Performance Review

Fleet Services Division

June 1 2009 Report No 09‐10

Office of the County Auditor Evan A Lukic CPA

County Auditor

Table of Contents

Topic Page

Executive Summary 1

Purpose and Scope 3

Background 4

Summary of Office of Internal Auditrsquos 1999 Fleet Review 8

Section 1 Evaluation of Fleet Size Utilization and Composition 9General Purpose Fleet Size 9General Purpose Fleet Utilization 11Mileage Reimbursement 15General Purpose Fleet Standardization 17Special Purpose Fleet Size 20

Section 2 Fleet Services Division Cost Recovery 22

Section 3 Evaluation of Fuel Management 25

Appendix A 31

Appendix B 32

Appendix C 33

Appendix D 34

Appendix E 35

Appendix F 36

Executive Summary

This report presents the results of the Office of the County Auditorrsquos review of the Fleet Services Division Our specific objectives were to evaluate the Divisionrsquos effectiveness in its role as the manager of the Countyrsquos fleet vehicleequipment maintenance and fuel operations We also assessed whether Fleet Services has addressed the findings and recommendations contained in a June 1999 review conducted by the Broward County Office of Internal Audit1

In Section 1 of our review we analyzed Fiscal Year 2008 fleet data and compared the size utilization and composition of the fleet to the analyses completed previously in 1999 Our findings are as follows

bull Broward Countyrsquos general purpose fleet was reduced by 14 (from 1069 to 1054 vehicles) since Fiscal Year 1999 which is significantly less than the 20 to 25 reduction recommended by the Broward County Office of Internal Audit in 1999 the number of full‐time employees has grown 55 (from 5776 to 6093) for the corresponding period

bull In Fiscal Year 2008 573 of the Countyrsquos general purpose vehicles were not utilized in accordance with the Countyrsquos annual utilization standard vehicle utilization has decreased by 246 since 1999

o 560 of underutilized County vehicles were driven less than 5600 miles in Fiscal Year 2008 compared to the County standard of 8400 miles

o 177 of underutilized County vehicles were driven less than 2800 miles in Fiscal Year 2008 compared to the County standard of 8400 miles

bull The utilization of alternative fuel vehicles was relatively low in Fiscal Year 2008 despite the environmental and financial benefits of utilizing these vehicles at higher rates

o 571 of underutilized alternative fuel vehicles were driven less than 5600 miles in Fiscal Year 2008 compared to the County standard of 8400 miles in Fiscal Year 2008

o 175 of underutilized alternative fuel vehicles were driven less than 2800 miles in Fiscal Year 2008 compared to the County standard of 8400 miles in Fiscal Year 2008

bull The County could potentially reduce expenditures by up to $500000 annually byremoving underutilized sedans from the fleet and alternatively providing mileagereimbursement to employees

bull The Countyrsquos fleet has generally not been standardized in accordance with Fleet Servicersquos goals and industry best practice fleet standardization could provide cost saving benefits such as reduced parts inventories and mechanic training hours

bull The County lacks necessary oversight of the acquisition utilization and replacement of special purpose equipment (eg tractors backhoes bulldozers)

1 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

1

In Section 2 we assessed whether the Fleet Services Division recovers the full cost of services provided to both County and non‐County customers by analyzing the Divisionrsquos Fiscal Year 2008

revenues and expenditures We found that

bull The Fleet Services Division has not historically tracked its profitloss for three revenue

generators (1) general purpose leasing and maintenance (2) special purpose

maintenance and (3) maintenance services provided to contract customers such as the

Broward Sheriffrsquos Office and Seminole Tribe of Florida

bull The County appears to have subsidized the cost of services provided to contractcustomers in Fiscal Year 2008

o Non‐county customers contracting with the Fleet Services Division for maintenance services were under‐billed approximately $147000 which

represents an 87 loss

In Section 3 we evaluated whether the Fleet Services Division is overseeing the Countyrsquos fuel operations in accordance with County policy and industry best practices For example we

sought to determine whether fuel was conveniently accessible to employees at fuel stations that meet environmental regulations We also sought to determine whether fuel usage is effectively tracked and accounted for We found that

bull Fuel is available to employees through County operated sites mobile fuel deliveries and

at commercial filling stations which meets industry best practice

bull Fleet Service fueling stations must be upgraded in accordance with federal regulations by December 31 2009 the Division expects these sites to be fully upgraded by this deadline at a cost of $973000

bull Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees we found that

o County staff frequently enter incorrect odometer readings when fueling vehicles jeopardizing vehicle maintenance schedules and impeding Fleet Servicesrsquo ability

to detect fuel theft o Fuel access card oversight is inadequate further impeding management control

over fuel usage

2

Purpose and Scope

The purpose of this review is to evaluate the Fleet Services Divisionrsquos

bull Effectiveness in its role as the manager of the Countyrsquos general and special purpose fleets maintenance and fuel operations and

bull Implementation of recommendations contained in a June 9 1999 review of FleetServices conducted by the Broward County Office of Internal Audit2

To complete our assessment of the Fleet Services Divisionrsquos implementation of recommendations included in the previous audit review we examined Fiscal Year 2008 fleet data We then compared the status of the present fleet against the conditions observed in 1999 Based on these analyses we determined if the current fleet size composition and utilization was reflective of the recommendations made in 1999 andor in the best financial interests of the County To complete our analysis of fleet management we also examined maintenance operations cost recovery and fueling practices

To accomplish our objectives we

bull Interviewed Fleet Services Managers bull Toured and observed operations at Fleet Service Center 2 bull Analyzed data relative to the Countyrsquos fleet size utilization and composition provided by

the Fleet Services Division bull Reviewed the June 9 1999 Broward County Office of Internal Audit report entitled

ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysis (Project 8063FS)rdquo

bull Interviewed fleet management professionals in other jurisdictions and statenational fleet industry associations

bull Reviewed applicable chapters of the Broward County Internal Control Handbook bull Conducted industry research of fleet management best practices bull Reviewed the US General Services Administrationrsquos (GSA) ldquoGuide to Federal Fleet

Managementrdquo

2 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

3

Background

Fleet Services is a Division of Broward Countyrsquos Transportation Department The Division manages the Countyrsquos fleet and is responsible for the operation of three full‐service maintenance facilities and twelve fuel sites throughout the County

As of October 1 2008 the Countyrsquos fleet was composed of 2268 vehicles and equipment Fleet vehicles are classified as either general or special purpose and may be owned by the Fleet Services Division or individual agencies

The general purpose fleet is primarily made up of cars (sedans) light duty trucks vans and sport utility vehicles These are considered to be multi‐purpose road vehicles used in everyday operations (eg Chevy Cavalier Ford F‐150 etc) The 1054 vehicles within the Fiscal Year 2009 general purpose fleet represent a variety of makes and models including 105 vehicles with alternative or combined fuel technologies A majority (687) of general purpose vehicles are purchased and owned by the Fleet Services Division and leased to County divisions The remaining 313 of vehicles are directly owned and managed by enterprise fund agencies or divisions which have opted to make their own fleet purchases (examples Aviation Water amp Wastewater Services) County agencies that do not lease or own vehicles may ldquorentrdquo cars from the Fleet Services Motor Pool for their transportation needs Appendix A on page 31 provides a detailed listing of the general purpose fleet by assigned Department

The Special Purpose fleet includes a greater diversity of vehicle types such as heavy duty trucks (over 10 ton capacity) construction equipment trailers and generators off road vehicles lawn service equipment and boats The majority of these items provide specialized functions and are purchased directly by the divisions who operate them In total there are 1214 items in the special purpose fleet3

Division Organization amp Services

The Fleet Services Division is comprised of three operational sections (1) Vehicle Management (2) Equipment Maintenance and (3) Inventory Control Sections are responsible for the following activities

Vehicle Management

The goal of this section is to ldquomanage the County equipment fleet ensuring adequate fleet size composition and availability for the use of County agenciesrdquo Responsibilities include all administrative work involving the acquisition assignment utilization replacement and disposal of vehicles

3 The special purpose fleet does not include County buses owned operated and maintained by the Mass Transit Division

4

Vehicles owned by the Fleet Services Division are typically purchased from the lowest priced responsible bidder Fleet Services makes acquisition decisions for general purpose motor pool vehicles in consultation with the Office of Management amp Budget (OMB) General Purpose vehicles are purchased and owned by Fleet Services and leased or rented to using agencies to recover capital and operating costs Conversely special purpose equipment is purchased directly by the owning Division The requesting Division must provide written justification to the OMB for all vehicle purchases all requests are subject to approval and the availability of funds For enterprise fund agencies all general and special purpose acquisition decisions and purchases are made independently by the operating entities without approval by Fleet Services

As of Fiscal Year 2009 the Fleet Services Divisionrsquos vehicle replacement policy states that general purpose vehicles will be maintained for 100000 miles or ten years This policy reflects an increased replacement criterion from the previous policy of eight years or 80000 miles According to Fleet managers this change was adopted on October 1 2008 to help reduce capital spending due to recent budgetary restrictions

Currently no formal policy is in place for the systematic replacement of special purpose fleet equipment Replacement of special purpose vehicles is done on a case‐by‐case basis at the discretion of the owning Divisions Vehicles determined to no longer be of use to the assigned County agency are disposed of through auctions

Equipment Maintenance

This section strives to maintain the Countyrsquos fleet at the lowest possible cost while ensuring fleet safety and reliability The sectionrsquos primary responsibility is the operation of three full service maintenance facilities located throughout Broward County which provide preventative maintenance and repair services for all vehicles in the Countyrsquos general and special purpose fleets

General purpose preventative maintenance schedules include standard work such as oil changes brake repairs and tunendashups Notices for preventative maintenance are sent to the leasing divisionrsquos fleet liaison Employees schedule maintenance appointments at the Fleet Service Center most convenient for them Vehicles can be repaired while staff wait or staff may return later to pick up their vehicles Fleet Services offers thirty minute oil change services

Unscheduled repairs due to mechanical breakdowns can also be completed at Fleet Service Centers However as County vehicles are purchased with extended warranties a portion of these repairs are completed by the manufacturer at no additional cost In addition to servicing all County‐owned equipment Fleet Services also provides maintenance and repair work on a contracted fee for service basis (time and materials) to other entities such as the Broward Sheriffrsquos Office (BSO) Seminole Tribe of Florida and local municipalities These contracts are primarily for specialized work (eg servicing fire engines) but may also include regular vehicle

5

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Table of Contents

Topic Page

Executive Summary 1

Purpose and Scope 3

Background 4

Summary of Office of Internal Auditrsquos 1999 Fleet Review 8

Section 1 Evaluation of Fleet Size Utilization and Composition 9General Purpose Fleet Size 9General Purpose Fleet Utilization 11Mileage Reimbursement 15General Purpose Fleet Standardization 17Special Purpose Fleet Size 20

Section 2 Fleet Services Division Cost Recovery 22

Section 3 Evaluation of Fuel Management 25

Appendix A 31

Appendix B 32

Appendix C 33

Appendix D 34

Appendix E 35

Appendix F 36

Executive Summary

This report presents the results of the Office of the County Auditorrsquos review of the Fleet Services Division Our specific objectives were to evaluate the Divisionrsquos effectiveness in its role as the manager of the Countyrsquos fleet vehicleequipment maintenance and fuel operations We also assessed whether Fleet Services has addressed the findings and recommendations contained in a June 1999 review conducted by the Broward County Office of Internal Audit1

In Section 1 of our review we analyzed Fiscal Year 2008 fleet data and compared the size utilization and composition of the fleet to the analyses completed previously in 1999 Our findings are as follows

bull Broward Countyrsquos general purpose fleet was reduced by 14 (from 1069 to 1054 vehicles) since Fiscal Year 1999 which is significantly less than the 20 to 25 reduction recommended by the Broward County Office of Internal Audit in 1999 the number of full‐time employees has grown 55 (from 5776 to 6093) for the corresponding period

bull In Fiscal Year 2008 573 of the Countyrsquos general purpose vehicles were not utilized in accordance with the Countyrsquos annual utilization standard vehicle utilization has decreased by 246 since 1999

o 560 of underutilized County vehicles were driven less than 5600 miles in Fiscal Year 2008 compared to the County standard of 8400 miles

o 177 of underutilized County vehicles were driven less than 2800 miles in Fiscal Year 2008 compared to the County standard of 8400 miles

bull The utilization of alternative fuel vehicles was relatively low in Fiscal Year 2008 despite the environmental and financial benefits of utilizing these vehicles at higher rates

o 571 of underutilized alternative fuel vehicles were driven less than 5600 miles in Fiscal Year 2008 compared to the County standard of 8400 miles in Fiscal Year 2008

o 175 of underutilized alternative fuel vehicles were driven less than 2800 miles in Fiscal Year 2008 compared to the County standard of 8400 miles in Fiscal Year 2008

bull The County could potentially reduce expenditures by up to $500000 annually byremoving underutilized sedans from the fleet and alternatively providing mileagereimbursement to employees

bull The Countyrsquos fleet has generally not been standardized in accordance with Fleet Servicersquos goals and industry best practice fleet standardization could provide cost saving benefits such as reduced parts inventories and mechanic training hours

bull The County lacks necessary oversight of the acquisition utilization and replacement of special purpose equipment (eg tractors backhoes bulldozers)

1 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

1

In Section 2 we assessed whether the Fleet Services Division recovers the full cost of services provided to both County and non‐County customers by analyzing the Divisionrsquos Fiscal Year 2008

revenues and expenditures We found that

bull The Fleet Services Division has not historically tracked its profitloss for three revenue

generators (1) general purpose leasing and maintenance (2) special purpose

maintenance and (3) maintenance services provided to contract customers such as the

Broward Sheriffrsquos Office and Seminole Tribe of Florida

bull The County appears to have subsidized the cost of services provided to contractcustomers in Fiscal Year 2008

o Non‐county customers contracting with the Fleet Services Division for maintenance services were under‐billed approximately $147000 which

represents an 87 loss

In Section 3 we evaluated whether the Fleet Services Division is overseeing the Countyrsquos fuel operations in accordance with County policy and industry best practices For example we

sought to determine whether fuel was conveniently accessible to employees at fuel stations that meet environmental regulations We also sought to determine whether fuel usage is effectively tracked and accounted for We found that

bull Fuel is available to employees through County operated sites mobile fuel deliveries and

at commercial filling stations which meets industry best practice

bull Fleet Service fueling stations must be upgraded in accordance with federal regulations by December 31 2009 the Division expects these sites to be fully upgraded by this deadline at a cost of $973000

bull Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees we found that

o County staff frequently enter incorrect odometer readings when fueling vehicles jeopardizing vehicle maintenance schedules and impeding Fleet Servicesrsquo ability

to detect fuel theft o Fuel access card oversight is inadequate further impeding management control

over fuel usage

2

Purpose and Scope

The purpose of this review is to evaluate the Fleet Services Divisionrsquos

bull Effectiveness in its role as the manager of the Countyrsquos general and special purpose fleets maintenance and fuel operations and

bull Implementation of recommendations contained in a June 9 1999 review of FleetServices conducted by the Broward County Office of Internal Audit2

To complete our assessment of the Fleet Services Divisionrsquos implementation of recommendations included in the previous audit review we examined Fiscal Year 2008 fleet data We then compared the status of the present fleet against the conditions observed in 1999 Based on these analyses we determined if the current fleet size composition and utilization was reflective of the recommendations made in 1999 andor in the best financial interests of the County To complete our analysis of fleet management we also examined maintenance operations cost recovery and fueling practices

To accomplish our objectives we

bull Interviewed Fleet Services Managers bull Toured and observed operations at Fleet Service Center 2 bull Analyzed data relative to the Countyrsquos fleet size utilization and composition provided by

the Fleet Services Division bull Reviewed the June 9 1999 Broward County Office of Internal Audit report entitled

ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysis (Project 8063FS)rdquo

bull Interviewed fleet management professionals in other jurisdictions and statenational fleet industry associations

bull Reviewed applicable chapters of the Broward County Internal Control Handbook bull Conducted industry research of fleet management best practices bull Reviewed the US General Services Administrationrsquos (GSA) ldquoGuide to Federal Fleet

Managementrdquo

2 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

3

Background

Fleet Services is a Division of Broward Countyrsquos Transportation Department The Division manages the Countyrsquos fleet and is responsible for the operation of three full‐service maintenance facilities and twelve fuel sites throughout the County

As of October 1 2008 the Countyrsquos fleet was composed of 2268 vehicles and equipment Fleet vehicles are classified as either general or special purpose and may be owned by the Fleet Services Division or individual agencies

The general purpose fleet is primarily made up of cars (sedans) light duty trucks vans and sport utility vehicles These are considered to be multi‐purpose road vehicles used in everyday operations (eg Chevy Cavalier Ford F‐150 etc) The 1054 vehicles within the Fiscal Year 2009 general purpose fleet represent a variety of makes and models including 105 vehicles with alternative or combined fuel technologies A majority (687) of general purpose vehicles are purchased and owned by the Fleet Services Division and leased to County divisions The remaining 313 of vehicles are directly owned and managed by enterprise fund agencies or divisions which have opted to make their own fleet purchases (examples Aviation Water amp Wastewater Services) County agencies that do not lease or own vehicles may ldquorentrdquo cars from the Fleet Services Motor Pool for their transportation needs Appendix A on page 31 provides a detailed listing of the general purpose fleet by assigned Department

The Special Purpose fleet includes a greater diversity of vehicle types such as heavy duty trucks (over 10 ton capacity) construction equipment trailers and generators off road vehicles lawn service equipment and boats The majority of these items provide specialized functions and are purchased directly by the divisions who operate them In total there are 1214 items in the special purpose fleet3

Division Organization amp Services

The Fleet Services Division is comprised of three operational sections (1) Vehicle Management (2) Equipment Maintenance and (3) Inventory Control Sections are responsible for the following activities

Vehicle Management

The goal of this section is to ldquomanage the County equipment fleet ensuring adequate fleet size composition and availability for the use of County agenciesrdquo Responsibilities include all administrative work involving the acquisition assignment utilization replacement and disposal of vehicles

3 The special purpose fleet does not include County buses owned operated and maintained by the Mass Transit Division

4

Vehicles owned by the Fleet Services Division are typically purchased from the lowest priced responsible bidder Fleet Services makes acquisition decisions for general purpose motor pool vehicles in consultation with the Office of Management amp Budget (OMB) General Purpose vehicles are purchased and owned by Fleet Services and leased or rented to using agencies to recover capital and operating costs Conversely special purpose equipment is purchased directly by the owning Division The requesting Division must provide written justification to the OMB for all vehicle purchases all requests are subject to approval and the availability of funds For enterprise fund agencies all general and special purpose acquisition decisions and purchases are made independently by the operating entities without approval by Fleet Services

As of Fiscal Year 2009 the Fleet Services Divisionrsquos vehicle replacement policy states that general purpose vehicles will be maintained for 100000 miles or ten years This policy reflects an increased replacement criterion from the previous policy of eight years or 80000 miles According to Fleet managers this change was adopted on October 1 2008 to help reduce capital spending due to recent budgetary restrictions

