03/12/1997 Audit AUDIT REPORT OF
MONROE COUNTY
FLEET MANAGEMENT
FUEL ACTIVITIES
March 12, 1997
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Prepared by:
Internal Audit Department
Clerk of the Circuit Court
Danny L. Kolhage, Clerk
Monroe County, Florida
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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
r TEL. (305)289-6027 KEY WEST, FLORIDA 33040 TEL. (305) 852-7145
�i TEL. (305) 292-3550
March 12, 1997
The Honorable Danny L. Kolhage `
Monroe County Clerk of the Circuit Court
Re: Audit of Monroe County Fleet Management
Fuel Activities
Dear Mr. Kolhage: ,
The Clerk's Internal Audit Department has completed the audit of Fleet Management's.Fuel.
Activities Operations. The audit scope was limited to the evaluation of policies and procedures
of the operations, of internal controls to ensure the reliability and integrity of financial and
operational information, and of overall efficiency and effectiveness.
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.
III
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Our audit revealed 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 segregation of duties over fuel activities. Segregation
of duties should be designed to ensure that incompatible functions are not performed by one
individual, such that any person is not in a position to perpetrate and conceal irregularities in
the normal course of his/her duties.
Our audit revealed that there is no county wide policy that provides assurance that the monthly
fuel billing report is properly reviewed by appropriate personnel. In addition, there is no county
wide policy to ensure that separated employees return their fuel keys. Such a policy is necessary
to ensure that county fuel is used by authorized employees only.
Our audit found a lack of consistent procedures for reconciling fuel inventory. Also, no criteria
and procedures have been set to determine when and how inventory losses are to be investigated
and documented.
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Currently the county purchases 93 Octane for unleaded gasoline. Our analysis of fuel purchases
revealed that the county agencies could save between $4,500 to $12,000 per year and the
Sheriff's Department could save between $7,000 to $18,000 per year if a lower octane of fuel
was purchased. Managers of Fleet Management believe that using a lower grade of octane will
cause more vehicle repairs thus canceling the savings from fuel purchases. A comprehensive
rf and objective cost/benefit analysis should be performed to resolve this issue.
Our audit revealed that Fleet Management lacks planning for known capital replacements of fuel
tanks. Proper planning for known projects should include estimated cost to be incurred, fiscal
year in which replacement will occur, source(s) of funding and departments and/or individuals
responsible for the replacement.
The accompanying audit report is provided for your information. Additional copies of the report
will be provided upon your request.
Sincerely,
Carle E. Bamberg, CPA
if
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
Sandee Carlile, Clerk's.Finance Director
Marva Green, CPA, External Auditor
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AUDIT REPORT OF
MONROE COUNTY - FLEET MANAGEMENT
FUEL ACTIVITIES
TABLE OF CONTENTS
Page #'s
I. Scope and Objectives 1
II. Methodology 1-2
III. Background_ 3-6
IV. Conclusions 6-7
V. Audit Findings:
A. Fleet Management's Policies and Procedures Manual 8
B. Incomplete Policies and Procedures 9
C. Segregation of Duties for Fuel Activities 10-11
D. County Agencies Review of the Monthly Internal Fuel Billing Report 12
E. Procedures for Returning Fuel Keys When Employees Leave County
Employment 13-14
F. Weekly Reconciliation of Fuel Inventory
1. Reconciliation Procedures 15-16
2. Inconsistencies in Weekly Reconciliation Procedures 17
- , G. Monthly Reconciliation of Fuel Inventory 18-19
H. Fuel Deliveries
1. Procedures for Monitoring Fuel Deliveries 20
2. Frequency of Fuel Deliveries 21
I. Cost Savings for Purchase of a Lower Grade of Unleaded Gasoline 22-23
J. Testing Fuel for Octane Level and Contaminates 24
K. Replacement of Fuel Tanks
