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08/09/1996 Audit • • . AUDIT REPORT OF MONROE COUNTY — FLEET MANAGEMENT • VEHICLE REPAIR AND MAINTENANCE PROGRAM August 9, 1996 COUNTY E, • f _ ‘WWW+= 0 jet 1. .� 0OUNT a: • Prepared by: • ; Internal Audit Department Clerk of the Circuit Court Danny L. Kolhage, Clerk Monroe County, Florida COUNCO g� . •• .M cuip''•. . "' ffi� ; � d OF OOUNTV. annp X. 1aot jage BRANCH OFFICE CLERK OF THE CIRCUIT COURT BRANCH OFFICE 3117 OVERSEAS HIGHWAY MONROE COUNTY 88820 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 500 WHITEHEAD STREET PLANTATION KEY, FLORIDA 33070 TEL. (305) 289-6027 KEY WEST, FLORIDA 33040 TEL. (305) 852-7145 TEL. (305) 292-3550 August 9, 1996 The Honorable Danny L. Kolhage Monroe County Clerk of the Circuit Court Re: Audit of Monroe County Fleet Management Vehicle Repair and Maintenance Program • . : Dear;Mr. Kolhage: The Clerk's Internal Audit Department has completed the audit of Fleet Management's Vehicle Repair and Maintenance Program. The audit scope was limited to the evaluation of policies and procedures of the program, of internal controls to ensure the reliability and integrity of financial and operational information, and of the overall efficiency and effectiveness of the program. We would like to thank the Division Director of Public Works, the Director of Fleet Management, the Coordinator/Superintendent of Fleet Management and other Fleet Management personnel for their cooperation and assistance provided to us during the audit. We would also like to thank the Director of Fleet Management for Dade County for his time and the information he and his staff provided. Our audit reveals that Fleet Management does not have approved policies and procedures. Formally adopted policies and procedures are the foundation of an organized and efficient program. We also discovered a lack of internal controls over work orders to ensure that all work performed is processed and billed. Additionally, there is a lack of internal controls over vehicle parts and tires inventory to ensure that county assets are properly safeguarded and used. Our audit reveals that there is no relationship between billed services and actual costs for services provided. Costs of vehicle parts and tires for county vehicles are over-billed, whereas those for sheriff vehicles are under-billed. Costs of labor and administration for both county and sheriff vehicles are over-billed, with county vehicles substantially over-billed. Since revenue budgeted is used to determine the amount billed, despite the services provided, an analysis justifying billings should be prepared. A review of the preliminary 1996/97 budget reveals that sheriff vehicles are charged a lower annual cost per vehicle than county vehicles as was also the case during the audit period. A vehicle replacement program can provide long-term cost savings to the county. However, before such a program is implemented, policies and procedures for operating the program and a long-term cost projections should be prepared and approved. The accompanying audit report is provided for your information. Additional copies of the report will be provided upon your request. Sincerely, "Pc.64-xn-hr Carie E. Bamberg, CPA Internal Audit Director cc: Board of County Commissioners (5) James Roberts, County Administrator Dent Pierce, Division Director of Public Works Roy Sanchez, Director of Fleet Management John Carter, Director Office Management and Budget Sandee Carlile, Clerk's Finance Director Shirley Freeman, Monroe County Mayor Marva Green, CPA, External Auditor AUDIT REPORT OF MONROE COUNTY - FLEET MANAGEMENT VEHICLE REPAIR AND MAINTENANCE PROGRAM TABLE OF CONTENTS Page #'s I. Scope and Objectives 1 II. Methodology 1-2 III. Background 3-8 IV. Conclusions 8 V. Audit Findings: A. Fleet Management's Policies and Procedures 1. Policies and Procedures Have Manual 9 2. Listing of Services Provided and Charges for Services 9-10 B. Budget Process 1. Budget of Labor and Administration of "Vehicles in the Program" 10-13 2. Budget of Vehicle Parts and Tires 13-14 3. Allocation of Labor and Administration Costs 14-15 4. Budgeted Revenue of "Vehicles Not in the Program" 15-16 5. Budget Consideration for Vehicles Added and/or Disposed of During the Year 16 C. Billing Process 1. Billing for "Vehicles in the Program" 17-18 2. Billing of Services Provided to "Vehicles NOT in the Program" 18-19 D. Work Orders 1. Processing of Work Orders 19-20 2. Mechanic Hours Entered Into the Computer System 20-21 E. Mechanics 1. Determination of the Efficiency of the Mechanics 21-22 1 1 AUDIT REPORT OF MONROE COUNTY - FLEET MANAGEMENT VEHICLE REPAIR AND MAINTENANCE PROGRAM TABLE OF CONTENTS Page #'s V. Audit Findings: (continued) F. Inventory Controls 1. Controls Over Inventory On Hand 22-23 2. Controls Over Special Ordered Parts 24-25 G. List of Vehicles 1. List of County Assets Serviceable by Fleet Management 25-26 H. Vehicle Replacement Program 1. Guidelines for the Vehicle Replacement Program 26-28 VI. Exhibits: A. Analysis of Cost Allocation By Classification of Vehicle Al-2 B. Comparison of Actual Amounts Billed to Actual Expenditures by Class of Vehicle B1 C. Analysis of Mechanic Hours Worked C1-2 D. Work Order - Used by Metropolitan Dade County D1 E. Parts Issue Card - Used by Metropolitan Dade County El F. Work Order - Used by Monroe County Fleet Management F1 G. Monroe County Inventory Deletion Request G1 H. Monroe County Asset Destruction Certification H1 ii AUDIT REPORT OF MONROE COUNTY - FLEET MANAGEMENT VEHICLE REPAIR AND MAINTENANCE PROGRAM --I I. Scope and Objectives: A. At the request of the Monroe County Clerk of the Circuit Court and the County Administrator, the Internal Audit Department has completed an audit of the Monroe County Fleet Management's vehicle repair and maintenance program, for the period October 1, 1993 through February 29, 1996. B. The audit was performed to evaluate whether the established internal controls are adequate and effective to ensure the reliability and integrity of financial and operational information, to evaluate the policies and procedures established by Fleet Management and their assurance of their compliance and safeguarding of assets, and to evaluate the efficiency and effectiveness of the vehicle repair and maintenance program. II. Methodology: A. The Internal Audit Department reviewed a Draft of the Monroe County Fleet Management Polices and Procedure Manual dated October 1, 1995. B. The following personnel were interviewed to obtain information about the operations of the Monroe County's Fleet Management Program: 1. Director of the Office of Management and Budget 2. Budget Manager 3. Division Director of Public Works 4. Finance Director 5. Director of Fleet Management 6. Coordinator/Superintendent of Fleet Management 7. Fleet Management Office Staff 8. Supervisor/Master Mechanics (from each garage) 9. Clerk's Property Manager C. Details of Financial Statement information for the period October 1, 1993 through February 29, 1996 were analyzed. D. Vehicles and equipment serviced by Fleet Management was compared to the list of county vehicles and equipment provided by the Finance Department and the list of sheriff vehicles which was provided by the Sheriff's Department. --, 1 E. A statistical random sample of 48 vehicles and equipment was selected from a list of vehicles and equipment owned by the County and the Sheriff's Department. We verified the status of the vehicles and equipment (i.e., "vehicle in the program", "vehicle not in the program", sheriff vehicle, disposed vehicle, or generator); reviewed all work orders in the vehicle file for the audit period; and compared the work orders to data information in the computer system, all for the period September 1 through December 31, 1995. F. The original statistical random sample of 48 vehicles and equipment included only 38 "vehicles in the program"; therefore, the sample was expanded to include 53 "vehicles in the program". For these 53 vehicles and equipment items we compared the actual amounts billed to actual costs incurred for repairs and maintenance. An analysis of the results is provided in Exhibit B. G. The statistical sample of 48 vehicles included six (6) vehicles classified as "vehicles not in the program. For these six we compared the work orders in the vehicle file to work orders entered into the computer system and to billings. H. Mechanic hours billed were compared to the hours mechanics reported on their daily sheets. These hours were also compared to maximum workable hours and billable hours necessary to cover all labor and overhead cost. An analysis of these results is provided in Exhibit C. I. The interview with the Director of Fleet Management of Dade County included discussions of policies and procedures related to their budget process, cost allocations and evaluation, and billing process. We also interviewed a Garage Manager (from one of their main garages) and toured one of the garage facilities. Discussions included established procedures for vehicle repair work and internal controls for work orders and vehicle parts. ( 2 i ' I III. Background: A. Organization of Fleet Management: Prior to October 1993, repairs and maintenance for county vehicles were part of Central Services. Individual county departments budgeted and paid for vehicle parts and Central Services provided all labor cost. Sheriff, Fire and EMS vehicles were not serviced by Central Services. The Monroe County Fleet Management Department began operating under the Division of Public Works on October 1, 1993. The department is managed out of the main office located in Key West under the direction of a Fleet Management Director and a Coordinator/Superintendent. The main office also has a Billing Coordinator and a Staff Assistant. The department provides services at three county owned garages located in Key West, Marathon, and Plantation Key. Each garage has a Supervisor/Master Mechanic who is responsible for the supervision of the mechanics and operations of the garage. The Key West garage has seven (7) mechanics. Marathon and Plantation Key have three (3) mechanics each. Of the seven (7) mechanics at the Key West location, two (2) mechanics provide automobile painting and body work services. Two additional mechanics were added in April of 1996. The analysis included only the existing employees as of December 31, 1995. Thus, no analysis was made of the new mechanics. ; 1---I B . External Consultant Report by Transportation Consultants, Inc.: A study of the Monroe County Fleet Operations was performed by Transportation Consultants, Inc., located in Atlanta, Georgia. The report was issued on April 20, 1990. The areas addressed in the study were: mode of vehicle maintenance, facility locations, staffing needs, job descriptions, vehicle replacements, and expansion of services. The study recommended that the county maintain their own fleet due to the diverse mixture of equipment and services required and to the lack of competition in the county's private sector. They strongly recommended that all vehicles be maintained by a single department and that seven (7) functions be provided. Three of these functions are listed below: - Monitor vehicle cost and performance and advise respective departments of these costs. - Assist departments in the budget process for their fleet, recommend replacements, and determine proper life cycles. - Notify each department monthly of variances in expenses in relation to budget. 