.

ƒ

Capacity Cost in Contract Programs per Youth Day.

Chapter 5-A

TYC Should Ensure the Efficient Use of State Resources Toward
the Care and Rehabilitation of Youth in Certain Facilities
TYC received appropriations of approximately $315 million and $237 million
for fiscal years 2008 and 2009, respectively. These appropriations were based
on TYC’s revised legislative appropriations request to the 80th Legislature,
which proposed closing five existing residential facilities in anticipation of a
reduction in the facilities’ youth population. Table 6 lists the five facilities
that TYC proposed to close and the projected cost savings that would have
resulted from each of the closures.
Table 6

Projected Cost Savings from Proposed Facility Closures

Facility
Marlin Orientation and
Assessment Unit

Fiscal Year
a
2008

Fiscal Year
2009

Total

$8,021,386

$15,706,551

$23,727,937

John Shero Juvenile Correctional
Facility

6,549,567

12,824,636

19,374,203

Sheffield Boot Camp

2,354,901

4,611,105

6,966,006

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Projected Cost Savings from Proposed Facility Closures

Facility

Fiscal Year
a
2008

Fiscal Year
2009

Total

Victory Field Correctional
Academy

6,181,614

12,104,151

18,285,765

West Texas State School

4,415,439

8,645,822

13,061,261

$27,522,907

$53,892,265

$81,415,172

Totals
a

Projected cost savings are based on a six-month period.

Source: TYC.

As of March 2009, TYC had closed three of the five facilities it originally
proposed for closure. Specifically:
ƒ

TYC reported that the Marlin Orientation and Assessment Unit and the
John Shero Juvenile Correctional Facility were closed and transferred to
the Department of Criminal Justice before September 1, 2007. TYC was
required by Rider 24, page V-67, the General Appropriations Act (80th
Legislature) to transfer these two facilities by March 1, 2008.

ƒ

The Sheffield Boot Camp was closed by the TYC conservator in February
2008; the boot camp was closed because TYC was unable to recruit a
sufficient number of juvenile correctional officers and case managers in
the West Texas region.

ƒ

The Victory Field Correctional Academy and the West Texas State School
remained in operation as of March 2009. TYC kept these facilities
operating during fiscal year 2008, despite receiving a reduced
appropriation based on the assumption that TYC would close the facilities
and eliminate $31.3 million in costs for fiscal years 2008 and 2009.

TYC should ensure that state resources are used efficiently during the
continued operation of the Victory Field Correctional Academy and the West
Texas State School.
TYC was able to continue operating the Victory Field Correctional Academy
and the West Texas State School during fiscal year 2008 because of reported
cost savings TYC realized. These cost savings included (1) approximately
$14 million4 from the closure of the Marlin Orientation and Assessment Unit
and the John Shero Juvenile Correctional Facility prior to fiscal year 2008 and
(2) approximately $5.7 million from job vacancies during fiscal year 2008.
These cost savings were fully expended for the operational costs of these two
4

TYC reported that it was appropriated approximately $7.7 million for the Marlin Orientation and Assessment Unit and $6.3
million for the John Shero Juvenile Correctional Facility to operate these facilities for the first six months of fiscal year 2008.
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facilities. TYC reported that its fiscal year 2008 operating costs for the
Victory Field Correctional Academy and the West Texas State School were
$12.1 million and $9.7 million, respectively. However, TYC will not have
cost savings from facility closures available to offset the continued operation
of the two facilities during fiscal year 2009. TYC’s appropriation for fiscal
year 2009 is $237 million, $78 million less than its fiscal year 2008
appropriation.
Although TYC continued to operate these facilities, it did not utilize the total
physical bed capacity at these facilities. The actual youth populations at the
Victory Field Correctional Academy and the West Texas State School were
significantly lower as of January 31, 2009, than the physical bed capacity that
TYC had estimated (see Table 7). See Appendix 7, page 81, for additional
information on physical bed capacity for all TYC facilities.
Table 7

Victory Field Correctional Academy and West Texas State School Operating Costs and Population Totals
(Costs are in millions)
Fiscal Year
2008
Budgeted
Operating
Costs

Facility
Victory Field
Correctional Academy
West Texas State
School
Totals

Fiscal Year
2008 Actual
Operating
Costs

Percent of
Budgeted
Operating
Costs
Expended

Physical Bed
Capacity

Average
Daily
Population
on August
31, 2008

Actual
Population
on January
31, 2009

Percent of
Physical Bed
Capacity
Used on
January 31,
2009

$12.6

$12.1

96.0%

336

86

93

27.7%

11.1

9.7

87.4%

240

90

90

37.5%

$23.7

$21.8

92.0%

576

176

183

31.8%

Source: TYC.

A comparison of the percent of budgeted operating costs expended and the
percent of the physical bed capacity used suggests that, from a cost
perspective, state resources associated with the continued operation of the
Victory Field Correctional Academy and the West Texas State School are not
being used in a cost-effective manner. However, it is important to note that
Senate Bill 103 required TYC to consider the proximity of a youth’s home in
its placement decisions; this requirement is a contributing factor in TYC’s
decision to continue using these facilities, which are the only state-operated
residential facilities for youth committed from the West Texas region.
Recommendation

TYC should optimize its appropriated funds by maximizing the physical bed
capacity of its facilities and minimizing operating costs.
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Management’s Response

The agency agrees that physical capacity should be used efficiently; however,
it is an even higher priority for physical space to be used effectively in
rehabilitating youth. The agency did not select the remote locations for its
large institutional facilities, most of which were built or acquired during a
period of public concern about a lack of correctional facilities in the 1990s
and early 2000s. As current legislative reforms result in reduced TYC
populations for smaller treatment environments with a focus on specialized
services, the agency is in transition toward a system with a better balance of
physical resources and program objectives for reducing recidivism. While the
West Texas and Vernon facilities are not optimal for physical plant, they
currently serve important strategic needs, including regionalization of
services and the availability of specialized skills in the community to match
new and smaller program needs. Optimizing current resources for physical
capacity and operating costs without regard to program effectiveness would
result in the loss of a key resource in the western region and an employment
resource for a retooled specialized treatment program in the northern region.
The Executive Commissioner continues to analyze the optimization of
resources and program objectives across the TYC system. The agency is
currently seeking legislative guidance regarding continued operations at West
Texas and Vernon. Substantially Implemented – Projected to be Fully
Implemented August 31, 2009

Chapter 5-B

TYC Should Ensure That It Maintains Documentation that Supports
Its Staffing Projections for Juvenile Correctional Officers
In April 2007, TYC projected its youth population and juvenile correctional
officer staffing needs for fiscal years 2008 and 2009. To do so, it considered
the impact of reforms mandated by Senate Bill 103 on its agency structure.
Specifically, TYC anticipated a reduction in its youth population because
youth who commit misdemeanors and all youth who are 19 to 21 years of age
are no longer being placed in TYC facilities. While TYC used a reasonable
methodology to project the number of juvenile correctional officer full-time
equivalent positions (FTEs) needed to maintain a ratio of 1 officer for 12
youths for each facility, it did not retain adequate documentation to support its
legislative appropriations request for additional FTEs to maintain the 1 to 12
ratio.
TYC projected the juvenile correctional officer FTEs needed for (1) direct
supervision of youth, (2) support staff (juvenile correctional officer
supervisors), and (3) other security staffing needs (facility security such as
classrooms, medical areas, and facility entrances). To calculate the number of
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FTEs needed to maintain its juvenile correctional officer-to-youth ratio of 1 to
12, TYC included only juvenile correctional officers with direct supervision
of youth. TYC lacked documentation showing how many juvenile
correctional officer FTEs were assigned to each facility before TYC made its
request for additional FTEs. Without an accurate count of juvenile
correctional officer FTEs assigned to each facility, auditors could not
determine whether the 516 additional FTEs requested were needed to maintain
a juvenile correctional officer-to-youth ratio of 1 to 12.
Of the $28.9 million that TYC budgeted toward maintaining the juvenile
correctional officer-to-youth ratio of 1 to 12, approximately $2.7 million (9.3
percent) was allocated for juvenile correctional officer supervisors ($2.2
million) and radio equipment ($490,000).
Recommendation

TYC should ensure that it maintains supporting documentation for all facility
staff numbers used in developing its juvenile correctional officer staffing
projections.
Management’s Response

Management agrees that supporting documentation for appropriations
requests should be retained as appropriated. TYC provided several
documents to the SAO describing exactly how many JCOs were assigned to
each facility prior to the funding request during the 80th legislative session.
These documents are prepared every year and maintained as a part of the
TYC budgeting process. Detailed position assignment information is
maintained for every TYC position by both location and strategy. Fully
Implemented

Chapter 5-C

TYC Reported Reliable Results for All Four Key Performance
Measures Tested
TYC reported reliable results for the four key performance measures tested for
fiscal year 2008 and the first two quarters of fiscal year 2009. A performance
measure result is considered reliable if it is certified or certified with
qualification.

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The following four key performance measures tested were certified with
qualification:
ƒ

Average Daily Population: Institutional Programs5.

ƒ

Average Daily Population: Contract Programs6.

ƒ

Capacity Cost in Institutional Program per Youth Day.

ƒ

Capacity Cost in Contract Programs per Youth Day.

Comparison of Performance Measure Targets and Reported Results

A comparison of the performance measure targets and reported results
indicates that institutional programs’ daily capacity costs significantly
increased during the fourth quarter of 2008, exceeding legislatively targeted
costs. These capacity costs continued to be significantly higher than targeted
costs during the first and second quarters of fiscal year 2009 (see Figure 2).
Figure 2

Institutional Programs’ Daily Capacity Costs
Fiscal Year 2008 and First Two Quarters of Fiscal Year 2009

Actual Cost

$370,000

$350,000

$349,444

$320,000

$352,896

$341,760

$341,760

$343,830

$341,760

$340,000
$330,000

Targeted Cost

$360,626

$360,000

$341,760
$329,740
$321,852

$310,000

$299,404

$299,404

$300,000
$290,000
First

Second

Third

Fourth

First

Second

Quarter

Quarter

Quarter

Quarter

Quarter

Quarter

2008

2008

2008

2008

2009

2009

Sources: TYC and the Automated Budget and Evaluation System of Texas (ABEST).

5

Institutional programs refer to TYC-operated institutional services that provide room, board, and security for committed youth.

6

Contract programs refer to contracted correctional services that provide room, board, and security for TYC-committed youth.
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As Figure 3 shows, contract programs’ daily capacity costs were lower than
targeted costs for fiscal year 2008 and the first and second quarters of fiscal
year 2009.
Figure 3

Contract Programs’ Daily Capacity Costs
Fiscal Year 2008 and First Two Quarters of Fiscal Year 2009
Targeted Cost
Actual Cost

$70,000

$63,497

$63,497

$63,497

$63,497

$64,978

$64,978

$60,000
$50,000
$40,000

$41,534
$32,856

$30,000

$31,119
$23,747

$32,435

$24,311

$20,000
$10,000
$First Quarter

Second

2008

Quarter 2008

Third Quarter Fourth Quarter First Quarter
2008

2008

2009

Second
Quarter 2009

Sources: TYC and ABEST.