Currently no formal policy is in place for the systematic replacement of special purpose fleet equipment Replacement of special purpose vehicles is done on a case‐by‐case basis at the discretion of the owning Divisions Vehicles determined to no longer be of use to the assigned County agency are disposed of through auctions

Equipment Maintenance

This section strives to maintain the Countyrsquos fleet at the lowest possible cost while ensuring fleet safety and reliability The sectionrsquos primary responsibility is the operation of three full service maintenance facilities located throughout Broward County which provide preventative maintenance and repair services for all vehicles in the Countyrsquos general and special purpose fleets

General purpose preventative maintenance schedules include standard work such as oil changes brake repairs and tunendashups Notices for preventative maintenance are sent to the leasing divisionrsquos fleet liaison Employees schedule maintenance appointments at the Fleet Service Center most convenient for them Vehicles can be repaired while staff wait or staff may return later to pick up their vehicles Fleet Services offers thirty minute oil change services

Unscheduled repairs due to mechanical breakdowns can also be completed at Fleet Service Centers However as County vehicles are purchased with extended warranties a portion of these repairs are completed by the manufacturer at no additional cost In addition to servicing all County‐owned equipment Fleet Services also provides maintenance and repair work on a contracted fee for service basis (time and materials) to other entities such as the Broward Sheriffrsquos Office (BSO) Seminole Tribe of Florida and local municipalities These contracts are primarily for specialized work (eg servicing fire engines) but may also include regular vehicle

5

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Executive Summary

This report presents the results of the Office of the County Auditorrsquos review of the Fleet Services Division Our specific objectives were to evaluate the Divisionrsquos effectiveness in its role as the manager of the Countyrsquos fleet vehicleequipment maintenance and fuel operations We also assessed whether Fleet Services has addressed the findings and recommendations contained in a June 1999 review conducted by the Broward County Office of Internal Audit1

In Section 1 of our review we analyzed Fiscal Year 2008 fleet data and compared the size utilization and composition of the fleet to the analyses completed previously in 1999 Our findings are as follows

bull Broward Countyrsquos general purpose fleet was reduced by 14 (from 1069 to 1054 vehicles) since Fiscal Year 1999 which is significantly less than the 20 to 25 reduction recommended by the Broward County Office of Internal Audit in 1999 the number of full‐time employees has grown 55 (from 5776 to 6093) for the corresponding period

bull In Fiscal Year 2008 573 of the Countyrsquos general purpose vehicles were not utilized in accordance with the Countyrsquos annual utilization standard vehicle utilization has decreased by 246 since 1999

o 560 of underutilized County vehicles were driven less than 5600 miles in Fiscal Year 2008 compared to the County standard of 8400 miles

o 177 of underutilized County vehicles were driven less than 2800 miles in Fiscal Year 2008 compared to the County standard of 8400 miles

bull The utilization of alternative fuel vehicles was relatively low in Fiscal Year 2008 despite the environmental and financial benefits of utilizing these vehicles at higher rates

o 571 of underutilized alternative fuel vehicles were driven less than 5600 miles in Fiscal Year 2008 compared to the County standard of 8400 miles in Fiscal Year 2008

o 175 of underutilized alternative fuel vehicles were driven less than 2800 miles in Fiscal Year 2008 compared to the County standard of 8400 miles in Fiscal Year 2008

bull The County could potentially reduce expenditures by up to $500000 annually byremoving underutilized sedans from the fleet and alternatively providing mileagereimbursement to employees

bull The Countyrsquos fleet has generally not been standardized in accordance with Fleet Servicersquos goals and industry best practice fleet standardization could provide cost saving benefits such as reduced parts inventories and mechanic training hours

bull The County lacks necessary oversight of the acquisition utilization and replacement of special purpose equipment (eg tractors backhoes bulldozers)

1 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

1

In Section 2 we assessed whether the Fleet Services Division recovers the full cost of services provided to both County and non‐County customers by analyzing the Divisionrsquos Fiscal Year 2008

revenues and expenditures We found that

bull The Fleet Services Division has not historically tracked its profitloss for three revenue

generators (1) general purpose leasing and maintenance (2) special purpose

maintenance and (3) maintenance services provided to contract customers such as the

Broward Sheriffrsquos Office and Seminole Tribe of Florida

bull The County appears to have subsidized the cost of services provided to contractcustomers in Fiscal Year 2008

o Non‐county customers contracting with the Fleet Services Division for maintenance services were under‐billed approximately $147000 which

represents an 87 loss

In Section 3 we evaluated whether the Fleet Services Division is overseeing the Countyrsquos fuel operations in accordance with County policy and industry best practices For example we

sought to determine whether fuel was conveniently accessible to employees at fuel stations that meet environmental regulations We also sought to determine whether fuel usage is effectively tracked and accounted for We found that

bull Fuel is available to employees through County operated sites mobile fuel deliveries and

at commercial filling stations which meets industry best practice

bull Fleet Service fueling stations must be upgraded in accordance with federal regulations by December 31 2009 the Division expects these sites to be fully upgraded by this deadline at a cost of $973000

bull Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees we found that

o County staff frequently enter incorrect odometer readings when fueling vehicles jeopardizing vehicle maintenance schedules and impeding Fleet Servicesrsquo ability

to detect fuel theft o Fuel access card oversight is inadequate further impeding management control

over fuel usage

2

Purpose and Scope

The purpose of this review is to evaluate the Fleet Services Divisionrsquos

bull Effectiveness in its role as the manager of the Countyrsquos general and special purpose fleets maintenance and fuel operations and

bull Implementation of recommendations contained in a June 9 1999 review of FleetServices conducted by the Broward County Office of Internal Audit2

To complete our assessment of the Fleet Services Divisionrsquos implementation of recommendations included in the previous audit review we examined Fiscal Year 2008 fleet data We then compared the status of the present fleet against the conditions observed in 1999 Based on these analyses we determined if the current fleet size composition and utilization was reflective of the recommendations made in 1999 andor in the best financial interests of the County To complete our analysis of fleet management we also examined maintenance operations cost recovery and fueling practices

To accomplish our objectives we

bull Interviewed Fleet Services Managers bull Toured and observed operations at Fleet Service Center 2 bull Analyzed data relative to the Countyrsquos fleet size utilization and composition provided by

the Fleet Services Division bull Reviewed the June 9 1999 Broward County Office of Internal Audit report entitled

ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysis (Project 8063FS)rdquo

bull Interviewed fleet management professionals in other jurisdictions and statenational fleet industry associations

bull Reviewed applicable chapters of the Broward County Internal Control Handbook bull Conducted industry research of fleet management best practices bull Reviewed the US General Services Administrationrsquos (GSA) ldquoGuide to Federal Fleet

Managementrdquo

2 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

3

Background

Fleet Services is a Division of Broward Countyrsquos Transportation Department The Division manages the Countyrsquos fleet and is responsible for the operation of three full‐service maintenance facilities and twelve fuel sites throughout the County

As of October 1 2008 the Countyrsquos fleet was composed of 2268 vehicles and equipment Fleet vehicles are classified as either general or special purpose and may be owned by the Fleet Services Division or individual agencies

The general purpose fleet is primarily made up of cars (sedans) light duty trucks vans and sport utility vehicles These are considered to be multi‐purpose road vehicles used in everyday operations (eg Chevy Cavalier Ford F‐150 etc) The 1054 vehicles within the Fiscal Year 2009 general purpose fleet represent a variety of makes and models including 105 vehicles with alternative or combined fuel technologies A majority (687) of general purpose vehicles are purchased and owned by the Fleet Services Division and leased to County divisions The remaining 313 of vehicles are directly owned and managed by enterprise fund agencies or divisions which have opted to make their own fleet purchases (examples Aviation Water amp Wastewater Services) County agencies that do not lease or own vehicles may ldquorentrdquo cars from the Fleet Services Motor Pool for their transportation needs Appendix A on page 31 provides a detailed listing of the general purpose fleet by assigned Department

The Special Purpose fleet includes a greater diversity of vehicle types such as heavy duty trucks (over 10 ton capacity) construction equipment trailers and generators off road vehicles lawn service equipment and boats The majority of these items provide specialized functions and are purchased directly by the divisions who operate them In total there are 1214 items in the special purpose fleet3

Division Organization amp Services

The Fleet Services Division is comprised of three operational sections (1) Vehicle Management (2) Equipment Maintenance and (3) Inventory Control Sections are responsible for the following activities

Vehicle Management

The goal of this section is to ldquomanage the County equipment fleet ensuring adequate fleet size composition and availability for the use of County agenciesrdquo Responsibilities include all administrative work involving the acquisition assignment utilization replacement and disposal of vehicles

3 The special purpose fleet does not include County buses owned operated and maintained by the Mass Transit Division

4

Vehicles owned by the Fleet Services Division are typically purchased from the lowest priced responsible bidder Fleet Services makes acquisition decisions for general purpose motor pool vehicles in consultation with the Office of Management amp Budget (OMB) General Purpose vehicles are purchased and owned by Fleet Services and leased or rented to using agencies to recover capital and operating costs Conversely special purpose equipment is purchased directly by the owning Division The requesting Division must provide written justification to the OMB for all vehicle purchases all requests are subject to approval and the availability of funds For enterprise fund agencies all general and special purpose acquisition decisions and purchases are made independently by the operating entities without approval by Fleet Services

As of Fiscal Year 2009 the Fleet Services Divisionrsquos vehicle replacement policy states that general purpose vehicles will be maintained for 100000 miles or ten years This policy reflects an increased replacement criterion from the previous policy of eight years or 80000 miles According to Fleet managers this change was adopted on October 1 2008 to help reduce capital spending due to recent budgetary restrictions

Currently no formal policy is in place for the systematic replacement of special purpose fleet equipment Replacement of special purpose vehicles is done on a case‐by‐case basis at the discretion of the owning Divisions Vehicles determined to no longer be of use to the assigned County agency are disposed of through auctions

Equipment Maintenance

This section strives to maintain the Countyrsquos fleet at the lowest possible cost while ensuring fleet safety and reliability The sectionrsquos primary responsibility is the operation of three full service maintenance facilities located throughout Broward County which provide preventative maintenance and repair services for all vehicles in the Countyrsquos general and special purpose fleets

General purpose preventative maintenance schedules include standard work such as oil changes brake repairs and tunendashups Notices for preventative maintenance are sent to the leasing divisionrsquos fleet liaison Employees schedule maintenance appointments at the Fleet Service Center most convenient for them Vehicles can be repaired while staff wait or staff may return later to pick up their vehicles Fleet Services offers thirty minute oil change services

Unscheduled repairs due to mechanical breakdowns can also be completed at Fleet Service Centers However as County vehicles are purchased with extended warranties a portion of these repairs are completed by the manufacturer at no additional cost In addition to servicing all County‐owned equipment Fleet Services also provides maintenance and repair work on a contracted fee for service basis (time and materials) to other entities such as the Broward Sheriffrsquos Office (BSO) Seminole Tribe of Florida and local municipalities These contracts are primarily for specialized work (eg servicing fire engines) but may also include regular vehicle

5

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

In Section 2 we assessed whether the Fleet Services Division recovers the full cost of services provided to both County and non‐County customers by analyzing the Divisionrsquos Fiscal Year 2008

revenues and expenditures We found that

bull The Fleet Services Division has not historically tracked its profitloss for three revenue

generators (1) general purpose leasing and maintenance (2) special purpose

maintenance and (3) maintenance services provided to contract customers such as the

Broward Sheriffrsquos Office and Seminole Tribe of Florida

bull The County appears to have subsidized the cost of services provided to contractcustomers in Fiscal Year 2008

o Non‐county customers contracting with the Fleet Services Division for maintenance services were under‐billed approximately $147000 which

represents an 87 loss

In Section 3 we evaluated whether the Fleet Services Division is overseeing the Countyrsquos fuel operations in accordance with County policy and industry best practices For example we

sought to determine whether fuel was conveniently accessible to employees at fuel stations that meet environmental regulations We also sought to determine whether fuel usage is effectively tracked and accounted for We found that

bull Fuel is available to employees through County operated sites mobile fuel deliveries and

at commercial filling stations which meets industry best practice

bull Fleet Service fueling stations must be upgraded in accordance with federal regulations by December 31 2009 the Division expects these sites to be fully upgraded by this deadline at a cost of $973000

bull Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees we found that

o County staff frequently enter incorrect odometer readings when fueling vehicles jeopardizing vehicle maintenance schedules and impeding Fleet Servicesrsquo ability

to detect fuel theft o Fuel access card oversight is inadequate further impeding management control

over fuel usage

2

Purpose and Scope

The purpose of this review is to evaluate the Fleet Services Divisionrsquos

bull Effectiveness in its role as the manager of the Countyrsquos general and special purpose fleets maintenance and fuel operations and

bull Implementation of recommendations contained in a June 9 1999 review of FleetServices conducted by the Broward County Office of Internal Audit2

To complete our assessment of the Fleet Services Divisionrsquos implementation of recommendations included in the previous audit review we examined Fiscal Year 2008 fleet data We then compared the status of the present fleet against the conditions observed in 1999 Based on these analyses we determined if the current fleet size composition and utilization was reflective of the recommendations made in 1999 andor in the best financial interests of the County To complete our analysis of fleet management we also examined maintenance operations cost recovery and fueling practices

To accomplish our objectives we

bull Interviewed Fleet Services Managers bull Toured and observed operations at Fleet Service Center 2 bull Analyzed data relative to the Countyrsquos fleet size utilization and composition provided by

the Fleet Services Division bull Reviewed the June 9 1999 Broward County Office of Internal Audit report entitled

ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysis (Project 8063FS)rdquo

bull Interviewed fleet management professionals in other jurisdictions and statenational fleet industry associations

bull Reviewed applicable chapters of the Broward County Internal Control Handbook bull Conducted industry research of fleet management best practices bull Reviewed the US General Services Administrationrsquos (GSA) ldquoGuide to Federal Fleet

Managementrdquo

2 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

3

Background

Fleet Services is a Division of Broward Countyrsquos Transportation Department The Division manages the Countyrsquos fleet and is responsible for the operation of three full‐service maintenance facilities and twelve fuel sites throughout the County

As of October 1 2008 the Countyrsquos fleet was composed of 2268 vehicles and equipment Fleet vehicles are classified as either general or special purpose and may be owned by the Fleet Services Division or individual agencies

The general purpose fleet is primarily made up of cars (sedans) light duty trucks vans and sport utility vehicles These are considered to be multi‐purpose road vehicles used in everyday operations (eg Chevy Cavalier Ford F‐150 etc) The 1054 vehicles within the Fiscal Year 2009 general purpose fleet represent a variety of makes and models including 105 vehicles with alternative or combined fuel technologies A majority (687) of general purpose vehicles are purchased and owned by the Fleet Services Division and leased to County divisions The remaining 313 of vehicles are directly owned and managed by enterprise fund agencies or divisions which have opted to make their own fleet purchases (examples Aviation Water amp Wastewater Services) County agencies that do not lease or own vehicles may ldquorentrdquo cars from the Fleet Services Motor Pool for their transportation needs Appendix A on page 31 provides a detailed listing of the general purpose fleet by assigned Department

The Special Purpose fleet includes a greater diversity of vehicle types such as heavy duty trucks (over 10 ton capacity) construction equipment trailers and generators off road vehicles lawn service equipment and boats The majority of these items provide specialized functions and are purchased directly by the divisions who operate them In total there are 1214 items in the special purpose fleet3

Division Organization amp Services

The Fleet Services Division is comprised of three operational sections (1) Vehicle Management (2) Equipment Maintenance and (3) Inventory Control Sections are responsible for the following activities

Vehicle Management

The goal of this section is to ldquomanage the County equipment fleet ensuring adequate fleet size composition and availability for the use of County agenciesrdquo Responsibilities include all administrative work involving the acquisition assignment utilization replacement and disposal of vehicles

3 The special purpose fleet does not include County buses owned operated and maintained by the Mass Transit Division

4

Vehicles owned by the Fleet Services Division are typically purchased from the lowest priced responsible bidder Fleet Services makes acquisition decisions for general purpose motor pool vehicles in consultation with the Office of Management amp Budget (OMB) General Purpose vehicles are purchased and owned by Fleet Services and leased or rented to using agencies to recover capital and operating costs Conversely special purpose equipment is purchased directly by the owning Division The requesting Division must provide written justification to the OMB for all vehicle purchases all requests are subject to approval and the availability of funds For enterprise fund agencies all general and special purpose acquisition decisions and purchases are made independently by the operating entities without approval by Fleet Services

As of Fiscal Year 2009 the Fleet Services Divisionrsquos vehicle replacement policy states that general purpose vehicles will be maintained for 100000 miles or ten years This policy reflects an increased replacement criterion from the previous policy of eight years or 80000 miles According to Fleet managers this change was adopted on October 1 2008 to help reduce capital spending due to recent budgetary restrictions

Currently no formal policy is in place for the systematic replacement of special purpose fleet equipment Replacement of special purpose vehicles is done on a case‐by‐case basis at the discretion of the owning Divisions Vehicles determined to no longer be of use to the assigned County agency are disposed of through auctions

Equipment Maintenance

This section strives to maintain the Countyrsquos fleet at the lowest possible cost while ensuring fleet safety and reliability The sectionrsquos primary responsibility is the operation of three full service maintenance facilities located throughout Broward County which provide preventative maintenance and repair services for all vehicles in the Countyrsquos general and special purpose fleets

General purpose preventative maintenance schedules include standard work such as oil changes brake repairs and tunendashups Notices for preventative maintenance are sent to the leasing divisionrsquos fleet liaison Employees schedule maintenance appointments at the Fleet Service Center most convenient for them Vehicles can be repaired while staff wait or staff may return later to pick up their vehicles Fleet Services offers thirty minute oil change services

Unscheduled repairs due to mechanical breakdowns can also be completed at Fleet Service Centers However as County vehicles are purchased with extended warranties a portion of these repairs are completed by the manufacturer at no additional cost In addition to servicing all County‐owned equipment Fleet Services also provides maintenance and repair work on a contracted fee for service basis (time and materials) to other entities such as the Broward Sheriffrsquos Office (BSO) Seminole Tribe of Florida and local municipalities These contracts are primarily for specialized work (eg servicing fire engines) but may also include regular vehicle

5

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Purpose and Scope

The purpose of this review is to evaluate the Fleet Services Divisionrsquos

bull Effectiveness in its role as the manager of the Countyrsquos general and special purpose fleets maintenance and fuel operations and

bull Implementation of recommendations contained in a June 9 1999 review of FleetServices conducted by the Broward County Office of Internal Audit2

To complete our assessment of the Fleet Services Divisionrsquos implementation of recommendations included in the previous audit review we examined Fiscal Year 2008 fleet data We then compared the status of the present fleet against the conditions observed in 1999 Based on these analyses we determined if the current fleet size composition and utilization was reflective of the recommendations made in 1999 andor in the best financial interests of the County To complete our analysis of fleet management we also examined maintenance operations cost recovery and fueling practices