3 I ' They also recommended a list of 29 responsibilities that should be included in the job description of the Fleet Manager. Two of those are listed below: - Review vehicle expenses monthly to recognize unfavorable trends in unit costs and make necessary changes when necessary to maintain cost controls. - Insure that vehicle records are maintained properly. , C. Internal Consultant Report - Vehicular Transportation Review Committee In 1992 the Board of County Commissioners, via Resolution No. 099-1992, and County Administrator, Mr. Thomas W. Brown, requested that a committee be established to review the county's "vehicle pooling" system. This report was issued July 24, 1992. The report stated that there should be high priority for an on-line vehicle management information system which would cover all county vehicles. Among the recommendations in the report were that: "a county wide standardized vehicle purchasing and maintenance program should be implemented without delay" and "a reevaluation of the program when a comprehensive computerized vehicles management information becomes available". --I D. Local Government Participation: The Monroe County Fleet Management Department provides services to all county vehicles and equipment. Fifty-two (52) sheriff vehicles were added to the program on a test basis as of June 1, 1995. At beginning the of the fiscal year 1995/96, approximately 240 sheriff vehicles were serviced on a full-time basis. During the fiscal year 1995/96 EMS vehicles started using the services of the Marathon Office. The EMS vehicles were charged for actual services used. EMS has requested that their 11 vehicles be added to the maintenance program for the fiscal year 1996/97. • E. Services Provided: Fleet Management offers two types of programs: "Vehicles in the Program" (also known as the "Leasing Program") and "Vehicles NOT in the Program". For the fiscal year 1994/95, 332 county vehicles and equipment (184 small, 61 medium, 57 heavy, and 30 generators) and 230 sheriff vehicles were considered "vehicles in the program". All other county owned and leased vehicles (Fleet Management estimates 30 vehicles) are considered "vehicles not in the program". The major difference in these two programs is in how they are billed for services. Services provided to vehicles in either program range from a basic oil change to major engine repairs. Tow and roadside service are provided as well. Vehicles can be picked up and delivered as requested. When time permits and personnel (i.e., inmates) are available, vehicles are washed. This last service is not billed to users. I , 4 I ' i f F. Accounting System: The billing systems for "vehicles in the program" and "vehicles not in the program" are completely different. "Vehicles in the program" pay an annual flat fee that is billed as 12 monthly payments. "Vehicles not in the program" are billed for the cost of parts and an hourly rate of, $37.50 for small and for medium vehicles and $48.00 for heavy vehicles, to cover labor and overhead costs. The annual flat fee charged to "vehicles in the program" consists of a fee for labor and administration cost (administration personnel, operating expenses, capital equipment) and a fee for vehicle parts (parts, paint, shop tools, oil and lubricants) and tires. The labor and administration fee is based on the number of shares allocated to each vehicle. Each vehicle is classified as a small, medium or heavy vehicle. For the fiscal year 1995/96 each heavy vehicle was allocated 16 shares, each medium vehicle was allocated 10 shares, and small vehicles were allocated three (3) shares each. The amount charged per vehicle is calculated by dividing the total annual labor and administration costs by the total number of shares assigned to all "vehicles in the program". This amount is then multiplied by the number of shares allocated to an individual vehicle. For an analysis of share allocation, see Exhibit A. The allocation of vehicle parts and tires costs is subjective and determined based on management's experience in the field. For an analysis of vehicle parts allocation by class, see Exhibit A. G. Computer Software: An older computer system was used to track repairs by vehicle. This system was unreliable and crashed for the third time in September of 1995. Therefore, management purchased a new computer software system called "Extra-led". This software is capable of tracking vehicle repairs and their costs, the hours mechanics work, and parts inventory. The manual for "ExtraFleet" states that the program is flexible and allows management to develop specialized reports based on information entered. H. Accounting For County Vehicles and Equipment Serviced by Fleet Management: The Clerk's Property Manager maintains a list of all county assets on the county's main computer system. Fleet Management maintains a list of "vehicles in the program" on a Lotus spreadsheet. The purpose of this spreadsheet is to aid in allocation of annual labor, administration cost, vehicle parts and tires to these vehicles, equipment and generators. In addition to the spreadsheet, Fleet Management uses their computer system ("ExtraFleet") to track services provided to vehicles, equipment and generators serviced by the department and for which a completed work order is received by the data entry person. 5 U_ The Clerk's Property Manager identifies and reconciles all county assets purchased through the "Capital Outlay" accounts. When a new vehicle is purchased, Fleet Management contacts the Clerk's Property Manager who assigns the new vehicle a number. Fleet Management then assigns the vehicle to a department. The titles of all county owned vehicles are kept by the Clerk's Property Manager. Other types of fixed assets, such as mowers and generators, are purchased by the user division or department and not through Fleet Management. The Clerk's Property Manager also identifies and reconciles these assets. The user division or department is responsible for contacting Fleet Management concerning these items if they are to be maintained by Fleet Management. The process of disposing of a county asset begins with the Division Director completing a form titled "Monroe County Inventory Deletion Request" (see Exhibit G). This form is sent to the Clerk's Property Manager. Items on this form are then submitted to the Monroe County BOCC for approval. Once approved by the BOCC, the division or department is responsible for the actual removal of the asset. After the division or department has properly disposed of the asset, they complete a form titled "Monroe County Asset Destruction Certification" (Exhibit H) which is sent to the Clerk's Property Manager. The purpose of this form is to confirm that the asset has been destroyed in accordance with BOCC approval. I. Dade County's Fleet Management Program: Organization: Dade County's Fleet Management Department maintains approximately 8,000 county vehicles. The department is responsible for purchasing, maintaining, and disposing of all vehicles. The department has 292 employees and operates three (3) main garages and 16 smaller garages. Garage Managers are responsible for the overall operations of a garage. Supervising Mechanics (Foreman) are responsible for supervising and reviewing the work performed by the mechanics. Each garage has at least one Parts Person responsible for internal controls over parts inventory. Parts Inventory: Most parts are kept on hand. Inventory is computerized and maintained on a perpetual basis. Each month, one-twelfth of the inventory is counted and compared to a computer list. Vehicle Repairs Procedures: When a vehicle arrives at a garage, the Foreman initiates a work order. Before any work is performed, the work order is sent to the garage's main office where it is assigned a number. Information about the vehicle and repair requirements is entered into 6 the computer system. The work order is then returned to the Foreman where it is filed by date received. Mechanics select work orders on a first-in first-out basis. Mechanic hours worked are entered on the vehicle work order. If a job spans over more than one day, hours worked are entered on the work order each day. If more than one mechanic is required for a job, each mechanic enters hours worked on the same work order. Mechanics request and receive all parts from the Parts Person. A form titled "Parts Issue Card" tracks all parts requested. When work is completed the Foreman checks the work order and "Parts Issue Card" against work performed, signs the work order, and returns it to the garage's main office for computer processing. For an example of a "Work Order" and a "Parts Issued Card" used by Dade County's Fleet Management Program, see Exhibits D and E. Job codes are also entered on work orders to track work performed. These job codes are later compared to job standards established internally. Mechanics receive a monthly printout comparing work performed by code to the established standard to provide individual performance feedback. Budget and Billing Procedures: The Director of Fleet Management for Dade County prepares an annual budget estimating costs of services to be provided to the various county agencies. Then each agency is billed monthly for actual services received plus a monthly program fee. The monthly bills are based on the following: monthly program fee calculated at $.08 per mile driven during the month (sheriff vehicles are billed at $.12 per mile), cost of parts plus a set percent of cost to cover overhead costs associated with the purchase of the parts, labor cost based on an hourly rate, and replacement cost for vehicles in the leasing program. These cost allocations are reviewed and revised each year to provide an equitable allocation of Fleet Management costs. Vehicle Replacement Program: Dade County also has a vehicle replacement program (leasing program). Vehicles in this program are charged a monthly replacement fee. The purpose of this fee is to collect an amount over the life of a new vehicle, not to exceed 60 months (48 months is used for sheriff vehicles), in order to have funds available for the purchase of the next vehicle. This fee is based on the estimated cost to replace the vehicle in five (5) years (four years for sheriff vehicles) plus 5% to cover overhead costs. This amount is then divided by 60 (48 for sheriff vehicles). Thus, at the time of disposal, there is no cost to the agency for the next new vehicle. Vehicles over five (5) years old (four years for sheriff vehicles) are not charged a replacement fee. This way, county agencies can save by using these older vehicles. Vehicles remain in the fleet until they are beyond repair. The lack of a replacement fee for vehicles older than five years provides an incentive for longer vehicle usage. When their program began, the Dade County Board of Commissioners provided the original funding for the first five years with the largest contribution made in the first year I of the program. Replacement contributions were made only as a new vehicle was given to participants. By the fifth year the program was self sufficient. IV. Conclusions: A. The Monroe County Fleet Management Department does not have approved Policies and Procedures which are the foundation of an organized and efficient organization. B. The Monroe County Fleet Management Department's allocation of cost for labor and administration and for vehicle parts and tires, as well as their determination of hourly work rates need to be evaluated on a periodic basis to ensure that costs allocation is equitable for all county users. In addition, the issue of billing budget rather than actual costs should be evaluated for appropriateness C. The Monroe County Fleet Management Department does not have established policies and procedures which would include all services provided, associated costs, methods of determining charges, and billing methods. Fleet Management's budget and cost allocations procedures should consider all types of programs offered by the department as well as vehicles added or disposed of during the fiscal year. D. The Monroe County Fleet Management Department's established system of internal controls over the work orders is not adequate or effective to ensure that all work performed is processed and subsequently billed to appropriate county departments. E. The Monroe County Fleet Management Department does not provide an analysis of the -- mechanics' work to ensure their work is efficient and that all employee and county needs are met. F. The Monroe County Fleet Management Department established system of internal controls over vehicle parts and tires is not adequate or effective to ensure that these county assets are properly safeguarded. G. The Monroe County Fleet Management Department should have established policies and procedures for maintaining and distributing, to appropriate personnel, a master list of serviceable county assets. H. The Monroe County Fleet Management Department does not have established policies and procedures for the vehicle replacement program. A long-term projection analysis, along with established policies and procedures, should be approved before any long- term funding of the vehicles replacement program. 