1. Replacement of the Six Tanks at the Fuel Sites 25
2. Replacement of Generator Fuel Tanks 26
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AUDIT REPORT OF
MONROE COUNTY - FLEET MANAGEMENT
FUEL ACTIVITIES
TABLE OF CONTENTS
Page #'s
VI. Exhibits:
A. Estimated Annual Gallons of Fuel Dispensed Per Fuel Site A
B. Analysis of the Monthly Internal Fuel Billings
Unleaded Gasoline - 93 Octane B-1
Diesel B-2
C. Cost Comparisons of Cost of 87, 89, and 93 Octane and
Cost Savings for Purchase of Lower Octane Fuel C
D. Comparison of Fleet Management Fuel Sites Verses
Key West Fuel Stations
For Charges of Unleaded Gasoline - 93 Octane D
E. Weekly Analysis of Gallons by Fuel Site
Unleaded Gasoline - 93 Octane E-1
Diesel E-2
F. Comparison of Gallons Purchased to Dip Readings
Unleaded Gasoline - 93 Octane (Key West) F-1
Unleaded Gasoline - 93 Octane (Plantation Key) F-1
Unleaded Gasoline - 93 Octane (Marathon) F-2
Diesel (Key West) F-3
Diesel (Plantation Key) F-3
Diesel (Marathon) F-4
G. Phone Survey of Florida Counties: Octane Level of County
Fuel Sites G
H. Forms Used By Fleet Management
Fuel Key Request Form H-1
Daily Fuel Dip Readings (All Fuel Sites) H-2
Weekly Reconciliation Report (Marathon and Plantation Key
Fuel Sites) H-3
Weekly Reconciliation Report (Key West Fuel Site) H-4
VII. Auditee Responses
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AUDIT REPORT OF
MONROE COUNTY - FLEET MANAGEMENT
FUEL ACTIVITIES
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 completed an operational audit of the
Monroe County Fleet Management's Fuel Activities, for the period December 1, 1995
through September 30, 1996.
B. The purpose of the audit was to evaluate the policies and procedures established by the
department, to evaluate the adequacy and effectiveness of the established internal controls
and to evaluate the cost efficiency of Fleet Management's "Fuel Activities".
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
Monroe County Fleet Management's "Fuel Activities":
1. Division Director of Public Works
2. Director of Fleet Management
3. Coordinator/Superintendent of Fleet Management
4. Fleet Management Office Staff and Mechanics (i.e., those responsible for Fuel
Activities)
5. Director of the Office of Management and Budget
6. Budget Manager
7. Finance Director
8. Accounting Specialist I (i.e., responsible for internal billing of Fuel Activities)
9. Director of Human Resources
C. Analyzed fuel purchases and internal billings of fuel for the period December 1, 1995
through September 30, 1996. For a summary of this analysis, see Exhibits A and B.
D. Recalculated weekly fuel reconciliations of all six fuel pumps for the period March 1,
1996 through September 27, 1996. Analyzed the weekly gain/loss for each fuel tank.
For a summary of this analysis, see Exhibits E-1 and E-2.
E. Recalculated monthly fuel reconciliations and compared the results to the reconciliations
prepared by Fleet Management and the Accounting Specialist I.
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F. Recalculated and compared before and after dip readings to purchase invoices for the
period March 1, 1996 through September 27, 1996. Compared gain/(loss) to the weekly
reconciliation reports. For a summary of the comparison of purchase invoices to dip
readings, see Exhibits F-1, F-2, F-3 and F-4.
G. Surveyed Monroe County agencies that purchase fuel about the fuel program.
H. Surveyed Florida counties as to octane of unleaded gasoline purchased by their fleets.
For a summary of these results, see Exhibit G.
I. Compared the cost of 87, 89, and 93 octane sold by Dion Oil Company to determine
potential savings to the county if a lower grade of unleaded gasoline is purchased. For
an summary of these results, see Exhibit D.
- J. Researched general periodicals for articles related to effectiveness of various grades of
unleaded gasoline (Consumers' Research Magazine, March 1996).
K. Compared the list of "personnel keys" per Fleet Management to the list of terminated
personnel per the records of the Human Resource Department. Employees terminated
who still were listed as having a "personnel key", were checked to see if these keys were
used during the month of July 1996.
