Performance audit, Department of Public Safety, Telecommunications Bureau

              State of Arizona
Office
of the
Auditor General
PERFORMANCE AUDIT
Report to the Arizona Legislature
By Debra K. Davenport
Auditor General
ARIZONA
DEPARTMENT
OF PUBLIC SAFETY
TELECOMMUNICATIONS
BUREAU
March 2001
Report No. 01-05
The Auditor General is appointed by the Joint Legislative Audit Committee, a bipartisan committee
composed of five senators and five representatives. Her mission is to provide independent and impar-tial
information and specific recommendations to improve the operations of state and local government
entities. To this end, she provides financial audits and accounting services to the state and political
subdivisions and performance audits of state agencies and the programs they administer.
The Joint Legislative Audit Committee
Senator Ken Bennett, Chairman
Representative Roberta L. Voss, Vice-Chairman
Senator Herb Guenther Representative Robert Blendu
Senator Dean Martin Representative Gabrielle Giffords
Senator Andy Nichols Representative Barbara Leff
Senator Tom Smith Representative James Sedillo
Senator Randall Gnant Representative James Weiers
(ex-officio) (ex-officio)
Audit Staff
Dot Reinhard—Manager
and Contact Person (602) 553-0333
Michele Diamond—Team Leader
Anita Rifkin—Team Member
Jeannie Jones—Team Member
Copies of the Auditor General’s reports are free.
You may request them by contacting us at:
Office of the Auditor General
2910 N. 44th Street, Suite 410
Phoenix, AZ 85018
(602) 553-0333
Additionally, many of our reports can be found in electronic format at:
www.auditorgen.state.az.us
2910 NORTH 44th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051
DEBRA K. DAVENPORT, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
WILLIAM THOMSON
DEPUTY AUDITOR GENERAL
March 15, 2001
Members of the Arizona Legislature
The Honorable Jane Dee Hull, Governor
Colonel Dennis Garrett, Director
Department of Public Safety
Transmitted herewith is a report of the Auditor General, A Performance Audit of the
Arizona Department of Public Safety—Telecommunications Bureau. This report is in
response to a June 16, 1999, resolution of the Joint Legislative Audit Committee. The
performance audit was conducted as part of the Sunset review set forth in A.R.S. §41-
2951 et seq. I am also transmitting with this report a copy of the Report Highlights for
this audit to provide a quick summary for your convenience.
This is the fourth in a series of reports to be issued on the Department of Public Safety.
As outlined in its response, the Department agrees with all of the findings and
recommendations.
My staff and I will be pleased to discuss or clarify items in the report.
This report will be released to the public on March 16, 2001.
Sincerely,
Debbie Davenport
Auditor General
Enclosure
OFFICE OF THE AUDITOR GENERAL
Program Fact Sheet
Department of Public Safety
Telecommunications Bureau
Program Revenue: $7 million
(fiscal year 2000)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
1999 2000 2001
(Estim.)
Intergovernmental
Charges for Services
Criminal Justice Enhancement Fund
General Fund
Services: The Telecommunications Bureau maintains DPS’ telecommunications system,
which provides critical information to the law enforcement community through: 1) the state-wide
law enforcement radio network, which enables DPS officers and other state agencies to
communicate with dispatchers using mobile and hand-held radios; and 2) ACJIS, the Arizona
Criminal Justice Information System, which contains the State’s criminal justice information
and is used by more than 200 government and law enforcement entities, such as county sher-iffs’
offices, DPS officers, city police departments, and county probation departments.
Personnel: 66 full-time staff
(fiscal year 2000)
Tower/antenna
maintenance
employees
(8)
Administration
(5)
Engineers (10)
Telecommunications
technicians (43)
Program Goals (fiscal years 2001-2003)
1. To improve department efficiency
through automation, technology, and
adequate staffing.
2. To maintain telecommunications equip-ment
so that no more than 10 percent of
the inventories exceed replacement age.
3. To modernize obsolete radio, voice, and
data communications systems for the
Department of Public Safety and other
public safety agencies in Arizona.
4. To support the development of a state-wide
interoperable public safety radio
system.
Facilities:
The Telecommunications Bureau is located
at three main facilities: Phoenix, Tucson, and
Flagstaff. Outlying radio shops are also in
Holbrook, Kingman, Prescott, Safford, Show
Low, and Yuma.
OFFICE OF THE AUDITOR GENERAL
Adequacy of Performance Measures:
Under the subprogram Communications,
DPS has established four goals for the Tele-communications
Bureau. Its goals include
15 performance measures. Auditors’ review
of these measures identified the following:
n Although the Bureau has an efficiency
goal, it does not show any performance
measures that identify efficiency. There-fore,
productivity and the cost of provid-ing
services is not made clear.
n Some of the Bureau’s measures are in-correctly
categorized as outcome meas-ures
although they are actually output
measures. Outcomes should show the
effect on the program services and
achievement of desired results.
n Although part of the Bureau’s mission is
to provide telecommunications services
for statewide radio, voice, and data sys-tems,
they have no performance meas-ures
to address the quality of their ser-vices.
However, the Bureau does have a
measure to develop a customer survey.
Infrastructure Equipment: The Telecom-munications
Bureau maintains approxi-mately
$27 million worth of major infra-structure
equipment used to provide com-munications
for DPS’ Radio Network and
the Arizona Criminal Justice Information
System (ACJIS).
76 buildings that house micro-wave
radios. They can cost up
to $100,000 each.
144 microwave radios used to
carry communications from
site to site at a cost of about
$7,500 each.
449 base station radios that
carry communications from the
site to local officers’ mobile and
portable radios. Each costs
approximately $9,100.
53 towers used to support the
various radio antennas needed
to provide communications in
the area. Each costs approxi-mately
$250,000.
44 emergency power genera-tors
used at critical sites to
protect against commercial
power failures at a cost of
about $9,000 each.
76 stationary batteries used at
each site to ensure continued
operation of the system at a
cost of about $6,000 each.
i
OFFICE OF THE AUDITOR GENERAL
In addition to DPS, ten other
state agencies rely on the radio
network.
