Fuel Card Usage Audit Report

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Informations

• Publié par: Unsa
• Nombre de lectures: 24
• Langue: English

Extrait

City of Boulder

All Departments

Review of Fuel Usage for City of Boulder Vehicles and

Equipment

June 2003

Internal Audit Services

Audit and Evaluation Division

Human Resources & Organizational

Effectiveness Department

Audit Report Summary

City of Boulder

A Review of Fuel Usage for Vehicles and Equipment

Tests and observations were performed to assure:

•

Consistent and effective processes are in place for charging departments for fuel

pumped for their vehicles at Fleet Services fuel facility and for recording vehicle

mileage at time of each fueling.

•

Fuel use at department-controlled fuel facilities is restricted to city vehicles and

equipment (except for resale fuel for boaters at Boulder Reservoir).

•

Effective controls are in place over use of Fuel Cards issued to departments by Fleet

Services for remote purchase of fuel from vendors.

•

Use of BoulderCards (Purchasing Cards) to purchase fuel for city vehicles and

equipment is not excessive and is effectively controlled by departments.

•

Management (system) reports furnished by Fleet Services to departments for

managing fuel use by vehicle are accurate and effective.

Process Improvements implemented include:

•

Improvements to the process for automated interface of data from the Fleet Anywhere

System to the City of Boulder’s Finance System (BFS) to assure data transferred are

complete and accurate.

•

Improvements in documentation of monthly report data from the Fleet Anywhere

System.

•

A new process for assuring appropriate BFS accounts are charged for Fleet Anywhere

System fuel charges.

•

Pursuit of lower cost alternatives to use of Fuel Cards by some departments, and a

review of options by Fleet Services with departments that have Fuel Cards.

Process Improvements planned include:

•

Fleet staff will investigate the feasibility of an employee “smart” identification card

system which may be used for not only fueling but also employee identification, City

building access, Municipal Service Center gate access, etc. and make a

recommendation to the Director of Public Works Development & Support Services.

Guy E. Wiley, Internal Auditor

City of Boulder

City of Boulder – All Departments

A Review of Fuel Usage for City of Boulder Vehicles and Equipment

Scope:

Determine fuel sources used for all city vehicles and equipment. Review controls over

fuel usage and access.

Overview:

The principal sources of fuel for city vehicles and equipment are the pumps at the city

yards, pumps at specific department sites (Parks and Recreation Maintenance Facility,

Parks and Recreation – Reservoir, Open Space, Betasso, and others), local gas stations

using fuel cards issued by Fleet Services (Fire Department, Public Works, Open Space),

Purchasing Cards used at local gas stations, and direct payment by departments to fuel

vendors.

Observations:

1. During the audit, some problems were noted in the accounting and reporting

processes used in Fleet Services:

•

Copies of a report (programmed by the Fleet Anywhere System vendor

specifically for use by the City of Boulder – Monthly Billing Report) are sent to

the person identified by each department to be responsible for tracking fleet

maintenance, replacement and fuel costs for each OCA the department uses for

vehicles and equipment. Fleet Services maintains a computer (Word Document)

file on the Shared Drive for each of these monthly reports but does not maintain a

hard copy file in Fleet Services records.

The auditor identified differences in fuel costs between the computer copy of the

April 2001 Monthly Billing Report file and the hard copies that had been sent to

the various departments. Those differences total more than $75,000.

Recommendation:

Fleet Services should request the Fleet Anywhere System

vendor modify the Monthly Billing Report to include Department totals and

Grand total.

Fleet Services should keep hard copies of the Monthly Billing

Reports on file and review them each month to assure that the on-line (Shared

Drive) file total agrees with the hard copy total and that departments have

received accurate information.

•

The process for automated interface of data from the Fleet Anywhere System to

the City of Boulder’s Finance System (BFS) is missing a key step to assure that

the data is complete. This resulted in 127 records from Fleet Anywhere System

not being transmitted to BFS in 2001.