L. Observed dip readings.
M. Had fuel samples tested for octane levels and contaminates by the State of Florida
Department of Agriculture and Consumer Services.
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III. Background:
A. Organization of Fleet Management:
The purpose of the Fleet Management's "Fuel Activities" is to provide fuel to county
agencies at the lowest possible cost and to maintain adequate fuel reserves in the event
of a hurricane and/or other emergency. The county operates three fuel sites located in
Key West, Marathon, and Plantation Key. Each facility offers diesel and unleaded
gasoline (93 octane).
The Coordinator/Superintendent of Fleet Management is responsible for the operations
of the "Fuel Activities". He is responsible for purchasing and monitoring fuel inventory;
monthly internal billings of fuel sold to county agencies; maintaining all information on
the computer system; adding, deleting and distributing all fuel keys; and preparing the
monthly reconciliation of fuel inventory. One mechanic at each fuel site is responsible
for verifying deliveries, monitoring fuel inventory, and preparing the weekly
reconciliation of fuel inventory.
B. Dion Oil Company
All fuel is purchased through Dion Oil Company. In February 1996, bids for the county
fuel contract were obtained. Dion Oil Company again was awarded the bid for the next
year and the county has the option to renew this agreement for two additional years.
The contract between Monroe County and Dion Oil Company states that for each
delivery, Monroe County will be charged that day's RACK (market) price reflected at
Port Everglades, where the fuel is purchased, plus a delivery charge per gallon of $.0725
to Key West, $.0575 to Marathon, and $.0550 to Plantation Key. For an analysis of
quantities of fuel delivered to Monroe County per fuel site, see Exhibit A.
For unleaded gasoline, 93 octane is purchased since the sheriff's vehicles are high
performance vehicles. We estimated that sheriff vehicles use 54% of the unleaded fuel
purchased. For an analysis of fuel usage, see Exhibit B.
Dion Oil Company charges per gallon an average $.038 more for 89 octane over 87
octane and an average of $.10 more for 93 octane over 87 octane. For an analysis of
savings if the county were to purchase a lower octane of fuel, see Exhibit C.
Each spring Dion Oil Company fills the tanks for all county generators. These purchases
are not charged directly to Fleet Management. Analysis of theses deliveries were beyond
the scope of this audit.
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C. Fuel Inventory Controls:
Fuel inventory is determined daily by dipping the fuel tanks. One mechanic at each fuel
site is responsible for dip readings. A dip reading is performed by measuring the depth
of the fuel in terms of inches and then, using a calibration table the inches are converted
to gallons. Calibration tables are specific to each fuel tank.
Each Friday the mechanics prepare a weekly reconciliation based on these dip readings.
The purpose of weekly reconciliations is to monitor inventory gains and losses. For
unleaded gasoline, dip readings are also taken before and after each delivery. The
purpose of this procedure is to ensure that fuel delivery is accurate. Unleaded gasoline
is purchased by the tank load and the tank is metered (quantity measured) at Port
Everglades. This procedure is not required of diesel since the tank that delivers diesel
fuel is a metered tanker and the quantity delivered is determined at the county fuel site.
On June 21, 1996 new procedures to monitor fuel deliveries were implemented. These
procedures require the mechanics to prepare a reconciliation the day before and the day
after each delivery to recheck the quantity of fuel delivered.
Accurate fuel inventory determination is not possible. Factors that can cause quantities
to fluctuate include: change in temperature, tide changes, evaporation, bubbling, and dip
readings. Therefore, over an extended period, the Florida Division of Standards
considers reasonable an accuracy rate of 0.2%. This standard is stated in the National
Institute of Standards and Technology Handbook 44, titled, "Specifications, Tolerances,
and Other Technical Requirements for Weighing and Measuring Devices". For an
analysis of weekly reconciliations, see Exhibits E-1 and E-2 and for an analysis of fuel
purchases, see Exhibits F-1, F-2, F-3, and F-4.
