Overview
CCRTA did not properly document the use of its non-revenue-producing vehicles. Specifically, it did not properly document information such as the name and driver’s license expiration date of the employee who used the vehicle, the trip’s intended destination and purpose, the date and time the vehicle was picked up, the date and time it was returned, its license plate number, its description, its beginning odometer reading, its condition before and after use, any damage, and any maintenance issues identified during use, for every trip for all of its non-revenue-producing vehicles. According to CCRTA records, its 10 non-revenue-producing vehicles were driven a combined total of 44,663 and 56,608 miles during fiscal years 2016 and 2017, respectively. As a result of the lack of monitoring of use, there is a higher-than-acceptable risk that these vehicles may be used for non-business purposes without detection.
Authoritative Guidance
CCRTA’s oversight agency, the Massachusetts Department of Transportation (MassDOT), has a Motor Vehicles Policy, No. P-D0032-01, dated October 5, 2016, regarding the use of MassDOT’s non-revenue-producing vehicles by its staff. This policy requires MassDOT management to maintain a log that documents the name and driver’s license expiration date of the employee who used the vehicle, the trip’s intended destination and purpose, the date and time the vehicle was picked up, the date and time it was returned, its license plate number, its description, its beginning odometer reading, its condition before and after use, any damage, and any maintenance issues identified during use. Although CCRTA is not required to follow this policy, it represents a best practice in vehicle fleet management that CCRTA should follow because it will allow the agency to more effectively manage the maintenance and proper use of these vehicles.
Reasons for Noncompliance
CCRTA management stated that the agency had an informal policy, verbally communicated to all staff members, that required employees to request the use of non-revenue-producing vehicles from CCRTA’s fleet director. They said they believed that the vehicles were adequately safeguarded from potential misuse because the fleet director was the only staff member who had the keys when employees asked to sign out the non-revenue-producing vehicles. CCRTA does not have policies and procedures in place for the use of its non-revenue-producing vehicles or the monitoring of that use.
Recommendations
- CCRTA should establish policies and procedures, consistent with those established by MassDOT for its non-revenue-producing vehicles, that require a log that documents the following:
a. the name and driver’s license expiration date of the employee who used the vehicle
b. the date and time the vehicle was picked up
c. the date and time the vehicle was returned
d. the vehicle’s license plate number
e. the vehicle description
f. the intended destination and purpose
g. the beginning odometer reading
h. the condition of the vehicle before and after use
i. any damage
j. any maintenance issues identified during use - CCRTA should ensure that these policies and procedures include monitoring controls to ensure that they are adhered to.
Auditee’s Response
We had been monitoring the use of non-revenue vehicles in the following manner:
- All non-revenue vehicles were assigned and used only as needed. Each vehicle’s use was approved and authorized first by a manager for that use. Subsequently, the manager would check when the vehicle returned to ensure its use was only for the authorized purpose.
- Fuel, mileage and fluid levels of each non-revenue vehicle were logged at the time of fuel fill-ups and mileage compared to the amount of fuel dispensed into that vehicle. The amount of fuel dispensed needed to correlate with the amount of miles driven. Since the vehicles had always appeared to be within acceptable ranges, no further documentation appeared necessary. However, given the comprehensive discussions with your team around the necessity to better document these procedures, we have implemented a more rigorous oversight policy. . . .
- There are three outlier vehicles that are permanently assigned to individuals, rather than being shared for their use. They are:
- Administrator’s vehicle . . . (2012 Ford Escape)
- Facilities Manager’s vehicle . . . (2017 Ford F-250)
- General Manager’s vehicle . . . (2010 Ford Escape)
For these vehicles, mileage and fuel used were documented at each fill-up. We had never seen a discrepancy with the amount of fuel consumed vis a vis the mileage accrued for that interval. Employees were aware that managers were involved in their use and monitoring. However, the new policy is well illustrated in the . . . form that is now required in all of the regular, nonrevenue vehicles.
Each vehicle will now contain a clipboard with a pad of “CCRTA NON-REVENUE VEHICLE LOG” forms that are specific to that particular vehicle. Each employee that is authorized to utilize the vehicle will be required by new policy to complete the log. A manager will also be required to thoroughly review each log and sign off on the documentation and use on a weekly basis.
Lastly, CCRTA has also assigned unit numbers to the vaulting trailer and electric yard carts for better documentation purposes.
Auditor’s Reply
Although CCRTA may have had some procedures in place to monitor certain aspects of the use of its non-revenue-producing vehicles, we do not believe that these procedures provided adequate control over their use or ensured that the vehicles were only used for business purposes. However, based on its response, CCRTA is taking measures to address our concerns in this area.
| Date published: | July 2, 2018 |
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