SUMMARY
The Office of the Auditor General has conducted a performance
audit of the Department of Public Safety’s Telecommunications
Bureau as part of a Sunset review of the agency. This audit was
conducted pursuant to a June 16, 1999, resolution of the Joint Leg-islative
Audit Committee. This audit was conducted under the
authority vested in the Auditor General by Arizona Revised Stat-utes
(A.R.S.) §41-2951 et seq. This is the fourth in a series of audits
of the Department of Public Safety.
The Department of Public Safety (DPS) Telecommunications Bu-reau
is responsible for maintaining DPS’ telecommunications sys-tem,
which provides critical information to law enforcement enti-ties
through its radio network and the Arizona Criminal Justice
Information System (ACJIS). Specifically, this system enables DPS
officers to communicate with dispatchers and provides Arizona
law enforcement agencies with criminal justice records, warrant
information, and motor vehicle data needed to carry out their op-erations.
In addition, ten other state agencies rely on the radio
network for their communications needs including the Depart-ment
of Corrections for prisoner transport and the Department of
Transportation for its highway maintenance and construction
workers (see Table 1, page 2, for a complete listing of user agen-cies).
DPS uses a microwave network to support its communications
system. Microwaves extend the range of communications by
providing access to remote sites for communications, and are of-ten
used as an affordable alternative to other wireless communi-cation
forms, such as satellite and fiber optics.
DPS’ Communications System
Relies on Obsolete Technology
(See pages 9 through 17)
DPS’ communications network is obsolete because it currently
relies on analog technology that is no longer being manufactured
Summary
ii
OFFICE OF THE AUDITOR GENERAL
and can no longer accommodate DPS’ needs. Specifically, manu-facturers
in the United States began phasing out analog micro-wave
radios in favor of digital technology in the early 1990s. As a
result, analog users must depend upon spare parts from existing
analog microwave radios to repair or replace broken equipment.
Once the supply of spare parts is depleted, users will be unable to
service their radios. As such, the issue for DPS is no longer
whether to convert from analog technology, but when.
Although DPS is aware of the need to convert its system to digital
technology, it has been slow to initiate the needed changes. While
the existing system is not in any immediate danger, DPS should
plan for a digital conversion as soon as possible because of the
significant implementation time required to convert the system.
In preparation for the conversion, DPS should complete a conver-sion
plan of the entire communication system before it seeks
funding from the Legislature. In addition, it should pursue grant
funding to help defray some of the costs to the General Fund.
Staffing Problems Could Hinder
DPS’ Ability to Maintain System
(See pages 19 through 23)
DPS’ ability to convert to a digital system while maintaining its
current system could be jeopardized because of numerous staff
vacancies expected in the future. Specifically, DPS may lose al-most
one-quarter of its telecommunications technician staff in the
next three to five years due to impending retirements. Further,
DPS is already having difficulty filling existing technician vacan-cies.
Telecommunications technicians, among other things, ensure the
continuous operation of the communications system so officers
and dispatchers can speak to each other without interruption. In
addition, they will play a pivotal role in the conversion process
because contractors will need their assistance to customize the
new system to meet DPS’ needs. Although DPS is currently
working on ways to enhance its recruitment efforts for techni-cians,
it should consider additional recruitment and retention
tools. For example, DPS should work with the Law Enforcement
The question is no longer
whether to convert from ana-log,
but when.
Summary
iii
OFFICE OF THE AUDITOR GENERAL
System Council to assess the feasibility of offering hiring bonuses
and counter-offers similar to a Department of Administration pi-lot
project being tried at four other state agencies.
Summary
iv
OFFICE OF THE AUDITOR GENERAL
(This Page Intentionally Left Blank)
v
OFFICE OF THE AUDITOR GENERAL
TABLE OF CONTENTS
Page
Introduction and Background.......................... 1
Finding I: DPS’ Communications System
Relies on Obsolete Technology.................. 9
Communications System
Has Loop Configuration................................................. 9
Analog System Obsolete and
Unable to Accommodate DPS’ Needs........................... 10
DPS Slow to Address
Outdated System............................................................ 13
DPS Should Plan for
Conversion as Soon as Possible...................................... 15
DPS Should Take Steps
to Prepare for Conversion.............................................. 16
Recommendations .......................................................... 17
Finding II: Staffing Problems
Could Hinder DPS’
Ability to Maintain System........................... 19
Future Technician Vacancies
May Make Conversion More Difficult........................... 19
DPS Should Take Additional
Steps to Address Technician
Staffing Problems............................................................ 21
Recommendations .......................................................... 23
Agency Response
Table of Contents
vi
OFFICE OF THE AUDITOR GENERAL
TABLE OF CONTENTS (Concl’d)
Page
Tables
Table 1 Department of Public Safety
Telecommunications Bureau
Microwave Radio Network Users
Year Ended June 30, 2000............................. 2
Table 2 Department of Public Safety
Telecommunications Bureau
Statement of Revenues, Expenditures, and
Reversions
Years Ended or Ending June 30, 1999,
2000, and 2001
(Unaudited)................................................... 5
Figure
Figure 1 Department of Public Safety
Telecommunications Bureau
Microwave Network
As of December 2000 .................................... 11
1
OFFICE OF THE AUDITOR GENERAL
INTRODUCTION AND BACKGROUND
The Office of the Auditor General has conducted a performance
audit of the Department of Public Safety’s Telecommunications
Bureau as a part of a Sunset review of the agency. This audit was
conducted pursuant to a June 16, 1999, resolution of the Joint
Legislative Audit Committee. This audit was conducted under
the authority vested in the Auditor General by Arizona Revised
Statutes (A.R.S.) §41-2951 et seq. This is the fourth in a series of
audits of the Department of Public Safety.
DPS’ Telecommunications System
Provides Critical Information to
Law Enforcement Entities
The Department of Public Safety (DPS) Telecommunications Bu-reau
(the Bureau) is part of the Criminal Justice Support Division
that provides diverse scientific, technical, and other support ser-vices
essential to the promotion of public safety in Arizona.1 The
Bureau is responsible for maintaining DPS’ telecommunications
system, which provides critical voice and data information to the
law enforcement community through the:
n DPS Radio Network—This voice network enables DPS offi-cers
to communicate with dispatchers using mobile and
hand-held radios as needed to carry out their daily functions.
This network is critical to providing DPS officers in the field
with information on accidents, criminal history, arrest war-rants,
and requests for backup. In addition, ten other state
agencies rely on the system for their communications needs.