To accomplish our objectives we

bull Interviewed Fleet Services Managers bull Toured and observed operations at Fleet Service Center 2 bull Analyzed data relative to the Countyrsquos fleet size utilization and composition provided by

the Fleet Services Division bull Reviewed the June 9 1999 Broward County Office of Internal Audit report entitled

ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysis (Project 8063FS)rdquo

bull Interviewed fleet management professionals in other jurisdictions and statenational fleet industry associations

bull Reviewed applicable chapters of the Broward County Internal Control Handbook bull Conducted industry research of fleet management best practices bull Reviewed the US General Services Administrationrsquos (GSA) ldquoGuide to Federal Fleet

Managementrdquo

2 Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor as directed via voter referendum

3

Background

Fleet Services is a Division of Broward Countyrsquos Transportation Department The Division manages the Countyrsquos fleet and is responsible for the operation of three full‐service maintenance facilities and twelve fuel sites throughout the County

As of October 1 2008 the Countyrsquos fleet was composed of 2268 vehicles and equipment Fleet vehicles are classified as either general or special purpose and may be owned by the Fleet Services Division or individual agencies

The general purpose fleet is primarily made up of cars (sedans) light duty trucks vans and sport utility vehicles These are considered to be multi‐purpose road vehicles used in everyday operations (eg Chevy Cavalier Ford F‐150 etc) The 1054 vehicles within the Fiscal Year 2009 general purpose fleet represent a variety of makes and models including 105 vehicles with alternative or combined fuel technologies A majority (687) of general purpose vehicles are purchased and owned by the Fleet Services Division and leased to County divisions The remaining 313 of vehicles are directly owned and managed by enterprise fund agencies or divisions which have opted to make their own fleet purchases (examples Aviation Water amp Wastewater Services) County agencies that do not lease or own vehicles may ldquorentrdquo cars from the Fleet Services Motor Pool for their transportation needs Appendix A on page 31 provides a detailed listing of the general purpose fleet by assigned Department

The Special Purpose fleet includes a greater diversity of vehicle types such as heavy duty trucks (over 10 ton capacity) construction equipment trailers and generators off road vehicles lawn service equipment and boats The majority of these items provide specialized functions and are purchased directly by the divisions who operate them In total there are 1214 items in the special purpose fleet3

Division Organization amp Services

The Fleet Services Division is comprised of three operational sections (1) Vehicle Management (2) Equipment Maintenance and (3) Inventory Control Sections are responsible for the following activities

Vehicle Management

The goal of this section is to ldquomanage the County equipment fleet ensuring adequate fleet size composition and availability for the use of County agenciesrdquo Responsibilities include all administrative work involving the acquisition assignment utilization replacement and disposal of vehicles

3 The special purpose fleet does not include County buses owned operated and maintained by the Mass Transit Division

4

Vehicles owned by the Fleet Services Division are typically purchased from the lowest priced responsible bidder Fleet Services makes acquisition decisions for general purpose motor pool vehicles in consultation with the Office of Management amp Budget (OMB) General Purpose vehicles are purchased and owned by Fleet Services and leased or rented to using agencies to recover capital and operating costs Conversely special purpose equipment is purchased directly by the owning Division The requesting Division must provide written justification to the OMB for all vehicle purchases all requests are subject to approval and the availability of funds For enterprise fund agencies all general and special purpose acquisition decisions and purchases are made independently by the operating entities without approval by Fleet Services

As of Fiscal Year 2009 the Fleet Services Divisionrsquos vehicle replacement policy states that general purpose vehicles will be maintained for 100000 miles or ten years This policy reflects an increased replacement criterion from the previous policy of eight years or 80000 miles According to Fleet managers this change was adopted on October 1 2008 to help reduce capital spending due to recent budgetary restrictions

Currently no formal policy is in place for the systematic replacement of special purpose fleet equipment Replacement of special purpose vehicles is done on a case‐by‐case basis at the discretion of the owning Divisions Vehicles determined to no longer be of use to the assigned County agency are disposed of through auctions

Equipment Maintenance

This section strives to maintain the Countyrsquos fleet at the lowest possible cost while ensuring fleet safety and reliability The sectionrsquos primary responsibility is the operation of three full service maintenance facilities located throughout Broward County which provide preventative maintenance and repair services for all vehicles in the Countyrsquos general and special purpose fleets

General purpose preventative maintenance schedules include standard work such as oil changes brake repairs and tunendashups Notices for preventative maintenance are sent to the leasing divisionrsquos fleet liaison Employees schedule maintenance appointments at the Fleet Service Center most convenient for them Vehicles can be repaired while staff wait or staff may return later to pick up their vehicles Fleet Services offers thirty minute oil change services

Unscheduled repairs due to mechanical breakdowns can also be completed at Fleet Service Centers However as County vehicles are purchased with extended warranties a portion of these repairs are completed by the manufacturer at no additional cost In addition to servicing all County‐owned equipment Fleet Services also provides maintenance and repair work on a contracted fee for service basis (time and materials) to other entities such as the Broward Sheriffrsquos Office (BSO) Seminole Tribe of Florida and local municipalities These contracts are primarily for specialized work (eg servicing fire engines) but may also include regular vehicle

5

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Background

Fleet Services is a Division of Broward Countyrsquos Transportation Department The Division manages the Countyrsquos fleet and is responsible for the operation of three full‐service maintenance facilities and twelve fuel sites throughout the County

As of October 1 2008 the Countyrsquos fleet was composed of 2268 vehicles and equipment Fleet vehicles are classified as either general or special purpose and may be owned by the Fleet Services Division or individual agencies

The general purpose fleet is primarily made up of cars (sedans) light duty trucks vans and sport utility vehicles These are considered to be multi‐purpose road vehicles used in everyday operations (eg Chevy Cavalier Ford F‐150 etc) The 1054 vehicles within the Fiscal Year 2009 general purpose fleet represent a variety of makes and models including 105 vehicles with alternative or combined fuel technologies A majority (687) of general purpose vehicles are purchased and owned by the Fleet Services Division and leased to County divisions The remaining 313 of vehicles are directly owned and managed by enterprise fund agencies or divisions which have opted to make their own fleet purchases (examples Aviation Water amp Wastewater Services) County agencies that do not lease or own vehicles may ldquorentrdquo cars from the Fleet Services Motor Pool for their transportation needs Appendix A on page 31 provides a detailed listing of the general purpose fleet by assigned Department

The Special Purpose fleet includes a greater diversity of vehicle types such as heavy duty trucks (over 10 ton capacity) construction equipment trailers and generators off road vehicles lawn service equipment and boats The majority of these items provide specialized functions and are purchased directly by the divisions who operate them In total there are 1214 items in the special purpose fleet3

Division Organization amp Services

The Fleet Services Division is comprised of three operational sections (1) Vehicle Management (2) Equipment Maintenance and (3) Inventory Control Sections are responsible for the following activities

Vehicle Management

The goal of this section is to ldquomanage the County equipment fleet ensuring adequate fleet size composition and availability for the use of County agenciesrdquo Responsibilities include all administrative work involving the acquisition assignment utilization replacement and disposal of vehicles

3 The special purpose fleet does not include County buses owned operated and maintained by the Mass Transit Division

4

Vehicles owned by the Fleet Services Division are typically purchased from the lowest priced responsible bidder Fleet Services makes acquisition decisions for general purpose motor pool vehicles in consultation with the Office of Management amp Budget (OMB) General Purpose vehicles are purchased and owned by Fleet Services and leased or rented to using agencies to recover capital and operating costs Conversely special purpose equipment is purchased directly by the owning Division The requesting Division must provide written justification to the OMB for all vehicle purchases all requests are subject to approval and the availability of funds For enterprise fund agencies all general and special purpose acquisition decisions and purchases are made independently by the operating entities without approval by Fleet Services

As of Fiscal Year 2009 the Fleet Services Divisionrsquos vehicle replacement policy states that general purpose vehicles will be maintained for 100000 miles or ten years This policy reflects an increased replacement criterion from the previous policy of eight years or 80000 miles According to Fleet managers this change was adopted on October 1 2008 to help reduce capital spending due to recent budgetary restrictions

Currently no formal policy is in place for the systematic replacement of special purpose fleet equipment Replacement of special purpose vehicles is done on a case‐by‐case basis at the discretion of the owning Divisions Vehicles determined to no longer be of use to the assigned County agency are disposed of through auctions

Equipment Maintenance

This section strives to maintain the Countyrsquos fleet at the lowest possible cost while ensuring fleet safety and reliability The sectionrsquos primary responsibility is the operation of three full service maintenance facilities located throughout Broward County which provide preventative maintenance and repair services for all vehicles in the Countyrsquos general and special purpose fleets

General purpose preventative maintenance schedules include standard work such as oil changes brake repairs and tunendashups Notices for preventative maintenance are sent to the leasing divisionrsquos fleet liaison Employees schedule maintenance appointments at the Fleet Service Center most convenient for them Vehicles can be repaired while staff wait or staff may return later to pick up their vehicles Fleet Services offers thirty minute oil change services

Unscheduled repairs due to mechanical breakdowns can also be completed at Fleet Service Centers However as County vehicles are purchased with extended warranties a portion of these repairs are completed by the manufacturer at no additional cost In addition to servicing all County‐owned equipment Fleet Services also provides maintenance and repair work on a contracted fee for service basis (time and materials) to other entities such as the Broward Sheriffrsquos Office (BSO) Seminole Tribe of Florida and local municipalities These contracts are primarily for specialized work (eg servicing fire engines) but may also include regular vehicle

5

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Vehicles owned by the Fleet Services Division are typically purchased from the lowest priced responsible bidder Fleet Services makes acquisition decisions for general purpose motor pool vehicles in consultation with the Office of Management amp Budget (OMB) General Purpose vehicles are purchased and owned by Fleet Services and leased or rented to using agencies to recover capital and operating costs Conversely special purpose equipment is purchased directly by the owning Division The requesting Division must provide written justification to the OMB for all vehicle purchases all requests are subject to approval and the availability of funds For enterprise fund agencies all general and special purpose acquisition decisions and purchases are made independently by the operating entities without approval by Fleet Services

As of Fiscal Year 2009 the Fleet Services Divisionrsquos vehicle replacement policy states that general purpose vehicles will be maintained for 100000 miles or ten years This policy reflects an increased replacement criterion from the previous policy of eight years or 80000 miles According to Fleet managers this change was adopted on October 1 2008 to help reduce capital spending due to recent budgetary restrictions

Currently no formal policy is in place for the systematic replacement of special purpose fleet equipment Replacement of special purpose vehicles is done on a case‐by‐case basis at the discretion of the owning Divisions Vehicles determined to no longer be of use to the assigned County agency are disposed of through auctions

Equipment Maintenance

This section strives to maintain the Countyrsquos fleet at the lowest possible cost while ensuring fleet safety and reliability The sectionrsquos primary responsibility is the operation of three full service maintenance facilities located throughout Broward County which provide preventative maintenance and repair services for all vehicles in the Countyrsquos general and special purpose fleets

General purpose preventative maintenance schedules include standard work such as oil changes brake repairs and tunendashups Notices for preventative maintenance are sent to the leasing divisionrsquos fleet liaison Employees schedule maintenance appointments at the Fleet Service Center most convenient for them Vehicles can be repaired while staff wait or staff may return later to pick up their vehicles Fleet Services offers thirty minute oil change services

Unscheduled repairs due to mechanical breakdowns can also be completed at Fleet Service Centers However as County vehicles are purchased with extended warranties a portion of these repairs are completed by the manufacturer at no additional cost In addition to servicing all County‐owned equipment Fleet Services also provides maintenance and repair work on a contracted fee for service basis (time and materials) to other entities such as the Broward Sheriffrsquos Office (BSO) Seminole Tribe of Florida and local municipalities These contracts are primarily for specialized work (eg servicing fire engines) but may also include regular vehicle

5

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Section Budget Vehicle Management $2702380 Equipment Maintenance $5855560 Inventory Control $3985410 Total $12543350 Source Office of Management and Budget Services

maintenance and repairs Repair work beyond the scope of Fleet Servicesrsquo facilities (such as glass and body work) is completed by County approved vendorssubcontractors

Inventory Control

This sectionrsquos goal is to efficiently procure stock and issue repair parts Each fleet service center maintains its own inventory and warehouse Storerooms stock parts such as air filters belts brake pads etc Parts not readily available on‐site are ordered from distributors and delivered on a daily basis Inventory control is maintained electronically

Fleet Services is also responsible for providing fuel to all vehicles in the Countyrsquos fleet To meet the fleetrsquos fuel service needs Fleet Services contracts with ldquoFleetcorrdquo an international provider of fleet fueling services Fleetcor delivers fuel on an as needed basis to twelve County owned and operated fueling stations For additional convenience the contract also allows County employees to access fuel at commercial locations Fuel purchases can be monitored by Fleet Services staff through an access card system andor manual logs

Expenditures and Revenues

Fleet Servicesrsquo adopted budget for Fiscal Year 2009 is $125 million Exhibit 1 shows the Divisionrsquos budget breakdown by Section

Exhibit 1 Fleet Servicesrsquo Fiscal Year 2009 budget is $125 million

Fleet Services operates as an internal service fund The objective of the Division is to annually break‐even by matching revenues with expenditures Therefore each of Fleet Servicesrsquo various cost centers (eg fuel and maintenance) is intended to be self‐sufficient having a revenue stream equal to its expenditures As shown in Exhibit 2 on the following page the majority of the Divisionrsquos revenues are obtained through charges to user agencies for vehicle leasing capital recovery insurance maintenance and fuel Additional information regarding the nature of these charges and specific revenues for Fiscal Year 2008 is provided on pages 23‐24

6

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Exhibit 2 Fleet Servicesrsquo primary revenue in FiscRevenue Source Budget Charges for Services $11953350 Interest Income $20000 Miscellaneous $570000

Revenue4

Total $12543350 Source Office of Management and Budget Services

al Year 2009 is charges for services

4 Miscellaneous revenue primarily reflects earnings from the sale of surplus equipment and liability insurance proceeds

7

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Summary of Office of Internal Auditrsquos 1999 Fleet Review

On June 9 1999 the Office of Internal Audit released the report ldquoFleet Services Division Passenger Vehicle Utilization Review and Analysisrdquo (Project 8063FS)5 The objective of the report ldquowas to review passenger vehicle utilization to identify efficiencies cost saving opportunities and potential service improvementsrdquo In summary the report concluded that ldquoThe Passenger fleet should be reduced and standardized mileage reimbursement should be reviewed as an alternative and OVAs (Overnight Vehicle Assignments) need closer scrutinyrdquo As was protocol at the time the report was submitted to the County Administrator and included the following findings

Finding 1 The general purpose (passenger) fleet was underutilized in Fiscal Year 1998 Specifically the report found that 46 of all vehicles were driven less than the Countyrsquos utilization standard of 8400 miles per year To address this issue it was recommended that Fleet Services reduce the size of the fleet by 20‐25 to facilitate cost savings Suggested methods to accomplish this goal included meeting with division directors to determine vehicle needs developing a plan for reductions increasing the size of pools and creating a proposal for centralization of the entire fleet

Finding 2 Overnight Vehicle Assignments (OVAs) were inconsistently documented and some potentially unwarranted In Fiscal Year 1998 231 OVAs were identified The review found that lists documenting these assignments were not maintained with current information and that the approval and assignment of several vehicles was not completed in accordance with County policy Further it appeared that many of these vehicles were underutilized As a result the review recommended that the assignments be re‐evaluated and when found justifiable properly documented

Finding 3 Cost savings could be achieved through reimbursing employees for business related mileage expenses The report suggested Fleet Services examine opportunities for cost savings including a program to (1) reimburse employees who drive less frequently on a per mile basis or (2) provide an allowance to employees who frequently travel during work hours for the usage of their personal vehicles

Finding 4 The ldquorightsizing and standardizingrdquo of fleet vehicles could produce additional cost savings Specifically the 1998 fleet consisted of several makes and models for each vehicle type (eg sedan etc) Standardization of vehicles helps to reduce variations in inventory and mechanic training needs and can ultimately reduce costs The report recommended that Fleet Services identify the ldquorightrdquo vehicle types for efficient County operations and standardize the make and models of each vehicle classification in the fleet

Effective October 1 2003 the Office of Internal Audit was abolished with the creation of the Office of the County Auditor via voter referendum

8

5

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Section 1 Evaluation of Fleet Size Utilization and Composition

General Purpose Fleet Size

The US General Services Administration (GSA) the agency charged with the procurement of vehicles for the federal government indicates that the cost of owningleasing vehicles represents the single largest cost component of fleet operations easily eclipsing expenditures for maintenance fuel and other components Thus it is extremely critical for fleet managers to accurately determine the appropriate number of vehicles necessary to accomplish organizational goals Purchasing too few vehicles may impair an organizationrsquos ability to effectively serve the public while purchasing too many vehicles has the negative consequence of diverting funding from direct service delivery andor personnel

Broward Countyrsquos general purpose fleet has been reduced by 14 since Fiscal Year 1999 growth in full‐time employees has been 55 for the corresponding period

As part of our review we analyzed whether there was a relative growth or reduction in Broward Countyrsquos general purpose fleet since the 1999 Office of Internal Audit Based on its analysis the Office of Internal Audit recommended that the general purpose fleet be reduced by 20 to 25 due to the significant vehicle underutilization observed during the review period

Our review found that the general purpose fleet has been reduced from 1069 vehicles in Fiscal Year 1999 to 1054 vehicles in Fiscal Year 2009 The reduction in general purpose fleet (15 vehicles) represents a 14 decrease during this period In comparison the number of Broward County full‐time employees has grown by 55 from 5776 to 6093 during this same time period6 This means that in Fiscal Year 1999 Broward County had one vehicle available for every 540 employees however as of Fiscal Year 2009 the County has one vehicle available for every 578 employees Exhibit 3 on the next page shows the growth in Broward Countyrsquos full‐time employees and reduction of the general purpose fleet for the period Fiscal Year 1999 to Fiscal Year 2009

6 Our Fiscal Year 1999 and 2009 vehicle count and full‐time employees count excludes elected officials such as the Sheriff and Property Appraiser and Port Everglades whose fleet is managed internally

9

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Exhibit 3 Broward Countyrsquos general purpose fleet was reduced by 14 (or 15 vehicles) for the period Fiscal Year 1999 to Fiscal Year 2009

FY FY Number Percent 99 09 Change Change

Employees 5776 6093 317 55

Vehicles 1069 1054 ‐15 ‐14

Employees to Vehicle Ratio 540 578 38 70

Source Office of the County Auditor Analysis

Services and Human Services Departments

FY FY Number Percent 99 09 Change Change

Finance and Administrative Employees 716 603 ‐113 ‐158

Services Vehicles 26 11 ‐15 ‐577

Employees to Vehicle Ratio 2754 5482 ‐2728 ‐991

Human Services Employees 215 246 31 144

Vehicles 23 14 ‐9 ‐391

Employees to Vehicle Ratio 935 1757 ‐822 ‐879

Source Office of the County Auditor Analysis

Some County agencies have made significant reductions in the relative number of assigned vehicles

