Vehicle fleet management in other state entities. REPORT OF THE AUDITOR-GENERAL No. 3 of
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1 Vehicle fleet management in other state entities REPORT OF THE AUDITOR-GENERAL No. 3 of
2 Why this audit? Significant public funds spent on vehicle fleets Public concerned at unauthorised use Included on our Annual Plan of Work
3 Background Audit based on Fleet management in government departments, Sept 2014 Entities not directly subject to Treasury and DPAC guidelines But expected to develop similar policy frameworks 2
4 Audit objective to determine whether the use of vehicles in state entities was effective, efficient and compliant with relevant policies and guidelines 3
5 Audit scope 1. Who: Hydro Owned 230 RBF Leased 4 TFS Owned 486 UTAS Owned When: 1 July 2013 to 30 June
6 Audit process Reviewed usage records Examined motor vehicle log books Reviewed business cases, reviews and rationales Checked policies and guidelines Interviewed staff 5
7 Criteria 1 Was fleet size matched to need? 6
8 Too many? Size of fleet Hydro Average usage was km, well above benchmark 96.5% above km or specialist vehicles Too few? Average usage not excessive Annual external hire was less than $12,000 p.a. Reviewed? Business cases but no periodic review of fleet size Finding: Hydro had matched fleet size with need, but should do periodic review 7
9 Too many? Size of fleet RBF All but one of small fleet was travelling more than 15K benchmark Too few? No significant evidence of under use of vehicles Annual external hire was very low Reviewed? Business cases for all (which included review of fleet size) Finding: RBF had matched fleet size with need 8
10 Size of fleet Tasmania Fire Service Too many or too few? Unable to provide information on km s travelled other than a one month period in 2014 Unable to determine usage and therefore whether there was a match between fleet size and need No rationales to support purchases No periodic review of fleet size Finding: Unable to reliably conclude whether vehicle fleet matches need 9
11 Size of fleet UTAS Too many? Inadequate records for 85 of 143 vehicles 28 per cent of those with records were under-used Too few? External hire $90K p.a. (approx. 7 vehicles) But most hire is for 8- and 12-seater vehicles Reviewed? Not convinced business cases existed for all new vehicles Recent consultant review complained of lack of data Finding: UTAS likely has more vehicles than it needs 10
12 Criterion 2 Were fleet costs minimised? 11
13 Fleet costs minimised - Hydro Rotation of vehicles was sufficient, given evenness of usage Tested vehicles met servicing standard Fuel usage could not be determined because odometer readings regularly not provided FBT had been minimised Finding: Hydro minimised fleet operating costs, with possible exception of fuel usage 12
14 Fleet costs minimised - RBF Rotation of vehicles did not occur but disparities between vehicles minimal Vehicles met servicing standard Monitoring of fuel usage would be appropriate FBT minimised Finding: RBF minimised fleet operating costs, with possible exception of fuel usage 13
15 Fleet costs minimised - TFS Unable to evaluate effectiveness of rotation because of lack of data Vehicles not well maintained Unable to determine whether fuel usage was reasonable because of poor data FBT minimised Finding: unable to conclude that fleet costs minimised 14
16 Fleet costs minimised - UTAS Data limitations, but unlikely an effective rotation policy was in place Vehicles not well maintained Unable to determine whether fuel usage was reasonable because of poor data Only one of two methods used for FBT Finding: UTAS had not minimised its fleet operating costs 15
17 Criterion 3 Compliance with government policies 16
18 Hydro - tests against Treasury and DPAC policies COMMENT RESULT Choice of motor vehicle Treasury F200 contract Greenhouse emissions Passenger vehicles: 5.5 Safety standards ABS, traction control and airbags Authorised use All km recorded in logbooks Driver identification Driver identified in logbooks Home garaging Overnight garaging approved 17
19 RBF - tests against Treasury and DPAC policies TEST COMMENT RESULT Choice of motor vehicle Treasury F200 contract Greenhouse emissions Passenger vehicles: 5.5 Safety standards ABS, traction control and airbags Authorised use All km recorded in logbooks Driver identification Driver identified in logbooks * Home garaging Overnight garaging approved * No evidence that driver s license sighted 18
20 TFS - tests against Treasury and DPAC policies TEST COMMENT RESULT Choice of motor vehicle Treasury F200 contract Greenhouse emissions Passenger vehicles: 5.5 Safety standards ABS, traction control and airbags Authorised use All km recorded in logbooks * Driver identification Driver identified in logbooks * Home garaging Overnight garaging approved? * * Log books not maintained, don t know who was driving, or if use authorised 19
21 UTAS - tests against Treasury and DPAC policies TEST COMMENT RESULT Choice of motor vehicle Treasury F200 contract Greenhouse emissions Passenger vehicles: 5.5 Safety standards ABS, traction control and airbags Authorised use All km recorded in logbooks? * Driver identification Driver identified in logbooks * Home garaging Overnight garaging approved? * * Log books either not found or not properly completed 20
22 Criterion 4 Monitoring and reporting 21
23 Hydro - Monitoring and reporting Findings: Monitoring and action in many areas including: overdue maintenance, vehicle rotation bookings for pool cars No implementation of KPIs 22
24 RBF, TFS, UTAS - Monitoring and reporting Findings: No evidence of regular monitoring and reporting of vehicle usage No development of KPIs (doesn t apply to RBF as too small) 23
25 Conclusions and recommendations 24
26 Hydro conclusions and recommendations Conclusion: Management was effective, efficient and compliant with relevant policies and guidelines Recommendations Monitor usage and review size of fleet Review fuel usage Develop KPIs Management response: supportive 25
27 RBF conclusions and recommendations Conclusion: Management was effective, efficient and compliant with relevant policies and guidelines Recommendations Ensure users had presented a driver s license Monitoring vehicle and fuel usage Ensure fuel dockets are matched to invoices Management response: supportive 26
28 TFS conclusions and recommendations Conclusion: No evidence that management of vehicles was efficient or effective or fully compliant Recommendations Maintain and monitor records of vehicle and fuel use Business cases for new vehicles Periodic review of size of fleet Enforce regular vehicle maintenance Use logbooks Management response: supportive 27
29 UTAS conclusions and recommendations Conclusion: management of vehicles was not effective, efficient or fully compliant Recommendations Maintain and monitor records of entire fleet including schools Business cases for new vehicles Enforce provision of odometer readings Enforce regular vehicle maintenance Use logbooks Management response: supportive 28
30 Any further questions? 29
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