Table 1 (see page 2) shows the agencies that use the system
and what they use the system for. These agencies are not
charged a fee for their use of the microwave network.
1 The Division also includes these Bureaus: Criminal Information Services;
Fingerprint Identification; Information Technology; Licensing; Operational
Communications; and Scientific Analysis.
Introduction and Background
2
OFFICE OF THE AUDITOR GENERAL
n Arizona Criminal Justice Information System (ACJIS)—
ACJIS is the State’s central repository for criminal history re-cords
and related criminal justice information. More than 200
governmental and law enforcement entities, such as city po-lice
departments, county sheriff offices, DPS officers, and
county probation departments, rely on ACJIS to provide vital
criminal justice information. This system contains informa-tion
such as criminal history and background information,
warrant information, and motor vehicle license and registra-tion
data.
Microwave Network Used
to Carry DPS Communications
DPS uses an analog microwave network to support its land mo-bile
radio network and ACJIS as well as its own in-house tele-phone
lines.1 Microwave networks extend the range of commu-nications
by providing access to remote sites for communications
1 Analog radio systems continuously transmit radio waves that are usually
modulated by voice channels.
Table 1
Department of Public Safety
Telecommunications Bureau
Microwave Radio Network Users
Year Ended June 30, 2000
Agency Radio Communication between:
Department of Public Safety DPS officers and dispatchers
Arizona National Guard Duty men
Arizona State Parks Rangers and local fire departments
Department of Agriculture Field agents and dispatchers
Department of Corrections Correctional officers when prison work gangs are in
transit and during prisoner transport
Department of Health Services Emergency medical services field personnel and hos-pital
dispatchers
Department of Juvenile Corrections Correctional officers when prisoners are in transit
Department of Liquor Licenses and Control Field agents
Department of Transportation Highway maintenance and construction workers
Game and Fish Department Field officers
State Land Department Rangers and local fire departments
Source: Auditor General staff analysis of the DPS Telecommunications Bureau’s Microwave and Radio Systems Bro-chure
and interviews with Bureau staff.
Introduction and Background
3
OFFICE OF THE AUDITOR GENERAL
support and are the predominant infrastructure for large wide-area
communications systems. State police departments around
the country frequently use microwave communications systems
as an affordable alternative to other wireless communication
forms, such as satellite and fiber optics.
Seventy-six radio communications sites located throughout Ari-zona
and its four border states comprise the microwave network.
Most are remote sites located on mountaintops and consist of the
following:
n Buildings—Each commu-nications
site contains at least
one building to house the
microwave radios that carry
communications from site-to-site
and the land-mobile radios
that carry communications
from the site to local officers’
mobile and portable radios.
n Towers—Most communications sites
have at least one tower to support the
various radio antennas needed to
provide communications in the area.
n Batteries—Should there be a
commercial power outage, each site
has a stationary battery to ensure the
microwave system operates
continuously.
n Emergency generators—All critical sites have added pro-tection
against commercial
power failures with the use of
an emergency power generator.
In these cases, the emergency
generator is the first level of
backup protection. Should the
emergency generator fail, the
battery would then take over to
ensure continued microwave
network operation.
Introduction and Background
4
OFFICE OF THE AUDITOR GENERAL
Organization, Staffing
and Budget
For fiscal year 2000, the Bureau was authorized 66 full-time
equivalent (FTE) positions. A manager assisted by 4 support staff
administers the Bureau. The remaining staff are divided into
three categories:
n Engineers (10 FTEs)—Engineering staff plan, design, and
construct telecommunications systems, such as voice and
data, and analyze system problems, such as interference, to
determine the best way to improve communications. They
also design radio communications sites including building,
tower and antenna placement, and equipment requirements.
n Telecommunications Technicians (43 FTEs)—This staff is
responsible for installing, repairing, and maintaining various
forms of communications equipment including microwave,
mobile and hand-held radios, data lines, and telephones for
DPS buildings. Technicians deliver these services from vari-ous
locations across the State at urban and remote mountain-top
sites.
n Tower/Antenna Maintenance Riggers (8 FTEs)—These
employees are responsible for installing and maintaining ra-dio
communications towers, buildings, and antenna systems
at urban and remote mountaintop sites.
The Bureau received $5.8 million in General Fund monies for fis-cal
year 2000 (see Table 2, page 5) and $452,300 from the Crimi-nal
Justice Enhancement Fund to operate the Arizona Criminal
Justice Information System. In addition, the Bureau bills for the
radio maintenance services it provides to other state agencies.
Introduction and Background
5
OFFICE OF THE AUDITOR GENERAL
Table 2
Department of Public Safety
Telecommunications Bureau
Statement of Revenues, Expenditures, and Reversions1
Years Ended or Ending June 30, 1999, 2000, and 2001
(Unaudited)
1999 2000 2001
(Actual) (Actual) (Estimated)
Revenues:
Appropriations:
State General Fund $5,940,362 $5,785,954 $6,154,200
Criminal Justice Enhancement Fund 2 452,300 452,300 452,300
Charges for services 235,362 242,254 235,500
Intergovernmental 3 196 500,000     
Total revenues $6,628,220 $6,980,508 $6,842,000
Expenditures:
Personal services $2,899,300 $2,838,300 $3,040,100
Employee related 617,800 600,100 760,000
Professional and outside services 9,000 121,300 35,600
Travel, in-state 67,400 105,100 62,600
Travel, out-of-state 3,900 5,100 4,000
Other operating 4 1,572,686 1,504,573 1,450,300
Equipment 5 1,191,972 1,533,781 1,253,900
Total expenditures 6,362,058 6,708,254 6,606,500
Remittances to the State General Fund 235,362 242,254 235,500
Reversions to the State General Fund 24,500 27,700
Reversions to the Criminal Justice
Enhancement Fund 2 6,300 2,300     
Total expenditures and reversions and
remittances $6,628,220 $6,980,508 $6,842,000
1 The Bureau’s revenues and expend itures include an allocation of revenues and expenditures recorded in the Department’s Joint Account.
The Joint Account contains State General Fund appropriations and other appropriated monies, such as amounts from the Criminal Justice
Enhancement Fund.
2 Consists of fines and forfeits deposited in the Criminal Justice Enhancement Fund (CJEF) and appropriated to the Department. Unexpended
CJEF monies are presented as a reversion to CJEF since any unexpended monies at year-end are subject to legislative appropriation in future
years.