To further our analysis of the general purpose fleet for the period Fiscal Year 1999 to 2009 we compared the increasereduction in the general purpose vehicle fleet assigned to each County department to the corresponding increasereduction in full‐time employees Our analysis indicates that the number of vehicles assigned to several departments has been significantly reduced For example as shown in Exhibit 4 below Departments such as Finance and Administrative Services and Human Services have reduced their vehicle counts by 577 and 391 respectively

Exhibit 4 Significant fleet size reductions have been made by the Finance and Administrative

Appendix A on page 31 provides a similar analysis for all County departments and offices included in our review

The number of Overnight Vehicle Assignments (OVAs) has decreased by 792 since Fiscal Year 1999

An OVA is a County‐owned vehicle assigned to an employee that may be driven to and from the employeersquos home and work site According to County policy OVA assignment requires approval from Fleet Services and the County Administratorrsquos Office

10

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

In Fiscal Year 1999 the County had 231 OVA designated vehicles The Office of Internal Auditrsquos 1999 review of Fleet Division files indicated that the justification for many overnight vehicle assignments was ldquovague and unconvincingrdquo For instance several forms stated that the employee was required to attend meetings or that the employee had responsibility for multiple locations In such situations it was unclear whether reimbursing the employee for mileage driven or providing an on‐site loaner vehicle to the employee would have been more cost‐effective than an OVA

We found that the number of Overnight Vehicle Assignments (OVAs) decreased significantly since the 1999 Office of Internal Audit review Specifically the number of OVAs has decreased from 231 in Fiscal Year 1999 to only 48 OVAs in Fiscal Year 2009 which is a 792 decrease We note that the significant decrease in OVAs is positive for several reasons For example OVAs are relatively more expensive for the County to operate due to the additional fuel and maintenance costs accrued from an employee driving tofrom home Additionally OVAs are highly visible to the public and therefore should only be assigned when it is found to contribute significantly to the efficiency and effectiveness of the County government Exhibit 5 shows the decline in OVAs for the period Fiscal Year 1999 to Fiscal Year 2009

Exhibit 5 The number of OVAs has declined by 792 since Fiscal Year 1999

ource Fleet Services Division S

General Purpose Fleet Utilization

Oversight of vehicle utilization is a critically important best practice within the fleet management industry Vehicle utilization analysis includes an evaluation of the number of miles a vehicle is used each year and the nature of the vehiclersquos use Typically fleet managers develop minimum mileage standards to help identify underutilized vehicles the GSA uses 12000 miles as its annual review standard for federal agencies Analysis of vehicle utilization allows fleet managers to determine (1) if an organization has too many or too few vehicles (2) if there is opportunity for agencies to share or pool vehicles to minimize the number of vehicles necessary while maximizing utilization and (3) the most cost‐effective period for vehicle disposal

11

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

A majority of Broward Countyrsquos general purpose vehicles are not utilized in accordance with the County standard of 8400 miles per year

As was previously described a Fiscal Year 1999 review of Fleet Services Division conducted by the Office of Internal Audit found that 46 of Broward Countyrsquos general purpose fleet was driven less than 8400 miles per year for the period October 1 1997 to September 30 1998 According to the Fleet Services Internal Control Handbook any vehicle that is driven less than 8400 miles per year is subject to review by the Fleet Services Division and the user liaison to determine if the continuation of the vehicle assignment is prudent and necessary7 While it is expected that some vehicles will not meet the 8400 standard each year it is the Fleet Services Divisionrsquos responsibility to minimize this occurrence when possible8

Our review of general purpose fleet utilization indicates that 574 of all vehicles were driven less than 8400 miles during Fiscal Year 2008 Thus the overall utilization of general purpose vehicles has declined by 248 since utilization was last examined in 1999 A further examination by vehicle classification indicates that 118 of 172 (689) vans and 273 of 495 (552) pickups in the County fleet did not meet the Fleet Services Division standard of 8400 annual miles for Fiscal Year 2008 Exhibit 6 below shows the Fleet Services Divisionrsquos five different vehicle classifications with corresponding utilization statistics Additionally Appendix B on page 32 of this report shows Fiscal Year 2008 vehicle utilization for each County division

Exhibit 6 A majority of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008

Source Office of the County Auditor Analysis

7 Fleet Services Internal Control Handbook specifies that vehicles should be driven a minimum of 700 miles permonth This monthly standard results in an annualized minimum usage level of 8400 miles The Fleet ServicesDivision was unable to provide support for how this standard which has been in effect since at least December 41995 was derived8 For example a small percentage of vehicles may be justifiably set aside as spares or designated for emergencyresponse activities Further some pick‐ups used only at designated sites may be used daily but have low milesTherefore it would not be expected that every vehicle meet the 8400 mile utilization standard

12

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Alternative fuel vehicles were severely underutilized in Fiscal Year 2008

Broward County promotes the use of alternative fuel vehicles that run on fuels other than gasoline and diesel For example in 2003 the County introduced the use of hybrid (gasoline‐electric) vehicles which combine the benefits of a gasoline engine and an electric motor to improve fuel economy and reduce tailpipe emissions by almost half compared to a conventional gasoline car Broward Countyrsquos general purpose fleet contains over 100 cars and trucks that may be fueled with compressed natural gas liquefied petroleum gas (propane) or have hybrid electric andor fuel cell technology

The environmental benefits and additional up‐front costs associated with purchasing an alternative fuel vehicle justify a strategic focus on achieving high utilization with these vehicles For example a recent report indicates that during the first five years of ownership a hybrid can cost as much as $5300 more than its non‐hybrid counterpart primarily due to its relatively higher purchase price However the additional costs associated with hybrid technology generally decrease as (1) the vehicle is utilized at higher levels and (2) the price of fuel increases9 Fleet managers have oversight of vehicle utilization and assignment they clearly cannot control market fuel prices Therefore we evaluated the vehicle utilization for Broward Countyrsquos alternative fuel fleet

Of the 105 alternative fuel vehicles in the general purpose fleet 62 (590) were driven less than 8400 miles during Fiscal Year 200810 Secondly we examined the utilization of alternative fuel vehicles by classification We found that 47 of the 79 alternative fuel sedans were not utilized in accordance with the County standard of 8400 annual miles for Fiscal Year 2008 the percentage of alternative fuel sedans driven less than 8400 miles is significantly higher than the fleet as a whole (618 to 532 respectively) This means that alternative fuel vehicles were utilized at a lower rate than the general purpose fleet as a whole despite the environmental and financial benefits of higher utilization for these vehicles Exhibit 7 on the next page shows the Countyrsquos alternative fuel fleet (by vehicle classification) with corresponding utilization statistics

9 According to Edmonds a leading source for new and used automobile pricing a hybrid vehicle must be driven at least 37000 miles per year at the average gas price of $228 per gallon before it is a cost‐effective substitute for its gasoline only counterpart This analysis does not appear to have quantified any of the environmental benefits of hybrid ownership 10 Mileage was annualized for vehicles not in the fleet for the entirety of Fiscal Year 2008 (October 1 2007 to September 30 2008)

13

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Exhibit 7 Utilization of the Countyrsquos alternative fuel vehicles lags despite positive financial and environmental benefits

Source Office of the County Auditor Analysis

Appendix C on page 33 shows Fiscal Year 2008 alternative fuel vehicle utilization for each County division

56 of underutilized general purpose vehicles were driven less than 5600 miles in Fiscal Year 2008

To determine the extent of vehicle underutilization we evaluated the numberpercentage of all general purpose vehicles that were driven 0 to 2799 miles which means these vehicles were utilized 67 to 100 below the County standard of 8400 miles Similarly we also evaluated the numberpercentage of vehicles that were driven 2800 to 5599 miles which means these vehicles were utilized 33 to 66 below the County standard

We found that of the 605 total vehicles that did not meet the Countyrsquos 8400 mile standard 107 (177) were driven less than 2799 miles Similarly 339 of the 605 (560) underutilized vehicles were driven less than 5599 miles This analysis demonstrates that most of the underutilized vehicles were significantly below the County standard indicating a need for improved oversight of vehicle utilization and overall fleet size Similar oversight appears necessary for alternative fuel vehicles where 36 of 62 (581) underutilized vehicles were driven less than 5599 miles Exhibits 8 and 9 on the next page show the extent of vehicle underutilization for the Countyrsquos general purpose fleet and alternative fuel fleet respectively Appendix F on page 36 provides additional information about the utilization levels of Broward Countyrsquos general purpose and alternative fuel fleet

14

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Exhibit 8 574 of the Countyrsquos general purpose vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of All

of Vehicles Vehicles

0 to 2799 107 102 2800 to 5599 232 220 5600 to 8399 266 252 8400 to 11119 179 170 11200 and above 270 256 TOTAL 1054 1000 Source Office of the County Auditor Analysis

Exhibit 9 590 of the Countyrsquos alternative fuel vehicles were utilized less than the Countyrsquos standard of 8400 miles in Fiscal Year 2008 Miles Utilized Number Percent of

of Alternative Vehicles Fuel Vehicles

0 to 2799 11 104 2800 to 5599 25 238 5600 to 8399 26 248 8400 to 11119 21 200 11200 and above 22 210 TOTAL 105 1000 Source Office of the County Auditor Analysis

Mileage Reimbursement

The GSA recommends that fleet managers conduct financial analysis to determine whether it is more cost‐effective for a government agency to provide a vehicle rather than to reimburse employees for using their personally owned vehicle for business purposes Essentially this analysis compares the cost of reimbursing an employee at the IRS reimbursement rate versus the government agencyrsquos annual cost to own and operate a vehicle The GSA contends that compensating an employee for using hisher vehicle is commonly done when the duties involve occasional travel to nearby destinations and is considered a very potent tool to reduce the size of an agencyrsquos fleet While most government agencies cannot force an employee to use their personal vehicles the GSA advocates offering incentives to encourage employees to do so

15

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Exhibit 10 It may be financially prudent to provide mileage reimbursement where possible unless the employee drives more than 10500 miles annually

$5775 (avg cost per vehicle) INSERT GRAPHIC

= 10500 miles 55cent (per mile reimbursement rate)

Source Office of the County Auditor Analysis

Mileage reimbursement is available to employees using their personal vehicle to conduct County business

According to Broward County Administrative Code (Volume 13 Chapter 4) employees who use their own vehicles to conduct County business may receive mileage reimbursement Eligibility requirements for mileage reimbursement include maintaining insurance coverage limits of $25000$50000 in bodily injury and $10000 in property damage and receiving approval from the division director In 1999 the Office of Internal Audit recommended that the Fleet Services Division examine opportunities for cost savings through the increased use of mileage reimbursement for those employees who frequently travel during work hours

We found that the Fleet Services Division has not conducted an analysis to determine when it is most cost‐effective to approve a divisionrsquos vehicle purchase request rather than to reimburse an employee for using hisher personally owned vehicle Having this analysis would enable the Division to identify opportunities to reduce the Countyrsquos fleet size and to reduce overall fleet costs For this reason we used data provided by Fleet Services in conjunction with the current County mileage reimbursement rate to perform the following calculations

bull Determination of the number of miles that a County owned vehicle must be driven before it becomes a financially prudent purchase

bull Determination of cost savings that could be achieved by providing mileagereimbursement to employees in lieu of maintaining underutilized sedans

Our first analysis indicates a vehicle would need to be driven 10500 miles annually before it becomes a financially prudent purchase for the County As demonstrated in Exhibit 10 below the ldquobreak‐evenrdquo point of 10500 miles is determined by dividing the average annual cost per County vehicle ($5775) by $055 which is Broward Countyrsquos per mile reimbursement rate as of May 200911 12

However as this ldquobreak‐evenrdquo point of 10500 miles annually is considerably higher than Fleet Services current annual utilization standard of 8400 miles we conducted a second analysis

11 The average annual cost per vehicle of $5775 was reported by Fleet Services to OMB for Fiscal Year 2008 andincludes all maintenance repair fuel and depreciation costs associated with the vehicle12 The validity of this mileage standard fluctuates with changes in the IRS reimbursement rate and fuel costs

16

Exhibit 11 Reducing the number of underutilized sedans in the general purpose fleet by providing employees with mileage reimbursement in Fiscal Year 2008 could have resulted in $506814 of cost savings

168 X $5775 = $970200

Underutilized sedans Avg Annual Cost

168 X 5015 X $055 = $463386

Underutilized sedans Avg Miles Reimbursement Rate

$970200 ‐ $463386 = $506814 Potential Cost Savings

Source Office of the County Auditor Analysis

which focused on underutilized sedans We chose to look at sedans as this vehicle type is most likely to be used by County employees for mileage reimbursement Typically sedans are used by employees for transportation between County offices for attendance at meetings etc as opposed to ldquowork platformrdquo vehicles such as pickups which may be used to transport materials

Data provided by Fleet Services indicates that 168 of 316 (532) sedans were driven less than 8400 miles in Fiscal Year 2008 On average each sedan traveled 5015 miles the total cost to own and operate these sedans was $970200 Had County employees utilized their own vehicles for this travel the total cost to the County at the reimbursement rate of $055 would have been $463386 This equates to an estimated net savings of $506814 annually (see Exhibit 11 below) Additionally it is assumed that a reduction in fleet size would also produce opportunities for ancillary cost savings such as staff size and parts inventory

General Purpose Fleet Standardization

The US General Services Administration (GSA) indicates that vehicle standardization is a fleet management best practice By standardizing the makemodel for various vehicle classifications (mid‐size sedan full‐size truck etc) fleet managers with in‐house maintenance shops can significantly reduce their parts inventory Additionally training and labor hours are decreased as mechanics gain proficiency repairing similar types of vehicles Results from a NAFA Fleet Management Association survey indicate that 60 of respondents do not give driversagencies any choice of the makemodel of assigned vehicles NAFA reports that standardization policies provide fleet managers better leverage with manufacturers and dealers

17

Exhibit 12 Most vehicles classifications have not been standardized as of Fiscal Year 2009 MAKE CLASS DESCRIPTION

Sedan Pickup SUV Van Buick 18 ‐ ‐ ‐Chevy 120 177 29 44 Dodge ‐ 55 6 51 Ford 93 195 1 39 GMC ‐ 16 1 ‐Honda 29 ‐ ‐ ‐Toyota 32 ‐ ‐ ‐Other ‐ ‐ ‐ 5 Total Vehicles 292 443 37 139 Standardization 411 440 784 367

Rate13

Source Office of the County Auditor Analysis

Vehicle standardization is a stated goal of the Fleet Services Division

In the Office of Internal Auditrsquos 1999 Fleet review it was recommended that the Fleet Services Division establish a standard brand and model for each vehicle type and require justification for any non‐standard vehicle procurements Further a recommendation was also made to coordinate with the Director of Purchasing to establish a multi‐year contract for the purchase of same brand and model vehicles We note that the Internal Control Handbook for Fleet Services indicates that ldquofleet standardization as to vehicle type and manufacturer is also a management goal which will provide for more efficient maintenance on a long term basisrdquo

To determine the level of vehicle standardization that has occurred since the 1999 fleet review we examined the composition of fleet purchases for the period Fiscal Year 2000 to Fiscal Year 2009 We used this time period to exclude any vehicles that were purchased in Fiscal Year 1999 or prior which was before the standardization recommendations were made

Broward Countyrsquos general purpose fleet has generally not been standardized

Our vehicle composition analysis indicates that the Countyrsquos fleet has generally not been standardized Specifically we found a wide variety of vehicle makes for every classification in the County fleet except SUVs For example of the 292 sedans purchased during our review period 120 (411) were Chevys while 93 (318) were Fords Another 32 (110) were Toyotas and 29 (99) were Hondas Within the various sedan makes there is also considerable model variation For instance the ldquoChevy Sedanrdquo category encompasses the following models Cavalier Cobalt Impala Lumina and Malibu Exhibit 12 shows the variation within each fleet vehicle classification by make

13 ldquoStandardization raterdquo equals the largest number of vehicles by make (for each vehicle class) divided by the total number of vehicles (for each vehicle class)

18

As in 1999 vehicle standardization remains a viable option to reduce Fleet Servicesrsquo inventory costs and increase mechanic efficiency For example Fleet managers report that a majority (58) of mechanic labor hours are annually dedicated to repair work rather than standardized preventative maintenance necessitating that a large parts inventory be maintained on‐site with an estimated value of $550000 Having a more standardized fleet with limited variety in makemodels could increase operational efficiency through (1) increased mechanic familiarity with work (reduced time to complete repairs) and (2) a reduction in inventory variations and total size (decreased time ordering stocking and potentially reducing space needs)

While it is acknowledged that 100 fleet standardization may be impractical especially in instances where specialized vehicles are necessary our analysis serves as a baseline upon which the Fleet Services Division could significantly improve standardization Specific attention should be placed on the sedan pickup and van classifications which all have relatively low standardization rates as of Fiscal Year 2009 Vehicle standardization decisions should take into account various factors including total cost of ownership expected salvage value and alternative fuelemissions goals

Recommendations

To improve oversight and reduce the annual operating cost of the Countyrsquos general purpose fleet we recommend the Board of County Commissioners direct the County Administrator to take the following actions

1 Review each Divisionrsquos general purpose vehicle allocation to determine if underutilized vehicles can be eliminated for Fiscal Year 2010 or reassigned to other agencies that are in need of vehicle replacements

2 Develop a system to ensure that vehicles driven significantly below the Countyrsquos 8400 annual utilization standard are routinely evaluated by fleet managers for justification of the low utilization or elimination andor reassignment prior to the purchase of new replacement vehicles

3 Annually determine the ldquobreak‐evenrdquo point whereby it is cost‐effective for the County to provide mileage reimbursement rather than provide a vehicle to a County employee and promote the increased use of mileage reimbursement as an alternative to permanent vehicle assignment when it is cost‐effective to do so

4 Take steps to ensure that alternative fuel vehicles are utilized at higher levels than comparable gasolinediesel models to maximize the environmental and financial benefits of deploying these vehicles

5 Establish a standard brand and model for each vehicle type (eg sedans pickups vans etc) and require justification for non‐standard procurements

19

Special Purpose Fleet Size

The Countyrsquos special purpose fleet consisting of heavy duty trucks (over 10 ton capacity) construction equipment trailers generators off‐road vehicles lawn service equipment and boats is a highly diversified group of equipment tailored to meet each agencyrsquos specific needs As opposed to general purpose vehicles special purpose equipment is purchased directly by the owning division in coordination with the Fleet Services Division and the OMB The owning agency has discretion as to each special purpose vehiclersquos utilization and replacement criteria

The Fleet Services Division provides a significant amount of maintenance support for the Countyrsquos special purpose equipment Data provided by the Division indicates that 20919 mechanic labor hours (399 of all available hours) were billed to County agencies for special purpose equipment maintenance in Fiscal Year 2008 As with the general purpose fleet ensuring that the special purpose fleet is right‐sized and utilized appropriately presents a significant opportunity for cost savings

The County lacks necessary oversight of special purpose equipment acquisition utilization and replacement