Performance Measure Certification

TYC has written policies and procedures for collecting, calculating,
reviewing, and reporting data to the Automated Budget and Evaluation
System of Texas (ABEST) for the four performance measures tested.
However, the four performance measures tested were certified with
qualification because TYC lacked written policies and procedures for
management’s review process to verify the accuracy and completeness of
youth population data entered into the Correctional Care System (see Chapter
6-B, page 57, for more information about the Correctional Care System). The
youth population data is used to calculate the four performance measures
tested.
Auditors also determined that the ABEST methodologies for Capacity Cost in
Institutional Program per Youth Day and Capacity Cost in Contract Programs
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per Youth Day do not clearly identify what dollar amounts should be used to
calculate the measures. TYC also made adjustments to its calculations for
these two measures that were not defined in ABEST.
Table 8 summarizes the certification results for the four key performance
measures tested.
Table 8

Texas Youth Commission, Agency 694
Objective or
Strategy
A.1.2. Strategy:
Institutional Services

Description of
Measure
Average Daily
Population:
Institutional Programs
(Output)

Fiscal Year
2008 (1st Quarter)

Capacity Cost in
Institutional Programs
Per Youth Day
(Efficiencies)

2,578.73

(3rd Quarter)

2,365.86

(4th Quarter)

2,130.98

Entire Fiscal Year

2,468.26

2009 (1st Quarter)

2,048.03

2008 (1st Quarter)

A.1.3. Strategy:
Contracted Capacity

Average Daily
Population: Contract
Programs
(Output)

(3rd Quarter)

$136.04

(4th Quarter)

$169.23

Entire Fiscal Year

$137.92

2009 (1st Quarter)

$172.31

2008 (1st Quarter)

Capacity Cost in
Contract Programs Per
Youth Day
(Efficiencies)

$164.16
227.79

(3rd Quarter)

229.35

(4th Quarter)

217.58

Entire Fiscal Year

252.47

2009 (1st Quarter)

202.98

2008 (1st Quarter)

205.66

2,292.00
Certified with
Qualification

$149.11

$130.63
Certified with
Qualification

641.00

641.00
Certified with
Qualification

$ 97.62

(2nd Quarter)

$104.25

(3rd Quarter)

$106.00

(4th Quarter)

$190.89

Entire Fiscal Year

$121.30

2009 (1st Quarter)

$153.31

(2nd Quarter)

2,292.00

336.57

(2nd Quarter)

$157.71

Certification
Results
Certified with
Qualification

$117.70
$135.51

(2nd Quarter)
A.1.3. Strategy:
Contracted Capacity

2,094.48

(2nd Quarter)

(2nd Quarter)

Year-to-date Target

2,801.53

(2nd Quarter)

(2nd Quarter)
A.1.2. Strategy:
Institutional Services

Results
Reported

$ 99.06

$101.37

A measure is Certified if reported performance is accurate within plus or minus 5 percent of actual performance and if it appears that
controls to ensure accuracy are in place for collecting and reporting performance data.
A measure is Certified With Qualification when reported performance appears accurate, but the controls over data collection and reporting
are not adequate to ensure continued accuracy. A measure is also certified with qualification when controls are strong, but source
documentation is unavailable for testing. A measure is also certified with qualification if agency calculation of performance deviated from
the measure definition but caused less than a 5 percent difference between the number reported to ABEST and the correct performance
measure result.
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Texas Youth Commission, Agency 694
Objective or
Strategy

Description of
Measure

Fiscal Year

Results
Reported

Year-to-date Target

Certification
Results

A measure is Inaccurate when the actual performance is not within 5 percent of reported performance, or when there is more than a 5
percent error in the sample of documentation tested. A measure is also inaccurate if the agency’s calculation deviated from the measure
definition and caused more than a 5 percent difference between the number reported to ABEST and the correct performance measure result.
A Factors Prevented Certification designation is used if documentation is unavailable and controls are not adequate to ensure accuracy. This
designation also will be used when there is a deviation from the measure definition and the auditor cannot determine the correct performance
measure result.

Although TYC has a flowchart that shows when management’s review of data
entry should occur, that flowchart does not provide sufficient information
about (1) the required procedures that must be performed for verifying the
accuracy and completeness of data or (2) how that review should be
documented. However, auditors did not identify any errors in youth
population data that would have prevented certification of the performance
measures tested.
Recommendation

TYC should develop and implement written policies and procedures that
(1) describe the required review procedures that should performed for
verifying the accuracy and completeness of youth population data entered into
the Correctional Care System and (2) how that review should be documented.
Management’s Response

Management agrees with the recommendation. In addition to the current
data reconciliation with the Correctional Care System, TYC will develop
procedures for management’s review of data entered into the system.
Procedures will be developed during FY 2009 for implementation in FY 2010.
Planned – Projected to be Fully Implemented August 31, 2009

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Key Measures

Average Daily Population: Institutional Programs
Average Daily Population: Contract Programs
Capacity Cost in Institutional Programs per Youth Day
Capacity Cost in Contract Programs per Youth Day
TYC reported accurate results for these measures in fiscal year 2008 and the
first and second quarters of fiscal year 2009. As a result of the issues
regarding policies and procedures discussed above, these performance
measures were certified with qualification.
In addition, the methodologies in ABEST for Capacity Cost in Institutional
Programs per Youth Day and Capacity Cost in Contract Programs per
Youth Day measures do not specify which dollar amounts should be
Performance Measures Certified
used to calculate these measures. The methodologies in ABEST for
with Qualification
these two performance measures state that results should be calculated
A measure is certified with
qualification when reported
by dividing the total dollars expended for each measure strategy by the
performance appears accurate, but
average daily population for each measure during the reporting period.
controls over data collection and
reporting are not adequate to ensure
This amount should then be divided by the number of days in the
continued accuracy. A measure is
reporting period. TYC calculated the total dollars expended using
certified with qualification when
controls are strong, but source
accrual basis accounting per legislative appropriations request
documentation is unavailable for
requirements from the Legislative Budget Board, which requires
testing. A measure is also certified
with qualification if agency
agencies to recognize all obligations as expenses. The Legislative
calculation of performance deviated
Budget Board reported that this same method should be used when
from the measure definition, but it
caused less than a 5 percent
reporting performance. However, the ABEST methodologies for these
difference between the number
performance measures do not state that accrual accounting should be
reported to ABEST and the correct
performance measure results.
used in calculating total dollars expended.
TYC also made adjustments to its calculations for these two performance
measures that were not defined in ABEST. Specifically, TYC’s procedures
specify that the results for these two performance measures should be adjusted
for Workers’ Compensation and expenditures that were reimbursed by the
Office of the Comptroller of Public Accounts. However, TYC made
additional adjustments that were not defined in its policies and procedures.
For fiscal years 2008 and 2009, TYC adjusted the results for Capacity Cost in
Institutional Programs per Youth Day for capital expenditures for vehicles,
workstations, and data center services, and for expenditures associated with
TYC’s Minimum Length of Stay Panel. For the first two quarters of fiscal
year 2009, TYC adjusted the results for Capacity Cost in Contract Programs
per Youth Day to recognize the reclassification of state funds.

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Recommendation

TYC should work with the Legislative Budget Board and the Governor’s
Office of Budget, Planning, and Policy to revise the methodologies for
Capacity Cost in Institutional Program per Youth Day and the Capacity Cost
in Contract Programs per Youth Day to (1) define how total dollars expended
should be calculated and (2) specify the types of adjustments that should be
considered in calculating the measures.
Management’s Response

The agency will review the recommendation with the LBB and Governor’s
Office staff for technical changes relating to accrual accounting and specific
adjustments. The report refers to additional adjustments not defined by the
measure definitions. However, the measure definitions do not specify the
program cost accounts used to tally the costs. TYC currently captures all
expenditures at the most detailed level of program cost account for all
appropriations for institutional and contract capacity costs. If all relevant
expenses are to be captured, the Institutional Strategy, A.1.2., must contain
program cost accounts for vehicles, workstations, data center services, and
the Minimum Length of Stay Panel. Additionally, for the Contract Care
Strategy, A.1.3., certain expenditures were reclassified between method of
finance, but they had no impact on the total cost or the cost per day results.
Planned – Projected to be Fully Implemented August 31, 2009

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Chapter 6

TYC Should Strengthen the Security and Management Over Its
Information Systems

In reviewing the investigations of abuse and neglect allegations made during
fiscal year 2008, auditors identified several weaknesses in TYC’s former
system (the Alleged Mistreatment Incident or AMI system) for tracking
investigations of allegations of youth mistreatment conducted by the Office of
Inspector General. TYC reported that on December 1, 2008, it implemented a
new system for tracking investigations (the Administrative
Investigation Management or AIM system). However, auditors did
Tracking Investigations
not review the access and security controls over this new system
TYC’s Alleged Mistreatment Incident (AMI)
because TYC will continue to use the former system until all
system tracked the intake and
investigation of allegations of youth
investigations opened before November 30, 2008, are closed (see text
mistreatment. TYC determined that the
box).
AMI system was unable to accurately track
investigations from start to finish, as well
as identify repeat allegations against
employees. As a result, TYC replaced the
AMI system with a new Administrative
Investigation Management (AIM) system to
track the intake and investigations of
allegations of youth mistreatment. The
new AIM system was fully implemented on
December 1, 2008.
TYC reported that the new system will be
used to track the progress of all
investigations of allegations of
mistreatment beginning January 1, 2009.
It will continue to use the former system
until all investigations opened before
December 1, 2008, are closed.

Auditors also examined TYC’s Correctional Care System, which TYC
uses to collect and manage data for the performance measures that
auditors tested. Although the Correctional Care System has controls
in place to ensure the reliability of performance measures, auditors
identified opportunities for TYC to strengthen controls over its data to
provider greater assurances over the integrity and accuracy of data.
In addition, auditors reviewed the overall access and security controls
over TYC’s information systems and identified several weaknesses.
To minimize security risks, auditors communicated details about some
of these weaknesses directly to TYC’s management.

Chapter 6-A

TYC Should Restrict Access to and Strengthen the Security Over
the Data in Its New System for Tracking Investigations
Auditors identified several weaknesses in the former system for tracking
investigations that TYC should ensure that the new system corrects.
Specifically, the new system should:
ƒ

Establish proper segregation of duties by limiting programmers’ access to production
system data. Auditors identified a programmer who had access to update

live production data in the former system. Inadequate segregation of
duties could allow unauthorized changes that may not be detected by TYC
management.
ƒ

Create an audit trail of changes to key data.

The former system did not identify
and track changes to data, which limited TYC’s ability to detect
unauthorized changes. By conducting a risk assessment, management can
identify key data elements for which changes should be tracked.

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ƒ

Provide access to users based on their role.

ƒ

Maintain data integrity by keeping all records entered into the system.

Under the former system, TYC
could not limit users’ ability to edit only certain data. With role-based
security, TYC could assign privileges based on individual’s job needs.
Auditors’
review of the former system identified 65 missing records from fiscal
years 2007 and 2008. TYC’s Information Resources Division analyzed
the missing sequence numbers and accounted for the missing records: 47
records were deleted because a system error created the records and 18
records were deleted because they were duplicates.

Also, TYC programmers have access to the database containing archived
information about completed criminal investigations of alleged mistreatment.
TYC could limit the risk of unauthorized changes to these historical records
by storing the information in a read-only format.
Recommendations

TYC should:
ƒ

Establish controls in the new system for tracking investigations (the AIM
system) that includes:
Œ

Proper segregation of duties.

Œ

An audit trail capable of tracking changes to key data elements
identified through a risk assessment.

Œ

Role-based security.

ƒ

Maintain all records entered into the new system (the AIM system) for
tracking investigations.

ƒ

Store electronic records of completed investigations in a read-only format.

Management’s Response
ƒ

Establish controls in the new system for tracking investigations (AIM
system) that includes:
Œ

Proper segregation of duties.

Œ

An audit trail capable of tracking changes to key data elements
identified through a risk assessment.

Œ

Role-based security.

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Management agrees with this recommendation. The Information
Resources Department worked closely with the Inspector General’s
management to ensure the appropriate security and other controls were
programmed into the AIM application. Controls include, but are not
limited to segregation of duties, audit trails for modifications to
information, role-based security, and the inability to delete complete
records.
In addition, the Internal Audit Department’s fiscal year 2010 audit plan
will include an audit of alleged mistreatment. One of the objectives for
this audit will be to evaluate the adequacy of the AIM system’s controls.
Fully Implemented
ƒ

Maintain all records entered into the new system for tracking
investigations (AIM system). Management agrees with this
recommendation. The new AIM system does not permit the deletion of any
records. If a record is inactive or closed by a user, the system marks the
record accordingly, but does not physically delete the record from the
database. Fully Implemented

ƒ

Store electronic records of completed investigations in a read-only
format. Management agrees that certain fields in completed
investigations should be read-only. After each investigation is closed, the
Office of the Inspector General must maintain closed records to collect
case-related data that may be discovered after the case is closed. The
Information Resources Department will modify the AIM system to allow
only specific Inspector General staff to modify or add information only to
certain fields in closed investigation records. A control that is
programmed in the new database is an audit trail that tracks and stores
all changes in the AIM system, including all record and field creations,
additions, deletions, and changes. This control operates regardless of
whether the case is open or closed. In Progress – Projected to be Fully
Implemented May 31, 2009

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Chapter 6-B

TYC’s Correctional Care System Data is Reliable, But TYC Should
Strengthen Controls to Reduce the Risk that Data is Improperly
Altered
As discussed in Chapter 5-C, selected performance measures that are
calculated using data from the Correctional Care System were reliable (see
text box for more information). TYC’s application controls over
its Correctional Care System provide assurance about the
Correctional Care System
reliability of performance measure data that is entered into,
The Correctional Care System (CCS)
processed by, and extracted from the Correctional Care System.
is a database application that TYC
uses to store information on all
TYC also has necessary access controls over the network folders
youth committed to TYC. All
that store performance measure data. In addition, the access
activity and actions involving youth
in TYC custody is reflected in CCS,
controls over TYC’s Statistical Analysis System (SAS) ensure
beginning at intake and continuing
the reliability of data stored by the application (see text box).
until discharge after a youth’s
completion of parole or transfer to
However, TYC should strengthen how it manages access to the
the Department of Criminal
Correctional Care System and how it documents programming
Justice. This information can be
accessed only by TYC employees
changes it makes to the system. Auditors identified weaknesses
who have been granted permission.
that increase the risk that data could be inadvertantly or
In addition, the CCS is the primary
deliberately altered, which would impair the integrity and
system for collecting data that is
used for TYC’s average daily
accuracy of the data that TYC uses to calculate performance
population data used in calculating
measures. These weaknesses are discussed below.
performance measures.
Statistical Analysis System
The Statistical Analysis System
(SAS) is an application used by TYC
that stores data extracted daily
from the CCS. SAS processes this
data to analyze TYC’s average daily
population.

