CARSON CITY, NV - An audit of the Motor Pool Division of the Nevada Department of Administration found the Motor Pool can save $1.6 million by delaying new vehicle purchases and reducing its fleet by 73 low-use vehicles assigned to state agencies. It listed 11 recommendations to improve the Division's internal controls. The audit, which focused on fiscal years 2008 and 2009, was presented at a Legislative Commission's Audit Subcommittee meeting on September 29.
As of July 2009, the Division operated a fleet of 849 vehicles that cost approximately $13 million. Of these vehicles, 736 were on assignment to state agencies, and 113 were used as daily rentals. The Division's primary source of funding is vehicle rental fees, according to the report.
Some principal findings of the report were:
Twenty two percent of assigned vehicles did not meet minimum use requirements, and management did not actively monitor low-use vehicles and reassign them if necessary, as stated mandated by state policy.
Preventive maintenance was not timely for 30 percent (85 of 279) of vehicles requiring services.
A revised vehicle replacement policy did not include a cost analysis, which could result in cost savings.
The initial cost premium paid for hybrid vehicles was not recovered because of low use and relatively low gasoline prices before the vehicles were retired. The Motor Pool has 40 hybrid vehicles, with total cost of about $870,000.
Monthly fuel card billings were not adequately monitored for improper use. A review of four months' billing statements found 16 vehicles should be investigated for improper fuel car use. Recurring fuel theft for one vehicle was not identified or investigated in a timely manner.
Motor Pool staff did not document all required reviews of purchase card transactions for vehicle repairs and maintenance to ensure that purchased goods were reasonable and relevant to the repair.
The report's 11 recommendations, accepted by the Motor Pool Division, are as follows:
Monitor vehicle utilization in accordance with policies and procedures.
Work with agency financial managers and the Budget Division to eliminate or reassign unneeded vehicles.
Develop policies and procedures to ensure vehicles are maintained in accordance with established maintenance schedules.
Establish a policy to periodically analyze fleet replacement issues, such as extending mileage requirements on hybrids or standard vehicles, to help ensure Motor Pool's replacement vehicles are cost effective.
Place hybrid vehicles at high-use agencies to the extent possible.
Establish procedures for periodically comparing monthly fuel purchases to the reported monthly mileage to identify improper fuel card use.
Document the review of improper fuel card use.
Develop and implement procedures to reasonably ensure drivers restrict the use of fuel cards to the assigned vehicle.
Request NDOT to provide odometer readings associated with each fuel transaction.
Document the internal control procedures performed when reviewing purchase card transactions related to fleet maintenance and repairs.
Periodically review internal controls over fleet management activities to ensure the controls are followed, adequately documented, and working as intended.
The full audit report can be found here.
