VEHICLE AND TRAVEL SERVICES

Michigan Office of the
Auditor General
Thomas H. McTavish, C.P.A.
Auditor General

EXECUTIVE DIGEST #0713698
VEHICLE AND TRAVEL SERVICES

INTRODUCTION
This report, issued in November 1999, contains the results of our performance audit of Vehicle and Travel Services (VTS), Department of Management and Budget (DMB).

AUDIT PURPOSE
This performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency.

BACKGROUND
VTS is part of the DMB Office of Support Services. VTS's mission is to provide cost-effective, timely, and safe transportation for its customers. VTS is responsible for the acquisition, operation, maintenance, repair, and replacement of vehicles used by State agencies, colleges, and universities. VTS accounts for its operations in the Motor Transport Revolving Fund. In addition, VTS administers the State travel policies, procedures, and regulations.

As of December 31, 1998, VTS had 67 employees and over 11,000 vehicles. VTS's operating expenses for fiscal year 1997-98 were $52,926,000.

AUDIT OBJECTIVES AND CONCLUSIONS
Audit Objective: To assess the cost-effectiveness of VTS's vehicle acquisition and disposal operations.

Conclusion: We concluded that VTS was generally cost-effective in its vehicle acquisition and disposal operations. However, we noted a reportable condition related to the process for improving effectiveness (Finding 1).

Audit Objective: To assess the effectiveness of VTS's vehicle repair and maintenance operations.

Conclusion: We concluded that VTS was generally effective in its vehicle repair and maintenance operations. However, we noted reportable conditions related to the evaluation and improvement of the cost-effectiveness of vehicle repair and maintenance services and the monitoring of vehicles for preventative maintenance (Findings 2 and 3).

Audit Objective: To assess the effectiveness of VTS's travel services operations.

Conclusion: We concluded that VTS was generally effective in its travel services operations. However, we noted a reportable condition related to the monitoring of the State's travel services contract (Finding 4).

AUDIT SCOPE AND METHODOLOGY
Our audit scope was to examine the program and other records of Vehicle and Travel Services. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the UnitedStates and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances.

Our audit methodology included examination of VTS's records and activities covering the period October 1995 through December 1998. To accomplish our objectives, we identified and reviewed VTS's mission, organizational structure, and applicable statutes. Also, we made inquiries of VTS personnel and reviewed fleet management professional publications to help form effectiveness expectations. In addition, we reviewed contracts, examined records, observed activities, and conducted interviews to provide a basis for assessing the cost-effectiveness of VTS's vehicle acquisition and disposal operations, the effectiveness of VTS's vehicle repair and maintenance operations, and the effectiveness of VTS's travel services operations.

AGENCY RESPONSES
Our report includes 4 findings and 5 corresponding recommendations. VTS's preliminary response indicated that it has complied with our recommendations.

Full Audit Report - #0713698 - VEHICLE AND TRAVEL SERVICES

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This page was created on October 28, 1999.


INTRODUCTION This report, issued in November 1999, contains the results of our performance audit of Vehicle and Travel Services (VTS), Department of Management and Budget (DMB).

AUDIT PURPOSE This performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency.

BACKGROUND VTS is part of the DMB Office of Support Services. VTS's mission is to provide cost-effective, timely, and safe transportation for its customers. VTS is responsible for the acquisition, operation, maintenance, repair, and replacement of vehicles used by State agencies, colleges, and universities. VTS accounts for its operations in the Motor Transport Revolving Fund. In addition, VTS administers the State travel policies, procedures, and regulations. As of December 31, 1998, VTS had 67 employees and over 11,000 vehicles. VTS's operating expenses for fiscal year 1997-98 were $52,926,000.

AUDIT OBJECTIVES AND CONCLUSIONS Audit Objective: To assess the cost-effectiveness of VTS's vehicle acquisition and disposal operations. Conclusion: We concluded that VTS was generally cost-effective in its vehicle acquisition and disposal operations. However, we noted a reportable condition related to the process for improving effectiveness (Finding 1). Audit Objective: To assess the effectiveness of VTS's vehicle repair and maintenance operations. Conclusion: We concluded that VTS was generally effective in its vehicle repair and maintenance operations. However, we noted reportable conditions related to the evaluation and improvement of the cost-effectiveness of vehicle repair and maintenance services and the monitoring of vehicles for preventative maintenance (Findings 2 and 3). Audit Objective: To assess the effectiveness of VTS's travel services operations. Conclusion: We concluded that VTS was generally effective in its travel services operations. However, we noted a reportable condition related to the monitoring of the State's travel services contract (Finding 4).

AUDIT SCOPE AND METHODOLOGY Our audit scope was to examine the program and other records of Vehicle and Travel Services. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the UnitedStates and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances. Our audit methodology included examination of VTS's records and activities covering the period October 1995 through December 1998. To accomplish our objectives, we identified and reviewed VTS's mission, organizational structure, and applicable statutes. Also, we made inquiries of VTS personnel and reviewed fleet management professional publications to help form effectiveness expectations. In addition, we reviewed contracts, examined records, observed activities, and conducted interviews to provide a basis for assessing the cost-effectiveness of VTS's vehicle acquisition and disposal operations, the effectiveness of VTS's vehicle repair and maintenance operations, and the effectiveness of VTS's travel services operations.

AGENCY RESPONSES Our report includes 4 findings and 5 corresponding recommendations. VTS's preliminary response indicated that it has complied with our recommendations.