TYC did not ensure that it de-activated former employees’ access to the
Correctional Care System. TYC did not deactivate the user accounts

of 87 users whose employment was terminated from fiscal year
2004 through February 2009. Although network access was
removed, a former employee’s ID could be used by a current
employee to gain unauthorized access to the system. Auditors
also identified one former employee who had both an active
network account and an active user ID.

TYC did not ensure that changes to the SAS application produced desired results.

TYC
did not test changes it made to the SAS application prior to implementing the
new programs. TYC changed its SAS program code on at least two different
occasions, which resulted in the application incorrectly adding youth
overnight stays from one facility and subtracting the stays from another
facility. While this was a programming error, the net effect was zero for the
calculation to determine the average daily population that is used in
calculating performance measure results.
TYC does not have an efficient process for tracking program code changes.

TYC
implemented a manual process for tracking changes to program code in the
Correctional Care System after the State Auditor’s Office’s last performance
measures audit in 2005.7 Although TYC documents the requests for and
7

See An Audit Report on Performance Measures at Five State Agencies, State Auditor’s Office Report No. 05-030, March 2005.
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approval of program code changes, it was not able to provide a complete
listing of all “before” and “after” program code changes to the Correctional
Care System. TYC reported that the manual tracking process makes it difficult
to identify all program code changes made since 2005.
Recommendations

TYC should:
ƒ

Ensure that it deactivates and removes all former employees’ access to the
Correctional Care System.

ƒ

Ensure that the SAS program code performs as expected.

ƒ

Consider developing a code library for the Correctional Care System to
assist in the tracking and comparing program code changes.

Management’s Response
ƒ

Ensure it deactivates and removes all former employees’ access to the
Correctional Care System. The absence of outward facing portals to the
agency’s network mitigates the risk of access to the system by terminated
employees. To mitigate the risk of unauthorized use of terminated
employees UserIDs, the Information Resources Department will analyze
its out-processing procedures to seek additional checks and balances to
ensure that when employees or contractors separate all of their UserIDs
are deleted or disabled immediately. Planned – Projected to be Fully
Implemented July 1, 2009.

ƒ

Ensure that the SAS program code performs as expected. Management
agrees with this recommendation. The Research Department will develop
and implement requirements for better version control and documentation
of changes to the SAS program code used to calculate average daily
population. In addition to its current procedure of comparing its output
on a quarterly basis with output produced in a separate program
developed by the Information Resources Department, Research will also
develop procedures for additional testing to ensure the code runs as
expected. Procedures will be developed during FY 2009 for
implementation by the first quarter of FY 2010. Planned – Projected to be
Fully Implemented August 31, 2009.

ƒ

Consider developing a code library for the Correctional Care System to
assist in the tracking and comparing of program code changes.
Management agrees that a code library is a valuable tool for tracking and
comparing coding changes. TYC documents every program change to the
Correctional Care System through a multi-step process of forms and
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approvals; the Information Resources Department will review current
capabilities and explore other options to implement a code library to
strengthen this process. The agency’s decision will be largely dependent
on the availability of funds. In Progress – Projected to be Fully
Implemented August 31, 2009.

Chapter 6-C

TYC Should Improve Access Controls Over Its Information Systems
Administrator Access
Administrator access is defined as a
level of access above that of a
normal user. Generally, an
administrator account has
unrestricted access to everything
on the computer. This allows the
user to create, delete, and modify
any of the files and folders on the
computer, as well as change any of
the settings.

TYC should improve how it manages the access granted to users of its
information systems by limiting the number of users with administratorlevel access accounts and by segregating incompatible duties.
Administrator Access to Systems

TYC retained a high number of administrative accounts to its
information technology resources that were no longer administered by
TYC employees. Auditors identified 50 accounts that could be used to
access information system resources or servers that are managed by the
Department of Information Resources’ Data Center Services vendor,
IBM. These accounts allow the users to have control over the servers,
including the ability to enable or disable services and user access to resources.
In An Audit Report on the Department of Information Resources and the
Consolidation of the State's Data Centers (SAO Audit Report No. 08-038,
June 2008), the State Auditor’s Office reported that staff at various state
agencies were performing service functions that were the responsibility of the
vendor, which could artificially influence the service levels. Auditors
recommended that agency staff be required to discontinue the performance of
outsourced activities on behalf of IBM.
Segregation of Duties

One TYC programmer had administrative access to the server on which the
agency’s databases are stored. Properly implemented segregation of duties
should not allow programmers to have access to update live production
system data. If programmers can access the live production data as well as
program the code, unauthorized changes to systems and the underlying data
could be made that may not be detected by TYC management.
Chapter 6-D

TYC Should Strengthen the Policies and Procedures Required by
Information Security Standards
TYC adopted policies and procedures related to information security
standards in Title 1, Texas Administrative Code, Chapter 202 (1 TAC 202).
To improve its information security, TYC should strengthen its information
security policies, perform a security risk analysis, and provide additional
details in its disaster recovery plan.
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Security Policies

TYC had not fully addressed all requirements in 1 TAC 202, such as those for
change management and administrator access. Fully documented and defined
information security policies provide guidance to employees for addressing
security issues in a timely, efficient, and effective manner. The Department of
Information Resources has security policy templates available on its Web site
that could aid TYC in achieving compliance with these requirements.
Security Risk Analysis

TYC had not documented an information security risk analysis as required by
1 TAC 202. A security risk analysis includes identifying the information
technology resources, including (1) the importance and confidentiality of the
data, (2) hardware and software, (3) the programmers and end-users of the
resources, and (4) security controls that are implemented to help protect the
resources. The analysis also should identify potential threats to the resources
and the resulting vulnerabilities. A documented information security risk
analysis could help TYC apply remedies that would reduce its information
security risks.
Disaster Recovery Plan

TYC developed a disaster recovery plan; however, the plan lacks sufficient
details to provide for the timely recovery of information resources necessary
to carry out its business functions in the event of an emergency. Because
operation of TYC’s data center has been outsourced to IBM, the vendor would
be responsible for conducting any recovery efforts. However, TYC’s
recovery plan should include (1) details about its vendors, (2) application
version numbers, and (3) others details about the specific applications TYC
resources use. These details could assist the vendor to recover from a disaster
more efficiently.
Recommendations

TYC should:
ƒ

Limit access to its information systems as appropriate and provide for
proper segregation of duties.

ƒ

Adopt and implement policies that address all applicable information
system standards in 1 TAC 202.

ƒ

Conduct and document an information security risk analysis.

ƒ

Add details in its disaster recovery plan to allow for the timely recovery of
information resources in the event of a disaster.

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Management’s Response
ƒ

Limit access to its information systems as appropriate and provide for
proper segregation of duties. Management agrees with this
recommendation. The audit report references the previous SAO Audit
Report No. 08-038, An Audit Report on the Department of Information
Resources (DIR) and the Consolidation of the State’s Data Centers,
finding that various agencies were performing service functions that were
the responsibility of the vendor (IBM). TYC has maintained programmer
access due to poor responsiveness by the vendor during the transition
period for consolidation of data centers, and TYC’s need for priority
reform changes in its systems. TYC will implement the recommendation
by documenting and addressing service issues with the vendor and DIR as
needed. In Progress – Projected to be Fully Implemented May 31, 2009

ƒ

Adopt and implement policies that address all applicable information
system standards in TAC 202. Management agrees with this
recommendation. TYC is in the process of hiring an Information Security
Officer. The first priority for this new position will be to develop and
recommend for adoption a complete set of information security policies
based on Department of Information Resource templates. Planned –
Projected to be Fully Implemented August 31, 2009

ƒ

Conduct and document an information security risk analysis.
Management agrees with this recommendation. The new Information
Security Officer will utilize the Department of Information Resource
sponsored tool ISAAC (Information Security Awareness, Assessment, and
Compliance System) to conduct a risk analysis for each TYC information
system. Planned – Projected to be Fully Implemented December 31,
2009.

ƒ

Add details in its disaster recovery plan to allow for the timely recovery
of information resources in the event of a disaster. Management agrees
with this recommendation. TYC contracts with the Department of
Information Resource’s vendor (IBM) for disaster recovery plan services.
The agency will notify the department and its vendor of the
recommendation and provide additional information relating to staff
contact and ease-of-transition information for TYC’s business continuity
plan in the event of a disaster relating to information technology
resources. Planned – Projected to be Fully Implemented August 31,
2009

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Chapter 6-E

TYC’s Controls Over Its General Accounting System Allow the
Complete and Accurate Processing of Expenditure Transactions
TYC’s General Accounting System contains sufficient controls to ensure that
the entering and processing of expenditure information is accurate and
completed in a timely manner. The system is responsible for generating
payment transactions, which are sent for processing to the Office of the
Comptroller of Public Accounts. The system also restricts access based on an
employee’s job duties and contains edit checks to help ensure the accuracy of
the data entered.

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Appendices
Appendix 1

Objectives, Scope, and Methodology
Objectives
The objectives of this audit were to
ƒ

Determine the implementation status of selected recommendations from
An Investigative Report on the Texas Youth Commission (State Auditor's
Office Report No. 07-022, March 2007).

ƒ

Review abuse and neglect allegations and documentation to ensure that the
allegations were properly screened and investigated and that appropriate
action was taken.

ƒ

Determine whether selected expenditures at the Texas Youth Commission
(TYC) comply with state law and are properly authorized and reasonable
for the performance of TYC functions and the facilitation of legislative
reform efforts.

Scope
The audit scope covered:
ƒ

TYC’s oversight for alleged mistreatment of youth and the management of
agency resources as of August 31, 2008.

ƒ

Allegations of mistreatment that were identified as a concern by TYC’s
Office of Independent Ombudsman for fiscal years 2007 and 2008.

ƒ

TYC’s contract management processes and selected contracts authorized
while the agency was under conservatorship from March 2007 to October
2008.

ƒ

TYC’s expenditures related to implementing Senate Bill 103 (80th
Legislature) reforms for fiscal years 2007 and 2008.

ƒ

Four key performance measures TYC reported for fiscal year 2008 and the
first two quarters of fiscal year 2009.

Methodology
The audit methodology included identifying high-risk recommendations from
the prior State Auditor’s Office’s investigative report, collecting information
to determine the implementation status of those recommendations, and
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conducting site visits at three TYC facilities. The selection of high-risk
recommendations was based on the following:
ƒ

TYC’s preliminary actions to implement recommendations in An
Investigative Report on the Texas Youth Commission (State Auditor's
Office Report No. 07-022, March 2007).

ƒ

The TYC conservator’s periodic status reports to the Governor’s Office
and the Legislature about the implementation of organization reforms that
were defined by Senate Bill 103.

ƒ

Inherent business, financial, or service risk.

Information collected and reviewed included the following:
ƒ

Texas Youth Commission Reform Plan, Richard Nedelkoff, TYC
Conservator, July 1, 2008.

ƒ

TYC Fiscal Year 2008 Annual Internal Audit Report, October 2008.

ƒ

General Appropriations Act (80th Legislature).

ƒ

Fourth Quarterly Report on the Activities of the Office of the Independent
Ombudsman for the Texas Youth Commission: July to September 2008,
Office of the Independent Ombudsman.

ƒ

Sunset Staff Report of the Texas Youth Commission, Texas Juvenile
Probation Commission, and Office of Independent Ombudsman, Sunset
Advisory Commission, November 2008.