Besides the weekly reconciliation reports, a monthly reconciliation of fuel inventory is
prepared by both the Coordinator/Superintendent and the Accounting Specialist I from
the Finance Department. These reconciliations are based on beginning and ending dip
readings, the internal billing report and purchase invoices. For an example of the forms
used to record the daily dip readings and prepare the weekly reconciliations per fuel site,
see Exhibits H-2, H-3, and H-4.
D. Fuel Security System:
To provide better internal controls of purchases and sales of county fuel, a new software
called "TRACK" was purchased in October of 1995. This system was operational
beginning December 1995. The system records user purchases using a two-key system.
Each user has two fuel keys wherein one identifies the vehicle (vehicle key) and the other
identifies the user (personnel key). Before fuel can be pumped, the user must insert and
remove the vehicle key, enter the current odometer reading on the vehicle being serviced,
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and then insert and remove the personnel key. If the difference between the last
odometer reading and the current odometer reading is more than 300 miles, the system
will ask the user to enter the odometer reading again. The odometer readings appear on
the computer billing printout and are used to calculate miles per gallon.
All vehicle keys and personnel keys are requested and distributed through the
Coordinator/Superintendent. A request form is completed and signed by the Department
Head of the department receiving the keys. For a copy of this request form, see Exhibit
H-1. At least once a year a list of fuel keys is distributed to the departments. It is the
responsibility of the department's to review the list and inform the Coordinator/
! j Superintendent of any changes and/or discrepancies.
Each garage has a "master key" which can be used in place of the vehicle key and
personnel key and can be used by a mechanic only in unusual circumstances. Each fuel
site maintains a log which tracks all fuel pumped using the master key. Each morning
the computer system prints an exception report which lists all fuel pumped with the
master key the day before. The Coordinator/Superintendent calls the garage that used
the master key and verbally requests the information about the receiver of the fuel and
then bills the appropriate department.
All fuel tanks are kept locked. Only the mechanics have access to these keys.
E. Monthly Internal Billings:
The computer system "TRACK" records all fuel purchases and sales, and prepares the
monthly internal billing report by county agency. County agencies and other authorized
users are charged the per gallon cost of fuel plus $.16 per gallon for administration
overhead, operating cost, and capital improvements. This per gallon cost of fuel is
determined using a moving average and is recalculated after each purchase. The formula
is presented below. A separate charge per gallon is calculated for unleaded gasoline and
diesel.
Cost Per Gallon = cost of current inventory + total cost of purchase
(moving average) gallons in inventory + gallons purchased
Monthly internal billing reports are distributed to the county agencies and department
heads of other authorized users. Departments are responsible for reviewing the monthly
bill and informing the Coordinator/Superintendent of errors in the report. Before a
charge can be deleted from one department, another department must accept the charges.
The Coordinator/Superintendent is responsible for making all changes and corrections in
the computer system before a final printout is sent the Clerk of the Circuit Court's
Finance Department.
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F. Cost Compared to Local Fuel Stations:
The amount Fleet Management charges county agencies for fuel is substantially less than
that charged by Key West fuel stations. This charge, compared to Key West fuel
stations, is on the average $.314 per gallon less for 93 octane unleaded gasoline than
local fuel stations. This equates to an average annual savings of $37,580 to county
agencies and $57,508 to the Sheriff's Department. For an analysis of these savings, see
Exhibit D.
D. Department of Environmental Regulation:
The State Department of Environmental Regulation performs a routine inspection of each
fuel site once each contract year. Reinspections are also performed as needed. The state
inspectors check tanks for damage and leaks. They also review weekly and monthly
reconciliation reports prepared by Fleet Management. During the audit period the state
inspector uncovered only minor problems, all of which were promptly corrected by Fleet
Management.
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 Draft of Monroe County Fleet Management Department's policies and procedures's
manual does not address procedures for the monthly internal billing process, monitoring
of fuel purchases, and monitoring of fuel inventory.
C. The Monroe County Fleet Management Department should divide incompatible duties
currently performed by the Coordinator/Superintendent in order to provide proper
segregation of duties over the fuel activities.
D. There is no county-wide policy that provides assurance that appropriate personnel,
external to Fleet Management, properly review the monthly internal fuel billing report.