3 In 2000, the Department received a grant from the Arizona Department of Health Services for the purchase and installation of communication
equipment to enhance Emergency Medical Services Communications Network capabilities.
4 Nearly 70 percent of other operating expenditures were for maintaining the statewide radio, voice, and data telecommunications systems.
5 Most of the equipment purchased was computer and telecommunications items to replace and upgrade the statewide telecommunication
system.
Source: Auditor General Staff analysis of financial information provided by the Department of Public Safety for the years ended or ending
June 30, 1999, 2000, and 2001.
Introduction and Background
6
OFFICE OF THE AUDITOR GENERAL
Audit Scope and
Methodology
The audit focused on the adequacy of the current communica-tions
system and the need for DPS to take additional steps to re-cruit
and retain its telecommunications technicians. The audit
presents findings and recommendations in two areas:
n The need for DPS to take steps to prepare to convert its tele-communications
system because the system relies on obso-lete
technology.
n The need for DPS to consider additional ways to hire and re-tain
staff so that it has sufficient staff to maintain and convert
the system.
Many methods were used to study the issues addressed in the
audit including:
n Contacting three leading analog microwave radio manufac-turers
to obtain information on the expected time frame they
will continue supporting analog microwave equipment, and
researching the second-hand market to determine the avail-ability
of used analog microwave radios for spare parts;
n Contacting the ten other Western states (California, Colorado,
Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Wash-ington,
and Wyoming) to obtain information about their
statewide public safety telecommunications systems, specifi-cally
focusing on microwave system types (analog or digital),
and their plan for or experience with digital conversion and
its related cost, time frame, and method of conversion; 1
n Contacting a frequency coordinator who acts as an interme-diary
between DPS and the Federal Communications Com-mission
(FCC) to determine the availability of additional fre-quencies;
1 Western states were chosen because their public safety communications
involve large expanses of land similar to Arizona.
Introduction and Background
7
OFFICE OF THE AUDITOR GENERAL
n Attending four meetings of the Arizona Public Safety
Communications Committee and reviewing budget
documents to learn of the Department’s past and current
efforts to address the needs of its communications system;
n Reviewing personnel documents and interviewing staff to
confirm expected retirements from DPS, the problems cre-ated
by current telecommunications technician vacancies,
and the efforts made to hire new staff.
n Contacting five other entities, such as Arizona Public Service
and Salt River Project, that have similar telecommunications
technician positions to determine the recruiting methods they
use to attract applicants, their starting salaries, and their posi-tion
qualifications and required certifications.1
This audit was conducted in accordance with government audit-ing
standards.
The Auditor General and staff express appreciation to the De-partment
of Public Safety Director, the Assistant Director and
Chief of Staff of the Criminal Justice Support Division, and the
Telecommunications Bureau Manager and staff for their coop-eration
and assistance throughout the audit.
1 Auditors contacted the Central Arizona Project, Western Area Power Au-thority,
Salt River Project, Arizona Public Service, and the City of Phoenix.
Introduction and Background
8
OFFICE OF THE AUDITOR GENERAL
(This Page Intentionally Left Blank)
9
OFFICE OF THE AUDITOR GENERAL
FINDING I DPS’ COMMUNICATIONS SYSTEM
RELIES ON OBSOLETE
TECHNOLOGY
DPS needs to prepare to convert its aging microwave network.
The system currently relies on obsolete analog technology that is
no longer being manufactured and can no longer accommodate
DPS’ needs. Although DPS is aware of the need to convert its
system to digital technology, it has been slow to initiate the
needed changes. While the existing system is not in any immedi-ate
danger, DPS should plan to convert as soon as possible be-cause
of the significant time required to implement a new system
and the limited number of spare parts available to support the
existing system. In preparation for the conversion, DPS should
complete a conversion plan of the entire system before it seeks
funding from the Legislature and it should pursue grant funding
to help defray the cost to the General Fund.
Communications System
Has Loop Configuration
DPS’ statewide microwave communications system has a looped
configuration to provide added protection against communica-tion
failure. Specifically, it comprises three continuous paths or
loops, each with approximately 24 sites, that provide communi-cation
coverage to much of the State (see Figure 1, page 11). The
loop configuration is advantageous because communication can
travel in either direction on the loop providing continuous com-munication
capability, even during an equipment failure.1 This
added protection means officers are less likely to encounter an
interruption in communication.
As illustrated in Figure 1 (see page 11), the loops do not cover all
areas of the State. Some areas, such as Flagstaff, are covered by
peripheral paths or spurs that are offshoots of the loops. Because
1 A looped configuration protects against equipment failure at one site.
Equipment failure at a second site would cause an interruption in
communication.
Finding I
10
OFFICE OF THE AUDITOR GENERAL
spurs are not within the main system, they are not protected
against site failure. Therefore, if a site on a spur fails, all users de-pendent
on that spur lose communication.
Analog System Obsolete and
Unable to Accommodate DPS’ Needs
DPS’ telecommunications system is outdated and can no longer
support all of its needs. The system relies on analog microwave
radio equipment, equipment that is obsolete and no longer being
manufactured. As a result, DPS can no longer expand certain
parts of the system to meet its needs. Because analog technology
is obsolete, most Western states have already converted their sys-tems
to digital technology.
System relies on outdated technology—DPS’ microwave system
consists of outdated analog radios that are no longer produced
by manufacturers in the United States.1 Manufacturers in the
U.S. began phasing out analog microwave radios in favor of digi-tal
microwave technology in the early 1990s. They did so because
digital technology has numerous advantages, as shown in Item
1. Manufacturers phased out their analog systems to the point
that they no longer guarantee that repair parts will be available.
As a result, the issue for DPS is no longer whether to convert
from analog technology, but when.
Item 1: Advantages of Digital Technology
Analog microwave Digital microwave
Ø Reduced audio quality with increas-ing
distance from broadcast site.
Ø Superior audio quality.
Ø Obsolete technology. Ø The preferred technology by telecom-munication
companies.
Ø Decreasing vendor support. Ø Increasing vendor support.
Ø Inefficient data transport. Ø Highly efficient data transport.
Ø Increasing maintenance costs. Ø Decreasing maintenance costs.