8 V. Audit Findings: A. Fleet Management's Policies and Procedures: 1. Policies and Procedures Manual: Finding(s): A draft of the Monroe County Fleet Management Polices and Procedures Manual, dated October 1, 1995, has been sent to the Division Director of Public Works. The Division Director then sent a copy of the manual to the County Administrator. To date no formal Policies and Procedures have been officially sanctioned and adopted. Established polices and procedures are the foundation of an organized and efficient organization. Standard policies and procedures should be approved, communicated to personnel, and followed to ensure that operations are performed in accordance with management's goals and objectives. Monitoring compliance with the policies and procedures is essential to sound quality assurance. Recommendation(s): 1. The Monroe County Administrator and the Division Director of Public Works should review the draft version of the Fleet Management Policies and Procedures Manual and make recommendations for changes and/or improvements to the manual. The manual with necessary corrections and/or modifications should be adopted as soon as feasible. County Administrator's Response(s): The draft version of Fleet Management Policies and Procedures Manual will be reviewed and approved for additions, deletions. (Date of Publication approximately January 1, 1997) The Division Director of Public Works will review the draft version of the Fleet Management Policies and Procedures Manual with the County Administrator and make - recommendations for changes and/or improvements if necessary. Thereafter, the Administrator and Division Director will proceed to have said manual adopted. 2. Listing of Services Provided and Charges for Services: Finding(s): A review of the Monroe County Fleet Management Polices and Procedures Manual (draft) reveals that there is no established list of services that are provided to users. The manual also does not state the costs or billing charges for their services. The manual does not explain the difference between the two types of programs offered: "vehicles in the program" (also know as the leasing program) and "vehicles not in the program". Only the four (4) levels of maintenance are described in the manual (Chapter 4) but with insufficient detail. 9 The polices and procedures manual should fully explain types of programs available to county departments. The manual should provide a complete list of services provided, explain the costs of all services and how services are billed for each of the two types of ( vehicular programs. To be comprehensive, the manual should also explain acceptance of billing and grievance or rebuttal procedures available to county departments. Recommendation(s): 1. The Director of Fleet Management should include in the Polices and Procedures manual, a section explaining how vehicles in the program are billed and how costs are determined for the various types of programs available. They should also explain what repairs are covered and what other services can be provided for an additional fee. 2. To assist in the completion of this Policies and Procedures Manual, any internal or external consultation or assistance needed by the Director of Fleet Management should be provided. County Administrator's Response(s): The Director of Fleet Management will propose in the Policies and Procedures Manual a section explaining how costs are developed and billed. This will be accomplished with appropriate accounting assistance. The Administrator and Director of Public Works will review the proposal and have a final policy in place with the adoption of the manual. ' L Auditor's Comment(s): The Policies and Procedures Manual should list services provided as well as explain how costs are developed and billed. In addition, the manual should address how services not on the list will be charged and billed, and provide a procedure requiring departments to authorize such services before any work is performed. B. Budget Process: _ 1. Budget of Labor and Administration of "Vehicles in the Program": Finding(s): We analyzed 53 "vehicles in the program" and compared the actual amounts billed (flat monthly fee based on the budget) for labor and administration to actual expenditures for five months (October 1, 1995 through February 29, 1996). Our analysis revealed that for county vehicles, the actual cost was only 37.74% of actual amounts billed. For sheriff vehicles, actual cost was 77.33% of actual amounts billed. Based on our analysis, there is no relationship between amounts billed and the actual costs which are considerably less. (See Exhibit B) For the fiscal year 1995/96, the budget allocates costs for labor and administration to "vehicles in the program" as described below. Administration cost includes administration, operating expenses and capital expenditures. (See Exhibit A, page A-1) 10 I i _I - Each vehicle is allocated a number of shares based on the vehicle classification (small, medium, heavy). Small vehicles are allocated three (3) shares each, medium vehicles are allocated 10 shares each and large vehicles are allocated 16 shares each. These - , shares were based on management's experience in the field. No formal analysis has been prepared to document or justify this share allocation by vehicle classification. - The total labor and administration cost is divided by the total number of shares allocated to all "vehicles in the program" to determine labor and administration cost per share. - Each vehicle is budgeted a labor and administration cost based on shares allocated (according to vehicle classification) times the labor and administration cost per share. - A department's budget is determined by the sum of the labor and administration cost allocated to all vehicles assigned to the department. The county departments are billed a flat monthly fee which is 1/12 of their total budgeted allocation for labor and administration for the year. See Exhibit A for an example of this L_i calculation. j Work orders track hours worked on a vehicle. Actual cost of labor and administration is entered into the computer system "ExtraFleet" based on actual hours worked on a vehicle times an hourly rate of $37.50 for small and for medium vehicles and $48.00 for heavy vehicles. These hourly rates were established by Fleet Management based on no analysis. A memorandum from the Director of Fleet Management to the Division Director of Public Works dated November 14, 1994 indicates a hourly rate of $39.50 for all "vehicles not in the program" beginning December 1, 1994. According to the memorandum, this rate of $39.50 was calculated by dividing total labor and administration cost for 1994/95 by annual mechanics hours available (i.e., 14 mechanics times 7 hours per day times 5 days per week times 52 weeks, minus total annual leave time for holidays and vacation and 50% of sick time). The $39.50 hourly rate was adjusted to the $37.50 and $48.00 rates based on Fleet Management's experience in the field but with no formal analysis to justify the adjustment. When we calculated a single hourly rate for 1995/96 using the same method as outlined in the November 14, 1994 memorandum, a hourly rate of $42.15 was determined. The external consultants' report prepared by Transportation, Inc, which was issued April 20, 1990 strongly recommended that the function of Fleet Management include "monitor vehicle cost and performance and advise respective departments of these costs; and notify each department monthly of variance in expenses in relation to budget". The report also recommended that the job description for the Fleet Manager include a "review of expenses monthly to recognize unfavorable trends in unit costs and make necessary changes when necessary to maintain cost controls". Based on the information we gathered relative to Fleet Management's allocation of labor and administration costs to county departments and determination of hourly rates, several major problems as described below exist. 11 I 1. There is no formal analysis for justifying the number of shares allocated to the various classifications of "vehicles in the program". If a shares system is used, factors other than just weight such as age and usage of vehicles should be considered. 2. There is no formal analysis done by Fleet Management comparing budgeted and billed to actual costs for labor and administration. 3. Based on the sample of 53 vehicles in the program, there are large variances between budgeted/billed labor and administration costs versus actual costs entered into the computer system from work orders received by the data entry person. Therefore, Fleet Management is not ensuring that county departments are billed equitably. 4. Fleet Management does not have a consistent method based on analysis to determine hourly rates for work performed. Additionally, the external consultants also observed the need for consistent analyses and cost monitoring to ensure equitable distribution of costs billed among county departments. Recommendations: 1. The Director of Fleet Management should prepare a comprehensive, formal comparison of actual billed charges to actual costs in order to justify cost charged for labor and administration. 2. Fleet Management should determine what flat fee (as with the billing monthly billing of ! budget) should be charged for labor and administration so that the charge is equitable for all; or they should consider charging all vehicles actual costs. 3. Fleet Management should establish a consistent method to determine hourly rate or rates for work performed. These rate(s) should be evaluated and adjusted annually. 4. The Division Director of Public Works should consider establishing a part-time or full- time Cost Accounting position for Fleet Management to assist in their cost allocation analysis and budget process. County Administrator's Response(s): There is a clear recognition on the part of the County Administration that additional accounting assistance is necessary for the efficient and effective operation of the Fleet Management Program. For that reason, the Administration is proposing in the forthcoming fiscal year 1997 budget, an accounting position that will be primarily dedicated to the Fleet Management Program. In this regard, all available information will be utilized to address the issues raised in this section and other sections of the audit. In support of that effort, there have already been actions taken to assure that all work performed is entered into the Fleet Management computers which was not the case when information was collected for this audit. Labor rates will be recalculated annually at the beginning of each budget year, using a similar type formula as the Broward County Fleet Management Program uses, as a result of analysis done the by new accounting individual. There should be improvements in the financial aspects of this program in the forthcoming fiscal budget year. Subsequent to that, there will be at least one full year of data (actual billed charges to justify and adjust changes in cost charged for labor and administration). 12 --j Auditor's Comment(s)_ Auditor's have not been provided with procedures which ensure that work performed is entered into the computer. 