As part of our fieldwork we attempted to evaluate the utilization of special purpose equipment14 However our evaluation was impeded by several factors including

bull The Fleet Services Division does not routinely collect utilization data such as mileage or hours for all special purpose equipment Division officials indicated that 662 (782 of 1182 total items) of special purpose equipment do not have reliable utilization data for the period we examined (October 1 2007 to September 30 2008) As a result our review was limited to the remaining 466 items of special purpose equipment

bull The Fleet Services Division relies on agencies to report special purpose equipment acquisition and disposal equipment records are not reconciled with accounting andor inventory records and therefore may be inaccurate

bull Some special purpose equipment such as trailers and lawn equipment does not come equipped from the manufacturer with odometers or hourly meters and the value of outfitting smaller value equipment with utilization meters may not be cost‐effective

Of the 466 items of special purpose equipment with available utilization information for Fiscal Year 2008 we further stratified the data to include only equipment with a purchase price equal to or greater than $25000 this amounted to 241 items with an average purchase price of $69643 Of these 241 items we found that 50 (207) were utilized less than 25 hours or 1000 miles in Fiscal Year 2008 We used the $25000 purchase price limit and 25 hour1000

14 Dependent on the type of equipment special purpose utilization may be tracked by either hours or miles

20

mile utilization benchmark because such low utilization levels suggest that it would have been more prudent to rent these items than to purchase them Appendix D on page 34 lists the 50 special purpose equipment items that meet our criteria for low utilization in Fiscal Year 2008

Special purpose equipment oversight is important for reasons other than utilization review For example as many agencies use similar types of equipment to carry out their mission the County can reduce mechanic training and inventory costs by purchasing similar brandmodel equipment (ie ldquostandardizationrdquo) where possible However Fleet officials state that they have minimal input relative to the specifications of special purpose equipment purchases despite the Divisionrsquos role as the primary maintenance provider Further increased special purpose equipment oversight may lead to less overall equipment purchases as underutilized special purpose equipment could be reassigned or rented throughout the organization According to Fleet officials special purpose equipment is often purchased despite the availability of comparable and underutilized equipment at other County agencies These officials believe the sharing or renting of this equipment would be a cost‐effective alternative to purchasing it We concur that County agencies and Fleet Services would benefit from better information about the number and types of equipment available at peer agencies

Recommendations

To improve the oversight and reduce the annual operating cost of the Countyrsquos special purpose equipment we recommend the Board of County Commissioners direct the County Administrator to take the following actions

6 Establish a system to routinely monitor the utilization of high value special purpose equipment so unused equipment can be reassigned or disposed of at the highest possible resale value

7 Require justification that clearly demonstrates the cost‐savings that will be obtained through purchasing rather than rentingleasing during the special purpose equipment acquisition process

8 Ensure that a centralized inventory of special purpose equipment is maintained and available to Fleet Services managers to advise County agencies when making decisions about the purchase or rental of needed equipment

21

Section 2 Fleet Services Division Cost Recovery

As an internal service agency the Fleet Services Division seeks to recover its operating costs through fees charged to user agencies As part of its annual budget process the Division estimates anticipated expenditures and revises its fee schedule with a goal of breaking even Revenues are generated from the following

bull Leased Vehicles County agencies leasing a general purpose vehicle from the Fleet Services Division are charged a flat monthly fee per vehicle The fee varies by vehicle type and includes recovery for costs such as regular maintenance insurance depreciation and administrative overhead

bull Maintenance Services County agencies that own their vehicles (ie Enterprise Funds and divisions with special purpose fleet equipment) pay for actual maintenance costs such as labor materials and overhead on a per occurrence basis County agencies leasing vehicles may also be charged in this manner for additional repairs due to accidents or abusiveneglectful treatment of the vehicles15

bull Contract Maintenance Service Fees As noted previously the Fleet Services Division has historically contracted with other external entities (eg Broward Sheriffrsquos Office) to provide maintenance services to vehicles such as fire engines Costs for services include charges for labor materials and overhead

bull Motor Pool Vehicles County agencies pay a flat rate for daily or weekly usage of rental vehicles This flat rate is intended to cover the annual costs for maintenance capital recovery insurance operating overhead and fuel If excess miles are driven additional fueling charges may apply

bull Fuel The Fleet Services Division invoices County agencies for fuel purchased at County approved locations which includes an additional per gallon surcharge for overhead costs

The Fleet Services Division generated revenues of $127 million in Fiscal Year 2008 Of total revenues $109 million (852) was generated from providing services to County divisions and $19 million (148) was from external contract entities

15 Risk Management seeks to obtain reimbursement from the other partyrsquos insurance carrier when a County vehicle is involved in a not‐at‐fault accident As applicable Divisions will be reimbursed for amounts recovered

22

Exhibit 13 The cost of providing services to external contract customers and special purpose customers exceeded revenues in Fiscal Year 2008

Revenues Expenditures ProfitLoss Margin General Purpose $3558755 $2974655 $584100 164

Special Purpose $2631333 $3184141 ‐$552808 ‐210

Contract Customers $1681899 $1829061 ‐$147162 ‐87

TOTAL $7871987 $7987857 ‐$115870 ‐15

Source Office of the County Auditor Analysis

The County appears to have subsidized the cost of services provided to non‐County entities in Fiscal Year 2008

During our review we analyzed the Fleet Services Divisionrsquos Fiscal Year 2008 revenues and expenditures We observed that the Division has historically grouped its revenues into three categories (1) special purpose (2) general purpose and (3) contract maintenance However the Division has not historically tracked its expenses in this same manner Therefore the Division has not previously analyzed its profitloss for its three major lines of business This analysis is necessary to determine if the County is subsidizing contract services with general fund andor enterprise fund monies

To determine if the County is subsidizing the services costs of its contract customers we allocated the Fleet Services Divisionrsquos Fiscal Year 2008 expenditures based on billable labor hours16 For example as contract services accounted for 23 of all billable labor hours in Fiscal Year 2008 we allocated 23 of the Divisionrsquos operating expenditures to this ldquocost centerrdquo

Our analysis indicates that the Fleet Services Divisionrsquos non‐fuel services operated at a small loss in Fiscal Year 2008 (‐$115870)17 As the Division operates with the intent of breaking even this relatively small loss (‐15 of total revenues) is not in itself significant However we also found that the Divisionrsquos cost of providing services to external (contract) customers such as BSO exceeded its revenues for these activities by $147162 (or an 87 operating loss) Exhibit 13 indicates the profitloss (excluding fuel) that was generated for each of the Fleet Services Divisionrsquos three business lines

It is important for the Fleet Services Division to routinely monitor its profitability in the manner described above for several reasons First the Division should regularly assess whether its service rates are sufficient to cover the cost of providing services especially for contract customers Similarly the Division also can use this analysis to ensure that it is not overcharging County agencies for maintenance services We also noted that in February 2009 BSO advised the Fleet Services Division that it would not be renewing its contract for continued maintenance services in Fiscal Year 2010 As BSO accounted for approximately 16 of the Divisionrsquos total

16 This analysis excludes all fuel expenditures17 However the Fleet Services Division as a whole operated profitably in Fiscal Year 2008 due to the $253807profit generated from its fuel service operations

23

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Exhibit 12 Most vehicles classifications have not been standardized as of Fiscal Year 2009 MAKE CLASS DESCRIPTION

Sedan Pickup SUV Van Buick 18 ‐ ‐ ‐Chevy 120 177 29 44 Dodge ‐ 55 6 51 Ford 93 195 1 39 GMC ‐ 16 1 ‐Honda 29 ‐ ‐ ‐Toyota 32 ‐ ‐ ‐Other ‐ ‐ ‐ 5 Total Vehicles 292 443 37 139 Standardization 411 440 784 367

Rate13

Source Office of the County Auditor Analysis

Vehicle standardization is a stated goal of the Fleet Services Division

In the Office of Internal Auditrsquos 1999 Fleet review it was recommended that the Fleet Services Division establish a standard brand and model for each vehicle type and require justification for any non‐standard vehicle procurements Further a recommendation was also made to coordinate with the Director of Purchasing to establish a multi‐year contract for the purchase of same brand and model vehicles We note that the Internal Control Handbook for Fleet Services indicates that ldquofleet standardization as to vehicle type and manufacturer is also a management goal which will provide for more efficient maintenance on a long term basisrdquo

To determine the level of vehicle standardization that has occurred since the 1999 fleet review we examined the composition of fleet purchases for the period Fiscal Year 2000 to Fiscal Year 2009 We used this time period to exclude any vehicles that were purchased in Fiscal Year 1999 or prior which was before the standardization recommendations were made

Broward Countyrsquos general purpose fleet has generally not been standardized

Our vehicle composition analysis indicates that the Countyrsquos fleet has generally not been standardized Specifically we found a wide variety of vehicle makes for every classification in the County fleet except SUVs For example of the 292 sedans purchased during our review period 120 (411) were Chevys while 93 (318) were Fords Another 32 (110) were Toyotas and 29 (99) were Hondas Within the various sedan makes there is also considerable model variation For instance the ldquoChevy Sedanrdquo category encompasses the following models Cavalier Cobalt Impala Lumina and Malibu Exhibit 12 shows the variation within each fleet vehicle classification by make

13 ldquoStandardization raterdquo equals the largest number of vehicles by make (for each vehicle class) divided by the total number of vehicles (for each vehicle class)

18

As in 1999 vehicle standardization remains a viable option to reduce Fleet Servicesrsquo inventory costs and increase mechanic efficiency For example Fleet managers report that a majority (58) of mechanic labor hours are annually dedicated to repair work rather than standardized preventative maintenance necessitating that a large parts inventory be maintained on‐site with an estimated value of $550000 Having a more standardized fleet with limited variety in makemodels could increase operational efficiency through (1) increased mechanic familiarity with work (reduced time to complete repairs) and (2) a reduction in inventory variations and total size (decreased time ordering stocking and potentially reducing space needs)

While it is acknowledged that 100 fleet standardization may be impractical especially in instances where specialized vehicles are necessary our analysis serves as a baseline upon which the Fleet Services Division could significantly improve standardization Specific attention should be placed on the sedan pickup and van classifications which all have relatively low standardization rates as of Fiscal Year 2009 Vehicle standardization decisions should take into account various factors including total cost of ownership expected salvage value and alternative fuelemissions goals

Recommendations

To improve oversight and reduce the annual operating cost of the Countyrsquos general purpose fleet we recommend the Board of County Commissioners direct the County Administrator to take the following actions

1 Review each Divisionrsquos general purpose vehicle allocation to determine if underutilized vehicles can be eliminated for Fiscal Year 2010 or reassigned to other agencies that are in need of vehicle replacements

2 Develop a system to ensure that vehicles driven significantly below the Countyrsquos 8400 annual utilization standard are routinely evaluated by fleet managers for justification of the low utilization or elimination andor reassignment prior to the purchase of new replacement vehicles

3 Annually determine the ldquobreak‐evenrdquo point whereby it is cost‐effective for the County to provide mileage reimbursement rather than provide a vehicle to a County employee and promote the increased use of mileage reimbursement as an alternative to permanent vehicle assignment when it is cost‐effective to do so

4 Take steps to ensure that alternative fuel vehicles are utilized at higher levels than comparable gasolinediesel models to maximize the environmental and financial benefits of deploying these vehicles

5 Establish a standard brand and model for each vehicle type (eg sedans pickups vans etc) and require justification for non‐standard procurements

19

Special Purpose Fleet Size

The Countyrsquos special purpose fleet consisting of heavy duty trucks (over 10 ton capacity) construction equipment trailers generators off‐road vehicles lawn service equipment and boats is a highly diversified group of equipment tailored to meet each agencyrsquos specific needs As opposed to general purpose vehicles special purpose equipment is purchased directly by the owning division in coordination with the Fleet Services Division and the OMB The owning agency has discretion as to each special purpose vehiclersquos utilization and replacement criteria

The Fleet Services Division provides a significant amount of maintenance support for the Countyrsquos special purpose equipment Data provided by the Division indicates that 20919 mechanic labor hours (399 of all available hours) were billed to County agencies for special purpose equipment maintenance in Fiscal Year 2008 As with the general purpose fleet ensuring that the special purpose fleet is right‐sized and utilized appropriately presents a significant opportunity for cost savings

The County lacks necessary oversight of special purpose equipment acquisition utilization and replacement

As part of our fieldwork we attempted to evaluate the utilization of special purpose equipment14 However our evaluation was impeded by several factors including

bull The Fleet Services Division does not routinely collect utilization data such as mileage or hours for all special purpose equipment Division officials indicated that 662 (782 of 1182 total items) of special purpose equipment do not have reliable utilization data for the period we examined (October 1 2007 to September 30 2008) As a result our review was limited to the remaining 466 items of special purpose equipment

bull The Fleet Services Division relies on agencies to report special purpose equipment acquisition and disposal equipment records are not reconciled with accounting andor inventory records and therefore may be inaccurate

bull Some special purpose equipment such as trailers and lawn equipment does not come equipped from the manufacturer with odometers or hourly meters and the value of outfitting smaller value equipment with utilization meters may not be cost‐effective

Of the 466 items of special purpose equipment with available utilization information for Fiscal Year 2008 we further stratified the data to include only equipment with a purchase price equal to or greater than $25000 this amounted to 241 items with an average purchase price of $69643 Of these 241 items we found that 50 (207) were utilized less than 25 hours or 1000 miles in Fiscal Year 2008 We used the $25000 purchase price limit and 25 hour1000

14 Dependent on the type of equipment special purpose utilization may be tracked by either hours or miles

20

mile utilization benchmark because such low utilization levels suggest that it would have been more prudent to rent these items than to purchase them Appendix D on page 34 lists the 50 special purpose equipment items that meet our criteria for low utilization in Fiscal Year 2008

Special purpose equipment oversight is important for reasons other than utilization review For example as many agencies use similar types of equipment to carry out their mission the County can reduce mechanic training and inventory costs by purchasing similar brandmodel equipment (ie ldquostandardizationrdquo) where possible However Fleet officials state that they have minimal input relative to the specifications of special purpose equipment purchases despite the Divisionrsquos role as the primary maintenance provider Further increased special purpose equipment oversight may lead to less overall equipment purchases as underutilized special purpose equipment could be reassigned or rented throughout the organization According to Fleet officials special purpose equipment is often purchased despite the availability of comparable and underutilized equipment at other County agencies These officials believe the sharing or renting of this equipment would be a cost‐effective alternative to purchasing it We concur that County agencies and Fleet Services would benefit from better information about the number and types of equipment available at peer agencies

Recommendations

To improve the oversight and reduce the annual operating cost of the Countyrsquos special purpose equipment we recommend the Board of County Commissioners direct the County Administrator to take the following actions

6 Establish a system to routinely monitor the utilization of high value special purpose equipment so unused equipment can be reassigned or disposed of at the highest possible resale value

7 Require justification that clearly demonstrates the cost‐savings that will be obtained through purchasing rather than rentingleasing during the special purpose equipment acquisition process

8 Ensure that a centralized inventory of special purpose equipment is maintained and available to Fleet Services managers to advise County agencies when making decisions about the purchase or rental of needed equipment

21

Section 2 Fleet Services Division Cost Recovery

As an internal service agency the Fleet Services Division seeks to recover its operating costs through fees charged to user agencies As part of its annual budget process the Division estimates anticipated expenditures and revises its fee schedule with a goal of breaking even Revenues are generated from the following

bull Leased Vehicles County agencies leasing a general purpose vehicle from the Fleet Services Division are charged a flat monthly fee per vehicle The fee varies by vehicle type and includes recovery for costs such as regular maintenance insurance depreciation and administrative overhead

bull Maintenance Services County agencies that own their vehicles (ie Enterprise Funds and divisions with special purpose fleet equipment) pay for actual maintenance costs such as labor materials and overhead on a per occurrence basis County agencies leasing vehicles may also be charged in this manner for additional repairs due to accidents or abusiveneglectful treatment of the vehicles15

bull Contract Maintenance Service Fees As noted previously the Fleet Services Division has historically contracted with other external entities (eg Broward Sheriffrsquos Office) to provide maintenance services to vehicles such as fire engines Costs for services include charges for labor materials and overhead

bull Motor Pool Vehicles County agencies pay a flat rate for daily or weekly usage of rental vehicles This flat rate is intended to cover the annual costs for maintenance capital recovery insurance operating overhead and fuel If excess miles are driven additional fueling charges may apply

bull Fuel The Fleet Services Division invoices County agencies for fuel purchased at County approved locations which includes an additional per gallon surcharge for overhead costs

The Fleet Services Division generated revenues of $127 million in Fiscal Year 2008 Of total revenues $109 million (852) was generated from providing services to County divisions and $19 million (148) was from external contract entities

15 Risk Management seeks to obtain reimbursement from the other partyrsquos insurance carrier when a County vehicle is involved in a not‐at‐fault accident As applicable Divisions will be reimbursed for amounts recovered

22

Exhibit 13 The cost of providing services to external contract customers and special purpose customers exceeded revenues in Fiscal Year 2008

Revenues Expenditures ProfitLoss Margin General Purpose $3558755 $2974655 $584100 164

Special Purpose $2631333 $3184141 ‐$552808 ‐210

Contract Customers $1681899 $1829061 ‐$147162 ‐87

TOTAL $7871987 $7987857 ‐$115870 ‐15

Source Office of the County Auditor Analysis

The County appears to have subsidized the cost of services provided to non‐County entities in Fiscal Year 2008

During our review we analyzed the Fleet Services Divisionrsquos Fiscal Year 2008 revenues and expenditures We observed that the Division has historically grouped its revenues into three categories (1) special purpose (2) general purpose and (3) contract maintenance However the Division has not historically tracked its expenses in this same manner Therefore the Division has not previously analyzed its profitloss for its three major lines of business This analysis is necessary to determine if the County is subsidizing contract services with general fund andor enterprise fund monies

To determine if the County is subsidizing the services costs of its contract customers we allocated the Fleet Services Divisionrsquos Fiscal Year 2008 expenditures based on billable labor hours16 For example as contract services accounted for 23 of all billable labor hours in Fiscal Year 2008 we allocated 23 of the Divisionrsquos operating expenditures to this ldquocost centerrdquo

Our analysis indicates that the Fleet Services Divisionrsquos non‐fuel services operated at a small loss in Fiscal Year 2008 (‐$115870)17 As the Division operates with the intent of breaking even this relatively small loss (‐15 of total revenues) is not in itself significant However we also found that the Divisionrsquos cost of providing services to external (contract) customers such as BSO exceeded its revenues for these activities by $147162 (or an 87 operating loss) Exhibit 13 indicates the profitloss (excluding fuel) that was generated for each of the Fleet Services Divisionrsquos three business lines

It is important for the Fleet Services Division to routinely monitor its profitability in the manner described above for several reasons First the Division should regularly assess whether its service rates are sufficient to cover the cost of providing services especially for contract customers Similarly the Division also can use this analysis to ensure that it is not overcharging County agencies for maintenance services We also noted that in February 2009 BSO advised the Fleet Services Division that it would not be renewing its contract for continued maintenance services in Fiscal Year 2010 As BSO accounted for approximately 16 of the Divisionrsquos total

