FOLLOW-UP REPORT Fleet Management Review: Motor Vehicle Crashes And Loss Mitigation

Transcription

1

2 FOLLOW-UP REPORT Fleet Management Review: Motor Vehicle Crashes And Loss Mitigation August 23, 2016 OVERVIEW Section , Florida Statutes, and internal auditing standards require that we monitor and report to the Secretary on the status of actions taken by management to implement findings and recommendations made in internal audit reports. On October 3, 2013, we issued Internal Audit Report Number A-1213BPR-031, Fleet Management Review: Motor Vehicle Crashes and Loss Mitigation. Our first and second follow-up reviews, published on June 17, 2014, and on January 12, 2015, showed that management of the Division of Administration and Financial Management (Division) had made considerable progress in addressing audit issues identified in our initial audit report. However, findings and recommendations remained open as to the division s initiatives regarding driver safety training and establishment of a Motor Vehicle Crash Review Board. This report represents the results of our final follow-up review of actions taken by the division since January Based upon our analysis of activities performed and supporting information and documentation provided, we concluded that management has taken sufficient action to close all audit issues and recommendations. SUMMARY OF INITIAL AUDIT RESULTS AND RECOMMENDATIONS Our overall initial audit objective was to evaluate the effectiveness of department policies, procedures, and practices related to motor vehicle crashes and loss mitigation. The review focused on motor vehicle crashes and non-traffic crash damage involving state-owned vehicles. Fleet management within DBPR is decentralized to accommodate the diverse operational requirements of individual divisions. Within this context however, the department did not have a comprehensive framework for managing issues related to motor vehicle crashes or for developing effective loss mitigation initiatives. In the absence of such a framework, the department could not accurately determine the number of motor vehicle crashes that had occurred, identify the divisions at higher risk for experiencing a motor vehicle crash, or evaluate the risk of future occurrences. The department could not readily assess the underlying causes of motor vehicle crashes or the costs incurred as a result of motor vehicle crashes. Without such information and analysis, the department was missing opportunities to reduce the likelihood of future occurrences and mitigate associated losses. We therefore recommended the division establish a fleet safety and loss mitigation component within its Safety and Loss Prevention Program. We also recommended the division revise the August 2016 Page 1

3 department s administrative policies to require that vehicle coordinators provide the Safety Coordinator with detailed data and information on motor vehicle crashes and non-traffic crash damage in department-owned vehicles. The absence of a comprehensive framework also contributed to inconsistent disciplinary action in response to at-fault motor vehicle crashes. We therefore recommended the division establish a Motor Vehicle Crash Review Board within the Safety and Loss Prevention Program. RESULTS OF FOLLOW-UP REVIEW Establishment of a Fleet Safety and Loss Mitigation Component To facilitate management of issues related to motor vehicle crashes we recommended the division establish a fleet safety and loss mitigation component within its Safety and Loss Prevention Program, to include: Procedures for reporting motor vehicle crashes and non-traffic crash damage involving department-owned vehicles Establishment and maintenance of a central repository of detailed data and information on motor vehicle crashes and non-traffic crash damage. Evaluation and analysis of the data to help formulate loss mitigation initiatives for implementation by the fleet safety component. On-going driver training/driver safety programs In previous follow-up reviews, our office had noted that the Safety and Loss Prevention Program Manager developed and disseminated an accident packet for placement in department-owned vehicles. The packet contains the information and forms needed in the event an employee is involved in a motor vehicle crash. The Program Manager has also established a central repository of data and information on motor vehicle crashes and non-traffic crash damage. During the course of this follow-up review, the Division reported that they have completely revamped the reporting protocol concerning accidents involving both state-owned and personally-owned vehicles. The division has now developed an Accident Reporting Flow Chart that gives employees and their supervisors a concise understanding of how the flow of information concerning vehicle accidents should result in a comprehensive vehicle accident file. This accident file is to include a first report of injury to the department s workers compensation provider, as well as photos of vehicles involved in the accident and relevant case numbers for the event. The Program Manager provided information that in Fiscal Year , the department experienced 60 incidents, or an average of approximately one incident per week. This figure is consistent with the average number of incidents we reported for both the initial audit period 1 and our previous follow-up review periods. However, the percentage of at-fault incidents appears to have decreased. The Program Manager determined department drivers were at fault in approximately 26% of the Fiscal Year incidents. In comparison, department drivers were at fault in 35% of the motor vehicle crashes that occurred during the period of our audit. 1 The initial audit period was January 1, 2009 through December 31, August 2016 Page 2