2. Budget of Vehicle Parts (Parts, Paint, Shop Tools, Oil and Lubricants) and Tires: Finding(s): We analyzed 53 "vehicles in the program" and compared the actual amount billed (flat monthly fee) for vehicle parts (parts, paint, shop tools, oil and lubricants) and tires to actual expenditures for five months (October 1, 1995 through February 29, 1996). Our analysis revealed that for county vehicles, the actual cost for vehicle parts is 28.76% of actual amounts billed and actual cost for tires is 68.23% of actual amounts billed. For sheriff vehicles, actual cost for vehicle parts is 110.48% of actual amounts billed and actual cost for tires is 582.94% of actual amounts billed. Therefore, based on our analysis, there is no relationship between amounts billed and actual costs. County vehicles are over billed whereas sheriff vehicles are under billed. (See Exhibit B) A review of the past two years' budget process reveals that no formal analysis or written explanation is provided to justify the flat fees charged for vehicle parts and tires. These flat fees are based on the age and weight (small, medium, heavy) of the vehicles as well as management's experience in the field. For a schedule of these charges by class of vehicle, see Exhibit A. "Vehicles not in the program" and other services provided by Fleet Management are billed for the actual cost of vehicles' parts and tires. No overhead cost is added to the cost of parts even though overhead is required to process these purchases. An analysis of actual amounts billed (flat fees) compared to actual costs should be prepared to determine if costs are allocated equitably to all users. If flat fees charged are not equitable to all, then users should be charged actual costs of vehicle parts and tires plus overhead. Recommendations: 1. The Director of Fleet Management should prepare a comprehensive, formal comparison of actual billed charges to actual costs in order to justify costs charged for vehicle parts and tires. 2. Fleet Management should determine what flat fee to charge for vehicle parts and tires so that the charge is equitable for all; or they should consider charging all vehicles the actual costs plus overhead. 3. Vehicles not in the program and other services provided by Fleet Management should be charged the actual costs of vehicle parts and tires plus overhead. I I 13 I County Administrator's Response(s): In conjunction with the recommendation to create an accounting position to service Fleet Management, action has already been taken to improve work orders and documentation in the three (3) garages. Individuals have been assigned the responsibility for handling the various paperwork, detailing work orders, billing, etc. Issues pertaining to flat fees and vehicles not in the program will be reviewed once the new accounting position is filled to determine how best to handle the recommendations in this section. Auditor's Comment(s): Auditors have not been provided with management's methodology ensuring the 1996/1997 Budget equitably allocates the costs for vehicle parts and tires to all users. 3. Allocation of Labor and Administration Cost: Finding(s): A review of the past two years' budget process reveals that labor and administration costs ( are allocated only to "vehicles in the program" and on a per share basis. Labor and administration cost is not allocated to "vehicles not in the program" and for other services provided by Fleet Management. Therefore, "vehicles in the program" are being overcharged. (See section B1 and Exhibit A of this report for an explanation of how Fleet Management currently allocates total labor and administration cost to "vehicles in the program"). "Vehicles not in the program" and other services provided by Fleet Management are billed for labor and administration at hourly rates of $37.50 or $48.00. Total labor and - administration cost is not reduced by this revenue source before being allocated to "vehicles in the program". Recommendations: 1. The Director of Fleet Management should determine the appropriate amount of labor and administration cost that should be allocated to "vehicles in the program". Total overhead should be allocated to all users of Fleet Management services: "vehicles in the program", --- "vehicles not in the program" and other services provided. 2. Fleet Management should seek assistance in developing a labor and administration cost allocation system which is equitable for all users of their services. 3. The Division Director of Public Works should consider establishing a part-time or full- time Cost Accounting position for Fleet Management to assist in their cost allocation analysis and budget process. 4. The Director of Fleet Management should establish written policies justifying their labor and administration cost allocations and procedures explaining their process of allocation. 14 1 � I I County Administrator's Response(s): It is the Administration's intent that the utilization of the new accounting position will be sufficient in terms of improving issues identified in this section of the audit. Should that not be the case, as in all other recommendations, the Administration will look to additional assistance from outside sources. In summary, the system will be developed to determine the appropriate amount of labor and administration costs that can be allocated to vehicles in the program as well as vehicles not in the program. Such methods and policies will become part of the Fleet Management Policies and Procedures Manual as soon as they are developed. 4. Budgeted Revenue of "Vehicles Not in the Program": Finding(s): A review of the budget process reveals revenues and expenses for "vehicles not in the program" and other services provided by Fleet Management are not budgeted. These services are provided using county resources and, therefore, their revenue should be estimated and included in the budget. Fleet Management estimates that there are only 30 "vehicles not in the program" serviced by them, representing an immaterial amount of revenue and cost. However, we statistically estimated that as many as 85 county vehicles could request services of Fleet Management. The current budget estimates total cost for the year and then allocates costs only to "vehicles in the program". Failure to budget for "vehicles not in the program" and other services provided by Fleet Management causes revenue to be understated. Additionally, "vehicles in the program" are overcharged since all expenses are allocated only to this group of county assets. Recommendations: 1. The Director of Fleet Management should include anticipated revenue from "vehicles not in the program" and other services provided by their department in the annual budget and before expense are allocated to "vehicles in the program". County Administrator's Response(s): With the assistance of the new accounting position, the Fleet Management Program will develop information concerning anticipated revenue from vehicles not in the program. Part of this review will be concerned with whether it would be appropriate and more efficient and economical to require all vehicles in all County departments to use Fleet Management services and whether there should be any optional services for optional fees. 15 4 Auditor's Comment(s): Even if all county Agencies were required to be in the program to receive services, Fleet Management would still need to budget revenue for: 1. extraordinary services provided to "vehicles in the program" but not covered by the program, 2. other unusual instances where services are provided to vehicles or equipment NOT in the program, and 3 other services s' ! provided by Fleet Management. 5. Budget Consideration for Vehicles Added and/or Disposed of During the Year: Finding(s): A review of the budget process revealed that there is no set procedure for the treatment of vehicles added and/or disposed of during the year. Currently, vehicles added during the year are treated one of three ways: (1) The new vehicle assumes the billing of an older vehicle. The older vehicle is then disposed of. (Older vehicles are classified as a "S3" vehicle and charged higher fees for parts and tires than a new "S1"vehicle.) (2) The new vehicle is billed based on actual services until the beginning of the next fiscal year. (3) The new vehicle may be charged an arbitrary flat monthly fee. 11 The budget should estimate all sources of revenue and expenditures. As part of the budget process, Fleet Management should inquire as to anticipated acquisitions and dispositions of vehicles to ensure that budget calculations are complete and accurate. In addition, there should be a written policy that describes how vehicles added and/or disposed of during the year will be treated. Recommendations: 1. The Director of Fleet Management should establish written procedures explaining how vehicles added and/or disposed of are to be treated for budget purposes. 2. The Director of Fleet Management should ensure that vehicles added and/or disposed of are budgeted as provided in their written procedures. County Administrator's Response(s): The Policies and Procedures Manual for Fleet Management will be updated to indicate } the proper policies involved in how vehicles are added to and/or disposed of during the year. Budget considerations will be included and such information will become part of the budget proposals for the future. 16 1 I � J C. Billing Process: 1. Billing for "Vehicles in the Program": Finding(s): Interviews with Fleet Management and the Director of Finance along with an analysis of monthly billings for "vehicles in the program" reveals that monthly billings are not timely. A number of problems have caused delays in the billing process. For example, bills are not always submitted to finance in a timely manner and some bills have incomplete information. Sometimes incorrect account numbers are used and funds are not transferred due to the account used having insufficient funds available. In addition, the Director of Finance has questioned the validity of the billing budget as opposed to billing actual cost. This too has j resulted in some billing delays. A specific case in point is that of Environmental Management. Billing errors to this department resulted in two months of bills never being paid during fiscal year 1994/95. This resulted in a loss of $44,082 revenue to Fleet Management. Policies and procedures should be established by Fleet Management and approved by appropriate persons with regards to the billing process. Such policies and procedures should include annual written confirmations from each county department agreeing to the monthly _ bill bill amount and verifying proper account number usage. The confirmation letter should be signed by the director of each county department and returned to Fleet Management for ( future reference should a problem arise. Fleet Management should also have a set policy _ stating that bills will be sent to the Finance Department by a specific day of each month. Each month the Director of Fleet Management should request from the Finance Department a detail of all revenue accounts for his review. Discrepancies should be investigated immediately and all correspondence concerning the problems should be in writing. Recommendation(s): 1. The Director of Fleet Management should establish written procedures to be included in the policies and procedures manual explaining the billing process. 2. The Director of Fleet Management should monitor the monthly billings to ensure that bills are processed on a timely basis as provided in the policies and procedures manual. All discrepancies should be investigated and corrective action should be documented. 3. Before the beginning of each new fiscal year the Director of Fleet Management should request a confirmation from the directors of each county department as to the amount they will be billed monthly and proper account numbers for billing. 