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Audit Recommends Ohio DOT Eliminate 636 Vehicle and Equipment Assets

April 27, 2012

COLUMBUS, OH – A new performance audit of the Ohio Department of Transportation (ODOT) found a total of $6 million in potential savings, with fleet vehicle utilization identified as one of two areas where ODOT could reduce costs. ODOT was one of four State agencies selected for an audit in 2011, under Ohio's legislature's S.B. 4. Ohio’s Auditor of State Dave Yost conducted the audit.

The audit evaluated utilization of 2,522 vocational vehicles, 145 light dump trucks, 458 passenger cars, 560 tractors, and 424 pieces of heavy equipment.

Related to heavy equipment utilization, the audit stated ODOT should eliminate 178 pieces of equipment, which would bring in $3.1 million (the estimated auction value) in revenue from direct sales and save $88,500 annually for parts. To analyze utilization for heavy equipment, ODOT looked at available days during the construction season. The 5% utilization standard the Auditor of State used is equivalent to 72 engine hours (9 total business days), according to the report.

For tractors, the audit recommended ODOT should dispose of 206 tractors, which would save $1.5 million in revenue from selling the assets via auction, and $123,000 in annual parts costs. The utilization standard was based on total mowing season hours and at 15% is approximately 165 hours (21 days), according to the audit report.

Next, the report recommended eliminating 151 vocational vehicles, the sale of which would bring in $373,000 in revenue and save $61,000 annually in parts. The Auditor of State based the utilization standard on a 20% utilization standard, approximately 2,400 miles or less per year.

For passenger cars, the report said ODOT should eliminate 87 vehicles, which would bring in $178,000 in and save $19,100 in parts each year. The utilization standard was 50%, or 6,000 miles per year.

Lastly, the audit report said ODOT should eliminate 14 dump trucks, which would bring in $62,000 from sales and save $21,200 in parts costs. The minimum utilization standard of 20% is equivalent to 2,400 miles or less per year or 100 engine hours.

The report also recommended ODOT close two rest stops to reduce costs.

By Greg Basich

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