4 Regarding the recommendation to establish on-going driver training/driver safety programs, the department, in partnership with the Division of Risk Management 2 and the Department of Transportation, has implemented an online defensive driving training course. This course offers eleven training modules that address contributing factors leading to motor vehicle accidents. Course modules include Risk Awareness, Impaired Driving, Safe Driving Practices, and Reducing Collision Consequences. Training was initially targeted to a select group of individuals from the Division of Alcoholic Beverages and Tobacco. The division reported that training will eventually be provided to the more than 400 employees who use state-owned vehicles as a requirement of their employment. Our office reviewed the training records of all employees for November and December 2015 and found that 14 department employees have completed the offered training. We concluded the division has actively worked to establish a fleet safety and loss mitigation component within the division s Safety and Loss Prevention Program. On-going driver training/driver safety programs have also been established. We concluded management s corrective actions are sufficient to close this issue. Revision of Department Policies In our initial audit report, our office recommended the division coordinate with the Inspector General to revise department Policy 1.2, Complaint Policy, to remove the requirement that divisions report incidents involving motor vehicle crashes and non-traffic crash damage to the Office of Inspector General. This policy was revised, as recommended, as of our June 2014 follow-up review. Our initial audit also recommended the division revise department Policy 1.11, State Motor Vehicle Usage, to require that divisions report detailed data and information to the Safety Coordinator on all motor vehicle crashes and non-traffic crash damage in department-owned vehicles. A revised State Motor Vehicle Usage Policy was submitted to our office. The revised policy notes that when an employee is involved in an accident with a state-owned vehicle, the division must provide the Safety and Loss Prevention Program Manager with relevant information. This includes the state car number; the date of the incident; the name of the person reporting the incident; and the name of the person operating the vehicle at the time of the incident or the employee responsible for the vehicle at the time of the incident. The Safety and Loss Prevention Program Manager must also receive all memos, reports, pictures, estimates of repair, and statements and will recommend action as appropriate including inquiry, investigation, or reports to management. The department s policy coordinator provided a copy of this policy to all senior management and division directors on August 10, During this communication, the department policy coordinator noted the Secretary would be signing this policy shortly. We concluded the division has actively worked to revise department policies to address the risk presented in the initial audit report. 2 The Division of Risk Management identified that the department s number of claims per 100 vehicles was twice that of other agencies statewide. August 2016 Page 3

5 We concluded management s corrective actions are sufficient to close this issue. Establishment of a Motor Vehicle Crash Review Board As part of our initial audit report, our office recommended the division establish a Motor Vehicle Crash Review Board within the Safety and Loss Prevention Program. The Motor Vehicle Crash Review Board should be responsible for establishing a disciplinary action system related to motor vehicle crashes; reviewing all motor vehicle crashes and non-traffic crash damage involving department-owned vehicles; and making recommendations to management regarding disciplinary action to be taken in response to motor vehicle crashes in department-owned vehicles. The Department of Financial Services, Division of Risk Management, also issued a Report from an Evaluation of the Department of Business and Professional Regulation Loss Prevention Program on February 1, The Report recommended that the department establish and administer a safety committee, meeting quarterly, that consists of the safety coordinator, unit safety representatives, and the department s workers compensation coordinator. The documented minutes of the safety committee should include examination of trends and causation factors. In response to both our internal audit and the Division of Risk Management report, the department has instituted a Safety Advisory Committee (SAC). The SAC is also empowered to review motor vehicle crashes as contemplated in our initial audit recommendation. The Program Manager reported the division modeled the department s Safety Advisory Committee after the Alachua County Sheriff s Office process as outlined in their motor vehicle crash/damage policy. The department s SAC includes members of the Division of Administration and Financial Management, as well as the Office of General Counsel. As part of follow-up testing, our office reviewed the meeting minutes and agenda of SAC meetings. The SAC has met twice, including most recently on July 13, We concluded the division has established a motor vehicle crash review board. We concluded management s corrective actions are sufficient to close this issue. OBJECTIVE, SCOPE, AND METHODOLOGY The objective of this follow-up review was to determine the status of action taken by management of the Division of Administration and Financial Management in response to the findings and recommendations made in Internal Audit Report Number A-1213BPR-031, Fleet Management Review: Motor Vehicle Crashes and Loss Mitigation (published October 3, 2013). Our review focused on corrective action taken since our second follow-up review of January In August 2016, division management provided updated information on the status of its implementing actions. We reviewed the information and supporting documentation, interviewed the Safety and Loss Prevention Program Manager about the status of various program August 2016 Page 4

6 initiatives, and obtained additional supporting information and documentation from the department s Policy Coordinator. SUPPLEMENTAL INFORMATION This follow-up review was conducted pursuant to Section , Florida Statutes, and in conformance with applicable Principles and Standards for Offices of Inspector General, as published by the Association of Inspectors General and applicable standards of the International Standards for the Professional Practice of Internal Auditing, as published by the Institute of Internal Auditors, Inc. We would like to thank the management and staff of the Division of Administration and Financial Management for their cooperation and assistance during the course of this review. This follow-up review was conducted by Steven Henry, Senior Internal Auditor. The mission of the Department of Business and Professional Regulation is to: License efficiently. Regulate fairly. The Office of Inspector General is established pursuant to Section , Florida Statutes, to provide a central point for the coordination of and responsibility for activities that promote accountability, integrity, and efficiency in government. The mission of the Office of Inspector General is to be a valuable partner in conducting independent, objective internal audits, reviews, and investigations of department programs, activities, and functions. Other reports prepared by the Office of Inspector General of the Department of Business and Professional Regulation can be obtained by telephone ( ) or by mail (2601 Blair Stone Road, Tallahassee, FL ). August 2016 Page 5