ƒ

TYC organizational charts.

ƒ

Various TYC job descriptions and job postings.

ƒ

Workforce data for selected job classifications, including turnover rates,
length of service, average headcount, and average salaries.

ƒ

October 2008 and November 2008 leave and overtime summary reports
for juvenile correctional officers at all TYC facilities.

ƒ

TYC budget reports for fiscal years 2008 and 2009.

ƒ

Contracts procured by TYC between March 2007 and October 2008 and
related invoices.

ƒ

TYC’s disaster recovery plan.

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Procedures and tests conducted included the following:
ƒ

Conducted site visits at three TYC residential facilities: the Gainesville
State School, the Al Price State Juvenile Correctional Facility, and the
Corsicana Residential Treatment Center.

ƒ

Reviewed allegations of mistreatment that were identified as a concern by
TYC’s Office of Independent Ombudsman for fiscal years 2007 and 2008.

ƒ

Reviewed TYC’s contract management process and selected contracts
while the agency was under conservatorship from March 2007 to October
2008.

ƒ

Reviewed selected expenditures related to implementing Senate Bill 103
reforms for fiscal years 2007 and 2008.

ƒ

Reviewed controls over the collection, calculation, and submission of data
used in reporting selected performance measures.

ƒ

Interviewed the TYC Executive Commissioner, executive management,
and staff.

ƒ

Analyzed the implementation of the recommendation that TYC separate
youth by age.

ƒ

Analyzed the proximity of youth placed in TYC facilities to their
hometowns.

ƒ

Reviewed data on bed checks conducted at TYC facilities visited.

ƒ

Analyzed juvenile correctional officer-to-youth ratios at facilities visited.

ƒ

Compared budgeted maximum occupancy rates to actual occupancy rates
at facilities visited.

ƒ

Reviewed and analyzed selected allegations of mistreatment of youth for
the timeliness and execution of disciplinary actions.

ƒ

Verified the placements and operations of blue phones, which allow
youths to make phone calls to family members and various hotlines, and
security cameras at facilities visited.

ƒ

Tested selected personnel files for compliance with TYC policies and
procedures.

ƒ

Analyzed employee training documents for completion of training
curriculum.

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ƒ

Analyzed and tested various information technology systems used in the
investigations of alleged mistreatment of youth.

ƒ

Analyzed and tested controls over TYC’s General Accounting System.

Criteria used included the following:
ƒ

Texas Government Code, Chapter 2104 (Conservatorship as a Result of
Fiscal Mismanagement).

ƒ

Texas Government Code, Chapters 2155, 2261, and 2262 (Contract
Management).

ƒ

Title 1, Texas Administrative Code, Chapter 202 (Information Security
Standards).

ƒ

Senate Bill 103.

ƒ

Prior State Auditor’s Office recommendations.

ƒ

TYC policies and procedures related to oversight of alleged mistreatment,
security and monitoring of youth, management of agency resources, and
information security.

Project Information
Audit fieldwork was conducted from December 2008 through April 2009. We
conducted this performance audit in accordance with generally accepted
government auditing standards. Those standards require that we plan and
perform the audit to obtain sufficient, appropriate evidence to provide a
reasonable basis for our findings and conclusions based on our audit
objectives. We believe that the evidence obtained provides a reasonable basis
for our findings and conclusions based on our audit objectives.
The following members of the State Auditor’s staff performed the audit:
ƒ

Willie J. Hicks, MBA (Project Manager)

ƒ

Juan R. Sanchez, MPA, CIA, CGAP (Assistant Project Manager)

ƒ

Christine Bailey, CCP, GRP (Senior Classification Analyst)

ƒ

Isaac Barajas

ƒ

Robert Burg, MPA

ƒ

Erin Johnson Cromleigh

ƒ

Anton Dutchover
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ƒ

Jeffrey Grymkoski, MA

ƒ

Thomas Andrew Mahoney

ƒ

John Rios

ƒ

Michael Sanford

ƒ

Willie J. Showels

ƒ

Michael Stiernberg, MBA, JD

ƒ

Ken Wade

ƒ

Joseph Kozak, CPA, CISA (Information Systems Audit Team)

ƒ

Marlen Kraemer, MBA, CGAP, CISA (Information Systems Audit Team)

ƒ

Michael Yokie, CISA (Information Systems Audit Team)

ƒ

Worth Ferguson, CPA (Quality Control Reviewer)

ƒ

J. Scott Killingsworth, CIA, CGAP, CGFM (Quality Control Reviewer)

ƒ

Sandra Vice, CIA, CGAP, CISA (Assistant State Auditor)

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Appendix 2

Significant Events at TYC from March 2007 through January 2009
Table 9 shows a list of significant events that have occurred at the Texas
Youth Commission (TYC) from March 2007 through January 31, 2009.
Table 9

Significant Events at the TYC from March 2007 through January 2009
Conservator
Jay Kimbrough

Date
March 2007

Event
TYC board resigns and transfers duties to acting Executive Director Ed Owens
Governor Rick Perry appoints Jay Kimbrough as conservator of the TYC.

Ed Owens

June 2007

Jay Kimbrough resigns as conservator of the TYC.
Governor Perry appoints Ed Owens as the TYC’s second conservator.
Senate Bill 103 (80th Legislature), which creates the Office of Inspector General and the Office
of Independent Ombudsman, is signed by the Governor.
Dimitria Pope is appointed the TYC’s acting Executive Director.

Richard
Nedelkoff

October 2007

Acting Executive Director Dimitria Pope orders the removal of youth placed with Geo
Corporation’s Coke County Juvenile Justice Center (JJC) in Bronte, Texas, after recent audits of
the facility raised concerns about the safety and welfare of the youths.

December 2007

The Governor appoints Richard Neldekoff as the TYC’s third conservator.

February 2008

Acting Executive Director Dimitria Pope resigns.
Conservator Richard Nedelkoff closes the Sheffield Boot Camp facility in Sheffield, Texas, due to
TYC’s inability to recruit juvenile correctional officers and case managers to work in the West
Texas town.

End of
Conservatorship

June 2008

Conservator Richard Nedelkoff transfers the management of TYC’s Alleged Mistreatment Incident
system from the Youth Rights Division to the Office of Inspector General.

August 2008

Conservator Richard Nedelkoff appoints Cheryln Townsend as TYC Executive Director effective
October 1, 2008.

October 2008

Governor Perry removes the TYC from conservatorship and appoints Cheryln Townsend as
Executive Commissioner.

November 2008

Executive Commissioner Cheryln Townsend announces that TYC is eliminating 23 vacant central
office positions.

December 2008

TYC’s Administrative Investigation Management (AIM system) goes live. This system will replace
the former Alleged Mistreatment Incident system (AMI system) for managing investigations of
alleged mistreatment.

January 2009

TYC announces it is eliminating 430 positions effective March 1, 2009. Of the 430 positions, 100
were filled and 330 were vacant.

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Appendix 3

Status of TYC’s Implementation of High-risk Recommendations
Tables 10 through 12 summarize the status of the Texas Youth Commission’s
(TYC) implementation of each of the recommendations made in An
Investigative Report on the Texas Youth Commission (State Auditor’s Report
No. 07-022, March 2007) that auditors reviewed.
Table 10

Status of Implementation of High-risk Audit Recommendations
Related to the Oversight of Alleged Mistreatment
Recommendation

Auditors’ Comments

Fully Implemented Recommendations
1

TYC should transfer its automated grievance systems to
a
the Office of Inspector General.

In June 2008, TYC transferred the responsibilities for the
management of its Alleged Mistreatment Incident (AMI) system
to the Office of Inspector General.

2

TYC should perform Web-filtering to prevent users from
accessing sexually oriented sites.

TYC installed and maintains a filter that limits which Web pages
staff can access from a TYC computer. In addition, TYC
computers available for youth use are not connected to the
Internet. TYC stores Internet content it deems appropriate on
its servers, which allows it to limit the content it makes
accessible to computers within TYC’s residential facilities.

Substantially Implemented Recommendations
3

TYC should enforce a disciplinary policy that outlines
consequences for employees who mistreat or abuse
youths.

TYC revised and implemented a new disciplinary policy
effective December 1, 2008. This policy outlined specific
consequences for employees who mistreat or abuse youth.
Auditors did not test for compliance with the policy because
TYC implemented it during audit fieldwork.

4

TYC should ensure that all grievances are received and
investigated by requiring staff to immediately report
any suspected mistreatment or abuse of youth to the
Office of Inspector General for investigation.

Effective July 2008, TYC required that all allegations of
mistreatment be reported to and investigated by the Office of
Inspector General. However, auditors identified weaknesses in
TYC’s oversight processes.

5

TYC should require its executive director or his or her
designee to verify and approve “phase adjustments”
that result in extending a youth’s stay at a facility.

In June 2007, Senate Bill 103 became effective and required
TYC to determine whether a youth (1) has completed the
assigned minimum length of stay and (2) should be discharged,
released to parole, or remain in a high restriction facility. TYC
reported it established interim panels in August 2007 that
review recommendations to extend a youth’s stay beyond his or
her original sentence. However, as of February 2009, TYC was
still in the process of adopting policies and procedures for
conducting these reviews in a consistent and transparent
manner.

6

TYC should monitor employees’ computers to detect
storage of inappropriate images and refer employees to
the Office of Inspector General if inappropriate images
are detected.

TYC reported that it monitors employees’ computers for
inappropriate images upon investigative request only. In April
2007, TYC installed a Web-filtering system and revised its policy
on the appropriate use of information technology resources.
This policy stated that TYC’s Information Resources Division
may monitor any TYC resource to ensure the appropriate use of
state property. However, TYC reported that investigative
requests to monitor employees’ computers have decreased to
almost none since it installed the Web-filtering system. As a
result, TYC is not actively monitoring employees’ computers.

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Status of Implementation of High-risk Audit Recommendations
Related to the Oversight of Alleged Mistreatment
Recommendation

Auditors’ Comments

Incomplete/Ongoing Recommendations
7

TYC should allow youths to challenge consequences for
misconduct separately from the grievance process.

8

TYC should develop and implement a policy that
outlines consequences to youths according to the level
and type of their misconduct.

As of February 2009, TYC was in the process of adopting policies
and procedures that define a process to (1) allow youths to
challenge consequences (such as loss of privileges or transfer to
a different residential facility) separately from submitting
grievances or complaints and (2) outline the consequences to
youth for misconduct based on the level and type of
misconduct.

Not Implemented Recommendations
9

TYC should strengthen password protection on all its
computers.

Improvements are still needed to strengthen the password
protection and comply with information security standards in
Title 1, Texas Administrative Code, Chapter 202, on all TYC
computers.

a

The phrase “alleged mistreatment” is used in this report to be consistent with TYC’s terminology for discussing alleged
incidents of abuse, neglect, or exploitation. The term “grievance” was used in An Investigative Report on the Texas Youth
Commission (State Auditor’s Office Report Number 07-022, March 2007). TYC considers grievances to be concerns by youth,
parents, and other youth advocates regarding the denial of certain rights to youth. In general, grievances are of a less serious
nature than allegations of mistreatment.

Table 11

Status of Implementation of High-risk Audit Recommendations
Related to Security and Monitoring
Recommendation

Auditor Comments

Fully Implemented Recommendations
1

TYC should consider the addition of some single-cell
dorms at facilities.

As of February 2009, TYC was in the process of reconfiguring
open-bay dorms at six residential facilities into single cells. For
fiscal year 2008, TYC reported that it expended approximately
$3.4 million toward reconfigurations at the following
residential facilities: the Al Price State Juvenile Correctional
Facility, the Crockett State School, the Evins Regional Juvenile
Center, the Giddings State School, the McLennan County State
Juvenile Correctional Facility, and the Ron Jackson State
Juvenile Correctional Complex.

2

TYC should require investigators to conduct
unannounced visits.

Senate Bill 103 established the Office of Inspector General,
which has investigators assigned to each residential facility to
perform unannounced visits as necessary.

3

TYC should increase the number and placement of
electronic monitoring devices (surveillance cameras and
audio recording devices).

TYC reported that it installed approximately 11,000 additional
surveillance devices in its residential facilities. However,
auditors identified concerns regarding the installation of the
video surveillance equipment.

4

TYC should evaluate the West Texas State School for
possible closure. Youths could be transferred to other
facilities over the next 12 to 24 months, in the event
that a decision is made to close the school.