Recommendation:

Fleet Services should compare the total from the Monthly

Billing Report (hard copy) to the batch totals produced by the interface program

before authorizing each monthly interface of data.

•

BFS will accept data from the Fleet Anywhere System if it has a valid account

number (department number, OCA, Object Level 3 code) and post that data to

appropriate accounts. Exceptions are held in a separate account until resolved and

corrected. This process is useful for identifying vehicle and equipment records on

the Fleet Anywhere System that have an incorrect account number. Review by

departments will identify where vehicles or equipment are charged to the wrong

department/OCA. This process should be continued.

For 2001, 8 records were accepted from the Fleet Anywhere System and posted to

the BFS account for fuel costs rather than to the fleet charges account (object

level 3 code) where they belonged. These errors were not caught.

Recommendation:

Fleet Services should run the BFS report (request help from

Finance) that will identify the accounts to which charges have gone. This will

identify Fleet Anywhere Systems vehicle and equipment records that have

erroneous account information.

Response:

Fleet Services now maintains all monthly billing reports and work orders

on CDs. These CDs are stored in a fire proof cabinet.

After each month’s posting, Fleet staff now:

1.) Reviews and compares the monthly Fleet Anywhere System revenue totals with

BFS to ensure a match, and

2.) Checks the document error correction screen in BFS to identify and correct any

errors related to account numbers charged.

For the period of January 2003

through April 2003, one error of $35.50 occurred.

Also, with the exception of one account number, all user fleet charges are

assigned to object 7106 (fleet charges). The sole exception is for Open Space

Mountain Parks: account for miscellaneous radio charges unrelated to vehicles

(pagers, pack sets, etc.).

2. For 2001, 83% of the fuel usage cost reported for city-owned vehicles and equipment

was through the pumps at the yards.

For fuel obtained through the pumps,

departments get detailed reports showing mileage recorded and gallons and dollars

charged for fuel usage.

City employees currently manually enter the last 5 digits of their SSN and a vehicle

number on a keypad to authorize pump use to get gas or diesel. Yard personnel,

based on phone or e-mail authorization from department personnel, enter SSN on

system at Yards to allow code to work. Departments sometimes send part-time or

temporary personnel to Yards to put fuel in vehicles.

This is sometimes

accomplished by giving the temp a valid code identified with someone else. These

temporary persons could then use that code and the vehicle number for a valid vehicle

to put fuel in their own private vehicle.

Yard personnel review the authorization ID table occasionally and delete ID’s that

show no recent use.

Another control is required entry of vehicle mileage when

authorizing the pump. Monthly reports to management of vehicle mileage then serve

to alert department management to exceedingly low miles per gallon on vehicles if

the vehicle number has been used inappropriately to authorize fuel for another

vehicle.

Recommendation:

Implement a new process using a card reader for authorization to

pump fuel at the pump. This will reduce the possibility of unauthorized use of fuel.

This could be accomplished by use of a magnetic strip or bar code on an employee ID

card. The advantage of this method is that if temporary personnel were allowed to

use someone else’s ID card to get fuel; they would not be allowed to keep the ID card

for later personal use.

Response: Public Works -

Fleet staff will investigate the feasibility of an employee

“smart” identification card system which may be used for not only fueling but also

employee identification, City building access, Municipal Service Center gate access,

etc. and make a recommendation to the Director of Public Works Development &

Support Services.

Response: Fire Department -

While this may be a good idea, it will take a great

deal of coordination to get a common ID card for all City employees.

3. For 2001, 10% of the fuel usage cost reported for city-owned vehicles and equipment

was through use of fuel cards issued to departments where bills are paid by Fleet

Services and costs are included in Monthly Billing Reports to departments. Fleet

Services identifies these purchases as “External Fuel Tickets.”

Mileage is not

recorded or reported for these transactions. This capability allows local area filling of

large vehicles where the fuel mileage and emergency need status make it impractical

to drive the vehicles to the ‘Yards’ to fuel at the City of Boulder fuel facility.

