Overview
MART did not properly document the use of its non-revenue-producing vehicles by employees of its operating company (Management Transportation Systems, Incorporated). Specifically, it did not properly document information such as the name of the employee who used the vehicle, the date and time it was picked up, the date and time it was returned, its vehicle number, the intended destination and purpose, and its beginning and ending odometer readings, for every trip for all of its non-revenue-producing vehicles. According to MART records, its non-revenue-producing vehicles were driven a combined total of 159,844 and 146,082 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 by the operating company’s employees for non-business purposes without detection.
Authoritative Guidance
MART has a Vehicles Policy, No. FIN-015, dated December 16, 2015, for the use of its non-revenue-producing vehicles by its staff. This policy requires MART management to maintain a log that documents the name of the employee who used each vehicle, the date and time it was picked up, the date and time it was returned, its vehicle number, the intended destination and purpose, and its beginning and ending odometer readings.
Reasons for Noncompliance
MART management stated that it had established a policy for the use of its non-revenue-producing vehicles that it provided to everyone who used the vehicles and that its own employees followed this policy. Operating company employees were probably not following the policy because it did not specifically state that it applied to them. However, MART management personnel told us that they did understand the need for all of the operating company’s employees to follow the policy.
MART management also stated that the agency did not have controls in place to monitor the use of non-revenue-producing vehicles.
Recommendation
MART should amend its policies for the use of its non-revenue-producing vehicles to indicate that they also apply to operating-company employees, including monitoring controls to ensure that they are adhered to.
Auditee’s Response
MART will update its current policy and procedures to address all RTA and Operating Company employees following the vehicle use policy and procedure. . . . MART will put in place an audit policy and monitoring controls to verify that the correct process is being followed.
Auditor’s Reply
Based on its response, MART is taking measures to address our concerns in this area.
| Date published: | July 11, 2018 |
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