4. The issue of billing budget versus charges for actual services should be resolved to the satisfaction of all concerned parties. County Administrator's Response(s): The Fleet Management Policies and Procedures Manual will be updated as described previously, and will include the policies and procedures for billing for vehicles in the program. As part of the responsibilities of the new accounting position, advice will be 17 I given concerning the appropriate manner of billing via budget versus charges for a actual services. The Director of Fleet Management will monitor the monthly billings to ensure that the bills are processed in a timely manner. As part of future budget processes, the Fleet Management Program shall request confirmation from the Directors of each County Department concerning the amount that they will be billed monthly and the appropriate accounting numbers for such purposes. In the event that there are disagreements or discrepancies in reference to the appropriate billing method for vehicles in the program, the Director of Fleet Management will immediately investigate and resolve such issues. 2. Billing of Services Provided to "Vehicles NOT in the Program": Finding(s): Our sample of 48 vehicles included six (6) that are considered "vehicles not in the program". We analyzed the work orders and billings of these six (6) vehicles to determine the accuracy of their billings. However, current procedures used by Fleet Management do not provide a proper audit trail for us to state the accuracy of billing of "vehicles not in the program". Current procedures for billing "vehicles not in the program" provide for completed work orders to be given to the data entry person to enter the information into the computer. The data entry person then visually identifies the vehicle as being "in" or "not in" the program as opposed to verifying it against a master list of eligible vehicles. If it is identified as a "vehicle not in the program", the work order is sent to the billing coordinator for further processing. The billing coordinator prepares the bill and sends the bill to the appropriate person(s). There are no procedures to ensure that all work performed on "vehicles not in the program" is billed. Two problems exist with this process. First, there are no procedures which ensure that all work orders are given to the data entry person. (For the details on findings related to the processing of work orders, see part D of this section.) Therefore, if a work order is not given to the data entry person, it will not be processed and consequently not billed. Second, the data entry person relies on her knowledge of the vehicles by vehicle number to determine if a vehicle is considered a "vehicle not in the program". Such a visual procedure without any written verification (i.e., master list) can cause a bill not to be processed. Both problems result in lost revenue. A proper audit trail should include procedures to ensure that all work orders are accounted for, all work order information is entered into the computer system, and all work is properly billed. The computer software "ExtraFleet" could be used to identify all "vehicles not in the program" and aid in the billing process. 18 Recommendation(s): 1. The Director of Fleet Management should establish written procedures to be included in the policies and procedures manual explaining the billing process for "vehicles not in the program". 2. The Director of Fleet Management should monitor the billing process to ensure that work performed on "vehicles not in the program" is processed on a timely basis as provided in the policies and procedures manual. Any discrepancies should be promptly investigated and corrective action taken. County Administrator's Response(s): The Fleet Management Policies and Procedures Manual to be updated will include a section concerning the billing process for vehicles not in the program. Such section will be developed with the assistance of the new accounting position to be proposed for the new fiscal year budget. The Director will monitor the monthly billing process to be sure that billing is handled in an efficient and effective manner. Any problems will be dealt with immediately. D. Work Orders: 1. Processing of Work Orders: Finding(s): Interviews with management and all three Supervising/Master Mechanics along with an analysis of the sample of 48 vehicles, reveal that there are no established procedures for ensuring that work performed is included on a work order. Also, current procedures do not ensure that all work orders are properly processed. An analysis of all the work orders for the sample of 48 vehicles for the period October 1, 1995 through December 31, 1995 reveals that 17.8% of the work orders in the vehicle files were not entered into the computer system. Procedures for processing work orders are not uniform for all garages. Among the problems found were: - Work orders are not always initiated when a vehicle arrives at a garage. In most cases the Supervising/Master Mechanic takes the information verbally from a user and verbally relays the information to the assigned mechanic. - In most instances work orders are completed only after all work is finished. This practice does not provide controls to ensure that a work order will be completed for each vehicle repair. - In most instances when more than one mechanic works on a vehicle, each mechanic completes a separate work order for that vehicle. Therefore, more than one work order can be generated for one repair and, thus, increase the likelihood that the completed work order will not be entered in the computer system. - When work spans more than one day, the mechanic estimates the total hours worked upon completion of the work. This practice does not ensure that hours recorded on the 19 i work order will consistently represent total actual hours worked. - Work orders are numbered as they are entered into the computer rather than as a work order is initiated. - Once a work order is complete, the mechanic gives the work order to either the Supervising/Master Mechanic or another individual, who then gives the work order to the computer entry person. (i.e., "chain of custody" is too long). Work order information is a foundation for evaluating the operations of the department. If incomplete and/or incorrect information is entered into the computer, then analysis of the department will be erroneous and misleading. Recommendation(s): 1. The Director of Fleet Management should establish written policies and procedures which ensure that all work performed is documented. 2. Work orders should be numbered as vehicles arrive at each garage. This will serve as a control to ensure that all work orders are accounted for and processed. County Administrator's Response(s): Improvement in the processing of work orders will be handled through the addition of items in the Fleet Management Policies and Procedures Manual. Already, plans are underway for the computers to be networked among all three (3) garages enabling a unified system to be developed. • Auditor's Comment(s): Auditors have not been provided with procedures which will ensure that work orders will document all work performed. 2. Mechanic Hours Entered into the Computer System: Finding(s): Our analysis of mechanic hours for the five (5) months of October 1, 1995 through February 29, 1995, revealed that 5,732 hours were entered into the computer system (actual hours billed) and 7,785 hours were recorded on the Daily Summary Sheets. Therefore, 2,053 hours worked (26%) were not entered into the computer system. (See Exhibit C) We also compared maximum hours available to hours entered into the computer system and discovered that only 63% of their maximum hours were entered into the computer system. Maximum hours were based on seven (7) hours per day and excluded the days mechanics were on vacation, sick leave, or assigned to a special project. Our analysis also revealed that mechanics need to bill only 91% of their work in order to cover labor and administration costs. (See Exhibit C for a detailed analysis.) 20 - Mechanics report hours worked on individual work orders and on Daily Summary Sheets. Mechanics' hours are entered into the computer system based on work orders and not Daily Summary Sheets. The Coordinator/Supervisor analyzes the Daily Summary Sheets to determine mechanics' productivity. Because of the current system to used by Fleet Management to document mechanic hours, we are unable to determine if the current number of employees is sufficient to meet current operations needs. However, discussions with management and Supervising/Master Mechanics reveal that they believe additional mechanics are needed. In April of 1996, two additional mechanics were added. Information entered on the work orders are a basis of evaluating the operations of the department and determining if additional employees are needed. Therefore, procedures should be established to ensure that all work performed is entered on the work orders in order for management to analyze work load requirements and justify new positions. Recommendation(s): 1. The Director of Fleet Management should establish written policies and procedures which ensure that all work performed is documented in order for management to appropriately analyze work load requirements and justify new positions. County Administrator's Response(s): The Fleet Management Policies and Procedures Manual will include a section concerning the documentation of work performed in order to analyze workload requirements and justify new positions. This will be based upon information pertaining to the performance of work as entered into the soon to be newly networked computer system. E. Mechanics: 1. Determination of the Efficiency of Mechanics: Finding(s): A review of all work orders of the sample of 48 vehicles and interviews with Fleet Management and Supervising/Master Mechanics reveals that there are no established procedures for evaluating the efficiency of the mechanics. Current procedures allow mechanics to broadly state, on the work order, work performed and total hours worked. A comparison of actual hours worked to a standard measure is not performed. li We interviewed a garage manager from Dade County. He stated that their mechanics are required to list work performed and hours worked by job code. After a mechanic completes the work, his/her Foreman (Supervising/Master Mechanic) reviews the work. The Foreman compares the work order to the work performed, reviews the hours worked for efficiency, and signs the work order to confirm that the review was performed. In addition, mechanics receive a monthly report which compares hours worked by job code to standard hours. 