Fuel Management

N.C. State Agencies Spend Money on Parked Vehicles

November 12, 2009

RALEIGH, NC - Several North Carolina agencies using the state's motor fleet of more than 8,500 vehicles have paid millions for miles they did not drive, according to WRAL News.

The state motor fleet, overseen by the Department of Administration, gets no money from the state's general fund. Agencies pay for 1,050 miles per car per month. The mileage rate depends on the type of car. If the car is driven more than 1,050 miles, the agency pays for each mile over the limit. If the car is driven less than 1,050, the agency still gets charged the flat fee. There is no provision to save money by driving less, WRAL reported.

The Department of Correction (DOC), one of the motor fleet's biggest customers, gets more than 2,400 vehicles a year, and most are permanently assigned to correction employees who use the cars for everything from training to transferring prisoners. From July 2008 through June 2009, the DOC paid approximately $1.7 million for vehicles that were not driven. Although DOC officials said driving was reduced over the past year due to budget restrictions, the agency still pay for unused miles, reported WRAL.

The University of North Carolina at Chapel Hill spent $600,000 on unused mileage last fiscal year, records showed, North Carolina State University spent $293,000, and the Department of Administration spent $92,000.

By law, the state's motor fleet management is limited in its oversight. Once an agency rents a vehicle, the motor fleet can't take it away as long as the bills are being paid. It's up to the agency. The motor fleet statute that covers mileage was adopted in 1981 and has never been changed, reported WRAL.

 

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