Fire Department accounts for 83% of this fuel use, Public Works 16% and Open

Space Mountain Parks 1%. In each of these departments there are vehicles that

obtain more than 50% of their fuel from fuel card use that do not appear to meet fuel

mileage or emergency vehicle requirements. See Attachment A for summary by

department.

•

Recommendation:

These departments

(Fire Department, Public Works and

Open Space Mountain Parks, Parks and Recreation)

should review the

vehicles for which fuel cards have been authorized to assure they meet low miles-

per-gallon or emergency need status.

Response: Fire Department -

Fire Department has reviewed all vehicles that have

fuel cards issued. Each of those vehicles either is an emergency vehicle or used to

transport administrative personnel to the scene of an emergency when need to

perform incident management duties.

In January of 2003, the Fire Department ordered operators of Fire Department

vehicles other than fire trucks, to fuel their vehicles at the City Yards. The only

exception to that is if the vehicle is operating in support of an emergency operation

and cannot get to the Yards.

Response: Public Works -

Fuel cards are assigned to individual units rather than

employees. Fleet Services pays the monthly fuel invoice and then charges users for

fuel use by unit. To cover associated overhead costs for using fuel cards, Fleet

Services adds 10% to each “outside” fuel transaction.

A total of 51 fuel cards have been issued: 36 to Fire, 12 to Public Works, 2 to OSMP,

and 1 to Parks and Recreation. Departments and divisions are being encouraged to

re-evaluate the necessity of using fuel cards. Fleet staff met with user departments to

clarify fuel costs and how they differ when using a fuel card compared with fueling at

the Municipal Service Center. The Fleet Policy Advisory Group also discussed this

topic. It is understood that if a fuel card is not necessary for operations it will be

turned in.

Response: Open Space Mountain Parks –

We have discontinued use of Fuel

Cards.

Response: Parks and Recreation –

This card was never used. Parks and Recreation

no longer has the vehicle or the card.

•

Recommendation:

Departments that use fuel cards should find alternative

methods to record mileage to be able to identify potential waste, fraud or abuse

and to identify potential vehicle mechanical problems that may have resulted in

unusually poor mileage.

Response: Fire Department –

The Fire Department met with Fleet Management

and agreed upon a method to send regular vehicle mileage updates in for the record.

This will accompany any “external fuel tickets” generated from the use of fuel cards

or BoulderCards.

Fire Department emergency response vehicles receive a daily inspection by the

operator for obvious mechanical problems. If any are found, they are reported to Fleet

Services.

4. For 2001, 2% of the fuel usage cost reported for city-owned vehicles and equipment

was through direct purchases of departments from fuel vendors. Another 5% of fuel

usage was through Departments’ Purchasing Card purchases from fuel vendors.

These categories together account for 7% of fuel usage cost for 2001.

Ninety-one percent (91%) of that amount ($27,858.49) was for fuel used in fixed

tanks or truck-mounted tanks maintained by departments to fuel vehicles at remote

locations.

NOTE:

Boulder Reservoir has a fixed fuel tank that accounted for

$7,747.15 of fuel usage cost in 2001. Controls over that usage were reviewed in a

recent internal audit and found to be adequate. Controls over usage at other fixed

tanks or truck-mounted tanks were not reviewed during this audit.

No Recommendation.

5. The remaining 9% of the direct purchases by departments (5% of 2001 fuel usage

costs) amounted to 176 individual purchases ($2993.09) by 8 departments with an

average value of $17.01. Specific information is provided in Attachment B on these

charges so that departments may review them to assure charges were appropriate.

Recommendation:

Departments should review these charges to assure charges were

appropriate.

No response required.

Fuel on

Monthly

Billing Report

$

%

$

%

$

Fire Department

Fire Trucks

$31,830.38

93%

$2,383.07

7%

Vans/PU's/Sport Util.