Ø Less efficient use of spectrum due to
inflexible technology.
Ø Highly efficient use of spectrum ac-commodating
more users with fewer
resources.
1 One low-range, low-capacity analog microwave radio is currently being
built in the U.S. However, DPS indicates that it is insufficient to support
the high -capacity microwave infrastructure it currently uses.
Manufacturers began phasing
out analog radios in the early
1990s.
Finding I
11
OFFICE OF THE AUDITOR GENERAL
Figure 1
Department of Public Safety
Telecommunications Bureau
Microwave Network
As of December 2000
Source: Auditor General staff analysis of the Telecommunications Bureau’s microwave map.
Finding I
12
OFFICE OF THE AUDITOR GENERAL
Because manufacturers in the U.S. no longer produce analog mi-crowave
radios, analog users and service vendors must depend
upon spare parts from existing analog radios in order to repair or
replace broken radio equipment. Once this supply of parts is de-pleted,
users will be unable to service their radios or maintain
their analog systems.
DPS believes it has a supply of parts that will last several years,
but whether the supply will last that long is not clear. To its
credit, DPS began accumulating spare analog radios when
manufacturers informed DPS that production was stopping.
Based on historical repair rates, DPS estimates it has sufficient
spare parts to maintain the system for another three to five years.
However, DPS’ repair rates may be higher in the future as its
analog equipment ages and becomes more maintenance inten-sive.
System cannot accommodate future growth—As a result of its
reliance upon analog microwave technology, it is becoming in-creasingly
difficult for the existing system to meet DPS’ needs.
For example, expanding coverage to keep up with increasing
population growth and added highway miles would mean try-ing
to acquire additional equipment at a time when manufactur-ers
are no longer producing or supporting it. The following ex-amples
illustrate this point:
n Incorporation of Flagstaff into the Northern loop—DPS
would like to incorporate Flagstaff into the Northern loop
rather than maintain it as a spur. Incorporating it into the
looped system would provide protection against site failure.
Currently, if Flagstaff’s communications site fails, they must
rely on a makeshift system involving the use of Phoenix dis-patchers
to cover some areas, cellular telephones for other ar-eas,
and losing all communication in remaining areas, put-ting
officer safety at risk.
n Reduction of “dead spots”—The existing microwave sys-tem
does not cover 5 to 10 percent of Arizona’s state and fed-eral
highways. Officers cannot communicate with dispatch-ers
or access criminal information within these “dead spots.”
Reducing “dead spots” requires additional communications
sites as well as additional equipment such as towers and mi-crowave
radios.
Currently, DPS has only
enough spare parts to last 3 to
5 years.
Finding I
13
OFFICE OF THE AUDITOR GENERAL
Most Western states already converting—Because analog tech-nology
is obsolete and difficult to support, most Western states
have already converted their analog systems. Specifically, of the
nine other Western states (California, Colorado, Idaho, Nevada,
New Mexico, Oregon, Utah, Washington, and Wyoming), eight
have already converted or are in the process of converting to a
digital system network.1 Of those converting, most gave un-available
analog equipment as a reason for making the change.
DPS Slow to Address
Outdated System
While DPS is aware of the need to convert its microwave system
to digital technology, it has been slow to initiate the conversion
process. One reason for the delay may be that DPS has histori-cally
linked digital conversion to interoperability, a larger, more
expensive project.
DPS slow to address outdated system—Although DPS has ac-knowledged
the need to convert to a digital system, it has been
slow to initiate implementation. In 1994, DPS conducted an as-sessment
to determine the need to convert to a digital communi-cations
system. The study recommended DPS consider an im-mediate
conversion to digital technology should any one of six
scenarios occur. To date, three of the six scenarios have occurred,
including notice from vendors that they are no longer support-ing
their analog microwave radio product line. However, DPS
has only recently begun addressing the conversion issue since its
1994 assessment. Specifically, DPS completed a preliminary in-ternal
study in September 2000 that estimates the operational re-quirements
needed to convert to a digital network such as addi-tional
buildings and towers. DPS also intends to hire a consultant
to provide a more detailed plan that will include specific infor-mation
on how to convert the system and the cost of conversion.
Conversion historically linked to interoperability—DPS may be
unnecessarily delaying digital conversion because it has histori-cally
linked conversion to its goal of implementing an interoper-
1 Montana is excluded because it does not use a statewide microwave sys-tem
to carry public safety communications.
Finding I
14
OFFICE OF THE AUDITOR GENERAL
able communication system. An interoperable system enhances
the ability of various law enforcement agencies (i.e., local police,
county sheriff, DPS, etc.) to coordinate their actions during large-scale
emergencies. While an interoperable system would un-doubtedly
be helpful, it is not needed to begin a digital conver-sion.
However, DPS continues to link the two issues together.
For example, in a recent grant request to the National Institute of
Justice for a consultant, DPS linked the analysis of the digital mi-crowave
conversion to an assessment of what would be required
to implement an interoperable system. For these two combined
components, DPS requested $350,000, or about $150,000 more
than would be needed for just a digital conversion plan.
While converting to digital technology will not preclude an in-teroperable
system from developing in the future, linking these
two issues together could unnecessarily postpone digital conver-sion
for several years. This delay is due to several reasons. First,
the FCC is in the process of developing nationwide interoperabil-ity
standards that will not be finalized until at least 2003. Second,
before interoperability can be implemented in Arizona, many
stakeholders must agree on its project design. These stakeholders
meet monthly through the Arizona Public Safety Communica-tions
Committee and concede that implementation is a long way
off. Third, obtaining funding for the project may be difficult, as
the costs associated with interoperability are significantly greater
than digital conversion alone. For example, based on DPS’ pre-liminary
internal study, the cost of digital conversion is ap-proximately
$55,250,000.1 In contrast, the Arizona Public Safety
Communications Committee has indicated that an interoperable
system could cost approximately $200 million.
1 The estimate includes the contractors’ cost to erect or repair all towers and
buildings, the placement of antennas, and the purchase and installation of
radio equipment. Until the Bureau can hire a consultant to develop a more
precise estimate, the cost estimate assumes the following:
n The system design’s backbone requires a DS3 bandwidth;
n Radio equipment vendors will grant DPS a significant volume dis-count;
n The FCC will assign DPS secondary frequencies, allowing it to build
and test the new system while the old one is fully functional; and
n DPS will receive funding for at least the total cost of one microwave
loop at a time.