TYC evaluated the West Texas State School for possible closure
and elected not to close the facility during fiscal year 2008.
TYC’s Executive Commissioner continues to evaluate the
continued operation of the West Texas State School and other
residential facilities according to the following factors: location
of family resources for the youths in facilities; availability of
workforce and specialized treatments; community support and
resources; percentage of youths from each region; the type of
commitments; any specialized treatment needs of the youth;
and TYC’s ability to operate a cost-effective facility.

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Status of Implementation of High-risk Audit Recommendations
Related to Security and Monitoring
Recommendation

Auditor Comments

Substantially Implemented Recommendations
5

TYC should separate different categories of youths,
including (1) separating youths by age and (2)
separating youths by severity of offense committed by
TYC youth.

Senate Bill 103 required TYC to separate youths 15 years old or
younger from older youths, and TYC drafted policies requiring
youths 15 years old or younger to be separated from older
youths. TYC separated youths 15 years old or younger from
older youths in two of three facilities that auditors visited.
However, one facility did not separate its female youths by age
or youths assigned to its central stabilization unit.
TYC did not separate youths by severity of offense. However,
Senate Bill 103 prohibited the placement of youths who are
convicted of misdemeanors in a TYC facility. Other than age,
TYC reported that the driving factor in its placement decisions
is the treatment needs of the youths.

6

TYC should establish and enforce a limit on the number
of youths who can be assigned to an individual, openbay dorm.

While TYC is in the process of reconfiguring its open-bay dorms
into single cells, it continues to house youth in a limited
number of open-bay dorms until those reconfigurations are
complete. As of February 2009, TYC had not established
written requirements regarding the number of youths who can
be housed in an open-bay dorm. However, TYC reported that
the physical capacity of its open-bay dorms is 24 beds, unless
bunk beds are used. Auditors reviewed dorm assignments at
the Al Price State Juvenile Correctional Facility, one of six
facilities with open-bay dorms. Twenty-five of 30 (83.3
percent) daily dorm assignments reviewed were in compliance
with TYC’s established maximum capacity of 24 youth per
single open-bay dorm. Two dorms exceeded the daily
maximum capacity by two youths and three dorms exceeded
the daily maximum capacity by one youth.

7

TYC should conduct more frequent and random bed
checks.

TYC requires its juvenile correctional officers to conduct hourly
headcounts of youth. Auditors identified inconsistencies in the
frequency of hourly headcounts at three facilities visited.

8

TYC should enforce maximum occupancy rates.

During fiscal year 2008, TYC experienced a significant decline
in its youth population after the enactment of Senate Bill 103.
Ten of 11 TYC residential facilities did not exceed their
maximum physical capacity rate during fiscal year 2008.
Giddings State School exceeded its physical capacity rate by
three youths in September 2007.

9

TYC should fill the vacant dog-handler position and
evaluate current resources to determine if additional
positions are necessary to search staff and visitors for
drugs and other contraband.

TYC had originally filled all dog-handler positions. However, as
of February 2009, TYC had four filled dog-handler positions and
one vacant position. The vacant position did not become
vacant until November 2008. TYC did not evaluate whether
additional positions were necessary to conduct searches of staff
and visitors for drugs and other contraband.

10

TYC should (1) maintain surveillance data from
monitoring devices for at least 15 working days or until
grievances alleged to have occurred on a particular day
are resolved and (2) consider using digital equipment,
which may be more cost-effective than the current
equipment in use.

TYC reported that it maintains surveillance data for six months.
However, TYC has not established requirements or a process
for ensuring the retention of the surveillance data, which
increases the risk that surveillance data may be accidentally or
intentionally altered or deleted. In addition, auditors
identified areas for improvement in TYC’s oversight of the
video surveillance equipment used for recording surveillance
data.

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Status of Implementation of High-risk Audit Recommendations
Related to Security and Monitoring
Recommendation
11

TYC should place youths in close proximity to their
homes or communities, when possible.

Auditor Comments
TYC reported that it considers a youth’s proximity to home
when making placement decisions; however, the youth’s
treatment needs are the key factors in these decisions. As of
February 2009, TYC was in the process of adopting
requirements to make proximity to a youth’s home a required
factor for consideration in placement decisions. According to
data provided by TYC, it placed the majority of youth in
facilities that were in the same region as the region in which
the youth were sentenced by a court.

Incomplete/Ongoing Recommendations
12

TYC should establish and enforce juvenile correctional
officer-to-youth ratios that provide for a safe and
effective environment.

Senate Bill 103 mandated a juvenile correctional officer-toyouth ratio of 1 to 12. As of February 2009, TYC was in the
process of adopting requirements to ensure enforcement of this
mandate. However, the juvenile correctional officer-to-youth
ratio continues to vary significantly among individual facilities.
For example, one facility consistently met or was below the
required ratio of 1 to 12, while another facility had a ratio of 1
to 18.

13

TYC should search staff for drugs and contraband,
including staff working on night shifts, and consider
random drug testing.

While TYC has policies allowing it to conduct contraband
searches of employees, it has not defined the documentation
requirements for these contraband searches. In addition, only
one of three residential facilities auditors visited could provide
documentation showing that it had conducted contraband
searches on employees during fiscal year 2008. This facility
had documented two contraband searches; the other two
facilities could not provide documentation of contraband
searches they reportedly performed. TYC does not conduct
random drug tests; it limits its drug testing to job applicants
and current employees who operate motor vehicles used to
transport youths.

14

TYC should rotate juvenile correctional officers’ dorm
assignments every six months so that they do not always
work with the same personnel and supervise the same
youths.

Senate Bill 103 required the rotation of juvenile correctional
officer assignments at set intervals so that a juvenile
correctional officer is not assigned to the same station for an
extended period of time. However, TYC assigned juvenile
correctional officers permanently to specific dorms during
fiscal year 2008. Officers were reassigned only in instances in
which an allegation had been made against the officer or to
ensure adequate coverage of a dorm. As of February 2009, TYC
was in the process of adopting policies requiring juvenile
correctional officers to have rotated assignments at regular
intervals.

Not Implemented Recommendations
15

TYC should replace some solid doors with glass doors to
allow staff to monitor youths more easily.

TYC reported that it did not replace any solid doors; however,
it installed additional surveillance cameras to address concerns
about staff’s ability to monitor youths.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 72

Table 12

Status of Implementation of High-risk Audit Recommendations for Management of Agency Resources
Recommendation

Auditor Comments

Fully Implemented Recommendations
1

TYC should establish and implement a policy that prohibits
TYC or its contractors who work with youth from hiring a
convicted felon or sex offender.

TYC established policies prohibiting TYC employees and
contractors who work with youth from hiring convicted felons.
However, auditors identified weaknesses in TYC’s process for
conducting criminal history checks of contractors.

2

TYC should require and ensure that contractors that
provide services to TYC’s youth be fingerprinted and
undergo criminal background checks prior to their having
contact with the youths.

TYC established a standard provision for its contracts that
requires contractors’ employees and subcontractors to undergo
criminal history checks prior to having contact with youths.
One of six contracts auditors reviewed involved providing direct
care services to youth. For that contract, TYC conducted
criminal history checks on the contractor’s employees.

3

TYC should obtain fingerprints from all employees so that
background checks can be performed by the Department
of Public Safety (DPS) and Federal Bureau of Investigation
databases.

TYC requires employees, volunteers, and contractors to provide
fingerprints; the fingerprinting is performed by a DPS
contractor. The contractor sends the results of fingerprintbased criminal history checks to DPS, which forwards the results
to TYC’s Human Resources Division.

4

TYC should require and ensure that post-employment
criminal history checks on TYC employees are conducted
at least every two years.

In August 2007, TYC established requirements for conducting
criminal history checks on its employees, volunteers, and
contractors on an annual basis. During site visits, auditors
confirmed that employees and volunteers received a criminal
history check on an annual basis.

5

TYC should establish on-site grievance officers at TYC
facilities who report to the Office of Inspector General.

TYC established investigator positions assigned to each of its
residential facilities; these investigators report to the Office of
Inspector General.

6

TYC should fill vacant positions for investigators to more
effectively handle the investigation of grievances.

As of February 2009, TYC had 21 investigator positions in the
Office of Inspector General (11 criminal investigators and 10
administrative investigators). One of these positions was
vacant.

7

TYC should analyze how juvenile correctional officers are
(1) allocated across facilities, (2) scheduled at individual
facilities, and (3) tasked with duties other than youth
supervision to ensure the most effective use of the
officers.

TYC conducts weekly assessments of its juvenile correctional
officers’ workload, including shift coverage, and officer-toyouth ratios for each dorm. These assessments were reviewed
by the assistant superintendent in charge of scheduling juvenile
correctional officers at each facility.

8

TYC should develop a core training curriculum that all new
juvenile correctional officers must receive during their
first 30 days of employment and require annual training
updates. At a minimum, the curriculum should include (1)
proper behavior for juvenile correctional officers, (2)
proper techniques for the control and restraint of youths,
and (3) the grievance process.

TYC established a training program and required that its
juvenile correctional officers complete at least 300 hours of
training prior to assuming responsibility for sole supervision of
youth. This training program includes courses on (1) proper
behavior for juvenile correctional officers, (2) proper
techniques for the control and restraint of youth, and (3) TYC’s
alleged mistreatment process.

9

TYC should identify the minimum equipment and supplies
needed at facilities to operate effectively and ensure that
these items are available.

From June 2008 through November 2008, TYC conducted
assessments of its 11 facilities. These assessments evaluated
juvenile correctional officers’ equipment needs, the condition
of safety equipment, and facility maintenance issues. TYC
reported that it is taking corrective actions for the issues
identified during the assessments.

10

TYC should require and enforce a code of conduct for
facility staff that models appropriate behavior for the
youths.

TYC developed an Agency Integrity Program in January 2008
that defines a code of conduct outlining the expectations for
staff to behave as positive role models and maintain
professional relationships with the youth. Compliance with the
code of conduct is enforced by human resources staff through
TYC’s disciplinary action process.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 73

Status of Implementation of High-risk Audit Recommendations for Management of Agency Resources
Recommendation

Auditor Comments

Substantially Implemented Recommendations
11

TYC should amend its policy related to criminal
background checks so that the results of these checks are
retained in employee files.

TYC maintained documentation in employees’ files showing
when criminal history checks were performed. Auditors
identified instances in which TYC lacked documented criminal
history checks; however, TYC had not established a records
retention requirement concerning criminal history checks as of
February 2009. TYC staff stated they retain copies of criminal
history checks for 90 days. In addition, TYC retained all
electronic data of criminal history checks it received from DPS
since March 2007.

12

TYC should require that all contracts between TYC and a
contractor contain a provision requiring the contractor to
certify that the contractor does not have an employee
who has been convicted of an offense and that the
contractor will take reasonable steps to become informed
of each proposed employee’s criminal convictions prior to
employment and during employment. The contract should
be voidable in the event that TYC discovers that the
contractor has violated these terms of the contract.

TYC’s contracts require contractors’ employees and
subcontractors to receive criminal history checks prior to the
contractor delivering services to TYC. However, auditors
identified weaknesses in TYC’s process for conducting criminal
history checks of its contractors.

13

TYC should clarify promotion and transfer guidelines to
include a review of the history of disciplinary actions,
evaluations, and all current and prior grievances.

TYC revised its promotion and transfer guidelines as of June
2008 to reference applicable selection and hiring forms used for
an employee’s transfer or promotion. The forms require a
review of the employee’s history of disciplinary actions,
evaluations, and all current and prior grievances. Five of seven
transfer records auditors reviewed included documentation
confirming that (1) TYC human resources staff reviewed
disciplinary actions and grievances, and (2) department
supervisors reviewed the prior evaluations before approving a
transfer.

14

After grievances involving staff are confirmed, local
human resources, central office human resources, and
central office general counsel should determine
disciplinary actions based on a policy that outlines a range
of disciplinary actions.

TYC implemented a new disciplinary action process effective
December 1, 2008. The new process outlined consequences to
employees according to the level and type of misconduct.
However, auditors did not test compliance with the policy
because TYC implemented it during audit fieldwork.

15

TYC should ensure that employee performance evaluations
better reflect employee performance by allowing a
greater range of rating levels (such as excellent,
satisfactory, needs improvement, and unsatisfactory) and
that these evaluations take disciplinary actions into
account.