16 This analysis excludes all fuel expenditures17 However the Fleet Services Division as a whole operated profitably in Fiscal Year 2008 due to the $253807profit generated from its fuel service operations

23

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

As in 1999 vehicle standardization remains a viable option to reduce Fleet Servicesrsquo inventory costs and increase mechanic efficiency For example Fleet managers report that a majority (58) of mechanic labor hours are annually dedicated to repair work rather than standardized preventative maintenance necessitating that a large parts inventory be maintained on‐site with an estimated value of $550000 Having a more standardized fleet with limited variety in makemodels could increase operational efficiency through (1) increased mechanic familiarity with work (reduced time to complete repairs) and (2) a reduction in inventory variations and total size (decreased time ordering stocking and potentially reducing space needs)

While it is acknowledged that 100 fleet standardization may be impractical especially in instances where specialized vehicles are necessary our analysis serves as a baseline upon which the Fleet Services Division could significantly improve standardization Specific attention should be placed on the sedan pickup and van classifications which all have relatively low standardization rates as of Fiscal Year 2009 Vehicle standardization decisions should take into account various factors including total cost of ownership expected salvage value and alternative fuelemissions goals

Recommendations

To improve oversight and reduce the annual operating cost of the Countyrsquos general purpose fleet we recommend the Board of County Commissioners direct the County Administrator to take the following actions

1 Review each Divisionrsquos general purpose vehicle allocation to determine if underutilized vehicles can be eliminated for Fiscal Year 2010 or reassigned to other agencies that are in need of vehicle replacements

2 Develop a system to ensure that vehicles driven significantly below the Countyrsquos 8400 annual utilization standard are routinely evaluated by fleet managers for justification of the low utilization or elimination andor reassignment prior to the purchase of new replacement vehicles

3 Annually determine the ldquobreak‐evenrdquo point whereby it is cost‐effective for the County to provide mileage reimbursement rather than provide a vehicle to a County employee and promote the increased use of mileage reimbursement as an alternative to permanent vehicle assignment when it is cost‐effective to do so

4 Take steps to ensure that alternative fuel vehicles are utilized at higher levels than comparable gasolinediesel models to maximize the environmental and financial benefits of deploying these vehicles

5 Establish a standard brand and model for each vehicle type (eg sedans pickups vans etc) and require justification for non‐standard procurements

19

Special Purpose Fleet Size

The Countyrsquos special purpose fleet consisting of heavy duty trucks (over 10 ton capacity) construction equipment trailers generators off‐road vehicles lawn service equipment and boats is a highly diversified group of equipment tailored to meet each agencyrsquos specific needs As opposed to general purpose vehicles special purpose equipment is purchased directly by the owning division in coordination with the Fleet Services Division and the OMB The owning agency has discretion as to each special purpose vehiclersquos utilization and replacement criteria

The Fleet Services Division provides a significant amount of maintenance support for the Countyrsquos special purpose equipment Data provided by the Division indicates that 20919 mechanic labor hours (399 of all available hours) were billed to County agencies for special purpose equipment maintenance in Fiscal Year 2008 As with the general purpose fleet ensuring that the special purpose fleet is right‐sized and utilized appropriately presents a significant opportunity for cost savings

The County lacks necessary oversight of special purpose equipment acquisition utilization and replacement

As part of our fieldwork we attempted to evaluate the utilization of special purpose equipment14 However our evaluation was impeded by several factors including

bull The Fleet Services Division does not routinely collect utilization data such as mileage or hours for all special purpose equipment Division officials indicated that 662 (782 of 1182 total items) of special purpose equipment do not have reliable utilization data for the period we examined (October 1 2007 to September 30 2008) As a result our review was limited to the remaining 466 items of special purpose equipment

bull The Fleet Services Division relies on agencies to report special purpose equipment acquisition and disposal equipment records are not reconciled with accounting andor inventory records and therefore may be inaccurate

bull Some special purpose equipment such as trailers and lawn equipment does not come equipped from the manufacturer with odometers or hourly meters and the value of outfitting smaller value equipment with utilization meters may not be cost‐effective

Of the 466 items of special purpose equipment with available utilization information for Fiscal Year 2008 we further stratified the data to include only equipment with a purchase price equal to or greater than $25000 this amounted to 241 items with an average purchase price of $69643 Of these 241 items we found that 50 (207) were utilized less than 25 hours or 1000 miles in Fiscal Year 2008 We used the $25000 purchase price limit and 25 hour1000

14 Dependent on the type of equipment special purpose utilization may be tracked by either hours or miles

20

mile utilization benchmark because such low utilization levels suggest that it would have been more prudent to rent these items than to purchase them Appendix D on page 34 lists the 50 special purpose equipment items that meet our criteria for low utilization in Fiscal Year 2008

Special purpose equipment oversight is important for reasons other than utilization review For example as many agencies use similar types of equipment to carry out their mission the County can reduce mechanic training and inventory costs by purchasing similar brandmodel equipment (ie ldquostandardizationrdquo) where possible However Fleet officials state that they have minimal input relative to the specifications of special purpose equipment purchases despite the Divisionrsquos role as the primary maintenance provider Further increased special purpose equipment oversight may lead to less overall equipment purchases as underutilized special purpose equipment could be reassigned or rented throughout the organization According to Fleet officials special purpose equipment is often purchased despite the availability of comparable and underutilized equipment at other County agencies These officials believe the sharing or renting of this equipment would be a cost‐effective alternative to purchasing it We concur that County agencies and Fleet Services would benefit from better information about the number and types of equipment available at peer agencies

Recommendations

To improve the oversight and reduce the annual operating cost of the Countyrsquos special purpose equipment we recommend the Board of County Commissioners direct the County Administrator to take the following actions

6 Establish a system to routinely monitor the utilization of high value special purpose equipment so unused equipment can be reassigned or disposed of at the highest possible resale value

7 Require justification that clearly demonstrates the cost‐savings that will be obtained through purchasing rather than rentingleasing during the special purpose equipment acquisition process

8 Ensure that a centralized inventory of special purpose equipment is maintained and available to Fleet Services managers to advise County agencies when making decisions about the purchase or rental of needed equipment

21

Section 2 Fleet Services Division Cost Recovery

As an internal service agency the Fleet Services Division seeks to recover its operating costs through fees charged to user agencies As part of its annual budget process the Division estimates anticipated expenditures and revises its fee schedule with a goal of breaking even Revenues are generated from the following

bull Leased Vehicles County agencies leasing a general purpose vehicle from the Fleet Services Division are charged a flat monthly fee per vehicle The fee varies by vehicle type and includes recovery for costs such as regular maintenance insurance depreciation and administrative overhead

bull Maintenance Services County agencies that own their vehicles (ie Enterprise Funds and divisions with special purpose fleet equipment) pay for actual maintenance costs such as labor materials and overhead on a per occurrence basis County agencies leasing vehicles may also be charged in this manner for additional repairs due to accidents or abusiveneglectful treatment of the vehicles15

bull Contract Maintenance Service Fees As noted previously the Fleet Services Division has historically contracted with other external entities (eg Broward Sheriffrsquos Office) to provide maintenance services to vehicles such as fire engines Costs for services include charges for labor materials and overhead

bull Motor Pool Vehicles County agencies pay a flat rate for daily or weekly usage of rental vehicles This flat rate is intended to cover the annual costs for maintenance capital recovery insurance operating overhead and fuel If excess miles are driven additional fueling charges may apply

bull Fuel The Fleet Services Division invoices County agencies for fuel purchased at County approved locations which includes an additional per gallon surcharge for overhead costs

The Fleet Services Division generated revenues of $127 million in Fiscal Year 2008 Of total revenues $109 million (852) was generated from providing services to County divisions and $19 million (148) was from external contract entities

15 Risk Management seeks to obtain reimbursement from the other partyrsquos insurance carrier when a County vehicle is involved in a not‐at‐fault accident As applicable Divisions will be reimbursed for amounts recovered

22

Exhibit 13 The cost of providing services to external contract customers and special purpose customers exceeded revenues in Fiscal Year 2008

Revenues Expenditures ProfitLoss Margin General Purpose $3558755 $2974655 $584100 164

Special Purpose $2631333 $3184141 ‐$552808 ‐210

Contract Customers $1681899 $1829061 ‐$147162 ‐87

TOTAL $7871987 $7987857 ‐$115870 ‐15

Source Office of the County Auditor Analysis

The County appears to have subsidized the cost of services provided to non‐County entities in Fiscal Year 2008

During our review we analyzed the Fleet Services Divisionrsquos Fiscal Year 2008 revenues and expenditures We observed that the Division has historically grouped its revenues into three categories (1) special purpose (2) general purpose and (3) contract maintenance However the Division has not historically tracked its expenses in this same manner Therefore the Division has not previously analyzed its profitloss for its three major lines of business This analysis is necessary to determine if the County is subsidizing contract services with general fund andor enterprise fund monies

To determine if the County is subsidizing the services costs of its contract customers we allocated the Fleet Services Divisionrsquos Fiscal Year 2008 expenditures based on billable labor hours16 For example as contract services accounted for 23 of all billable labor hours in Fiscal Year 2008 we allocated 23 of the Divisionrsquos operating expenditures to this ldquocost centerrdquo

Our analysis indicates that the Fleet Services Divisionrsquos non‐fuel services operated at a small loss in Fiscal Year 2008 (‐$115870)17 As the Division operates with the intent of breaking even this relatively small loss (‐15 of total revenues) is not in itself significant However we also found that the Divisionrsquos cost of providing services to external (contract) customers such as BSO exceeded its revenues for these activities by $147162 (or an 87 operating loss) Exhibit 13 indicates the profitloss (excluding fuel) that was generated for each of the Fleet Services Divisionrsquos three business lines

It is important for the Fleet Services Division to routinely monitor its profitability in the manner described above for several reasons First the Division should regularly assess whether its service rates are sufficient to cover the cost of providing services especially for contract customers Similarly the Division also can use this analysis to ensure that it is not overcharging County agencies for maintenance services We also noted that in February 2009 BSO advised the Fleet Services Division that it would not be renewing its contract for continued maintenance services in Fiscal Year 2010 As BSO accounted for approximately 16 of the Divisionrsquos total

16 This analysis excludes all fuel expenditures17 However the Fleet Services Division as a whole operated profitably in Fiscal Year 2008 due to the $253807profit generated from its fuel service operations

23

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Special Purpose Fleet Size

The Countyrsquos special purpose fleet consisting of heavy duty trucks (over 10 ton capacity) construction equipment trailers generators off‐road vehicles lawn service equipment and boats is a highly diversified group of equipment tailored to meet each agencyrsquos specific needs As opposed to general purpose vehicles special purpose equipment is purchased directly by the owning division in coordination with the Fleet Services Division and the OMB The owning agency has discretion as to each special purpose vehiclersquos utilization and replacement criteria

The Fleet Services Division provides a significant amount of maintenance support for the Countyrsquos special purpose equipment Data provided by the Division indicates that 20919 mechanic labor hours (399 of all available hours) were billed to County agencies for special purpose equipment maintenance in Fiscal Year 2008 As with the general purpose fleet ensuring that the special purpose fleet is right‐sized and utilized appropriately presents a significant opportunity for cost savings

The County lacks necessary oversight of special purpose equipment acquisition utilization and replacement

As part of our fieldwork we attempted to evaluate the utilization of special purpose equipment14 However our evaluation was impeded by several factors including

bull The Fleet Services Division does not routinely collect utilization data such as mileage or hours for all special purpose equipment Division officials indicated that 662 (782 of 1182 total items) of special purpose equipment do not have reliable utilization data for the period we examined (October 1 2007 to September 30 2008) As a result our review was limited to the remaining 466 items of special purpose equipment

bull The Fleet Services Division relies on agencies to report special purpose equipment acquisition and disposal equipment records are not reconciled with accounting andor inventory records and therefore may be inaccurate

bull Some special purpose equipment such as trailers and lawn equipment does not come equipped from the manufacturer with odometers or hourly meters and the value of outfitting smaller value equipment with utilization meters may not be cost‐effective

Of the 466 items of special purpose equipment with available utilization information for Fiscal Year 2008 we further stratified the data to include only equipment with a purchase price equal to or greater than $25000 this amounted to 241 items with an average purchase price of $69643 Of these 241 items we found that 50 (207) were utilized less than 25 hours or 1000 miles in Fiscal Year 2008 We used the $25000 purchase price limit and 25 hour1000

14 Dependent on the type of equipment special purpose utilization may be tracked by either hours or miles

20

mile utilization benchmark because such low utilization levels suggest that it would have been more prudent to rent these items than to purchase them Appendix D on page 34 lists the 50 special purpose equipment items that meet our criteria for low utilization in Fiscal Year 2008

Special purpose equipment oversight is important for reasons other than utilization review For example as many agencies use similar types of equipment to carry out their mission the County can reduce mechanic training and inventory costs by purchasing similar brandmodel equipment (ie ldquostandardizationrdquo) where possible However Fleet officials state that they have minimal input relative to the specifications of special purpose equipment purchases despite the Divisionrsquos role as the primary maintenance provider Further increased special purpose equipment oversight may lead to less overall equipment purchases as underutilized special purpose equipment could be reassigned or rented throughout the organization According to Fleet officials special purpose equipment is often purchased despite the availability of comparable and underutilized equipment at other County agencies These officials believe the sharing or renting of this equipment would be a cost‐effective alternative to purchasing it We concur that County agencies and Fleet Services would benefit from better information about the number and types of equipment available at peer agencies

Recommendations

To improve the oversight and reduce the annual operating cost of the Countyrsquos special purpose equipment we recommend the Board of County Commissioners direct the County Administrator to take the following actions

6 Establish a system to routinely monitor the utilization of high value special purpose equipment so unused equipment can be reassigned or disposed of at the highest possible resale value

7 Require justification that clearly demonstrates the cost‐savings that will be obtained through purchasing rather than rentingleasing during the special purpose equipment acquisition process

8 Ensure that a centralized inventory of special purpose equipment is maintained and available to Fleet Services managers to advise County agencies when making decisions about the purchase or rental of needed equipment

21

Section 2 Fleet Services Division Cost Recovery

As an internal service agency the Fleet Services Division seeks to recover its operating costs through fees charged to user agencies As part of its annual budget process the Division estimates anticipated expenditures and revises its fee schedule with a goal of breaking even Revenues are generated from the following

bull Leased Vehicles County agencies leasing a general purpose vehicle from the Fleet Services Division are charged a flat monthly fee per vehicle The fee varies by vehicle type and includes recovery for costs such as regular maintenance insurance depreciation and administrative overhead

bull Maintenance Services County agencies that own their vehicles (ie Enterprise Funds and divisions with special purpose fleet equipment) pay for actual maintenance costs such as labor materials and overhead on a per occurrence basis County agencies leasing vehicles may also be charged in this manner for additional repairs due to accidents or abusiveneglectful treatment of the vehicles15

bull Contract Maintenance Service Fees As noted previously the Fleet Services Division has historically contracted with other external entities (eg Broward Sheriffrsquos Office) to provide maintenance services to vehicles such as fire engines Costs for services include charges for labor materials and overhead

bull Motor Pool Vehicles County agencies pay a flat rate for daily or weekly usage of rental vehicles This flat rate is intended to cover the annual costs for maintenance capital recovery insurance operating overhead and fuel If excess miles are driven additional fueling charges may apply

bull Fuel The Fleet Services Division invoices County agencies for fuel purchased at County approved locations which includes an additional per gallon surcharge for overhead costs

The Fleet Services Division generated revenues of $127 million in Fiscal Year 2008 Of total revenues $109 million (852) was generated from providing services to County divisions and $19 million (148) was from external contract entities

15 Risk Management seeks to obtain reimbursement from the other partyrsquos insurance carrier when a County vehicle is involved in a not‐at‐fault accident As applicable Divisions will be reimbursed for amounts recovered

22

Exhibit 13 The cost of providing services to external contract customers and special purpose customers exceeded revenues in Fiscal Year 2008

Revenues Expenditures ProfitLoss Margin General Purpose $3558755 $2974655 $584100 164

Special Purpose $2631333 $3184141 ‐$552808 ‐210

Contract Customers $1681899 $1829061 ‐$147162 ‐87

TOTAL $7871987 $7987857 ‐$115870 ‐15

Source Office of the County Auditor Analysis

The County appears to have subsidized the cost of services provided to non‐County entities in Fiscal Year 2008

During our review we analyzed the Fleet Services Divisionrsquos Fiscal Year 2008 revenues and expenditures We observed that the Division has historically grouped its revenues into three categories (1) special purpose (2) general purpose and (3) contract maintenance However the Division has not historically tracked its expenses in this same manner Therefore the Division has not previously analyzed its profitloss for its three major lines of business This analysis is necessary to determine if the County is subsidizing contract services with general fund andor enterprise fund monies

To determine if the County is subsidizing the services costs of its contract customers we allocated the Fleet Services Divisionrsquos Fiscal Year 2008 expenditures based on billable labor hours16 For example as contract services accounted for 23 of all billable labor hours in Fiscal Year 2008 we allocated 23 of the Divisionrsquos operating expenditures to this ldquocost centerrdquo

Our analysis indicates that the Fleet Services Divisionrsquos non‐fuel services operated at a small loss in Fiscal Year 2008 (‐$115870)17 As the Division operates with the intent of breaking even this relatively small loss (‐15 of total revenues) is not in itself significant However we also found that the Divisionrsquos cost of providing services to external (contract) customers such as BSO exceeded its revenues for these activities by $147162 (or an 87 operating loss) Exhibit 13 indicates the profitloss (excluding fuel) that was generated for each of the Fleet Services Divisionrsquos three business lines

It is important for the Fleet Services Division to routinely monitor its profitability in the manner described above for several reasons First the Division should regularly assess whether its service rates are sufficient to cover the cost of providing services especially for contract customers Similarly the Division also can use this analysis to ensure that it is not overcharging County agencies for maintenance services We also noted that in February 2009 BSO advised the Fleet Services Division that it would not be renewing its contract for continued maintenance services in Fiscal Year 2010 As BSO accounted for approximately 16 of the Divisionrsquos total

16 This analysis excludes all fuel expenditures17 However the Fleet Services Division as a whole operated profitably in Fiscal Year 2008 due to the $253807profit generated from its fuel service operations

23

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

mile utilization benchmark because such low utilization levels suggest that it would have been more prudent to rent these items than to purchase them Appendix D on page 34 lists the 50 special purpose equipment items that meet our criteria for low utilization in Fiscal Year 2008

Special purpose equipment oversight is important for reasons other than utilization review For example as many agencies use similar types of equipment to carry out their mission the County can reduce mechanic training and inventory costs by purchasing similar brandmodel equipment (ie ldquostandardizationrdquo) where possible However Fleet officials state that they have minimal input relative to the specifications of special purpose equipment purchases despite the Divisionrsquos role as the primary maintenance provider Further increased special purpose equipment oversight may lead to less overall equipment purchases as underutilized special purpose equipment could be reassigned or rented throughout the organization According to Fleet officials special purpose equipment is often purchased despite the availability of comparable and underutilized equipment at other County agencies These officials believe the sharing or renting of this equipment would be a cost‐effective alternative to purchasing it We concur that County agencies and Fleet Services would benefit from better information about the number and types of equipment available at peer agencies

