Audit Division
Audit Summary

Department of Administration
Motor Pool Division
Report LA00-05

Results in Brief

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The Motor Pool Division does not have the information it needs to manage its operations. For years it has operated without adequate information on vehicle operating costs. As a consequence, decisions, such as when to replace vehicles or what rental rates to charge, are made without a proper analysis of cost information. Although our 1993 audit contained several recommendations to improve information, these recommendations have not been fully implemented. Furthermore, the Division does not expect to have sufficient information on vehicle operations for several more years. As a result, the Division has little assurance it is meeting its statutory purpose of ensuring economical utilization of state-owned vehicles.

The inability of the Motor Pool Division to obtain and maintain adequate information stems from a lack of oversight and divided management functions. Certain management functions have been divided between two divisions within the Department of Administration without a written agreement. As a result, accountability for program performance is diminished.

Principal Findings

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• Between fiscal years 1993 and 1999, the Division spent about $6.5 million on new and replacement vehicles and more than $4.9 million on vehicle operations without adequate information to ensure sound management decisions are made. Without adequate information, the Division had difficulty responding to questions posed by legislators during the 1997 and 1999 legislative sessions. These questions included concerns about rising vehicle operating costs and replacement of vehicles. (page 7)

• The Division estimates its new fleet management system will not provide information that can be used in rate setting or vehicle replacement analyses until July 2002. The delay in generating useful information is partially due to the decision not to include vehicle information collected prior to July 1, 1998, in the database of the Division’s new fleet management system. This information was set aside because it had become unusable due to missing or duplicate data, corrupt files, and system constraints. (page 7)

• The Motor Pool Division did not fully implement our prior audit recommendations aimed at improving information to ensure the economical utilization of state-owned vehicles. Our 1993 audit estimated the Division could save more than $600,000 by (1) monitoring vehicle use, (2) revising its rate structure, and (3) calculating the optimal replacement period for motor pool vehicles. Since that audit, the information generated by the Division has deteriorated, making it difficult to determine if cost savings estimates were realized. Because the number of vehicles operated by the Division increased 34% between fiscal years 1993 and 1999, the potential for savings could be much greater today. (page 8)

• The Motor Pool Division has experienced significant delays in implementing its new fleet management system. While a needs assessment was completed by the Department of Information Technology in August 1994, the new system did not come online until July 1998, a period of almost four years. This includes a 19-month period where no work was done. Although the new system is online, system reporting capabilities are still under development. (page 10)

• The performance of certain management functions has been divided between the Department of Administration’s Motor Pool Division and the Administrative Services Division without a written agreement outlining specific responsibilities. While the Motor Pool Division pays the Administrative Services Division in excess of $100,000 each year for professional services, the exact nature and extent of these services is unclear. A written agreement is important because the 1993 reorganization of the executive branch of state government left the Motor Pool Division without the employees necessary to perform financial management functions. (page 11)

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Department of Administration
Motor Pool Division

Agency Response
To Audit Recommendations

Recommendation Number		Accepted	Rejected
1	Provide adequate oversight in developing, enhancing, and maintaining management information systems	x
2	Clarify the services to be provided by the Administrative Services Division	x
3	Request assistance from the Administrative Services Division in implementing audit recommendations	x
Totals		3	0