Finding I
15
OFFICE OF THE AUDITOR GENERAL
DPS Should Plan for
Conversion as Soon
as Possible
While the existing analog system is not in any immediate danger,
DPS should plan for a conversion as soon as possible for two key
reasons. First, the additional frequencies needed for a smoother
conversion to a digital system are becoming increasingly difficult
to obtain. Second, without adequate funding and external con-tractors,
digital conversion could take as long as 15 years to im-plement
and it is not clear how long spare analog parts will be
available to continue to support the existing system.
Additional frequencies increasingly scarce—One reason DPS
should begin planning for conversion as soon as possible is that
it needs to obtain additional frequencies from the FCC that are
becoming increasingly scarce. Additional frequencies are needed
so that DPS can install and test the new system without interfer-ing
with communications carried on existing frequencies. A fre-quency
coordinator used by DPS who functions as an intermedi-ary
between agencies and the FCC confirmed that additional
frequencies are difficult to obtain because of the competition and
the limited number of frequencies. Consequently, the coordina-tor
suggested that DPS move as quickly as possible to obtain
them while they are still available.
Digital system requires significant implementation time—In
addition to limited frequencies, DPS has indicated that convert-ing
to a digital system will require significant implementation
time due to the many steps required. Because of the size of the
system, the cost, and manpower limitations, DPS has indicated
that upgrading one loop at a time is a more realistic approach to
conversion than addressing the entire system all at once. Under a
loop-by-loop approach, DPS estimates implementation could
take as long as 15 years to complete, or approximately 5 years
per loop without adequate funding and external contractors. Be-fore
conversion can even occur, DPS indicates that it must up-grade
the existing microwave infrastructure, such as towers and
buildings, because it cannot fully support a digital network. Spe-cifically,
additional towers will be required because digital mi-crowave
systems require shorter path lengths. In addition, DPS
reports that it will need to replace or improve 95 percent of the
existing towers because they cannot fully support the new digital
Finding I
16
OFFICE OF THE AUDITOR GENERAL
equipment. Furthermore, DPS indicated it needs time to secure
the land required to house the additional sites and time to com-plete
the conversion once the infrastructure needs are addressed.
Although the loop-by-loop conversion method involves a longer
time period, DPS indicates that it offers the following advan-tages:
n Lessons learned—Converting to digital one loop at a time
allows DPS to build on lessons learned from one loop before
converting the others.
n Less initial investment—The entire cost of the conversion
would be spread out over a longer time period using this
method, rather than funding the entire conversion up-front.
n Extension of existing analog system—Once a digital loop
is up and running DPS could use the spare analog parts
gained from the converted loop to extend the life of the re-maining
loops until the conversion is complete.
DPS Should Take Steps to
Prepare for Conversion
DPS should take the necessary steps to prepare for conversion.
First, it should complete a conversion plan for the entire system
that outlines project costs and timelines of the project before
seeking funding from the Legislature. Second, it should seek
grant monies to help support the project’s cost and minimize the
impact to the General Fund.
DPS should complete a conversion plan—Because of the signifi-cant
costs associated with conversion and the magnitude of the
project, DPS should develop a complete conversion plan before it
seeks funding from the Legislature. This plan should outline the
operational requirements, such as the additional buildings and
towers needed as well as the associated costs. In addition, the
plan should include estimated time frames for completing each
major phase of the conversion project. To ensure DPS stays
within its budget and time frames, it should report to the Legisla-ture
periodically on its progress toward fulfilling its plan. Several
of the Western states that have already converted or are in the
process of converting to digital technology developed a plan
Finding I
17
OFFICE OF THE AUDITOR GENERAL
prior to starting their conversion. In fact, some states report that
their plan was critical to garnering the support and funding
needed from their legislatures.
DPS should seek grant monies—In addition to completing its
conversion plan, DPS should aggressively pursue available grant
funding to help pay for the high cost of conversion. The U.S. De-partment
of Justice, Office of Justice Programs, provides numer-ous
criminal justice grants. DPS may be eligible to receive grant
money that could be used to help defray some of the costs of
digital conversion because of its role as a law enforcement
agency.
Once DPS has completed its plan and thoroughly pursued grant
funding, it should seek funding from the Legislature for addi-tional
monies that may be needed to support the cost of upgrad-ing
the system.
Recommendations
1. DPS should develop a plan for converting, as soon as possi-ble,
its entire telecommunications system from an analog sys-tem
to a digital system. This plan should include the opera-tional
requirements, such as the additional buildings and
towers needed, as well as the associated costs. In addition,
the plan should include estimated time frames for complet-ing
each major phase of the conversion project.
2. DPS should seek grants to help finance the cost of digital
conversion, and the cost of preparing its digital conversion
plan.
3. Once DPS has completed its plan and thoroughly pursued
grant funding, DPS should seek additional monies needed
from the Legislature so that it can begin converting to a digi-tal
communications network as soon as possible. In doing so,
DPS should pursue digital conversion separately from its
goal of an interoperable system.
4. DPS should report periodically to the Legislature on its pro-gress
toward fulfilling its plan.
Finding I
18
OFFICE OF THE AUDITOR GENERAL
(This Page Intentionally Left Blank)
19
OFFICE OF THE AUDITOR GENERAL
FINDING II STAFFING PROBLEMS COULD
HINDER DPS’ ABILITY
TO MAINTAIN SYSTEM
DPS’ ability to convert to a digital system while maintaining its
current system could be jeopardized because of numerous staff
vacancies expected in the near future. Specifically, a loss of ex-perienced
telecommunications technician staff within the next
three to five years due to retirements, combined with vacant po-sitions
that are hard to fill, could pose difficulties should the De-partment
convert to a digital communications system. Although
DPS is currently working on ways to enhance its recruitment ef-forts,
it should take additional steps to ensure it can recruit and
retain its technicians.
Future Technician Vacancies
May Make Conversion More Difficult
Staffing problems may impact DPS’ digital conversion plans and
its ability to continue to operate and maintain the system. DPS
could lose nearly one-quarter of its telecommunications techni-cian
staff within the next three to five years, if retirements occur
as expected. This loss, particularly of the experienced technical
staff, could make conversion to a digital communications system
more difficult. Furthermore, DPS has had problems filling tele-communications
technician positions in the past due to the high
demand for these positions in similar industries.
