Operations

Audit Finds Problems in Va. City's Fuel and Purchasing Policies

October 04, 2017

Photo of the Petersburg City Courthouse via Flickr/Taber Andrew Bain
Photo of the Petersburg City Courthouse via Flickr/Taber Andrew Bain

A forensic audit of the City of Petersburg, Va., identified systemic problems with the way with city manages purchasing card usage, fuel diversion, and theft/misuse of assets.

The audit was conducted by an outside consultant with the purpose of identifying holes in the city’s internal controls, rather than investigating specific abuses. The auditor found misconduct was probable in several areas, including fuel purchases.

The city uses a purchasing card with a $2,500 limit on purchases. But the auditors found employees would split up large purchases over several transactions to stay under the limit. In another case, employees took their vehicles in for service, stopped for a meal, and filed both purchases under vehicle repairs. The audit recommends blocking certain merchants to avoid abuse, such as liquor, gambling, and credit card accounts.

Inconsistencies in the city’s fuel program were also noted. The data collected was not clean, with duplicate users and inconsistent records, making it difficult to analyze. The audit recommended that each employee assigned a vehicle records dates and times, odometer readings, and gallons purchased at every refueling. A few users accounted for a significant amount of fuel, and the audit recommended supervisors regularly monitor fuel purchases for inconsistencies.

Click here to view the full audit.

Comment On This Story

Name:  
Email:  
Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

FleetFAQ

Public Fleet Tracking And Telematics

Amin Amini from Verizon will answer your questions and challenges

View All

Recent Topics

My agency currently uses live local auction to dispose of surplus assets. We would like to move to on-line. Can anyone give me any...

View Topic

Has anyone played with the idea of leasing vehicles' vs. purchasing. And are there any benefits to it. I know Enterprise offers a...

View Topic

Fleet Documents

1055 Fleet Documents (and counting) to Download!

Sponsored by

During the period of 1920-1924,Chrysler teamed up with three ex-Studebaker engineers, Fred Zeder, Owen Skelton and Carl Breer, to design a revolutionary new car. They defined what the products of the Chrysler brand would be  affordable "luxury" vehicles known for innovative, top-flight engineering.

Read more