21 • These standards are established internally. Mechanics are evaluated based on these monthly reports. Prior to June of 1995 Monroe County's Fleet Management Department identified work performed by job code. This information was never used for any type of evaluation; therefore, its use was discontinued so that the completion of work orders would be easier for the mechanics. The current computer system, "ExtraFleet", allows for work to be entered using job codes. The system also allows standards to be set for these job codes and allows for a comparison of actual hours worked to standard hours. Procedures should be established which would evaluate the efficiency of mechanics' work. To accomplish this, all completed work orders should be reviewed with the mechanics by the Supervising/Master Mechanic. This procedure would increase the likelihood that work orders are complete and provide immediate feedback to the mechanic. Standards for work performed should also be established and periodically compared to actual work performed. A formal evaluation of mechanics should include a review of hours worked to set standards. Recommendation(s): 1. The Director of Fleet Management should establish written policies and procedures to evaluate the efficiency of mechanics. County Administrator's Response(s): The Fleet Management Policies and Procedures Manual to be improved and implemented in the near future will include the evaluation of the efficiency of mechanics. Issues in the audit findings will be considered in development of that policy. r—; F. Inventory Controls: 1. Controls Over Inventory On Hand Finding(s): Interviews with management, office personnel, and all three Supervising/Master Mechanics, and tours of the three (3) garage facilities revealed that each garage maintains a small inventory of vehicle parts and tires. However, there are no internal controls to ensure the physical safeguarding of these assets other than locked storage facilities. For the fiscal year 1995/96, the Department's total budget for expenditures is $1,521,737 of which $364,000 is for vehicle parts and tires. This represents 24% of their total budget. This line item is for both the purchase of parts kept on hand and special parts ordered. Vehicle parts kept on hand include car batteries, oil filters, air filters, fan belts, wiper blades, disk brakes (for sheriff vehicles), oil and other lubricants, some light bulbs and a 22 I I few other commonly used vehicle parts. These items as well as tires are purchased in bulk to take advantage of bulk rates. All other parts are purchased as needed. All items are kept in a locked storage facility. However, for the convenience of the mechanics, the storage facility remains unlocked during work hours. When vehicle parts and tires arrive at a garage, the items are organized in the storage facility. For most parts, the cost is written on the outside of the package. A cost list is maintained for other parts such as tires. When a mechanic takes a part from storage, a description of the part and its cost are written on the work order. When the data entry person enters information from the work order into the computer program "ExtraFleet", he/she also enters information about each part. To determine inventory requirements, a mechanic takes an informal count of needed vehicle parts and tires. A count of inventory on hand and a comparison of parts purchased to parts utilized is never performed. In addition, purchases are not entered into the computer program "ExtraFleet" which would allow management to track inventory on a perpetual Ir basis. Proper internal controls ensure that inventory is safeguarded. Inventory can be monitored and controlled by comparing the physical inventory count to inventory calculated by "ExtraFleet". In order for "ExtraFleet" to compute inventory on hand all purchases must be entered into the system as well inventory used. Frequent reconciliations of inventory on hand to inventory per "ExtraFleet" should be performed. Discrepancies should be investigated and all findings documented. When internal controls over inventory are weak, the potential for employee theft and/or --- misuse of county assets increases. Proper internal controls discourage employee theft, reduces misuse of assets, and enables management to monitor county assets. I' Recommendation(s),_ 1. The Director of Fleet Management should establish proper internal controls over vehicle parts and tires inventory. 2. Management should consider using "ExtraFleet" to track inventory on an on-going basis. This would enable management to analyze parts purchased to those actually used in safeguarding county assets. County Administrator's Response(s): The Fleet Management Program recognizes that it is necessary to improve internal controls over the inventory of vehicle parts and tires. The utilization of computerized fleet software would certainly be of assistance in accomplishing that goal. The Director will analyze the "extra fleet" system as well as other potentially available software systems for this purpose. Assistance will be granted by the proposed new accounting position for this purpose. 23 1 11 I f 2. Lack of Controls Over Special Ordered Parts: Finding(s): Interviews with management, office personnel, and all three Supervising/Master Mechanics, reveals a lack of controls to ensure that special order parts agree to special parts used. For the fiscal year 1995/96, the Department's total budget for expenditures is $1,521,737, of which $364,000 is for vehicle parts and tires. This represents 24% of their total budget. This line item is for both purchase of parts kept on hand and special parts ordered. When a mechanic needs a vehicle part, not carried in inventory, the part is first approved by the Supervising/Master Mechanic. The part is then ordered at the lowest possible price. Commonly used vendors know that the vehicle number is required on the invoice. When the part arrives, it is identified by the vehicle number from the invoice. The mechanic responsible for the repair of that vehicle approves the part and delivers the invoice to the office. The office then submits the invoice for payment in accordance with county procedures. The mechanic is required to make a copy of the invoice and attach it to the work order. When work orders are processed by the data entry person, the cost of the part is entered in the computer. However, sometimes work orders are not initiated until the work is completed; therefore, there are no procedures to ensure that the part is properly charged to the vehicle. (Also see findings in section D, "Processing of Work Orders".) To track parts purchased an office employee enters the information into a Lotus spreadsheet. The purpose of this spreadsheet is to track "dollars" spent for parts and to ensure that Fleet Management does not overspend their vehicle parts budget. This spreadsheet does not allow for a comparison of special parts ordered to those parts actually used. Proper internal controls of vehicle parts should include a comparison of parts purchased to parts used. To accomplish this, the data entry person should enter purchases into the computer program "ExtraFleet" instead of the Lotus spreadsheet. The software, "ExtraFleet", allows management to monitor dollars spent and compare parts purchased to parts used on a regular basis. A comparison of parts purchased to actual parts used along with their current procedures would ensure that special parts purchased are used. If management does not provide for such a comparison, then management is unable to document that county assets are being used as intended. Recommendation(s): 1. The Director of Fleet Management should consider using "ExtraFleet" to track special ordered vehicle parts. This would enable management to analyze parts purchased to those actually used in safeguarding of county assets. 24 County Administrator's Response(s): The response to this item is similar to F1 above. Either the "extra fleet" program can be utilized or other available software will be implemented. G. List of County Vehicles: 1. List of County Assets Serviceable by Fleet Management: Finding(s): Interviews with Fleet Management personnel revealed that they do not maintain a current and complete master list of all county assets which are eligible for service by this Department. Such assets would include vehicles, generators, mowers and other equipment. The Clerk's Property Manager maintains a list of all county assets on the county's main computer system. Fleet Management maintains a list of "vehicles in the program" on a Lotus spreadsheet to aid in the preparation of the annual budget. In addition to the spreadsheet, Fleet Management uses their computer system, "ExtraFleet", to track all services provided to county assets. These assets are initially entered into the computer system with their first repair. There are no procedures to ensure that the assets entered in { "ExtraFleet" represent all county assets that can be serviced by Fleet Management. All new vehicles are purchased by Fleet Management and then identified and reconciled by the Clerk's Property Manager. Even though information in regards to new vehicles is properly coordinated between these two departments, the new vehicle is not entered into Fleet Management's "ExtraFleet" computer system until it's first service call. Other county assets, such as equipment that may need to be serviced, are purchased by the division or department. These assets are also identified by the Clerk's Property Manager as purchased. It is up to the division or department to notify Fleet Management about these - ' new assets. A master list of all county assets that can be serviced by Fleet Management should be maintained with updated copies distributed to each garage and office employees on a regular basis. When a vehicle arrives at the garage the vehicle should be checked against this master list. Only those vehicles on the list should be allowed to be serviced at one of the county garages. This master list should be periodically updated and reconciled with the list from the Clerk's Property Manager. This would provide a assurance that only eligible county assets are serviced by Fleet Management. Recommendation(s): 1. The Director of Fleet Management should periodically request from the Clerk's Property Manager a list of county vehicles, equipment and generators so that Fleet Management can reconcile their list of serviceable county assets. 2. The Director of Fleet Management should establish written policies and procedures for 25 t_J I, f � maintaining and distributing a master list of serviceable county assets. 3. The Director of Fleet Management should establish written policies and procedures to ensure that Fleet Management personnel verify that an asset is on the county master list of serviceable assets before any work is performed. County Administrator's Response(s): The Fleet Management Policies and Procedures Manual will be updated to include the verification of any asset on the County master list that fall under the purview of Fleet Management. A system will be developed also the be sure that any service provided is for a vehicle that is listed on the master list of assets. The reform of this part of the program will, of course, consider equipment and generators that are not normally considered part of the fleet, but are properly under the purview of the program. H. Vehicle Replacement Program: Ir 1. Guidelines for the Vehicle Replacement Program: Finding(s): A review of the Monroe County Fleet Management Policies and Procedures Manual (draft) and interviews with Fleet Management, revealed that the county does not have established guidelines for a "Vehicle Replacement Program". For the current fiscal year 1995/96, Fleet Management requested $300,000 for replacement vehicles. These funds were denied. County departments who wanted to purchase new vehicles had to find funds elsewhere. Fleet Management has requested $414,000 for replacement of vehicles for the 1996/97 fiscal year. To date management does not know if the request will be accepted. ( The $414,000, for replacement vehicles, was calculated by estimating the cost to replace each vehicle in the current year. The estimated cost was then divided by five (5). Five was used as the divisor since it is assumed that all vehicles will be replaced sometime within the next five (5) years. A total of 129 county vehicles were charged anywhere from $3,000 to $4,400 each for the year with an average rate of $3,209 per vehicle. The basic problem with these calculations (as described in more detail below) is that the estimated annual replacement costs are not vehicle specific, and are therefore, arbitrary. There are several major problems in the assumptions used in Fleet Management's calculations for the Vehicle Replacement funding request for 1996/97 as described below. - Estimated replacement costs are arbitrary due to a lack of vehicle specificity. For example, a $15,000 replacement cost was estimated for more than half the vehicles. Among those vehicles were 93,94,and 95 Ford Trucks, 90 and 95 Ford Rangers, 88 Chevy Trucks, 96 Dodge Pick-ups, 89 Plymouth Reliants, 90 and 94 Buick Century's, 95 Ford Taurus's, and 89 Crown Victorias. Estimated replacement costs should be based on more specific vehicle information. 