E. There is no county wide policy that provides assurance that fuel keys are returned and
deleted from the computer system the day an employee is separated. Such a policy is
necessary to ensure that county fuel is used by only authorized employees.
F. The Monroe County Fleet Management Department does not have procedures which
ensure that the weekly reconciliation of fuel inventory is reviewed and analyzed by
appropriate individuals. In addition, criteria should be set to determine when and how
inventory losses are to be investigated and documented.
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G. A monthly reconciliation of fuel inventory is prepared by the Coordinator/
�_- Superintendent and a similar report is prepared by the Finance Department. Procedures
should be established (a) which ensure that the two monthly reconciliation reports are
identical and (b) describe how information about investigation of discrepancies will be
shared between the two departments. In addition, monthly reconciliations should not
take the place of weekly reconciliations.
H. The Monroe County Fleet Management has inconsistent and inappropriate procedures
for monitoring fuel deliveries and there is no set criteria which is consistently followed
to determine when an investigation of a delivery is warranted. In addition, deliveries
r should be accepted by Dion Oil Company only when requested to reduce county time
spent on monitoring deliveries and processing invoices.
I. The county should research the option of converting to a lower octane level for
unleaded gasoline. Purchasing a lower octane level of fuel would save county agencies
between $4,500 to $12,000 per year, and the Sheriff's Department between $7,000 to
$18,000 per year.
J. The Monroe County Fleet Management Department does not test the fuel for proper
octane level and contaminates. Such a procedure should be performed on a periodic
basis.
K. The Monroe County Fleet Management Department lacks planning for known capital
replacements of fuel tanks. Proper planning for known projects should include
estimated cost to be incurred, fiscal year in which replacement will occur, source(s) of
funding, and departments and/or individuals responsible for the replacement.
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V. Audit Findings:
A. Fleet Management's 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. 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.
Auditee's Response(s):
The Public Works Director is presently reviewing the draft version of the Fleet
Management Policies and Procedures manual and will present it to the Administrator in
the near future. It had been hoped by this time that a designated County position would
be filled to assist these matters. That has taken longer than anticipated. However, the
Administration is working toward the completion of the policies.
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B. Incomplete Policies and Procedures:
Finding(s):
A draft of the Monroe County Fleet Management Polices and Procedures Manual, dated
October 1, 1995, does not address all major areas related to "Fuel Activities".
The manual addresses the following areas: location of fuel sites; how to operate the fuel
pumps using the fuel keys; procedures to receive fuel keys; and procedures for lost fuel
keys. The manual also states that each department should appoint a Fleet Management
liaison who is responsible for notifying Fleet Management of terminated employees.
The policies and procedures manual does not address procedures for the monthly internal
F
billing process, monitoring of fuel purchases, and monitoring of fuel inventory.
Recommendation(s):
1. Fleet Management's policies and procedures manual should include the areas addressed
- above and copies of the adopted manual should be distributed to appropriate persons as
soon as feasible.
Auditee's Response(s):
There will be a section added to the Fleet Management Policies and Procedures manual
explaining the monthly fuel billing process, monitoring the fuel purchases and monitoring
the fuel inventory. The filling of the established accounting position will be of great
assistance.
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C. Segregation of Duties for Fuel Activities:
Finding(s):
A review of work performed by the Coordinator/Superintendent reveals a lack of
segregation of duties over fuel activities. To ensure proper safeguard of county assets,
different employees should be assigned responsibilities for the initiation, authorization,
recording, and output of a transaction.
The Coordinator/Superintendent has the following responsibilities:
Fuel Keys: Makes, deletes, and distributes all fuel keys. A "Fuel Key Request Form",
signed by the Department Head, is required before new and lost fuel keys are made.
This form is not always required of Sheriff personnel. See Exhibit H-1 for a copy of the
form.
Master Key: Has access to the master key, as do all mechanics, and at times will use
the key to pump fuel for individuals who forget to bring their keys or have temporality
misplaced their keys. A master key log provides a list of all uses of the master key.