$9,033.98

53%

$7,891.96

47%

Department Totals

$40,864.36

80%

$10,275.03

20%

$51,139.39

Public Works

Trucktractors (Wastewater)

$6,217.02

86%

$1,019.92

14%

Sport Util/PU's/Cars

Transportation

$338.31

64%

$187.50

36%

Wastewater

$352.48

57%

$261.22

43%

Water Util.

$713.86

67%

$355.63

33%

$1,404.65

64%

$804.35

36%

Other vehicles

showing no fuel card

use

$0.00

$142,039.77

Department Totals

$7,621.67

5%

$143,864.04

95%

$151,485.71

Open Space

Passenger Van

$508.04

($25.74)

$0.00

$34,145.83

Department Totals

$508.04

1%

$34,120.09

99%

$34,628.13

Other Departments

$0.00

$199,539.34

$199,539.34

Total All Departments

$48,994.07

11%

$387,798.50

89%

$436,792.57

ATTACHMENT A

Fuel Tickets - External - 2001

By Department

Other vehicles showing no fuel

card use

"External" Fuel Tickets -

Purchases on Fuel Cards

Fuel at Yard Pumps

No. Name

$

Number

$

Number

4 CMO

547201 Parking Operations/Maint.

$100.00

10

21 Police

010900 Deputy Chief Support Services

$52.02

9

020110 Communications Operations

$5.00

1

030110 Records & Info Systems Operations

$29.99

1

040600 Central Supply

$9.02

1

070110 Detectives Operations

$56.73

3

120110 Traffic Operations

$0.00

0

$107.82

6

$0.00

0

$260.58

21

26 Fire

101000 General Administration

$6.52

1

201000 Emergency Services General

$104.02

2

202000 Wildland Coordination

$270.60

6

204000 Training

$22.73

1

300001 Public Education Program

$0.00

0

$24.48

1

$0.00

0

$428.35

11

30 Public Works - 326621 Fleet Services:

Texaco Inc

$17.90

1

30 Public Works - Other:

334370 Minor Street Repair

$178.72

4

$43.58

1

334374 Bikeway maint

$3.24

1

334390 Administration

$30.00

1

345430 Stormwater Quality Operations

$16.40

1

347480 Wastewater Operations

$27.03

1

347488 Biosolids Recycling

$0.00

0

$66.59

2

$178.72

4

$204.74

8

38 Planning

101100 Central Administration

$29.56

2

122100 LandLink Administration

$3.09

1

$32.65

3

41 Parks & Recreation

010700 Admin Div Admin-Gen Fund

$7.61

1

010702 Admin Support Svcs-Gen Fund

$12.00

1

032005 Pearl Street Mall Maintenance

$829.86

70

032011 South Zone Parks Team

$15.00

1

952102 Therapeutics EBCC-P&R Rev

$22.71

2

955220 NBRC Drop-In Swim-P&R Rev

$27.71

6

958201 Youth Recreation Prog-Gen Fund

$12.81

1

$927.70

82

51 Open Space Mountain Parks

501100 Office of the Director

$19.09

1

502100 Real Estate Services

$29.14

1

502200 Planning Services

$37.36

3

502300 Support Services

$121.78

4

$134.82

5

503863 Education & Outreach

$29.02

2

503866 Resource Conservation

$17.50

2

503868 Ranger Services

$25.07

1

503872 Operations Administration

$9.69

1

$7.41

1

$131.47

5

$299.41

16

61 Housing & Human Services

102005 2000 FRS Family Support/BVSD

$249.47

15

TOTALS

$310.19

9

$2,502.90

166

$310.19

9

$2,813.09

175

* Does not include reimbursements to employees for mileage.

** Does not include Purchasing Card payments for fuel for business travel and training trips.

ATTACHMENT B

BFS Object Level 3 = Fuel Charges*

City of Boulder - 2001 Fuel Purchases By Department

Department

P-Card Fuel Charges**