Audit Advises La. City to Track Take-Home Vehicles with GPS

February 01, 2017, by Roselynne Reyes

An internal audit from the City of Shreveport, La., found that the city failed to sufficiently keep track of its take-home vehicles. The Internal Audit Office noted that the city also failed to keep proper documentation, including lists or documented approvals for the assignment of take-home vehicles. The investigation was prompted by a fraud hotline allegation that a city employee was inappropriately using their assigned vehicle.

City policy requires that take-home vehicles cannot travel more than one mile outside city limits unless approved by the Chief Administrative Officer. It also states that take-home vehicles will not be assigned to employees who live more than five miles outside of the city, or the employee will be required to pay a mileage charge. Of the city's 184 take-home vehicles, 56 were driven more than five miles outside city limits and the audit failed to find any record of payment for excess mileage. To better track fleet vehicles, the audit recommended equipping all city vehicles with GPS tracking.

The city was also advised to review its current fuel card program. Through the program, every employee that uses a city vehicle is assigned a personal identification number (PIN), allowing them to use a fuel card. But the Internal Audit Office found that many would share their PINs with newer employees who were still in their probationary period.

The report recommends that the city update administrative procedures to include IRS reporting requirements and excess mileage changes, and require updates to departmental vehicle listings as they occur.

Departments were also advised to obtain written approval of take-home vehicle assignments, update the Administration and Finance Department as needed, and produce monthly reports with usage and dollar amounts to verify the amount reported to the IRS.

Click here to read the full audit.

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