ALBUQUERQUE, NM – The City of Albuquerque Office of Internal Audit’s management audit of fuel usage and security at the City found the need for better controls for fuel management and more security both for fueling facilities and for vehicles.
Fuel expenses were approximately $7.5 million during FY-2011. The City has 23 fueling facilities managed by the Department of Finance and Administrative Services - Fleet Management Division (FMD), Solid Waste Management Department (SWMD), and Transit Department. In addition to the AssetWorks FuelFocus fuel management system connected to 18 of the fueling facilities, drivers also use Wright Express, Inc., fuel credit cards.
The audit recommended:
- FMD should define and communicate policies, standards, and procedures for fuel management, including general controls, application controls, a division of roles and responsibilities, and periodic access reviews.
- FMD should develop and maintain a list of people with keys to the island control unit (ICU) to increase security.
- FMD should update the fuel operations procedures manual for dispensing fuel to users.
- FMD should ensure fuel management controls are being used effectively, as some samples showed defined tank capacities input in the system exceeded vehicle specifications, and 1,723 fleet units were allowed to fuel up to 99 times per day.
- FMD should require management approval for various transactions to reduce errors.
- SWMD should develop policies and procedures regarding manual fuel transactions and maintain a listing of persons that have keys to the ICU.
- Parks and Recreation Department (PRD), which houses fueling stations not connected to the fuel management system, should reconcile fuel usage to deliveries — lack of reconciliation resulted in 462 gallons of fuel that could not be accounted for during August 2011.
- The chief administrative officer (CAO) should increase security of fueling facilities. CAO responded it is currently installing security cameras at three major fuel sites.
- CAO should determine the need for two fuel cards assigned to one fleet unit — both a City-issued fuel card and a Wright Express card.
- CAO should develop a policy of securing all city vehicles and equipment when not in use. Five of ten tested vehicles (all with fuel cards inside) were unlocked.
Department response to the audit largely stated they would, were in the process of, or had already implemented the recommended changes.
The City of Albuquerque provides fleet management services and fuel operations to more than 4,000 units supporting 18 City departments, according to the audit. The entire audit, with all responses, can be found here.
Vist AssetWorks at GFX in Booth No. 111 and Wright Express at Booth No. 407.