26 - The estimated replacement costs for all vehicles was based on a cost to replace the vehicle in 1996/97 even though 80% of the vehicles will not be replaced until later years. The replacement cost should be the estimated cost to replace each vehicle in the year it is projected to need replacement. In other words, a Buick Century will cost more to replace in 1998/99 than it will in 1996/97. - Annual contributions are calculated by dividing the estimated replacement cost by five (years). This assumes that every vehicle will be replaced every five years based on the average useful life of a vehicle. In some cases, a vehicle may last anywhere from six to eight years. Participants with these vehicles will be making one to three additional years of contributions before receiving a new vehicle. Whereas, participants with heavy usage may have a vehicle with only three or four years of useful life. These participants will receive a new vehicle with less than five years of fiscal contributions. Therefore, vehicle usage should also be considered in determining annual contributions of county participants. In summary, the following factors should be considered in determining a better estimate of __; vehicle replacement costs for participants: type of vehicle, vehicle model, year of replacement, and useful life of the vehicle. The auditors interviewed the Director of Fleet Management of Dade County to discuss their vehicle replacement program. See Section III (Background), Part F (Dade County's Fleet Management Program) for a narrative of their replacement program. A vehicle replacement program requires large continuous outlays of county assets. Therefore, policies and procedures should be established and approved by appropriate persons before funding is considered. Some of the areas that the policies and procedures should address are: how will the plan be funded during the start-up years, how additional county vehicles (beyond the current 129) are to enter the program, how the replacement cost will be determined, and how payments will be calculated. Replacement costs of vehicles should be allocated in an equitable manner. Until the replacement program is established and approved by appropriate persons, each county department should be responsible for the replacement of their assigned vehicles. During this interim period Fleet Management should coordinate the purchase of all vehicles to ensure that vehicles are purchased at the lowest available price and provide repair and maintenance for all county vehicles. Recommendation(s): 1. The County Administrator should require a detailed, long-term cost projection analysis along with appropriate policies and procedures for approval before long-term funding of the Vehicle Replacement Program is authorized. 2. The Division Director of Public Works should consider employing a part-time or full- time Cost Accountant with leasing experience to develop, implement, and operate the Vehicle Replacement Program. 27 County Administrator's Response(s): The Administrator will assure that a set of policies and procedures for continuing in that projections for the vehicles replacement program will be included in the Fleet Management Policies and Procedures Manual. There is a proposal for accounting assistance already for the forthcoming budget year. Already in process is an analysis by the Administrator, based upon information provided by the Fleet Management Program, of issues pertaining to the necessity to maintain the level of fleet presently under the purview of the Board of County Commissioners. i i 28 I � II VI. Auditee Responses i 1 A l l? # pCyI T FINDINGS/R SPC)NSIlliniliiES M NROE COUNTY FLEET MANAGEMENT VEHICLE EPAIR AND MAINTENANCE PRO• GRAM • A. Fleet Management's Policies and Procedures: - 1. Policies and Procedures Manual: The draft version of Fleet Management Policies and Procedures Manual will be reviewed and approved for additions, deletions. (Date of Publication approximately January 1, 1997) • The Division Director of.Public Works will review the draft version of the Fleet Management Policies and Procedures Manual with the County Administrator and make recommendations for changes and/or improvements if necessary. Thereafter, the - Administrator and Division Director will proceed to have said manual adopted. 2. Listing of Services Provided and Charges for Services: The Director of Fleet Management will propose in the Policies and Procedures Manual a section explaining how costs are developed and billed. This will be accomplished with appropriate accounting assistance. The Administrator and Director of Public Works will review the proposal and have a final policy in place with the adoption of the manual. B. Budget Process: 1. Budget of Labor and Administration of "Vehicles in the Programs": There is a clear recognition on the part of the County Administration that additional accounting assistance is necessary for the efficient and effective operation of the Fleet Management Program. For that reason, the Administration is proposing in the forthcoming fiscal year 1997 budget,. an accounting position that will be primarily dedicated to the Fleet Management Program. In this regard, all available information will be utilized to address the issues raised in this section and other sections of the audit. In support of that effort, there have already been actions taken to assure that all work performed is entered into the Fleet Management computers which was not the case when information was collected for this audit. Labor rates will be recalculated annually at the beginning of each budget year, using a similar type formula as the Broward County Fleet Management Program uses, as a result of analysis done the by new accounting individual. There should be improvements in the financial aspects of this program in the forthcoming fiscal budget year. Subsequent to that, there will be at least one full year of data (actual billed charges to justify and adjust changes in cost charged for labor and administration). i_, 2. Budget of Vehicle (Parts, Paint, Shop Tools, Oil and Lubricants) and Tires: In conjunction with the recommendation to create an accounting position to service Fleet Management, action has already been taken to improve work orders and documentation in the three (3) garages. Individuals have been assigned the responsibility for handling the various paperwork, detailing work orders, billing, etc. Issues pertaining to flat fees and vehicles not in the program will be reviewed once the new accounting position is filled to determine how best to handle the recommendations in this section. 3. Allocation of Labor and Administration Cost: It is the Administration's intent that the utilization of the new accounting position will be sufficient in terms of improving issues identified in this section of the audit. Should that not be the case, as in all other recommendations, the Administration will look to additional assistance from outside sources. • In summary, the system will be developed to determine the appropriate amount of labor and administration costs that can be allocated to vehicles in the program as well as vehicles not in the program. Such methods and policies will become part of the ` Fleet Management Policies and Procedures Manual as soon as they are developed. 4. Budgeted Revenue of "Vehicles Not in the Program": With the assistance of the new accounting position, the Fleet Management Program will develop information concerning anticipated revenue from vehicles not in the program. Part of this review will be concerned with whether it would be appropriate and more efficient and economical to require all vehicles in all County departments to use Fleet Management services and whether there should be any optional services for optional fees. 5. Budget Considerations for Vehicles Added and/or Disposed of During the Year:. The Policies and Procedures Manual for Fleet Management will be updated to indicate the proper policies involved in how vehicles are added to and/or disposed of during the year. Budget considerations will be included and such information will become part of the budget proposals for the future. C. Billing Process: 1. Billing for "Vehicles in Program": The Fleet Management Policies and Procedures Manual will be updated as described previously, and will include the policies and procedures for billing for vehicles in the program. As part of the responsibilities of the new accounting position, advice will be given concerning the appropriate manner of billing via budget versus charges for actual services. The Director of Fleet Management will monitor the monthly billings to ensure that the bills are processed in a timely manner. As part of future budget processes, the Fleet Management Program shall request confirmation from the Directors of each County Department concerning the amount that they will be billed • monthly and the appropriate accounting numbers for such purposes. In the event that there are disagreements or discrepancies in reference to the appropriate billing method for vehicles in the program, the Director of Fleet Management will immediately investigate and resolve such issues. 2. Billing of Services Provided to "Vehicles NOT in the Program": The Fleet Management Policies and Procedures Manual to be updated will include a section concerning the billing process for vehicles not in the program. Such section will be developed with the assistance of the new accounting position to be proposed for the new fiscal year budget. The Director will monitor the monthly billing process to be sure that billing is handled in an efficient and effective manner. Any problems will be dealt with immediately. D. Work Orders: • 1. Processing of Work Orders: Improvement in the processing of work orders will be handled through the addition of items in the Fleet Management Policies and Procedures Manual. Already, plans are underway for the computers to be networked among all three (3) garages enabling a unified system to be developed. 2. Mechanic Hours Entered into the Computer System: The Fleet Management Policies and Procedures Manual will include a section concerning the documentation of work performed in order to analyze workload requirements and justify new positions. This will be based upon information pertaining to the performance of work as entered into the soon to be newly networked computer system. { E. MECHANICS: 1. Determination of the Efficiency of Mechanics: The Fleet Management Policies and Procedures Manual to be improved and implemented in the near future will include the evaluation of the efficiency of mechanics. Issues in the audit findings will be considered in development of that policy. F. INVENTORY CONTROLS: 1. Controls Over Inventory on Hand: The Fleet Management Program recognizes that it is necessary to improve internal controls over the inventory of vehicle parts and tires. The utilization of computerized fleet software would certainly be of assistance in accomplishing that goal. The Director will analyze the "extra fleet" system as well as other potentially available software systems for this purpose. Assistance will be granted by the proposed new accounting position for this purpose. 