Numerous technician vacancies likely in the future—DPS may
face a severe shortage of technical staff in the near future due to
impending retirements. Specifically, persons filling 10 of the 43
technician positions are expected to retire in the next three to five
years. DPS will lose much of its experience and institutional
memory if the majority of these expected retirees, who have
more than 14 years experience each with DPS, retire as sched-uled.
The Bureau could soon lose
one-fourth of its experienced
technicians.
Finding II
20
OFFICE OF THE AUDITOR GENERAL
Loss of experienced staff poses problem—While a loss of experi-enced
staff is difficult under most circumstances, it could pose
particular difficulties should conversion to a digital system oc-cur.
Technicians will play a pivotal role in the transition to a digi-tal
system because a smooth conversion will require extensive
knowledge of both the existing system, as well as the new digital
system. Contractors that may be hired to assist in the conversion
will not likely have knowledge of the existing analog system be-cause
DPS significantly modified it from the manufacturer’s
original configuration in order to meet its needs. As a result, con-tractors
will need to work with the experienced in-house staff
when customizing and testing the new system to ensure the ac-tual
transition involves minimal down-time. Furthermore, DPS
will continue to need in-house technicians to maintain the exist-ing
system while the new one is being built. Experienced staff
can usually identify and resolve system problems more quickly
than less experienced staff, thereby reducing the amount of
down-time officers and other users experience when there is a
problem.
Vacancies a historical problem—Finding replacements for these
positions may not be easy because, historically, DPS has had dif-ficulty
attracting new telecommunications technician applicants.
For example, DPS currently has four vacant telecommunications
technician positions, some of which have been open for up to
two years. DPS indicates these positions are hard to fill because
there are several highly technical industries competing for the
same applicants. While the entry-level salaries for most entities
with similar personnel needs, such as Salt River Project and Ari-zona
Public Service, are not much higher than DPS, these entities
offer hiring bonuses, which range from $2,000 to $10,000 for new
employees.
In addition to the difficulty with attracting applicants, recent ac-tions
may have resulted in some staff considering retirement.
Specifically, in April 1997, during a Classification/Compensation
Maintenance Review (CCMR) process, senior telecommunica-tions
technician positions were changed to telecommunications
technicians. This change resulted in the freezing of some salaries
because they exceeded the maximum range. Nine of the techni-cians
who will likely retire within the next three to five years
were impacted by the CCMR salary cap and are currently at the
maximum salary amount allowed by CCMR. In addition, at least
Technicians’ knowledge of
the current system is vital to
a smooth conversion to digi-tal
technology.
Finding II
21
OFFICE OF THE AUDITOR GENERAL
14 other technician positions are currently affected by this salary
cap and may not receive a raise at least until the next CCMR
process that will take place in fiscal year 2002.
DPS Should Take Additional
Steps to Address Technician
Staffing Problems
DPS can do more to help ensure staff vacancies and retirements
do not jeopardize its operations. While DPS is taking action to
improve its recruiting efforts, it could take additional steps to re-cruit
and retain its telecommunication technicians, including
considering hiring bonuses for new employees similar to a De-partment
of Administration (DOA) pilot project.
DPS is working to improve recruiting efforts—DPS has recently
developed an apprentice program to help address its staff va-cancy
problem. Specifically, DPS plans to hire part-time appren-tices
from trade and technical schools who have been enrolled
for at least three months and who maintain passing grades. DPS
would provide them with on-the-job training throughout their
schooling and pay them up to $15 per hour in the hope that,
when they graduate, they would begin working at DPS as a
trainee and progress into an entry-level technician position after
1 year. DPS began interviewing for the apprenticeship program
in October 2000, but has not hired anyone yet.
In addition to the apprentice program, DPS is also proposing
other ways to improve its ability to attract technical applicants.
Currently, DPS requires technician applicants to have an FCC
license or other technical certification at the time they are hired.
DPS is proposing changing that policy and providing a grace pe-riod
of up to six months from the date of hire to allow new em-ployees
time to study for and take the FCC exam. The grace pe-riod
would also apply to trainees who would be allowed 12
months to obtain their FCC license or other certification. Lastly,
the Telecommunications Bureau has proposed a review of DPS’
civilian background requirements to ensure a broad applicant
pool.
Additional steps are needed to retain and attract technicians—
While DPS’ current efforts are positive, it should pursue addi-
Finding II
22
OFFICE OF THE AUDITOR GENERAL
tional measures to ensure it can attract and retain technicians.
First, as contacts are made at technical institutes during recruit-ment
for the new apprentice program, DPS should also strive to
promote its entry-level technician trainee positions to new
graduates. Success in recruiting applicants could come about by
working with the schools to give presentations on the advan-tages
of working for DPS and posting notices to advertise the po-sitions
available.
Second, DPS should consider offering hiring bonuses to attract
new applicants and counter-offers to existing staff who have re-ceived
employment offers from other companies. Currently,
DOA is conducting its Decentralized Pilot Project, which allows
four executive state agencies to offer hiring bonuses to potential
applicants and counter-offers to existing staff, if they have cur-rent
fiscal year appropriations available. According to a DOA
official, this program is a result of findings from the Personnel
Rules and Review Committee, which was created by the Legisla-ture
in 1997 to devise new ways of coping with personnel chal-lenges.
While DPS is not under DOA personnel rules, it could
consider proposing a similar program to the Law Enforcement
Merit Council, the entity responsible for overseeing personnel
issues for DPS. DPS could finance the program through the Tele-communications
Bureau’s vacancy savings, which totaled almost
$319,000 in fiscal year 2000.
Finding II
23
OFFICE OF THE AUDITOR GENERAL
Recommendations
1. DPS should continue with its current efforts to hire appren-tices
and trainees, and extend the time frame required to ob-tain
an FCC license or similar certification.
2. DPS should continue researching the feasibility of modifying
its background requirements for all civilian applicants, in-cluding
technical applicants, to ensure a broad applicant
pool.
3. DPS should make further efforts to recruit applicants by ar-ranging
to give presentations about the advantages of work-ing
with DPS telecommunications and through written job
postings at technical institutes and community colleges sites.