The log lists: date and time master key was used; vehicle number, department, and
driver receiving the fuel; fuel type; and the mechanic who used the key. The
Coordinator/ Superintendent makes all billing changes in the computer systems for users
of the master key.
Purchases Invoices: One mechanic at each fuel site is responsible for observing and
confirming fuel deliveries. The Coordinator/Superintendent approves fuel purchases and
enters the information into the computer system.
Monthly Internal Fuel Billing Report: Prepares the monthly internal fuel billing
report, makes changes as requested by the external reviewer (an individual from each
county agency who is responsible for reviewing the monthly report) , and prints and
reviews the final copy which is sent to the Finance Department.
Fleet Management's Monthly Internal Fuel Billing Report: Reviews Fleet
Management's monthly internal fuel billing report. The Director of Fleet Management
sometimes reviews the report.
Reconciliation Reports: Prepares the monthly fuel inventory reconciliation reports.
Reviews weekly fuel inventory reconciliation reports of pumps that have more than a 50
gallon loss in any given week. Also investigates potential fuel loss as requested by the
Finance Department.
Segregation of duties are necessary to ensure that incompatible functions are not performed
by one individual, such that any person is not in a position both to perpetrate and conceal
irregularities in the normal course of his/her duties. Segregation of duties is designed to
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ensure that one person cannot initiate, authorize and record a transaction and have sole
control over the output from that transactions.
To provide proper segregation of duties one employee should have the responsibility for
maintaining the computer system and approving purchase invoices. A different employee
should be used for distributing the monthly internal fuel billing report to county agencies
and making the appropriate changes as requested by the external reviewer. Neither of these
two employees should have access to the Master Key. A third individual, at the supervisory
level, should be responsible for reviewing Fleet Management's monthly internal fuel billing
report and analyzing the fuel inventory reconciliation reports.
Since there are only four office employees who operate Monroe County's Fleet
Management, providing for segregation of duties is more difficult. Therefore, personnel
external to Fleet Management should be used for authorization of fuel keys (see finding E)
and review of the monthly internal fuel billing report (see finding D).
In addition, the driver of a vehicle that receives fuel, with the master key, is not required
to sign for the purchase. Procedures requiring the receiver of fuel to sign for the purchase
provides evidence of authorization.
Recommendations:
1. The County Administrator should establish county wide policies and procedures for the
authorization of fuel keys and for external review of the monthly internal fuel billing
reports.
2. The Director of Fleet Management should divide the responsibilities currently performed
by the Coordinator/Superintendent and delegate them to three different employees to
achieve proper segregation of duties.
3. The master key log should include a column for the driver's signature, thus documenting
the authorization of the purchase.
Auditee's Response(s):
it There will be a section added to the Fleet Management Policies and Procedures manual
establishing County wide policies and procedures for authorization of fuel keys and for
external review of the monthly internal fuel bill reports. Action is presently being taken
to divide past/current administrative responsibilities performed by the Coordinator/
Superintendent. The master key log form has been changed to include a column for the
driver's signature and shall be added to the Fleet Management Policies and Procedures
manual.
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D. County Agencies Review of the Monthly Internal Fuel Billing Report:
Finding(s):
A review of policies and procedures, interviews of Fleet Management personnel, and
responses from our survey of county agencies concerning the monthly internal fuel billing
report reveals that county agencies' review procedures are lacking. The monthly internal
fuel billing report is sent to county agencies and not directly to individuals responsible for
reviewing the report (external reviewer), and county agencies are only required to inform
Fleet Management of errors in the report. In addition, our survey of departments about the
monthly internal fuel billing report reveals that county agencies complain that the report is
confusing and lacks information useful to the external reviewer.
The monthly internal fuel billing report lists vehicles being fueled, individuals fueling the
vehicles, odometer readings and calculates the average miles per gallon per vehicle. This
information, if properly reviewed by the appropriate person, can ensure that vehicles are
being used as intended and fuel purchases are appropriate. Also, a proper review of the
monthly internal fuel billing report by personnel employed outside Fleet Management would
provide stronger internal controls over fuel activities (see Finding C).