Recommendations

To improve the oversight and reduce the annual operating cost of the Countyrsquos special purpose equipment we recommend the Board of County Commissioners direct the County Administrator to take the following actions

6 Establish a system to routinely monitor the utilization of high value special purpose equipment so unused equipment can be reassigned or disposed of at the highest possible resale value

7 Require justification that clearly demonstrates the cost‐savings that will be obtained through purchasing rather than rentingleasing during the special purpose equipment acquisition process

8 Ensure that a centralized inventory of special purpose equipment is maintained and available to Fleet Services managers to advise County agencies when making decisions about the purchase or rental of needed equipment

21

Section 2 Fleet Services Division Cost Recovery

As an internal service agency the Fleet Services Division seeks to recover its operating costs through fees charged to user agencies As part of its annual budget process the Division estimates anticipated expenditures and revises its fee schedule with a goal of breaking even Revenues are generated from the following

bull Leased Vehicles County agencies leasing a general purpose vehicle from the Fleet Services Division are charged a flat monthly fee per vehicle The fee varies by vehicle type and includes recovery for costs such as regular maintenance insurance depreciation and administrative overhead

bull Maintenance Services County agencies that own their vehicles (ie Enterprise Funds and divisions with special purpose fleet equipment) pay for actual maintenance costs such as labor materials and overhead on a per occurrence basis County agencies leasing vehicles may also be charged in this manner for additional repairs due to accidents or abusiveneglectful treatment of the vehicles15

bull Contract Maintenance Service Fees As noted previously the Fleet Services Division has historically contracted with other external entities (eg Broward Sheriffrsquos Office) to provide maintenance services to vehicles such as fire engines Costs for services include charges for labor materials and overhead

bull Motor Pool Vehicles County agencies pay a flat rate for daily or weekly usage of rental vehicles This flat rate is intended to cover the annual costs for maintenance capital recovery insurance operating overhead and fuel If excess miles are driven additional fueling charges may apply

bull Fuel The Fleet Services Division invoices County agencies for fuel purchased at County approved locations which includes an additional per gallon surcharge for overhead costs

The Fleet Services Division generated revenues of $127 million in Fiscal Year 2008 Of total revenues $109 million (852) was generated from providing services to County divisions and $19 million (148) was from external contract entities

15 Risk Management seeks to obtain reimbursement from the other partyrsquos insurance carrier when a County vehicle is involved in a not‐at‐fault accident As applicable Divisions will be reimbursed for amounts recovered

22

Exhibit 13 The cost of providing services to external contract customers and special purpose customers exceeded revenues in Fiscal Year 2008

Revenues Expenditures ProfitLoss Margin General Purpose $3558755 $2974655 $584100 164

Special Purpose $2631333 $3184141 ‐$552808 ‐210

Contract Customers $1681899 $1829061 ‐$147162 ‐87

TOTAL $7871987 $7987857 ‐$115870 ‐15

Source Office of the County Auditor Analysis

The County appears to have subsidized the cost of services provided to non‐County entities in Fiscal Year 2008

During our review we analyzed the Fleet Services Divisionrsquos Fiscal Year 2008 revenues and expenditures We observed that the Division has historically grouped its revenues into three categories (1) special purpose (2) general purpose and (3) contract maintenance However the Division has not historically tracked its expenses in this same manner Therefore the Division has not previously analyzed its profitloss for its three major lines of business This analysis is necessary to determine if the County is subsidizing contract services with general fund andor enterprise fund monies

To determine if the County is subsidizing the services costs of its contract customers we allocated the Fleet Services Divisionrsquos Fiscal Year 2008 expenditures based on billable labor hours16 For example as contract services accounted for 23 of all billable labor hours in Fiscal Year 2008 we allocated 23 of the Divisionrsquos operating expenditures to this ldquocost centerrdquo

Our analysis indicates that the Fleet Services Divisionrsquos non‐fuel services operated at a small loss in Fiscal Year 2008 (‐$115870)17 As the Division operates with the intent of breaking even this relatively small loss (‐15 of total revenues) is not in itself significant However we also found that the Divisionrsquos cost of providing services to external (contract) customers such as BSO exceeded its revenues for these activities by $147162 (or an 87 operating loss) Exhibit 13 indicates the profitloss (excluding fuel) that was generated for each of the Fleet Services Divisionrsquos three business lines

It is important for the Fleet Services Division to routinely monitor its profitability in the manner described above for several reasons First the Division should regularly assess whether its service rates are sufficient to cover the cost of providing services especially for contract customers Similarly the Division also can use this analysis to ensure that it is not overcharging County agencies for maintenance services We also noted that in February 2009 BSO advised the Fleet Services Division that it would not be renewing its contract for continued maintenance services in Fiscal Year 2010 As BSO accounted for approximately 16 of the Divisionrsquos total

16 This analysis excludes all fuel expenditures17 However the Fleet Services Division as a whole operated profitably in Fiscal Year 2008 due to the $253807profit generated from its fuel service operations

23

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Section 2 Fleet Services Division Cost Recovery

As an internal service agency the Fleet Services Division seeks to recover its operating costs through fees charged to user agencies As part of its annual budget process the Division estimates anticipated expenditures and revises its fee schedule with a goal of breaking even Revenues are generated from the following

bull Leased Vehicles County agencies leasing a general purpose vehicle from the Fleet Services Division are charged a flat monthly fee per vehicle The fee varies by vehicle type and includes recovery for costs such as regular maintenance insurance depreciation and administrative overhead

bull Maintenance Services County agencies that own their vehicles (ie Enterprise Funds and divisions with special purpose fleet equipment) pay for actual maintenance costs such as labor materials and overhead on a per occurrence basis County agencies leasing vehicles may also be charged in this manner for additional repairs due to accidents or abusiveneglectful treatment of the vehicles15

bull Contract Maintenance Service Fees As noted previously the Fleet Services Division has historically contracted with other external entities (eg Broward Sheriffrsquos Office) to provide maintenance services to vehicles such as fire engines Costs for services include charges for labor materials and overhead

bull Motor Pool Vehicles County agencies pay a flat rate for daily or weekly usage of rental vehicles This flat rate is intended to cover the annual costs for maintenance capital recovery insurance operating overhead and fuel If excess miles are driven additional fueling charges may apply

bull Fuel The Fleet Services Division invoices County agencies for fuel purchased at County approved locations which includes an additional per gallon surcharge for overhead costs

The Fleet Services Division generated revenues of $127 million in Fiscal Year 2008 Of total revenues $109 million (852) was generated from providing services to County divisions and $19 million (148) was from external contract entities

15 Risk Management seeks to obtain reimbursement from the other partyrsquos insurance carrier when a County vehicle is involved in a not‐at‐fault accident As applicable Divisions will be reimbursed for amounts recovered

22

Exhibit 13 The cost of providing services to external contract customers and special purpose customers exceeded revenues in Fiscal Year 2008

Revenues Expenditures ProfitLoss Margin General Purpose $3558755 $2974655 $584100 164

Special Purpose $2631333 $3184141 ‐$552808 ‐210

Contract Customers $1681899 $1829061 ‐$147162 ‐87

TOTAL $7871987 $7987857 ‐$115870 ‐15

Source Office of the County Auditor Analysis

The County appears to have subsidized the cost of services provided to non‐County entities in Fiscal Year 2008

During our review we analyzed the Fleet Services Divisionrsquos Fiscal Year 2008 revenues and expenditures We observed that the Division has historically grouped its revenues into three categories (1) special purpose (2) general purpose and (3) contract maintenance However the Division has not historically tracked its expenses in this same manner Therefore the Division has not previously analyzed its profitloss for its three major lines of business This analysis is necessary to determine if the County is subsidizing contract services with general fund andor enterprise fund monies

To determine if the County is subsidizing the services costs of its contract customers we allocated the Fleet Services Divisionrsquos Fiscal Year 2008 expenditures based on billable labor hours16 For example as contract services accounted for 23 of all billable labor hours in Fiscal Year 2008 we allocated 23 of the Divisionrsquos operating expenditures to this ldquocost centerrdquo

Our analysis indicates that the Fleet Services Divisionrsquos non‐fuel services operated at a small loss in Fiscal Year 2008 (‐$115870)17 As the Division operates with the intent of breaking even this relatively small loss (‐15 of total revenues) is not in itself significant However we also found that the Divisionrsquos cost of providing services to external (contract) customers such as BSO exceeded its revenues for these activities by $147162 (or an 87 operating loss) Exhibit 13 indicates the profitloss (excluding fuel) that was generated for each of the Fleet Services Divisionrsquos three business lines

It is important for the Fleet Services Division to routinely monitor its profitability in the manner described above for several reasons First the Division should regularly assess whether its service rates are sufficient to cover the cost of providing services especially for contract customers Similarly the Division also can use this analysis to ensure that it is not overcharging County agencies for maintenance services We also noted that in February 2009 BSO advised the Fleet Services Division that it would not be renewing its contract for continued maintenance services in Fiscal Year 2010 As BSO accounted for approximately 16 of the Divisionrsquos total

16 This analysis excludes all fuel expenditures17 However the Fleet Services Division as a whole operated profitably in Fiscal Year 2008 due to the $253807profit generated from its fuel service operations

23

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Exhibit 13 The cost of providing services to external contract customers and special purpose customers exceeded revenues in Fiscal Year 2008

Revenues Expenditures ProfitLoss Margin General Purpose $3558755 $2974655 $584100 164

Special Purpose $2631333 $3184141 ‐$552808 ‐210

Contract Customers $1681899 $1829061 ‐$147162 ‐87

TOTAL $7871987 $7987857 ‐$115870 ‐15

Source Office of the County Auditor Analysis

The County appears to have subsidized the cost of services provided to non‐County entities in Fiscal Year 2008

During our review we analyzed the Fleet Services Divisionrsquos Fiscal Year 2008 revenues and expenditures We observed that the Division has historically grouped its revenues into three categories (1) special purpose (2) general purpose and (3) contract maintenance However the Division has not historically tracked its expenses in this same manner Therefore the Division has not previously analyzed its profitloss for its three major lines of business This analysis is necessary to determine if the County is subsidizing contract services with general fund andor enterprise fund monies

To determine if the County is subsidizing the services costs of its contract customers we allocated the Fleet Services Divisionrsquos Fiscal Year 2008 expenditures based on billable labor hours16 For example as contract services accounted for 23 of all billable labor hours in Fiscal Year 2008 we allocated 23 of the Divisionrsquos operating expenditures to this ldquocost centerrdquo

Our analysis indicates that the Fleet Services Divisionrsquos non‐fuel services operated at a small loss in Fiscal Year 2008 (‐$115870)17 As the Division operates with the intent of breaking even this relatively small loss (‐15 of total revenues) is not in itself significant However we also found that the Divisionrsquos cost of providing services to external (contract) customers such as BSO exceeded its revenues for these activities by $147162 (or an 87 operating loss) Exhibit 13 indicates the profitloss (excluding fuel) that was generated for each of the Fleet Services Divisionrsquos three business lines

It is important for the Fleet Services Division to routinely monitor its profitability in the manner described above for several reasons First the Division should regularly assess whether its service rates are sufficient to cover the cost of providing services especially for contract customers Similarly the Division also can use this analysis to ensure that it is not overcharging County agencies for maintenance services We also noted that in February 2009 BSO advised the Fleet Services Division that it would not be renewing its contract for continued maintenance services in Fiscal Year 2010 As BSO accounted for approximately 16 of the Divisionrsquos total

16 This analysis excludes all fuel expenditures17 However the Fleet Services Division as a whole operated profitably in Fiscal Year 2008 due to the $253807profit generated from its fuel service operations

23

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

billable labor hours in Fiscal Year 2008 this loss will dramatically affect the Divisionrsquos operations Specifically a reduction in mechanics or a steep increase in billable rates appears necessary to maintain the Divisionrsquos goal of breaking‐even financially Notwithstanding the loss of BSO as a customer tracking revenuesexpenses by business line is an important step toward ensuring that the County does not subsidize external customers in future fiscal years

Recommendations

To ensure that the cost of maintenance services provided to contract customers is not subsidized with County funds we recommend the Board of County Commissioners direct the County Administrator to take the following action

9 Segregate both revenues and expenditures for (1) general purpose (2) special purpose and (3) contract maintenance services

10 Using segregated revenue and expenditure data (Recommendation 9) develop a methodology to identify the full cost of providing services and ensure that billable rates sufficiently cover the cost of services

24

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Section 3 Evaluation of Fuel Management

According to the US Government Services Administration (GSA)18 fuel management is the process of ensuring that vehicle and equipment fuel and services meet the following criteria

bull Conveniently accessible both on‐ and off‐site and at any time needed including mobile fueling via fuel delivery trucks (if appropriate)

bull On‐site stations meet environmental regulations bull Dispensing is tracked by user and vehicle and properly accounted for

To accomplish these best practices the GSA states that fuel management should ldquobe planned and executed strategically and far in advance of potential threats to organizational needsrdquo noting that a ldquostrategic approach is necessary to assure that fuel is always available is conveniently accessible for drivers and that the right types of fuel are available to fulfill the mission and meet organizational goalsrdquo The GSA further advises that ldquofuel‐management tactics include such activities as weighing in‐house versus commercial fueling facilities establishing processes for theft avoidance determining the level of fuel transaction detail recorded and reviewed complying with environmental regulations and identifying how to minimize fueling administration activitiesrdquo

Therefore to assess Fleet Services effectiveness as the Countyrsquos fuel manager we examined existing practices in areas such as access to fuel environmental compliance dispensing and accountability We found that the services provided by Fleet Services meet some of the above best practices however opportunities exist for Fleet Services to strengthen its oversight of the Countyrsquos fuel operations This can be accomplished by addressing weaknesses in tracking and reviewing dispensed fuel

Fuel is available to employees through County operated sites mobile fuel deliveries and commercial filling stations

The County owns and operates twelve fueling stations with a total storage capacity of 176500 gallons (63500 diesel and 113000 unleaded)19 Seven of these sites have automated equipment to monitor employee fuel purchases made with access cards Five sites are manual and handwritten logs are used to track fuel purchases made by employees Fleet Services operates four locations while the remaining eight sites are primarily maintained by the divisions where they are located (Parks and Recreation Mass Transit Broward County Aviation Department) Four stations also provide compressed natural gas for use by a small percentage of County cars Appendix E on page 35 provides a summary listing of the Countyrsquos fuel stations with corresponding capacities

18 Government Services Administration Guide to Federal Fleet Management Section 5151 19 This does not include fuel storage capacity at dedicated lsquofuel farmsrsquo such as those located at Mass Transit or Fort‐Lauderdale‐Hollywood International Airport

25

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Exhibit 14 In Fiscal Year 2008 Fleet Services managed the issuance of 12 million gallons of fuel for use by the Countyrsquos general and special purpose fleets20

County Sites Commercial Sites Total

Diesel 364607 25021 389628 Unleaded 690336 157880 848216

Total 1054943 182901 1237844 Source Fleet Services Division

Employees can access fuel directly from these locations or from mobile tanker trucks operated by Fleet Services The Countyrsquos contract provides employees with access to over 300 commercial fuel sites throughout the state These three means of fuel access meet best practices in fleet management

bull Fueling Stations By using County operated fueling stations located at or near their primary work locations employees have ready and easy access to fuel

bull Mobile Delivery Fleet Services has three 2800 gallon tanker trucks available to deliver fuel to locations without storage tanks For example a tanker truck delivers fuel to the Traffic Engineering Division twice a week negating the need for employees to travel to fuel sites on County time Mobile trucks may also be used in several Park locations to fill lawn mowers or other small engine devices

bull Commercial Stations Employees with access cards can stop at any authorized gas station (over 100 sites in Broward County) and obtain fuel This method provides employees (such as Building Code Inspectors) whose work requires travel throughout the community with ample access to fuel while completing their assigned tasks

For Fiscal Year 2008 Fleet Services managed the issuance of 1237844 gallons of fuel (389628 gallons of diesel and 848216 gallons of unleaded) Approximately 15 of the fuel purchases were made at commercial gas stations while 85 of the fuel was obtained through the use of County operated fueling stations (see Exhibit 14 below) Fleet Services managers report that in addition to unleaded and diesel fuels approximately 8500 gallons of compressed natural gas (CNG) was also dispensed for use by alternative fuel vehicles within the Countyrsquos fleet

20 A small portion of the fuel purchased through Fleet Services is for use by other entities such as the Supervisor of Elections Property Appraiserrsquos Office and state offices such as the Department of Children and Families and Department of Forestry For the purpose of this review these amounts have not been excluded from our analyses Fleet Services retains responsibility for the oversight of these purchases

26

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Exhibit 15 Fleet Services estimates fuel tank upgrades will cost $973000 Site Status Estimated Budget

Fleet Service Center 2 Remediation Ongoing $ 485000 Fleet Service Center 3 Design $338000 Fleet Service Center 8 Design $150000

Total $973000 Source Fleet Services Division

Fleet Services is in the process of upgrading fuel sites prior to a December 31 2009 deadline

The majority of Fleet Servicesrsquo fuel tanks are located underground Due to increased federal regulation standards for underground fuel tanks Fleet Services is required to install upgraded (double walled) tanks andor piping at its three primary service locations21 To be compliant with regulation deadlines all work must be completed by December 31 2009 or the County may face significant fines According to the Florida Department of Environmental Protection these regulations have been in effect since 1991 and were enacted to protect groundwater supplies

Fleet Service managers state that upgrading has been completed at one site and is underway at the two additional sites As shown in Exhibit 15 below the current estimated cost of the design and construction for all three locations is $973000 Estimated costs could escalate if the need for site remediation is identified during construction

Fleet Services has not taken required steps to ensure accountability for fuel purchases made by County employees

Fuel Usage The Broward County Internal Control Handbook states that the review of monthly fuel usage reports and detailed billing statements is the responsibility of each County division however the Fleet Services Division is responsible for submitting Fuel Exception Reports when exceptions occur and to ldquoidentify and reconcile unusual purchasesrdquo

To determine the adequacy of the review process in place we requested that Fleet Services provide us with all reports and correspondence to division liaisons for September 2008 In response Fleet Services provided us with the reports inclusive of automated and commercial fuel purchases only We identified discrepancies relating to the types of fuel purchased and incorrect data entry by County employees making purchases Specifically we found that

21 Additional County owned fuel storage facilities not operated by Fleet Services are also in the process of upgrade such as Mass Transit fuel farm and the Main Libraryrsquos emergency generator fuel storage tank