4. DPS should assess the feasibility of offering hiring bonuses
and counter-offers to attract and retain technicians.
Finding II
24
OFFICE OF THE AUDITOR GENERAL
(This Page Intentionally Left Blank)
OFFICE OF THE AUDITOR GENERAL
Agency Response
OFFICE OF THE AUDITOR GENERAL
(This Page Intentionally Left Blank)
ARIZONA DEPARTMENT OF PUBLIC SAFETY
2102 WEST ENCANTO BLVD. P.O. BOX 6638 PHOENIX, ARIZONA 85005-6638 (602) 223-2000
JANE DEE HULL DENNIS A.GARRETT
GOVERNOR DIRECTOR
February 28, 2001
Ms. Debra K. Davenport, CPA
Auditor General, State of Arizona
Office of the Auditor General
2910 North 44" Street
Phoenix, Arizona 85018
Dear Ms. Davenport:
Enclosed is the Department's written response to the Auditor General's revised preliminary report draft of the performance
audit of the Department of Public Safety Telecommunications bureau.
Please do not hesitate to contact my office if you have any questions.
Sincerely
Dennis A. Garrett, Colonel
Director
ec
Enclosures
(This Page Intentionally Left Blank)
DEPARTMENT OF PUBLIC SAFETY
RESPONSE TO
THE OFFICE OF THE AUDITOR GENERAL'S
REVISED PRELIMINARY REPORT DRAFT PERFORMANCE AUDIT OF THE
TELECOMMUNICATIONS BUREAU
GENERAL RESPONSE
The Arizona Department of Public Safety, Telecommunications Bureau, recognizes that audits and inspections provide a
valuable means to evaluate Department operations from an external source and make recommendations for improvement.
The following is in response to the draft report and recommendations provided to us.
RESPONSE TO FINDING I RECOMMENDATIONS
Recommendations from the Office of the Auditor General:
1. DPS should develop a plan for converting, as soon as possible, its entire
telecommunications system from an analog system to a digital system. This plan should
include the operational requirements, such as the additional buildings and towers needed,
as well as the associated costs. In addition, the plan should include estimated time frames
for completing each major phase of the conversion project.
DPS' Response to the Office of the Auditor General:
1. The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
Recommendations from the Office of the Auditor General:
2. DPS should seek grants to help finance the cost of digital conversion, and the cost of preparing its digital
conversion plan.
DPS' Response to the Office of the Auditor General:
1 . The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
Recommendations from the Office of the Auditor General:
3. Once DPS has completed its plan and thoroughly pursued grant funding, DPS should seek additional monies
needed from the Legislature so that it can begin converting to a digital
RESPONSE TO AUDITOR GENERAL'S REVISED PRELIMINARY REPORT DRAFT PERFORMANCE AUDIT OF TELECOMMUNICATIONS BUREAU
PAGE 1
communications network as soon as possible. In doing so, DPS should pursue digital conversion separately from its
goal of an interoperable system.
DPS' Response to the Office of the Auditor General:
1 . The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
Recommendations from the Office of the Auditor General:
4. DPS should report periodically to the Legislature on its progress toward fulfilling its plan.
DPS' Response to the Office of the Auditor General:
1 . The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
RESPONSE TO FINDING II RECOMMENDA TIONS
Recommendations from the Office of the Auditor General:
1 . DPS should continue with its current efforts to hire apprentices and trainees, and extend the time frame required to
obtain an FCC license or similar certification.
DPS1 Response to the Office of the Auditor General:
1 . The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
Recommendations from the Office of the Auditor General:
2. DPS should continue researching the feasibility of modifying its background requirements for all civilian applicants,
including technical applicants, to ensure a broad applicant pool.
DPS' Response to the Office of the Auditor General:
1 . The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
RESPONSE TO AUDITOR GENERAL'S REVISED PRELIMINARY REPORT DRAFT PERFORMANCE AUDIT OF TELECOMMUNICATIONS BUREAU
PAGE 2
Recommendations from the Office of the Auditor General:
3. DPS should make further efforts to recruit applicants by arranging to give presentations about the advantages of
working with DPS telecommunications and through written job postings at technical institutes and community
colleges sites.
DPS' Response to the Office of the Auditor General:
1 . The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
Recommendations from the Office of the Auditor General:
4. DPS should assess the feasibility of offering hiring bonuses and counter-offers to attract and retain technicians.
DPS' Response to the Office of the Auditor General:
1 . The findings of the Auditor General are agreed to and the audit recommendations will be implemented.
RESPONSE TO AUDITOR GENERAL'S REVISED PRELIMINARY REPORT DRAFT PERFORMANCE AUDIT OF TELECOMMUNICATIONS BUREAU
PAGE 3
Other Performance Audit Reports Issued Within
the Last 12 Months
00-7 Department of Public Safety—
Aviation Section
00-8 Arizona Department of Agriculture—
Animal Disease, Ownership and
Welfare Protection Program
00-9 Arizona Naturopathic Physicians
Board of Medical Examiners
00-10 Arizona Department of Agriculture—
Food Safety and Quality Assurance
Program and Non-Food Product
Quality Assurance Program
00-11 Arizona Office of Tourism
00-12 Department of Public Safety—
Scientific Analysis Bureau
00-13 Arizona Department of Agriculture
Pest Exclusion and Management
Program
00-14 Arizona Department of Agriculture
State Agricultural Laboratory
00-15 Arizona Department of Agriculture—
Commodity Development Program
00-16 Arizona Department of Agriculture—
00-17 Arizona Department of Agriculture—
Sunset Factors
00-18 Arizona State Boxing Commission
00-19 Department of Economic Security—
Division of Developmental
Disabilities
00-20 Department of Corrections—
Security Operations
00-21 Universities—Funding Study
00-22 Annual Evaluation—Arizona’s Family
Literacy Program
01-01 Department of Economic Security—
Child Support Enforcement
01-02 Department of Economic Security—
Healthy Families Program
01-03 Department of Public Safety—
Drug Abuse Resistance Education
(D.A.R.E.) Program
01-04 Department of Corrections—Human
Resources Management
Pesticide Compliance and Worker
Safety Program
Future Performance Audit Reports
Board of Osteopathic Examiners in Medicine and Surgery
Game and Fish Department—Wildlife Management Program
Game and Fish Department—Heritage Fund