Remarketing

Workforce Central Florida Responds to Investigative Report

September 21, 2011

Workforce Central Florida (WCF) disagreed with all findings of a fleet report from the Florida Office of the Inspector General (OIG). The report alleged that WCF improperly purchased, leased, and disposed of 20 vehicles, and it asked the WCF to pay back $39,000 in unallowable vehicle leases.

The WCF response disagreed with all six findings in the OIG report, citing a "consistent misunderstanding of the decisions made and actions taken and/or misapplication of relevant rules and regulations."

Listed below are OIG findings and the responses from the WCF.

Vehicles were underutilized and fleet size unnecessary: Acquisition and operating cost totaled $0.62 per mile for the vehicles. Compensation adjustment for employees to purchase more costly insurance coverage (recommended for employees using their own vehicles for business purposes) would total $30,994.

The WCF calculated $0.11 in administrative cost per mile for fleet management activities in comparison to $0.32 per mile for travel reimbursement requests and monitoring of individual liability insurance coverage.

In total, cost per mile for company-owned vehicles ($0.73) was calculated to be less than mileage reimbursement costs ($0.77). If additional insurance burden is added, the WCF calculated it saved $33,212 for the period in purchasing the 10 PT Cruisers instead of reimbursing drivers.

Vehicle purchases were an unallowable expenditure and no approval was obtained: Misinterpretation and misapplication of federal rule.
Improper vehicle disposal. Misapplication of property disposal requirements.

No procurement process in selling vehicles: Misapplication of property disposal requirements.

Leasing its own vehicles before the leasing company purchased it from WCF: This finding was determined inaccurate. Vehicle sale and lease were simultaneous transactions.

WCF incurred an unnecessary expense of $38,876, the difference in the higher cost of leasing over reimbursement: This was a flawed calculation. Taking into consideration administrative and insurance cost for reimbursement, the WCF actually reduced travel expenses by $20,290.

"We believe we acted responsibly, in good faith, and within all the rules. And we believe we avoided unnecessary expenses in the process," WCF stated in its response.

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