27

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

bull 121 gallons of premium fuel was purchased for a total of $450 In general the purchase of premium fuel from commercial sites is prohibited due to higher costs In response to our concerns Fleet Services stated that the access card system typically does not allow staff to purchase premium fuel However on August 18 2008 in reaction to a Tropical Storm Watch for Hurricane Fay Fleet Services lifted these restrictions to ensure that staff was able to obtain fuel as needed in the event of storm related shortages Although the threat of the storm passed in a few days documentation provided by Fleet Services indicates that the premium fuel restriction was not reinstituted until six weeks later on September 29 2008

bull County staff routinely entered incorrect odometer readings when fueling vehicles for the period reviewed To obtain fuel an authorized employee must swipe hisher access card and enter required data including the vehicle mileage and employee identification number Recording the correct vehicle mileage is important because the odometer readings are used by Fleet Services to schedule routine maintenance services and monitor fuel purchases For example if incorrect mileage is entered preventative maintenance such as oil changes may be improperly scheduled resulting in additional costs (when scheduled too soon) or vehicle breakdowns (when scheduled too late) In other instances odometer readings can be used to detect inappropriate gas purchases If mileage is not entered correctly managers cannot determine if the amount of fuel purchased by the employee is commensurate with the amount driving required to complete their assigned workload or if fuel purchases are excessive indicating possible theft (eg fueling into personal vehicles)

Fleet managers stated that they rely on individual divisions and their liaisons to review the fuel billings for accuracy and to identify and address any irregularities Specifically if a Division requests an ldquoexception reportrdquo to review discrepancies Fleet Services provides this information to them However Fleet Services managers stated that divisions have not requested such reports in years and the sample exception report provided to our office was dated ldquoMay 2007rdquo

Controls over Access Cards

Fuel access cards are issued to both vehicles and employees To obtain fuel at commercial or automated sites both cards must be swiped and authorized by the system Fleet Services reports that there are currently 1918 active vehicle cards and 2052 active employee cards

Broward Countyrsquos Internal Control Handbook states that Fleet Services will provide division liaisons on a quarterly basis with the following four reports (1) Vehicle Card Information Verification Report (2) Vehicle Card Activity Report (3) BPN amp Employee Name Verification Report and (4) Employee PIN Activity Report However we found that Fleet Services has not provided these reports to any division in over a year In response to our request for sample reports the Division provided us with copies of reports titled ldquoVehicle Card Verification Listrdquo and ldquoFuelman Employee Card Numberrdquo which were generated on May 6 2009

28

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

A review of the ldquoVehicle Card Verification Listrdquo report provided to our Office indicates that many vehicle cards have never been used although they were issued as long ago as April 2005 other vehicle cards have not been used in years We were able to identify at least five active cards assigned to vehicles that according to Fleet Services data are no longer part of the general purpose fleet

Similar observations were made in reviewing the ldquoFuelman Employee Card Numberrdquo report Specifically several instances were noted of cards never being used or not being used in years Our review also indicates that at least one card is indicated as issued to a person who is no longer employed by Broward County In response to these concerns Fleet Services managers note that they rely on Payroll Division staff to provide them with information when an individual separates from County employment

We also noted instances where an excessive number of cards appear to be issued to employees of a division relative to the number of assigned vehicles For example Human Resources does not have an assigned vehicle yet five persons in the division have access cards similarly the Elderly and Veterans Services Division is assigned one van but 37 staff have access cards of which only two have been used in the past year

Our review indicates that adequate controls regarding fuel access cards are not in place as required by the Internal Control Handbook Further it appears that regular reviews of access cards have not been completed to ensure that cards are only issued to active vehicles and employees and that unused cards are deactivated Ensuring that all active cards are properly issued and recorded is important to monitor the appropriateness of all fuel purchases and that Division needs are appropriately being met Reducing the number of access cards may also assist in reducing administrative oversight

Manual Fuel Logs

As noted previously employees obtaining fuel from a manual site record on a hand written log information including the vehicle number odometer reading the amount of fuel purchased name and Division Each day an assigned staff person at the location also records the beginning and ending tank meter readings and totals all withdrawals from the site These amounts can be compared to determine if all fuel withdrawals have been properly accounted for during the day

As part of our review we requested that Fleet Services provide us with a sample of all logs for the month of September 2008 as well as monthly or annual reconciliations In response to our request we received only a single daysrsquo log from one manual location and one mobile fuel tank As a result we cannot determine if Fleet Services is completing reconciliation activities in a timely manner if discrepancies are occurring (unaccounted fuel withdrawals) or if adequate follow up activities are being completed as needed

29

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Recommendations

To strengthen Fleet Services role as the Countyrsquos manager of fuel resources and improve

accountability we recommend the Board of County Commissioners direct the County

Administrator to

11 Ensure that required upgrades to existing fuel storage tanks are completed in a timely

manner to avoid costly fines 12 Improve the existing system of controls to provide increased oversight of fuel purchases

including but not limited to the following actions o Requiring employees to enter correct odometer information when making fuel

purchases o Ensuring division liaisons and Fleet Services work together to identify investigate

and correct discrepancies in fuel purchase reports o Coordinate efforts with division liaisons to identify vehicle or employee fuel

access cards that should be deactivated removing surplus vehicles and former employees from access card lists ensuring that agency listings include only actively assigned staff persons verifying necessity of access cards issued to staff who have not used

cards in past year (or establishing other criteria) completing deactivation of unneeded cards including employee

remittance of deactivated cards o Requiring division liaisons to communicate to Fleet Services when employees

issued fuel access cards separate from employment are transferred to another agency or whose job responsibilities no longer require use of cards

o Re‐instate quarterly reporting to division liaisons as specified in the Internal Control Handbook

o Ensure alignment of Internal Control Handbook protocols and current business practice

30

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Appendix A

The relative size of the Countyrsquos General Purpose fleet has slightly decreased for the period Fiscal Year 1999 to Fiscal Year 2009

County Department FTE Budget

FTE Change

Percentage Change

Number of Vehicles

Vehicle Change

Percentage Change

FTE to Vehicle Ratio 1999

FTE to Vehicle Ratio 20091999 2009 1999 2009

County Commission 102 120 18 176 0 0 0 ‐ ‐ ‐

Legislative Delegation 2 2 0 00 0 0 0 ‐ ‐ ‐

County Administration 98 124 26 265 1 0 ‐1 ‐1000 9800 ‐

Aviation 327 483 156 477 74 88 14 189 442 549

Community Services 1333 1420 87 65 156 168 12 77 854 845

Environmental Protection 438 366 ‐72 ‐164 192 159 ‐33 ‐172 228 230

Finance amp Administration 716 603 ‐113 ‐158 26 11 ‐15 ‐577 2754 5482

Human Services 215 246 31 144 23 14 ‐9 ‐391 935 1757

Public Works 1183 1050 ‐133 ‐112 463 425 ‐38 ‐82 256 247

Transportation 766 1068 302 394 114 171 57 500 672 625

Boards amp Agencies 93 71 ‐22 ‐237 7 9 2 286 1329 789

Capital Positions 42 64 22 524 5 3 ‐2 ‐400 840 2133

Grant Other Positions 461 476 15 33 8 6 ‐2 ‐250 5763 7933

Total 5776 6093 317 55 1069 1054 ‐15 ‐14 540 578

Source Office of the County Auditor Analysis

31

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Appendix B

Fiscal Year 2008 General Purpose Fleet Vehicle Utilization by Division and Vehicle Type

0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11119

11200 +

Total

Animal Care amp Regulation ‐ 2 1 ‐ ‐ 3 ‐ ‐ 1 1 12 14 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 18 Aviation 3 7 1 3 3 17 2 5 12 7 27 53 ‐ 2 3 1 7 13 1 ‐ ‐ 1 2 4 87 Boards and Agencies

‐

‐ 1 3 3 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ 2 9 Broward Addiction Recovery Center ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 4 6 Construction Management 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Development amp Environmental Regulation

‐

‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ 1 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 6 Elderly amp Veterans Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 1 Emergency Management ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 Enterprise Techology Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 1 ‐ 4 5 Environmental Monitoring amp Enforcement ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 2 Environmental Protection amp Growth Management

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 4 2 5 20 ‐ ‐ ‐ ‐ ‐ ‐ 8 13 14 8 7 50 70 Family Success Administration ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 3 Fleet Services 11 18 13 6 2 50 5 2 7 5 4 23 ‐ ‐ 2 ‐ ‐ 2 3 4 4 3 2 16 91 Highway amp Bridge Maintenance

‐

1 2 ‐ ‐ 3 4 14 20 11 13 62 ‐ 1 ‐ 1 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ 67 Highway Construction amp Engineering

‐

2 1 ‐ ‐ 3 2 2 ‐ 4 3 11 ‐ 1 1 4 ‐ 6 ‐ 1 ‐ ‐ ‐ 1 21 Homeless Initiative Partnership

‐

3 1 ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 1 ‐ ‐ 3 7 Housing Finance amp Community Development

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Libraries

‐

‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 2 ‐ 3 5 Medical Examiner amp Trauma Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 3 Natural Resources Planning amp Mgmt

‐

‐ 3 ‐ ‐ 3 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 5 Parks amp Recreation

‐

2 ‐ ‐ 1 3 5 36 37 14 12 104 ‐ 1 1 ‐ ‐ 2 2 10 10 4 1 27 136 Permitting Licensing amp Consumer Protection 2 9 23 26 38 98 ‐ ‐ 3 5 4 12 1 1 2 ‐ 1 5 ‐ ‐ ‐ ‐ ‐ ‐ 115 Pollution Prevention Remediation amp Air Quality 2 4 6 5 3 20 ‐ ‐ 1 3 2 6 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ ‐ 2 28 Purchasing ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 1 Revenue Collection

‐

1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 2 4 Risk Management

‐

1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Traffic Engineering

‐

3 1 4 1 9 6 7 8 7 11 39 ‐ ‐ ‐ 2 ‐ 2 ‐ 2 6 2 2 12 62 Transit 1 3 5 4 42 55 2 1 ‐ ‐ 4 7 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 4 1 8 14 76 Waste amp Recycling Services

‐

2 2 ‐ 1 5 ‐ 1 7 5 3 16 ‐ 1 ‐ ‐ 2 3 1 1 1 ‐ 1 4 28 Water amp Wastewater Services 6 10 4 1 ‐ 21 16 20 31 22 33 122 ‐ 1 ‐ 1 ‐ 2 5 5 3 1 3 17 162 Total 28 70 70 54 94 316 42 97 134 89 133 495 1 9 10 12 10 42 24 46 48 23 31 172 1025 Percentage 9 22 22 17 30 100 8 20 27 18 27 100 2 21 24 29 24 100 14 27 28 13 18 100

29 1054

Number of

Vehicles Division

Sedans Pick‐Ups SUVs Vans

included of Vehicles classified as Others Total of General Purpose Vehicles

Source Office of the County Auditor Analysis

32

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Appendix C

Fiscal Year 2008 General Purpose Fleet Alternative Fuel Vehicle Utilization by Division

Division Sedans Pick‐Ups SUVs Vans Number

of Vehicles 0 ‐

2799 2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total 0 ‐2799

2800 ‐5599

5600 ‐8399

8400 ‐11199

11200 +

Total

Animal Care amp Regulation ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Aviation ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ 2 1 4 7 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9 Construction Management 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Development amp Environmental Regulation ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Facilities Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ 1 4 Fleet Services 3 9 7 2 2 23 ‐ 1 1 1 ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 26 Highway amp Bridge Maintenance ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ 2 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3 Highway Construction amp Engineering ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Homeless Initiative Partnership ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Medical Examiner Trauma Services 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 Parks amp Recreation ‐ ‐ ‐ ‐ 1 1 ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Permitting Licensing amp Consumer Protection 1 2 3 3 10 19 ‐ ‐ ‐ ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20 Pollution Prevention Remediation amp Air Quality 1 1 3 4 2 11 ‐ ‐ ‐ 2 1 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14 Traffic Engineering ‐ 2 1 4 1 8 1 1 1 ‐ ‐ 3 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 1 ‐ 2 13 Transit ‐ 1 1 ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Waste amp Recycling Services ‐ 2 ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Water amp Wastewater Services 2 ‐ ‐ ‐ ‐ 2 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2 Total 9 21 17 13 16 76 1 4 8 7 6 26 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 1 1 ‐ 3 105 Percentage 12 28 22 17 21 100 4 15 31 27 23 100 0 0 0 0 0 0 33 0 33 33 0 100

Source Office of the County Auditor Analysis

33

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

35

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Appendix D

Fiscal Year 2008 Special Purpose Fleet Underutilization by Division

Unit

Division Year Make Model Class

Description Purchase Amount

Miles

1 008433 Aviation Department 1996 FRD F800 60 Aerial lift bucket $74390 556 2 000998 Fleet Services 1994 FRD F700 50 Aerial lift bucket $58012 0 3 008459 Fleet Services 1993 FRD F700 Fuel Tankers $63936 861 4 008461 Fleet Services 2000 FTL FL70 Tanker Tankers $64500 42 5 008463 Fleet Services 2002 INT DT 466 Fuel Tankers $64500 922 6 008600 Fleet Services 2001 FTL FL70 Tanker Tankers $85000 0 7 008563 Highway amp Bridge Maintenance 1995 INT Dump Multi Dump truck single axle $49566 475 8 007187 Highway amp Bridge Maintenance 2002 INT Water Truck Dump truck single axle $111263 271 9 007505 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck tandem axle $57913 806

10 007507 Highway amp Bridge Maintenance 1988 MAC Dump Multi Dump truck triple axle $68162 822 11 007188 Highway amp Bridge Maintenance 2003 INT Safejet Vac Sewer maintenance truck $238997 20 12 008296 Parks amp Recreation 1989 FRD F800 70 Aerial lift bucket $77865 0 13 007905 Parks amp Recreation 1997 FRD F800 65 Aerial lift bucket $91489 892 14 008012 Parks amp Recreation 2008 PBLT Dump Dump truck single axle $113516 610 15 008392 Parks amp Recreation 1992 GMC Dump Multi Dump truck tandem axle $62300 405 16 007363 Traffic Engineering 1991 FRD F450 28 Aerial lift bucket $42902 0 17 008197 Transit 2005 FRD F650 Fltbed Trucks 2‐3t stakeflat $42638 0 18 008187 Transit 2002 INT FLTBED 1AXLE Trucks 2‐3t stakeflat $48000 0 19 008530 Waste amp Recycling Services 1997 INT Dump Multi Dump truck tandem axle $66111 114 20 008528 Waste amp Recycling Services 1997 INT Tractor Tractor truck tandem axle $57294 119 21 081241 Waste amp Recycling Services 2009 INT 7600 SBA 6X4 Tractor truck tandem axle $108595 0 22 007747 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 397 23 007746 Water amp Wastewater Services 1994 FRD Dump Multi Dump truck tandem axle $49019 421 24 081163 Water amp Wastewater Services 2008 INT 7600 6X4 Dump truck triple axle $116500 76 25 007787 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $67327 86 26 007775 Water amp Wastewater Services 1995 FRD F800 Sewer maintenance truck $69575 37 27 081101 Water amp Wastewater Services 2008 INT 4300 4X2 Tankers $98000 291 28 007645 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 74 29 007390 Water amp Wastewater Services 1990 INT Tractor Tractor truck tandem axle $54315 171 30 007789 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 52 31 007793 Water amp Wastewater Services 1997 INT Tractor Tractor truck tandem axle $57294 252 32 007750 Water amp Wastewater Services 1992 IH Tractor Tractor truck tandem axle $58549 10 33 007455 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 199 34 007458 Water amp Wastewater Services 1996 INT Tractor Tractor truck tandem axle $62027 422 35 007704 Water amp Wastewater Services 2006 FRT FLD120SD Tractor truck tandem axle $66967 574 36 004283 Water amp Wastewater Services 1995 FRD Box truck Trucks 2‐3t stakeflat $27115 174

Unit

Division Year Make Model Class

Description Purchase Amount

Hours

1 008411 Aviation Department 1991 FRD Loader Loader backhoetrack $37262 0 2 007864 Facilities Maintenance 2006 KAW Mule All terrain vehicleequipment NO DATA 0 3 007185 Highway amp Bridge Maintenance 1982 CAT Cat d3b Bulldozer $45474 0 4 007816 Highway amp Bridge Maintenance 1993 JD Jd 450g Bulldozer $59325 1 5 007504 Highway amp Bridge Maintenance 1988 CAT Cat d7h Bulldozer $169439 16 6 008561 Highway amp Bridge Maintenance 1995 JD Farm tractor Farm tractor $28366 0 7 008564 Highway amp Bridge Maintenance 1995 JD Loader 544g Loaders frontrubber tire $94943 8 8 007499 Highway amp Bridge Maintenance 1988 CAT Cat 12g Motor graders $116427 0 9 007115 Highway amp Bridge Maintenance 1998 BOM Roller Rollers vibratory $44000 10

10 007118 Highway amp Bridge Maintenance 1998 BOM Bw172d‐2 Rollers vibratory $56000 8 11 081213 Parks amp Recreation 2008 KUB M60401t‐f Farm tractor $28000 17 12 007903 Parks amp Recreation 1997 FRD Farm tractor Farm tractor $28757 21 13 008778 Parks amp Recreation 1996 FRD Backhoe Loader backhoerubber tire $39063 0 14 007497 Water amp Wastewater Services 1991 FRD Backhoe Loader backhoerubber tire $28214 0

Source Office of the County Auditor Analysis

34

Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

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Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

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Appendix E

Twelve fueling stations provide 176500 gallon capacity for unleaded and diesel fuels Site Site Name Site Type Diesel

Capacity (Gallons)

Unleaded Capacity (Gallons)

Total Capacity (Gallons)

F02 Fleet Service Center 2 Automated 10000 20000 30000

F03 Fleet Service Center 3 Automated 16000 26000 42000

F06 Mosquito Control (Fleet Services Operated)

Automated 2500 2500 5000

F08 Fleet Services Center 8 Automated 10000 10000 20000

F09 Environmental Operations Division Automated 10000 10000 20000

F10 CB Smith Park Automated 6000 6000 12000

F12 TY Park Automated 500 2500 3000

F13 Crash Fire Rescue (Station 10 ‐ Airport) Manual 1500 ‐ 1500

F20 BC Transit Division Ravenswood Manual ‐ 10000 10000

F21 BC Transit Division Copans Manual ‐ 20000 20000

F22 Aviation Maintenance Manual 6000 6000 12000

F24 Parks and Recreation Division Manual 1000 ‐ 1000

Total 63500 113000 176500 Source Fleet Services Division

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Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36

Appendix F

General Purpose Fleet Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Honda Civic 316 168 Pickups Ford F‐150 495 273 SUVs Dodge Durango 42 20 Vans Chevy Astro 172 118 Other Ford F‐450 Flatbed 29 26 TOTAL ‐ 1054 605 Source Office of the County Auditor Analysis

Alternative Fuel Vehicle Underutilization Summary Detail

Vehicle Example Number Number less Classification (MakeModel) Available than 8400 miles Sedan Toyota Prius 76 47 Pickups Ford F‐15022 26 13 Vans Dodge 2500 Ram23 3 2 TOTAL ‐ 105 62 Source Office of the County Auditor Analysis

22 Several pickups and vans in the Broward County general purpose fleet have bi‐fuel capability meaning they can be operated with either gasoline or an alternative fuel such as compressed natural gas These vehicles are classified as alternative fuel vehicles regardless of whether the operating Division actually uses the alternative fuel on a consistent basis 23 ibid

36