TYC revised its employee performance evaluations to include a
rating level and consideration of disciplinary actions in
performance reviews of Juvenile Correctional Officer II, III, and
IV positions. These positions have direct responsibility for
monitoring youths. However, TYC did not adopt these revisions
for performance reviews of supervisor positions (Juvenile
Correctional Officer V and VI positions). These positions are
responsible for oversight of juvenile correctional officers and
treatment programs for youth.

16

TYC should require juvenile correctional officers to attain
a “satisfactory” rating on at least 75 percent of the
required elements to receive an overall “satisfactory”
rating.

As of May 2008, TYC’s performance evaluations for Juvenile
Correctional Officer II, III, and IV positions (which have direct
responsibility for monitoring youth) require employees to attain
a satisfactory rating on at least 80 percent of performance
requirements. However, Juvenile Correctional Officer V and VI
positions (which are primarily managerial positions) were not
evaluated according to this rating system. The supervisor
positions continued to be evaluated using TYC’s prior evaluation
form.

17

TYC should prepare employee performance evaluations at
least annually.

TYC established requirements that performance evaluations be
conducted six months after an employee’s date of hire, again at
12 months after the date of hire, and every year thereafter.
However, 40 of 93 (43.0 percent) performance evaluations
auditors reviewed were not performed within the required
timeframes.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 74

Status of Implementation of High-risk Audit Recommendations for Management of Agency Resources
Recommendation

Auditor Comments

Incomplete/Ongoing Recommendations
18

TYC should establish on-site certified sex offender
counselor positions at TYC facilities.

As of February 2009, TYC had not hired any additional certified
sex offender counselors for its residential facilities. Although
TYC had a staff of 27 treatment counselors, only 6 were
certified as sex offender counselors. TYC reported that it had
developed an agency-wide program for its treatment counselors
to obtain a sex offender counselor certification; participants in
the program are expected to obtain certifications in 2010. TYC
added that competition from the private sector has made it
difficult to hire certified sex offender counselors.

19

TYC should reallocate central office staff resources to the
highest priority functions.

TYC conducted an analysis of its organizational structure.
However, TYC lacked documentation describing what changes
were made to its organizational structure or explaining why
changes were made.

20

TYC should analyze its juvenile correctional officers,
including a review of overtime and the ability of
employees to use accrued leave.

TYC reported that it provided weekly overtime reports on
juvenile correctional officer staff to each facility’s
superintendent. However, auditors were not able to determine
how superintendents used the reports for reviewing overtime or
the ability of employees to use accrued leave.

21

TYC should establish and enforce a policy to assign staff
younger than 21 years of age to facilities that house
younger youths.

As of February 2009, TYC was in the process of adopting a policy
to require at least a three-year age difference between a
juvenile correctional officer and youths whom the officer
supervises.

22

TYC should review rehabilitation programs to improve
their effectiveness.

As of February 2009, TYC reported it was in the process of
implementing a new rehabilitation program, CoNEXTions. TYC
reported its Research Department will be conducting a Process
Evaluation of the program to ensure that it is being
implemented as designed, as well as an outcome evaluation to
determine its effect.

Not Implemented Recommendations
23

TYC should administer reading comprehension and writing
tests to facility staff and require passing scores prior to
extending a job offer.

TYC management decided not to implement this
recommendation.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 75

Appendix 4

TYC’s Self-reported Status of High-risk Recommendations That Were
Not Selected for Follow-up Audit Work
Table 13 lists the Texas Youth Commission’s (TYC) self-reported status for
high-risk recommendations that were not selected for follow-up audit work.
Unless otherwise noted, TYC’s responses were as of December 31, 2008.
Table 13

High-risk Recommendations Not Selected for Follow-up Audit Work from
An Investigative Report on the Texas Youth Commission
(SAO Report No. 07-022, March 2007)

Recommendation

TYC
Self-reported
Implementation
Status

TYC Comments

1

TYC should, upon admission to a youth
facility, provide an information packet
to the youth and parents or guardians
describing facility services and
grievance procedures.

Fully Implemented

Parents or guardians are sent an orientation packet within 48 hours of
their youths’ arrival at one of the Orientation and Assessment Units
which includes, among other things: an introduction to TYC; letters
discussing services such as education and treatment; the hotline number
and internet contact information; an information pamphlet that discusses
the youths basic rights and how to make a complaint or file a grievance;
and the Parents’ Bill of Rights which outlines their rights as a parent or
guardian with a child in TYC. Youth are also provided this information
during their orientation through written materials and discussions with
staff.

2

TYC should take action to increase the
job applicant pool for juvenile
correctional officers by encouraging
the hiring of part-time officers such as
state, military, and other retirees.

Fully Implemented

TYC currently utilizes part-time JCOs in a limited capacity. However, as
the right-sizing of the agency is finalized and staffing requirements are
determined, we will be able to establish the level of part-time JCO
employment that would be most beneficial to the agency. TYC can
illustrate historically the level of full time JCO staff we can maintain at
any given location. As staffing plans are finalized, any staffing
requirement above what has been proven historically as difficult to
maintain can be supplemented by part-time JCOs.
There has also been consideration of on-call JCOs. This is currently
utilized successfully at half-way houses but could also be a valuable
resource at institutions as well. These part-time employees can consist of
state, military, and other retirees.
Part-time employees will often require specialized training plans that
must be flexible with the employees other commitments such as military,
school or other employment which will require revision to the delivery of
our existing 300 hour training.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 76

Appendix 5

Organizational History of TYC’s Oversight of Alleged Mistreatment of
Youth
Figures 4 and 5 show the Texas Youth Commission’s (TYC) divisions with
oversight responsibilities for investigating allegations of mistreatment against
youth. Figure 4 shows the oversight structure prior to June 2008.
Figure 4

TYC’s Oversight Structure Prior to June 2008

Texas Youth
Commission

General Counsel

Youth Rights
Division

Youth
Care
Investigators
Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 77

Office of
Inspector
General

Incident
Reporting
Center

Criminal
Investigators

Figure 5 shows TYC’s oversight structure for allegations of mistreatment as
of June 2008. Youth Care Investigators were transferred from the General
Counsel’s Youth Rights Division to the Office of Inspector General in June
2008 and were renamed Administrative Investigators.
Figure 5

TYC Commission’s Oversight Structure as of June 2008

Texas Youth
Commission

Office of
Inspector
General

Incident
Reporting
Center

Criminal
Investigators

Administrative
Investigators

Source: TYC.

Figure 6 on the next page shows an overview of the Incident Reporting
Center, which receives all reported incidents ranging from grievances
regarding the quality of care and a violation of youth rights to allegations of
abuse, neglect, and exploitation. The Office of Inspector General manages the
Incident Reporting Center, Administrative Investigators, and Criminal
Investigators. The Youth Rights Division is managed by TYC’s general
counsel.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 78

Figure 6

TYC’s Incident Reporting Center’s Process
for Assigning Incidents for Investigation

Incident Reported
(Call, E-mail, Fax)

Incident Report
Center

Assignment

Youth Grievance
System

Criminal
Investigators

Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 79

Administrative
Investigators

Appendix 6

Profile of New Youth Commitments to TYC Facilities from Fiscal Year
2006 to Fiscal Year 2008
Table 14 lists the total number of youths who were committed to Texas Youth
Commission (TYC) facilities for specific criminal offenses from fiscal year
2006 to 2008. The totals may not represent total youths committed because
youths may have committed multiple offenses.
Table 14

Criminal Offense Classifications for Youths Committed to TYC Facilities
Fiscal Years 2006 to 2008
Fiscal Year
2006

Offense Classification

Fiscal Year
2007

Fiscal Year
2008

Burglary

567

458

376

Aggravated Robbery

134

190

140

Drug Offenses

306

243

138

Aggravated Assault

182

198

132

Unlawful Use of a Motor Vehicle

211

136

108

Sexual Assault or Aggravated Sexual Assault

146

135

105

Simple Assault

292

228

95

Robbery

92

91

71

157

117

57

94

65

57

125

82

40

Unlawful Weapons

74

71

39

Arson

31

32

37

Injury to Child/Elderly

40

42

29

Criminal Mischief

48

41

18

Deadly Conduct

15

7

17

Organized Criminal Activity

21

21

14

Murder, Capital Murder

14

9

8

3

4

2

Theft
Indecency with a Child
Evading/Escaping/Resisting Arrest

Kidnapping or Aggravated Kidnapping
Criminal Trespass
Other Crime
Totals

19

25

Not Applicable

167

132

99

2,738

2,327

1,582

Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 80

Appendix 7

Youth Population at TYC-operated Facilities as of January 31, 2009
Table 15 lists the Texas Youth Commission’s (TYC) youth population for
each of its residential facilities, including summary totals of the youth
population for its halfway houses and contract care providers. The youth
population is shown in terms of:
ƒ

Maximum Bed Capacity.

ƒ

Physical Bed Capacity.

ƒ

Actual Population.

The maximum number of beds that can be placed in
a facility’s physical space as determined by the TYC.
The number of youth beds that TYC projects would
be needed based on appropriated funds and the project average daily
population.
The actual number of youth beds occupied at a facility.

Table 15

Youth Population at TYC-operated and Contract Care Facilities
As of January 31, 2009

Facility

Maximum Bed
Capacity

Physical Bed
Capacity

Difference
Between
Physical Bed
Capacity and
Actual
Population

Actual
Population

Percent of
Physical Bed
Capacity Used

Al Price State
Juvenile
Correctional Facility

312

216

217

(1)

100.5%

Corsicana
Residential
Treatment Center

203

187

149

38

79.7%

Crockett State
School

264

208

197

11

94.7%

Evins Regional
Juvenile Center

240

176

182

(6)

103.4%

Gainesville State
School

386

288

262

26

91.0%

Giddings State
School

384

320

336

(16)

105.0%

McLennan County
State Juvenile
Correctional Facility

640

592

393

199

66.4%

Ron Jackson State
Juvenile
Correctional
Complex

356

256

154

102

60.2%

Ron Jackson State
Juvenile
Correctional
Complex II

113

108

29

79

26.9%

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 81

Youth Population at TYC-operated and Contract Care Facilities
As of January 31, 2009

Facility

Maximum Bed
Capacity

Physical Bed
Capacity

Difference
Between
Physical Bed
Capacity and
Actual
Population

Actual
Population

Percent of
Physical Bed
Capacity Used

Victory Field
Correctional
Academy

336

336

93

243

27.7%

West Texas State
School

220

240

90

150

37.5%

Total, Facilities

2,927

2,102

825

71.8%

92.2%

Adjustment for 2.5
percent Vacancy
a
Rate

(59)

Halfway Houses

218

201

17

3,086

2,303

783

74.6%

205

205

0

100.0%

3,291

2,508

783

76.2%

Total, TYC-operated Facilities
Contract Care
Total Residential Population
a

The vacancy rate is the percentage of physical bed capacity expected to be vacant due to the exiting and the admission
of youth.
Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 82

Appendix 8

TYC’s Placement of Youth by Region
Table 16 lists (1) the number and percentage of youth whom the Texas Youth
Commission (TYC) placed within the same region as the region in which the
youth was committed and (2) the total and percentage of youth who were
placed outside the region of commitment.
Table 16

Region of Commitment and Region of Placement of Youth in TYC Facilities

a

As of January 31, 2009
Region of Placement

Facility Type
Institution

Region of
Commitment
1. North

Total

188

759

54.5%

45.5%

2. West

52

73

18

24

167

43.7%

56.3%

3. South

102

20

212

124

458

46.3%

53.7%

94

4

48

414

560

73.9%

26.1%

662

183

349

750

1,944

57.3%

42.7%

1. North

35

2

22

0

59

59.3%

40.7%

2. West

13

16

9

0

38

42.1%

57.9%

3. South

13

5

31

0

49

63.3%

36.7%

4. East

16

0

39

0

55

0.0%

100.0%

77

23

101

0

201

40.8%

59.2%

1. North

23

7

6

15

51

45.1%

54.9%

2. West

10

25

6

4

45

55.6%

44.4%

3. South

11

3

24

12

50

48.0%

52.0%

4. East

17

3

19

20

59

33.9%

66.1%

61

38

55

51

205

44.9%

55.1%

472

95

99

203

869

54.3%

45.7%

2. West

75

114

33

28

250

45.6%

54.4%

3. South

126

28

267

136

557

47.9%

52.1%

4. East

127

7

106

434

674

64.4%

35.6%

800

244

505

801

2,350

54.8%

45.2%

Subtotals
1. North

Grand Totals
a

4. East

71

Subtotals

All Facility Types

3. South

86

Subtotals

Contract

2. West

Percentage
Placed
Outside
Region of
Commitment

414

4. East

Halfway House

1. North

Percentage
Placed
Within
Region of
Commitment

This table does not include 158 youths in the assessment program.

Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 83

Appendix 9

Map of TYC-operated Facilities and Contract Care Providers,
Including Juvenile Correctional Officer (JCO) and Youth Populations as
of January 31, 2009
Figure 7

Map of TYC-operated Facilities and Contract Care Providers

Secure Institutions

Statewide Totals
JCOs - 2,419
Youths - 2,508
Community Based Halfway Houses

Contract Care Residential Programs

Source: TYC.
A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 84

Region 1

Secure Institutions

City

County

JCOs Youths

Corsicana Residential Treatment Facility

Corsicana

Navarro

208

149

Gainesville State School

Gainesville

Cooke

215

262

McLennan County State Juvenile Correctional
Facility

Mart

McLennan

467

393

Cottrell House

Dallas

Dallas

14

25

McFadden Ranch (chemical dependency
treatment)

Roanoke

Denton

28

40

Willoughby House (for girls)

Fort Worth

Tarrant

14

12

Brookhaven Youth Ranch, Inc.

West

McLennan

n/a

a

13

Mel Matthews Vocational Center

Cisco

Eastland

n/a

a

29

Specialized Alternatives for Youth (SAFY)

Dallas

Dallas

n/a

a

19

City

County

Victory Field Correctional Academy

Vernon

Wilbarger

West Texas State School

Pyote

Community Based Halfway Houses

Contract Care Residential Programs

Region 2

Secure Institutions

JCOs Youths
128

93

Ward

84

90

El Paso

El Paso

14

23

Post

Garza

n/a

a

38

City

County

JCOs

Youths

Edinburg

Hidalgo

187

182

298

183

Community Based Halfway Houses
Schaeffer House
Contract Care Residential Programs
Garza County Regional Juvenile Center

Region 3

Secure Institutions
Evins Regional Juvenile Center

Ron Jackson State Juvenile Correctional Complex
Brownwood
b
Units I and II

Brown

Community Based Halfway Houses
Ayres House

San Antonio

Bexar

14

18

Beto House

McAllen

Hidalgo

15

18

Edna Tamayo House

Harlingen

Cameron

15

22

Turman House

Austin

Travis

15

20

York House

Corpus
Christi

Nueces

13

23

Cornell Corrections of Texas, Inc.

San Antonio

Bexar

n/a

a

21

Alliance Children Services, Inc.

Austin

Travis

n/a

a

1

Associated Marine Institutes, Inc.

Los Fresnos

Cameron

n/a

a

24

W.I.N.G.S. for Life, Inc.

Marion

Guadalupe

n/a

a

9

Contract Care Residential Programs

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 85

Region 4

Secure Institutions

City

County

JCOs Youths

Al Price State Juvenile Correctional Facility

Beaumont

Jefferson

202

217

Crockett State School

Crockett

Houston

210

197

Giddings State School

Giddings

Lee

278

336

Alliance Children Services, Inc.

Houston

Harris

n/a

a

4

Byrd’s Therapeutic Group Home

Houston

Harris

n/a

a

10

Gulf Coast Trades Center

New Waverly Walker

n/a

a

30

Southwest Key Supervised Apartment Living

Houston

n/a

a

7

Contract Care Residential Programs

a
b

Harris

TYC-employed juvenile correctional officers do not work on the staff of contract care providers.
TYC considers Ron Jackson State Juvenile Correctional Complex to be two separate residential facilities.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 86

Appendix 10

TYC Workforce Summary for Fiscal Years 2004 through 2008
Excluding interagency transfers, turnover within the Texas Youth
Commission (TYC) was 30.0 percent in fiscal year 2008. This turnover rate
was higher than the average turnover for all state agencies (17.3 percent) and
higher than the average turnover for public safety and criminal justice or
General Appropriations Act Article V agencies (18.5 percent) during fiscal
year 2008. Figure 8 summarizes the TYC’s turnover for fiscal year 2004 to
fiscal year 2008 and compares the TYC’s turnover rates with turnover of
Article V agencies and all state agencies.
Figure 8

Turnover for TYC, Article V Agencies and Statewide
Fiscal Years 2004 to 2008
TYC Turnover
1,782
1,603
37

1,890
69
1,368

54
1,310

67

1,267

1,237

281

312

435

FY 2004

FY 2005

FY 2006

FY 2007

359
FY 2008

Involuntary

Voluntary

Retirements

Total Separations

FY 2004

FY 2005

FY 2006

FY 2007

30.0%

18.5%

17.3%

36.8%

19.4%

17.4%

35.6%

19.0%

15.8%

31.9%

18.5%

15.1%

554

16.9%

942

950

26.3%

50

16.7%

1,281

Statewide, Article V, and TYC Turnover

FY 2008

Statewide (Excluding Transfers)
Article V: Public Safety & Criminal Justice (Excluding Transfers)
Agency (Excluding Transfers)

Source: The Comptroller of Public Accounts’ Uniform Statewide Payroll/Personnel System.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 87

Figure 9 shows TYC’s full-time equivalent employees for fiscal years 2004
through 2008. Auditors did not analyze fiscal year 2009 totals; however, the
TYC Executive Commissioner announced reductions in the workforce that
eliminated (1) 23 vacant positions in TYC’s central office in November 2008
and (2) 430 agency-wide positions effective March 1, 2009.
Figure 9

Full-time Equivalent (FTE) Employees at TYC
Fiscal Years 2004 to 2008

4,967.5

5,009.3

4,859.8

4,859.8
4,273.9

4,594.8

4,704.1

FY 2004

FY 2005

4,696.2

4,615.4
4,113.1

FY 2006
FTEs

FY 2007

FY 2008

FTE Cap

Source: State Auditor’s Office’s Full-time Equivalent Employee Reporting System.

TYC experienced a reduction in its turnover rates for juvenile correctional
officers and case managers during fiscal year 2008. However, the turnover
rates for those positions in fiscal year 2008 were still high when compared to
the average fiscal year 2008 turnover rate for all state agencies. Table 17 on
the next page lists TYC’s turnover rates and average length of employment for
its juvenile correctional officers and case managers who voluntarily and
involuntarily separated from TYC during fiscal years 2006 through 2008.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 88

Table 17

Turnover Rate and Average Length of Employment for TYC’s
a
Juvenile Correctional Officers and Case Managers
Fiscal Years 2006 to 2008
Fiscal Year 2006

Job
Classification

Turnover
Rate

Average
Length of
Employment
b
with TYC

Fiscal Year 2007

Turnover
Rate

Fiscal Year 2008

Average
Length of
Employment
b
with TYC

Turnover
Rate

Average
Length of
Employment
b
with TYC

Juvenile
Correctional
Officer I

112.6%

4 months

110.8%

3 months

71.1%

3 months

Juvenile
Correctional
Officer II

59.5%

9 months

92.1%

7 months

79.9%

6 months

Juvenile
Correctional
Officer III

38.8%

1 year,
9 months

50.6%

1 year,
7 months

49.5%

1 year,
5 months

Juvenile
Correctional
Officer IV

21.8%

7 years,
3 months

28.7%

7 years,
1 month

25.0%

6 years,
8 months

Juvenile
Correctional
Officer V

24.9%

6 years,
2 months

32.8%

6 years,
5 months

24.1%

6 years,
10 months

Juvenile
Correctional
Officer VI

16.4%

9 years,
6 months

24.1%

9 years,
10 months

19.2%

9 years,
10 months

Case Manager I

55.2%

1 year,
10 months

21.4%

2 years,
3 months

31.4%

2 years,
10 months

Case Manager II

27.1%

2 years,
11 months

41.0%

3 years,
8 months

19.6%

4 years,
3 months

Case Manager III

31.3%

5 years,
4 months

33.0%

5 years,
5 months

18.7%

5 years,
5 months

Case Manager IV

Not Applicable

Not Applicable

Not Applicable

Not Applicable

25.0%

5 years,
4 months

TYC
(All Positions)

36.9%

7 years,
4 months

40.7%

7 years

32.5%

6 years

Statewide
(Excludes
Interagency
Transfers)

15.8%

5 years,
11 months

17.4%

6 years,
3 months

17.3%

6 years,
4 months

a

Unless otherwise noted, turnover rates include interagency transfers, which are considered a loss to the agency. Interagency transfers
are employees transferring from one state agency to another.
b
Juvenile correctional officers follow a career ladder that makes the average length of employment for some positions appear low.
The career ladder allows employees to move to a higher position once they have met certain criteria related to performance and time
in the position. For example, employees at the lowest levels (levels I and II) may stay in those positions for only 3-6 months before
moving to a higher level.
Source: The Comptroller of Public Accounts’ Uniform Statewide Payroll/Personnel System.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 89

Table 18 lists the TYC headcount rates and average salaries for juvenile
correctional officers and case managers for fiscal year 2006 to fiscal year
2008.
Table 18

Average Headcounts and Salaries for TYC Juvenile Correctional Officers and Case Managers
Fiscal Years 2006 to 2008
Fiscal Year 2006
Job Classification

Average
Headcount

Average
Salary

Fiscal Year 2007
Average
Headcount

Average
Salary

Fiscal Year 2008
Average
Headcount

Average
Salary

Juvenile Correctional
Officer I

613.50

$21,693

196.75

$22,149

208.25

$24,003

Juvenile Correctional
Officer II

336.25

$23,598

397.50

$24,300

274.25

$26,007

Juvenile Correctional
Officer III

510.75

$27,046

740.75

$28,123

612.25

$29,336

Juvenile Correctional
Officer IV

1,007.50

$31,390

1,005.50

$32,384

997.50

$33,032

Juvenile Correctional
Officer V

321.75

$32,442

314.25

$33,488

266.00

$34,383

Juvenile Correctional
Officer VI

158.50

$35,756

153.25

$36,946

145.50

$37,825

Case Manager I

14.50

$26,332

14.00

$27,250

12.75

$31,196

Case Manager II

118.00

$27,953

117.00

$28,966

81.50

$33,435

Case Manager III

217.00

$32,371

199.75

$33,202

171.50

$39,289

Case Manager IV

Not
Applicable

Not
Applicable

Not
Applicable

Not
Applicable

28.00

$44,366

4,823

$31,084

4,647

$32,202

4,210

$34,471

Agency (All positions)

Source: The Comptroller of Public Accounts' Uniform Statewide Payroll/Personnel System.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 90

Table 19 lists the number of youths who were released from and the number
of youths who were committed to TYC from March 2007 through August
2008. The TYC youth population at the end of March 2007 was 4,604; the
population at the end of August 2008 was 2,492. TYC released a total of
6,334 youths from March 1, 2007, to August 31, 2008.
Table 19

TYC Youth Population
March 2007 through August 2008

Month/ Year

Beginning
Population

Number of
Youths
Exiting TYC

Number of
Youths
Committed
to TYC

Ending
Population

March 2007

4,809

476

271

4,604

April 2007

4,604

777

219

4,046

May 2007

4,046

449

297

3,894

June 2007

3,894

606

257

3,545

July 2007

3,545

320

219

3,444

August 2007

3,444

197

263

3,510

September 2007

3,510

246

192

3,456

October 2007

3,456

355

249

3,350

November 2007

3,350

312

181

3,219

December 2007

3,219

334

191

3,076

January 2008

3,076

271

182

2,987

February 2008

2,987

265

208

2,930

March 2008

2,930

258

202

2,874

April 2008

2,874

251

221

2,844

May 2008

2,844

335

218

2,727

June 2008

2,727

279

222

2,670

July 2008

2,670

345

206

2,531

August 2008

2,531

258

219

2,492

6,334

4,017

Total Youths Exiting from and
Committed to TYC
Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 91

TYC added several central office manager and director positions in fiscal year
2008. Figure 10 shows the total number of manager and director positions in
fiscal years 2007 to 2009. TYC reported that in fiscal year 2008 it created (1)
six new manager and director positions as a result of Senate Bill 103 (80th
Legislature) mandates and (2) nine additional new manager and director
positions.
Figure 10

TYC Staffing Levels for Manager and Director Positions
Fiscal Years 2007 to 2009

120
100

109

105

a

2007

2008

2009

90

80

65

63

60
41
40
20
0
Agency

a

TYC Central Office

Fiscal year 2009 staff levels are based on data through February 2009.

Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 92

Figure 11 compares average salaries for TYC manager and director positions
with the average salaries of manager and director positions at General
Appropriations Act Article V agencies and at all state agencies.
Figure 11

Average Salaries for Manager and Director Positions at
TYC, Article V Agencies, and All State Agencies
Fiscal Years 2007 to 2009

a

TYC
Article V
Statewide
$74,515

Fiscal Year 2009

$77,134
$80,143

$72,830
$75,769

Fiscal Year 2008

$78,006

$69,179

Fiscal Year 2007

$71,851
$75,567

a

Fiscal year 2009 average salary is based on data for the first and second quarters of fiscal year 2009.

Source: The Comptroller of Public Accounts’ Uniform Statewide Payroll/Personnel System.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 93

Appendix 11

TYC’s Contract Care Providers for Fiscal Years 2008 and 2009
The Texas Youth Commission (TYC) paid $11,926,042 in fiscal year 2008 to
contract care providers. As of February 2009, it had paid $7,675,825 to its
contract care providers for fiscal year 2009. Table 20 lists the total payments
that TYC made to each of its 12 contract care providers from September 2007
through February 2009 and the average monthly youth population at each of
the providers.
Table 20

Payments to and Average Monthly Youth Population of TYC’s Contract Care Providers
September 2007 Through February 2009

Provider Name

Region

Alliance Children’s
b
Services, Inc.

Various

Associated Marine
Institutes, Inc.

Southern

Brookhaven Youth
Ranch, Inc.

Daily Rate

Fiscal Year
2008 Average
Monthly Youth
Population

Fiscal Year
2008 Total
Payments

a

285,145

9

6

c

1,230,720

39

1,781,299

37

Southern

$123.00

657,830

19

313,674

14

Byrd's Foster Group
Home, Inc.

Eastern

$100.00

304,996

10

202,446

10

Cornell Corrections of
Texas, Inc.

Southern

$215.00

36,560

0

866,445

20

Gulf Coast Trades
Center, Inc.

Eastern

$107.00

2,712,780

46

1,323,604

32

Garza County Juvenile
Detention Center

Northern

$125.00

2,038,225

59

922,373

39

Mel Matthews Boys
Ranch and the Mel
Matthews Vocational
Center

Northern

Various

d

1,486,742

42

874,667

30

Specialized Alternative
for Families and Youth
of Texas, Inc.

Northern

Various

e

445,465

15

151,240

12

Southwest Key
Supervised Apartment
Living

Eastern

$76.00

909,972

12

436,536

4

$104.00

1,253,846

52

0

0

h

0

Youth Services
International

f

Northern
Southern

Various

Various

g

Total Payments
a
b

$

563,763

$11,926,042

$

Fiscal Year 2009
Average Monthly
Youth
Population
(as of
February 2009)

104,477

The Geo Group, Inc.

$93.54

Fiscal Year
2009 Total
Payments
(as of
February 2009)

699,066

h

$7,675,825

The daily rate shown is as of February 2009 unless otherwise noted.
Alliance Children Services, Inc. has two contracts with TYC to provide contract care services in the Eastern and Southern regions.
A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 94

2

i

Payments to and Average Monthly Youth Population of TYC’s Contract Care Providers
September 2007 Through February 2009

Provider Name

Region

Daily Rate

a

Fiscal Year
2008 Total
Payments

Fiscal Year
2008 Average
Monthly Youth
Population

c

Fiscal Year
2009 Total
Payments
(as of
February 2009)

Fiscal Year 2009
Average Monthly
Youth
Population
(as of
February 2009)

Associated Marine Institutes, Inc. has two contracts with TYC to provide contract care services in the Southern region. One contract—referred to as
the Rio Grande Marine Institute—has a current rate of $101.96 per youth per day. The second contract—referred to as W.I.N.G.S. for Life, Inc.—has a
flat rate of $3,021 per day. The W.I.N.G.S. program provides infant care and parenting programs for teen mothers committed to TYC.
d
TYC had two contracts with this organization: one with the Mel Matthews Boys Ranch and another with the Mel Matthews Vocational Center. The Mel
Matthews Boys Ranch contract received a daily rate of $87.13 per youth; this contract ended in April 2008. The Mel Matthews Vocational Center
contract receives a daily rate $155.00 per youth; this contract was still in effect as of February 2009.
e
Specialized Alternatives for Families and Youth of Texas, Inc. receives a daily rate of $115.00 per youth who are registered sex offenders and a daily
rate of $90.00 per youth in all other categories.
f
The Geo Group Inc. contract was terminated by the TYC Acting Executive Director in October 2007; however, TYC reported that youth were with this
provider through August 2008.
g
Youth Services International received a daily rate of $189.50 per youth. If bed capacity increased to 168 beds, the rate would decrease to $177.95
per youth. TYC and Youth Services International mutually agreed to terminate this contract in October 2008.
h
Payments shown are start-up funds that TYC agreed to pay Youth Services International for the first 90 days of the contract. See Chapter 4-A, page
30, for additional information on the start-up agreement between TYC and Youth Services International.
i
The average monthly population is through October 2008.
Source: TYC.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 95

Appendix 12

State of Texas Contract Management Guide Essential Contract
Provisions
Table 21 lists the 21 contract provisions identified in the State of Texas
Contract Management Guide as essential provisions that must be included in
all state contracts.
Table 21

State of Texas Contract Management Guide Essential Contract Provisions
Abandonment or Default - Specifies that the contractor will be held accountable for breach of contract or substandard
performance without unfairly limiting competition in accordance with Texas Government Code, Section 2261.101.
Affirmation - Requires the contractor to affirm that all statements and information prepared and submitted in response
to a solicitation are current, complete, and accurate.
Antitrust - Requires that the contractor represent and warrant that neither the contractor nor any firm, corporation,
partnership, or institution represented by the contractor, or anyone acting for such firm, corporation or institution has
(1) violated the antitrust laws of the State of Texas under Texas Business and Commerce Code, Chapter 15, or the
federal antitrust laws; or (2) communicated directly or indirectly the proposal to any competitor or any other person
engaged in such line of business during the procurement process for the contract.
Buy Texas – Requires the following provision: "Contractor represents and warrants that it will buy Texas products and
materials for use in providing the services authorized herein when such products and materials are available at a
comparable price and in a comparable period of time when compared to non-Texas products and materials.”
Consideration (contract price) - Describes a definite amount at a certain rate with a total maximum cost.
Contract Specifications - Describes the services to be performed, and may specify that the agency will determine the
answers to all questions that may arise as to the interpretation of the specifications, the quality or acceptability of
work performed, the rate of progress of the work, and the conditions for determining the acceptable fulfillment of the
service on the part of the contractor.
Contractor's Responsibilities - Describes details of the contractor’s responsibilities.
Dispute Resolution - Describes a dispute resolution process in accordance with Texas Government Code, Chapter 2260.
Force Majeure – Specifies that an agency may grant relief from performance of the contract if the vendor is prevented
from performance by an act of war, order of legal authority, act of God, or other unavoidable cause not attributable to
the fault or negligence of the contractor. The burden of proof for the need of such relief shall rest upon the contractor.
To obtain release based on force majeure, the contractor shall file a written request with the agency.
Funding Out - Describes conditions if the contract term extends into the next biennium. For example, "This contract is
subject to cancellation, without penalty, either in whole or in part, if funds are not appropriated by the Texas
Legislature."
Indemnification/Damage – Specifies that the contractor shall defend, indemnify, and hold harmless the state of Texas,
its officers, and employees, and the agency, its officers, and employees and contractors, from and against all claims,
actions, suits, demands, proceedings, costs, damages, and liabilities, including without limitation attorneys’ fees and
court costs, arising out of, connected with, or resulting from any acts or omissions of contractor or any agent,
employee, subcontractor, or supplier of contractor in the execution or performance of this contract. Contractor shall
coordinate its defense with the Texas attorney general as requested by the agency. This paragraph is not intended to
and shall not be construed to require contractor to indemnify or hold harmless the state or the agency for any claims or
liabilities resulting from the negligent acts or omissions of the agency or its employees.
Independent Contractor – Requires the following provision: "Both parties hereto, in the performance of this contract,
shall act in an individual capacity and not as agents, employees, partners, joint ventures or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the employees or agents of the other
party for any purposes whatsoever. The contractor shall be responsible for providing all necessary unemployment and
workers’ compensation insurance for the contractor’s employees."
Intellectual Property Indemnification - Requires that the contractor will indemnify, defend, and hold harmless the
State of Texas and the system against any action or claim brought against the State of Texas/system that is based on a
claim that software infringes any patent rights, copyright rights, or incorporated misappropriated trade secrets.
Introduction - Describes all parties involved in the contract that may include a contractor's complete name, any
assumed names, and all addresses for the contractors.
A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 96

State of Texas Contract Management Guide Essential Contract Provisions
Payment - Describes conditions such as the frequency of payment, time frame to submit payment, invoice
specifications and compliance with the Texas prompt payment law (Texas Government Code, Chapter 2251).
Right to Audit - Describes the State Auditor’ Office’s, the agency’s, or any successor’s right to conduct an audit or
investigation and obtain all records requested.
Rights to Data, Documents, and Computer Software (State Ownership) - Specifies that any research, reports, studies,
data, or other documents prepared by the contractor in the performance of its obligations under the contract shall be
the exclusive property of the State of Texas and all such materials shall be delivered to the State by the contractor
upon completion, termination, or cancellation of the contract. In addition, conditions may describe instances in which
the State does not wish the work products of the contractor to be made available to any other entity, public or private,
but the contractor also is not entitled to any additional profit or benefit when payment for the said products was by
public funds, unless the state agency has given its prior approval of the use of the materials.
Scope of Work - Defines the scope of work from the solicitation document and may include the contractor's response
outlining the proposed scope of work.
Technology Access – Specifies that:
(1) Effective September 1, 2006, state agencies and institutions of higher education shall procure products which
comply with the State of Texas Accessibility Requirements for Electronic and Information Resources specified in Title 1,
Texas Administrative Code, Chapter 213, when such products are available in the commercial marketplace or when such
products are developed in response to a procurement solicitation.
(2) Vendor shall provide the Department of Information Resources with the URL to its Voluntary Product Accessibility
Template (VPAT) for reviewing compliance with the State of Texas Accessibility requirements (based on the federal
standards established under Section 508 of the U.S. Rehabilitation Act), or indicate that the product/service
accessibility information is available from the General Services Administration “Buy Accessible Wizard”
(http://www.buyaccessible.gov). Vendors not listed with the “Buy Accessible Wizard” or supplying a URL to their VPAT
must provide the Department of Information Resources with a report that addresses the same accessibility criteria in
substantively the same format.
Term of Contract - Describes the duration of the contract including the beginning date and ending date of the contract,
and may include conditions for renewal and conditions for price increases.
Terminate - Specifies that, upon full performance of all requirements contained in the contract, unless otherwise
extended or renewed as provided in accordance with the contract terms and conditions, the contract will terminate.

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 97

Appendix 13

Overall Management Response from the Texas Youth Commission

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 98

A Follow-up Audit Report on the Texas Youth Commission
SAO Report No. 09-036
May 2009
Page 99

Copies of this report have been distributed to the following:

Legislative Audit Committee
The Honorable David Dewhurst, Lieutenant Governor, Joint Chair
The Honorable Joe Straus III, Speaker of the House, Joint Chair
The Honorable Steve Ogden, Senate Finance Committee
The Honorable Thomas “Tommy” Williams, Member, Texas Senate
The Honorable Jim Pitts, House Appropriations Committee
The Honorable Rene Oliveira, House Ways and Means Committee

Office of the Governor
The Honorable Rick Perry, Governor

Texas Youth Commission
Ms. Cheryln K. Townsend, Executive Commissioner

This document is not copyrighted. Readers may make additional copies of this report as
needed. In addition, most State Auditor’s Office reports may be downloaded from our Web
site: www.sao.state.tx.us.
In compliance with the Americans with Disabilities Act, this document may also be requested
in alternative formats. To do so, contact our report request line at (512) 936-9880 (Voice),
(512) 936-9400 (FAX), 1-800-RELAY-TX (TDD), or visit the Robert E. Johnson Building, 1501
North Congress Avenue, Suite 4.224, Austin, Texas 78701.
The State Auditor’s Office is an equal opportunity employer and does not discriminate on the
basis of race, color, religion, sex, national origin, age, or disability in employment or in the
provision of services, programs, or activities.
To report waste, fraud, or abuse in state government call the SAO Hotline: 1-800-TX-AUDIT.

 

 

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