To ensure that the monthly internal fuel billing reports are reviewed appropriately, the
report should be sent directly to the external reviewer who is responsible for reviewing
procedures. Also, the external reviewer should provide written confirmation to Fleet
Management stating that the amount is correct and/or changes necessary. This confirmation
should occur even if no changes are needed. In addition, Fleet Management should ensure
that external reviewers fully understand their responsibility and that the information
provided to the external reviewers meets their needs.
Recommendations:
1. The County Administrator should require appropriate personnel to establish procedures
to ensure that the monthly internal fuel billing report is properly reviewed by individuals
responsible for reviewing procedures.
2. Fleet Management should provide training to the external reviewers to ensure that they
fully understand their responsibilities.
3. Fleet Management should inquire of the external reviewers as to information useful to
them and incorporate this into the monthly internal fuel billing report, if feasible.
Auditee's Response(s):
There will be a section added to the Fleet Management Policies and Procedures manual
mandating that monthly fuel billing reports are properly reviewed by Fleet Management
liaisons. Fleet Management will provide individual assistance to the Fleet Management
liaisons regarding monthly billing reports as well as other fleet related issues on an as
needed basis. Fleet Management will provide a memo to the Fleet Management liaison
in an effort to provide additional useful information into monthly fuel reports.
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E. Procedures for Returning Fuel Keys When Employees Leave County Employment:
Finding(s):
A comparison of a list of employees who have left county employment during the period
December 1995 through August 1996, per the Human Resource Department, to a list of
employees with personnel keys reveals that 36 employees with personnel keys have
separated and their personnel keys have not been deleted from the system. To safeguard
county assets, when an employee leaves county employment they should be required to turn
in their fuel keys to their supervisor and the keys should be deleted from the computer
system on their last day of employment.
Fleet Management's policies and procedures state the following:
"It is the responsibility of the Fleet Management Liaison to notify Fleet Management in writing
when an employee leaves county employment and to return the employee key associated with the
automated fuel system.
Personnel Section will send a list of departed employees to Fleet Management monthly, so their
personnel keys can be locked out. "
Discussions with the Director of Human Resources reveals that they have not been informed
about the policy; therefore, they have never sent a list of separated employees to Fleet
Management. The Director of Human Resources stated that beginning December 1996, this
list will be provided to Fleet Management on a regular basis.
The Coordinator/Superintendent sends a list of employees with vehicle keys to department
heads on a periodic basis. The last time the report was sent was October 15, 1996. A
memo is sent with the report asking that the list be reviewed for correctness and
completeness.
To ensure that the report is properly reviewed, the report should be sent directly to the
individual responsible for the review process. The reviewer should then be required to send
confirmation back to Fleet Management that the information has been properly reviewed and
provide a list of employees that should be deleted from the system. Fleet Management
should ensure that the reviewers understand their responsibility and that they understand the
report. A proper external review of authorized employees would also strengthen segregation
of duties. (See finding C)
Recommendations:
1. The County Administrator should develop a county-wide policy requiring Division
Directors to inform Fleet Management of separated employees with fuel keys so their
keys will be returned and deleted from the computer system the day the employee leaves
county employment.
2. The Director of Human Resources should send a list of separated employees to Fleet
Management on a regular basis so that personnel who have separated and have not
returned their keys can be locked out of the computer system.
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3. The County Administrator should require appropriate personnel to establish procedures
to ensure that the list of personnel fuel keys are properly reviewed by a designated
reviewer and the reports any discrepancies back to Fleet Management.
4. Fleet Management should provide training to ensure that designated reviewers fully
understand their responsibilities.
Auditee's Response(s):
1. There will be a section added to the Fleet Management Policies and Procedures manual
requiring Fleet Management liaisons to advise Fleet Management of separated employees
with fuel keys so their fuel keys can be locked out of electronic fuel system.
2. The manual already states that the Personnel section will provide a list of departed
employees so this can be implemented.
J j 3. The Fleet Management Policies and Procedures manual will reflect that monthly list of
personnel fuel keys are properly reviewed by Fleet Management liaison.