3 2. Lack of Controls Over Special Ordered Parts: The response to this item is similar to Fl above. Either the "extra fleet" program can be utilized or other available software will be implemented. G. LIST OF COUNTY VEHICLES: 1. List of County Assets Serviceable by Fleet Management: The Fleet Management Policies and Procedures Manual will be updated to include the verification of any assets on the County master list that fall under the purview of Fleet Management. A system will be developed also to be sure that any service provided is for a vehicle that is listed on the master list of assets. The reform of this part of the program will, of course, consider equipment and generators that are not normally considered part of the fleet, but are properly under the purview of the program. H. VEHICLE REPLACEMENT PROGRAMS: 1. Guidelines for the Vehicle Replacement Program: The Administrator will assure that a set of policies and procedures for continuing in that projections for the vehicles replacement program will be included in the Fleet Management Policies and Procedures Manual. There is a proposal for accounting assistance already for the forthcoming budget year. Already in process is an analysis by the Administrator, based upon information provided by the Fleet Management Program, of issues pertaining to the necessity to maintain the level of fleet presently under the purview of the Board of County Commissioners. , I - Very truly.yours James L. Roberts, County Administrator JLR:Ijs 4 VII. Exhibits EXHIBIT A - 1 Analysis of Cost Allocation by Classification of Vehicle For the Fiscal Year 1995/96 Vehicle Parts and Tires Labor and Administration Costs(1) Shop Oil& Sub Capital Mech. Sub Annual Monthly Class Shares Parts Tires Paint Tools Lub Total Equip Oper. Admin. Labor Total Budget Budget County Vehicles-Small Si: 0-3yearsold 3 150 40 30 10 50 280 21 147 159 714 1,041 1,321 110.08 S2: 4-5 years old 3 250 40 30 10 50 380 21 147 159 714 1,041 1,421 118.42 53:more than 5 years old 3 450 40 30 20 50 590 21 147 159 714 1,041 1,631 135.92 County Vehicles-Medium Mi: 0-3 years old 10 250 225 50 20 100 645 60 490 530 2,380 3,460 4,105 342.08 M2: 4-5 years old 10 500 100 50 20 100 770 70 490 530 2,380 3,470 4,240 353.33 M3:more than 5 years old 10 900 100 50 40 100 1,190 70 490 530 2,380 3,470 4,660 388.33 County Vehicles-Heavy Hl: 0-3 years old 16 300 400 100 60 150 1,010 112 784 848 3,808 5,552 6,562 546.83 H2: 4-S years old 16 900 400 100 60 150 1,810 112 784 848 3,808 5,552 7,162 596.83 H3:more than 5 years old 16 1,500 400 100 60 150 2,210 112 784 848 3,808 5,552 7,762 646.83 Sheriff Vehicles-Small Si: 0-3yearsold 3 50 40 0 10 50 150 9 135 159 704 1,007 1,157 96.42 52: 4-5yearsold 3 150 40 0 10 50 250 9 135 159 714 1,017 1,267 105.58 S3:more than 5 years old 3 425 40 0 15 50 530 9 135 159 714 1,017 1,547 128.92 (1) Calculations of Labor and Administration Cost: Capital Mech. Sub Equip Oper. Admin. Labor Total Total Cost (per Budget) $18,700 $132,300 $150,103 $666,785 $967,888 Total Shares(of all vehicles in the program) • 2,811 2,811 2,811 2,811 2,811 Per Share Allocation(total cost divided by total shares) $7 $49 $53 $238 $347 Allocation'to Small (per share allocation times 3 shares) $21 $147 $159 $714 $1,041 Allocation to Medium (per share allocation times 10 shares) $70 $490 $530 $2,380 $3,470 Allocation to Large(per share allocation times 16 shares) $i 12 $784 $848 $3,808 $5,552 Example: The following is an example of how Fleet Management allocates cost to a Department for vehicles assigned to that department. Department X Vehicle Parts and Tires Labor and Administration Costs • Vehicles Assigned: Shop Oil& Sub Capital Mech. Sub Annual Parts Tires Paint Tools Lab Total Equip Oper. Admin. Labor Total Budget Vehicle 1 S1 150 40 30 10 50 280 21 147 159 714 1,041 1,321 Vehicle2 S1 150 40 30 10 50 280 21 147 159 714 1,041 1,321 Vehicle 3 S3 450 40 30 20 50 590 21 147 159 714 1,041 1,631 Vehicle 4 M2 500 100 50 20 100 770 70 490 530 2,380 3,470 4,240 Vehicle 5 H3 1,500 400 100 60 150 2,210 112 784 848 3,808 5,552 .7,762 Annual Allocation for Department X $4,130 $12,145 $16,275 Monthly Bill for Department X 344 $1,012 $1,356 • A-1 EXHIBIT A - 2 Analysis of Cost Allocation by Classification of Vehicle For the Fiscal Year 1994/95 (1) # Shop Oil& Sub Labor Annual Monthly Class Shares Parts Tires Paint Tools Lub Total Admin Budget Budget County Vehicles-Small Sl: 0-3 years old 1 125 50 20 10 50 255 1,644 1,899 158.25 S2: 4-5 years old 1 250 50 20 10 50 380 1,644 2,024 168.67 S3:more than 5 years old 1 375 50 20 20 50 515 1,644 2,159 179.92 County Vehicles-Medium _ Ml: 0-3 years old 2 250 225 40 20 100 635 3,288 3,923 326.92 M2: 4-5 years old 2 500 225 40 20 100 885 3,288 4,173 347.75 M3:more than 5 years old 2 750 225 40 40 100 1,155 3,288 4,443 370.25 County Vehicles-Heavy Hl: 0-3 years old 3 450 225 100 40 150 965 4,932 _ 5,897 _ 491.42 H2: 4-5 years old 3 900 650 100 40 150 1,840 4,932 6,772 564.33 H3:more than 5 years old 3 1,350 650 100 60 150 2,310 4,932 7,242 603.50 (1) Calculations of Labor and Administration Cost: Labor& Admin Total Cost (per Budget) $886,846 Total Shares(of all vehicles in the program) 525 Per Share Allocation (total cost divided by total shares) $1,644 Allocation to Small (per share allocation times 1 shares) $1,644 Allocation to Medium (per share allocation times 2 shares) $3,288 Allocation to Large(per share allocation times 3 shares) $4,932 A-2 EXHIBIT B Analysis of Actual Billed Per Budget to Actual Expenditures by Class of Vehicle For the First Five Months of the 1995/96 Fiscal Year Random Sample of 53 Vehicles in the Leasing Program #Vehicles Actual Billed Actual Expenditures Percent of Actual to Billings Total Exlenditures In (1) Labor& 5 Month (1) Labor& 5 Month Labor& (2) (3) Class Sample Parts Tires Admin Total Parts Tires Admin Total Parts Tires Admin Variance Percent County Vehicles H3 3 2,263 500 6,933 9,696 121 0 674 795 5.36% 0.00% 9.72% 8,901 91.80% Ml&3 5 1,767 235 7,217 9,219 1,278 496 2,945 4,720 72.36% 210.78% 40.81% 4,499 48.80% Si 7 825 117 3,034 3,975 44 0 2,025 2,069 5.29% 0.00% 66.75% 1,907 47.96% S2 4 567 71 1,733 2,370 179 37 1,100 1,315 31.61% 51.77% 63.46% 1,055 44.50% S3 15 3,317 250 6,500 10,067 890 267 2,848 4,006 26.84% 106.98% 43.82% 6,061 60.21% Total 34 8,737 1,173 25,416 35,327I 2,513 800 9,592 12,905 28.76% 68.23% 37.74% 22,422 63.47% Sheriff Vehicles SS1 6 275 100 2,518 2,893 696 679 2,156 3,531 252.93% 679.21% 85.65% (639) -22.08% SS2 7 729 117 2,966 3,812 1,095 898 2,428 4,421 150.22% 769.62% 81.86% (609) -15.98% SS3 6 1,225 100 2,543 3,868 672 269 1,622 2,563 54.84% 268.87% 63.79% 1,305 33.74% Total 19 2,229 317 8,026 10,572 2,463 1,846 6,206 10,515 110.48% 582.94% 77.33% 57 0.54% Total Sample 53 (1) Parts include:parts,paint, shop tools, and oil and lubricants. (2) The variance represents the amount billed over(under) actual expenditures. (3) A positive percent represents the portion over billed. A negative percent represents the portion under billed. B-1 EXHIBIT C - 1 Analysis of Mechanic Hours Worked Analysis of Labor and Administration Cost: FY 95/96 Actual Actual Actual Actual Actual Five Months Appropriation Oct 95 Nov 95 Dec 95 Jan 96 Feb 96 Total Personal Services $796,350.00 $49,957.35 $51,085.62 $65,304.36 $59,426.13 $51,407.30 $277,180.76 Operating Expenses 106,539.00 13,371.23 1,399.88 3,438.94 23,336.83 5,495.90 47,042.78 Capital Outlay-All Equipment 18,700.00 4,787.00 (349.00) 0.00 0.00 0.00 4,438.00 Total Labor and Administration Costs $921,589.00 $68,115.58 $52,136.50 $68,743.30 $82,762.96 $56,903.20 $328,661.54 Percent of Budget Used 7.39% 5.66% 7.46% 8.98% 6.17% 35.66% Analysis of Mechanic Hours Worked: Five Months Oct 95 Nov 95 Dec 95 Jan 96 Feb 96 Total Hours Needed to Cover Labor and Admin. (1) 1,724 1,320 1,740 2,095 1,441 8,321 Maximum Hours Available (2) 1,904 1,743 1,708 1,939 1,827 9,121 Actual Hours Billed (3) 1,079 1,047 1,179 1,243 1,184 5,732 Actual Hours Per Daily Sheet Summary 1,407 1,496 1,276 1,874 1,732 7,785 Maximum Hours Available Over(Under) Hours to Cover Labor and Admin 180 423 (32) (156) 386 801 Actual Hours Billed Over(Under) Hours to Cover Labor and Admin. (645) (273) (561) (852) (257) (2,588) Hours Worked Per Daily Summary, Not Billed 328 449 97 631 548 2,053 Actual Hours Billed/Maximum Hours Available (4) 57% 60% 69% 64% 65% 63% Hours to Cover Labor and Admin. /Maximum Hours Available (5) 91% 76% 102% 108% 79% 91% Hours Not Billed/Hours per Daily Summary (6) 23% 30% 8% 34% 32% 26% (1) Hours needed to cover labor and administration costs was calculated dividing the monthly labor and administration Costs by$39.50. (This is the hourly rate stated in the memo dated November 14, 1994.) (2) Maximum hours available is based on actual days mechanics worked times 7 hours per day. (Does not include days mechanics were on vacation, sick leave or assigned to a special project.) (3) Actual Hours billed is based on hours entered into the computer system from work orders submitted to the data entry person. (4) This represents the percent of actual hours worked compared to maximum hours available. (5) This represents the percent of maximum hours available needed to cover labor and administration cost. (6) This represents the percent of hours that the mechanics recorded on their daily sheet but not billed to vehicles. C-1 EXHIBIT C-2 Analysis of Mechanics Hours 2500 2000 = 1500 .5 1 `' 1000 I 500 • • Oct 95 Nov 95 Dec 95 Jan 96 Feb 96 ■ Hours Needed to Cover Labor and Admin. 1,724 1,320 1,740 2,095 1,441 a Maximum Hours Available 1,904 1,743 1,708 1,939 1,827 e Actual Hours Billed 1,079 1,047 1,179 1,243 1,184 m Actual Hours per Daily Summary Sheet 1,407 1,496 1 1,276 1,874 1,732 C-2 - - - . --, • FLTi—J FTTT B I ADE METRDPDLITAN DADE COUNTY EOAPA[NT NUMBER SHOP N MER OPEN DATE OPEN iT1E CHANGE BACI CODE EQUIPMENT MANAGEMENT SYSTEM ❑ ❑ - DEFECT CARD NEPNN BEEN EMCEE! Olin PAGE CLOSE DATE CLOSE 11E REASON PAGES N0. REPAIR ORDER TYPE WORK CLASS REASON CODE MANUFACTURER BRAND NAME YEAFI• R M B G x-SPERM A AcddAN L Predirwy 0i1dc NEGUAN WAN ACCOu DVB MEWL Y-NONSQA1E0 A oAwata Abuse N NeaBotlm USER DEPARTMENT PHONE NUMBER BLANKET BLANKET O wdscvn N NW Roma HERGBICY I (spec.Dest Sop Riquell ePremix,MAR .Cal ►0 SPECIAL INSTRUCTIONS _ -IINewwk TY WYnwAy W DOWNTIME INDICATOR ❑ 0 A E N ALL FIRS Eww IRS None DOWNTIME Wan MEIEA NUM TYPE CD Nt IdI ►1 I Customer • FA REPAIR TYPE WAN DESCRIPTION ril Employee Is A. «IComments: Cause: Date ,g g C7 OFF Hours ON Employee# Comments: c� '-' 4 to Date eD I 'i OFF Hours Correction: c oi oN Employee# Comments: o d Date OFT Hours co Employee# o DNComments: Q.C.: Date OFF Hours co a cD Customer Complaint: DESCRIPTION -- —.... . c REPAIR TYPE NRDESCRIPTION oN Employee N Comments: Cause: p Date ---- OET Hours --- ----- - --- - --- - -- -- oN Employee II Comments: __ Date - - • OFF Hours _ _ Correction: • ON Employee# Comments: . Date OFF Hours -- DN Employee# Comments: Q•C•: Date • - OFF Hours 160.01.27 6l93 EXHIBIT E Parts Issue Card - Used by Metropolitan Dade County I L I II JI 1 M�ADE METROPOLITAN DADE COUNTY EQUIPMENT NUMBER SHOPNUMBER OPEN',ATE EQUIPMENT MANAGEMENT SYSTEM • R . M c n PARTS ISSUE CARD AUI OBOE NU REPAIR ORDER NPE u MULTI PAGES NO. CftREPAIR TYPE I OR E Part Number Part Description Issued d Unit S Post • • • • • • • • • • • • • • • • • • I leo.oi,as vas � � o E-1 . EXHIBIT F Work Order - Used by Monroe County Fleet Management UNIT# Type Date Work Order# • REQUESTED BY: Time In: WORK REQUESTED *ODOMETER/Hours RELEASED FOR USE, Date Time By }ORK PERFORMED LABOR I_ Mechanic's Name Hours(est.) O/T Mechanic's Name Hours(est.) OCT PARTS Qty Part# Description Cost Total_ • • , LABOR HOURS COSTS TOTAL Reg OT Labor Parts $ FMS Form 1.9 11.95 Previous forms may be ustd F-1 EXHIBIT G Monroe County Inventory Deletion Request ,MONROE COUNTY INVENTORY DELETION REQUEST TO: John Reeves,Property Clerk FROM: Finance Department,Stop#8 ' DATE: Monroe County Asset Date Original& LD.Number Serial Number Description Purchased Est. Present Value Check appropriate line: APPROVAL TO REMOVE FROM INVENTORY AND ADVERTISE FOR BIDS APPROVAL TO REMOVE FROM INVENTORY AND DISPOSE OF SAME APPROVAL TO ACCEPT HIGHEST BIDS ON SURPLUS PROPERTY REASON FOR REQUEST: PREPARED BY: DATE: May 8, 1996 DIVISION DIRECTOR APPROVAL: Finance:Revised 2/14/96 G-1 EXHIBIT H Monroe County Asset Destruction Certification MONROE COUNTY ASSET DESTRUCTION CERTIFICATION TO: John Reeves,Property Clerk FROM: Finance Department,Stop#8 DATE: Monroe County LD.Number Serial Number Asset Description I C TIFY THE ABOVE LISTED MONROE COUNTY PROPERTY HAS BEEN DESTROYED IN ACCORDANCE WITH BOCC APPROVAL. (SIGNED BY AND TITLE) DATE Finance:Revised 2/14/96 • H-1