4. Appropriated training will be provided to all Fleet Management liaisons as well as
periodic update training as needed.
I
14
I
F. Weekly Reconciliation of Fuel Inventory:
1. Reconciliation Procedures:
Finding(s):
A review of the weekly reconciliation procedures for fuel inventory reveals that
reconciliations are performed; however, the information is not always analyzed and
discrepancies are not always investigated. Reconciliation procedures provide assurance that
county assets are being safeguarded and should include preparing, reviewing and analyzing
the reports. There should be written documentation of how discrepancies are resolved.
Also, criteria should be established to determine when a purchase invoice should be reduced
due to delivery inconsistencies.
Weekly reconciliations of fuel inventory are prepared by a designated mechanic at each fuel
site. These reconciliations are not reviewed and analyzed unless there is more than a 50
gallon discrepancy in a given week. Only occasionally are discrepancies investigated and
rarely are the investigations documented.
Our audit discovered that on August 29, 1996 the Key West fuel site received a delivery of
unleaded fuel which, upon comparing the purchase invoice to before and after dip readings,
revealed a potential loss on delivery of 72 gallons (1.6%) (see Exhibit F-1). The
reconciliation of unleaded gasoline at the Key West fuel site for the week of August 23 to
30 revealed a potential loss of 90 gallons (4.21%) (see Exhibit E-1). The weekly
reconciliation the following week revealed an additional loss which suggests the potential
loss on delivery on August 29,1996 may be an actual loss of fuel on delivery and not an
error in before and after dip readings. This discrepancy was never investigated by Fleet
Management even though their own weekly reconciliation report revealed more than a 50
it
gallon potential loss.
Our analysis of deliveries of unleaded gasoline at the Marathon fuel site revealed four
instances where the purchase invoices were more than 50 gallons less than the change in
before and after dip readings (see Exhibits F-2). However, the weekly reconciliations reveal
small gains or immaterial losses (see Exhibit E-1). A comparison of these two analyses
suggests that there were no actual losses on delivery. However, such an analysis to monitor
losses on delivery is not performed by Fleet Management.
We also analyzed diesel fuel deliveries for all three fuel sites. A comparison of the
purchase invoices to before and after dip readings reveals potential small losses on most
deliveries (see Exhibits F-3 and F-4). However, the weekly reconciliations of diesel reveal
gains for most weeks (see Exhibit E-2). A comparison of these two analyses suggest that
there were no actual losses on delivery. However, such an analysis to monitor losses on
delivery is not performed by Fleet Management.
15
Proper and regular review procedures of fuel deliveries would provide evidence that
deliveries are accurate. Such procedures also provide evidence of delivery inconsistences
to the vendor when payment reductions to a purchase invoice are appropriate.
Recommendations:
1. The Director of Fleet Management should establish procedures for weekly reconciliation
of fuel inventory. These procedures should include preparing, reviewing, and analyzing
discrepancies as well as when and how discrepancies are investigated and documented.
2. The Director of Fleet Management should required that weekly reconciliation of fuel
inventory be analyzed in conjunction with a report that compares purchase invoices to
before and after dip readings.
3. The Director of Fleet Management should establish criteria to determine when an
purchase invoice should be reduced to reflect delivery inconsistences.
Auditee's Response(s):
1. Fuel reconciliation procedures have already been established and are now being
documented weekly for all gasoline purchases.
2. There will be a section added to the Fleet Management Policies and Procedures manual
identifying these procedures. Already there have been corrections to the inconsistencies
on the weekly gasoline reconciliation procedures. Purchases are now based on gallons
delivered per purchase invoice. After the filling of the new accountant position, these
procedures will be refined even further.
16
j
2. Inconsistencies in Weekly Reconciliation Procedures:
Finding(s):
A review of the weekly fuel inventory reconciliation reports reveals that information to
determine weekly gains and/or losses is inconsistent. Sometimes purchases are based on
gallons delivered per purchase invoice and, at other times, purchases are based on the
difference between the before and after dip readings. For proper analysis, information used
should be consistent.
When preparing the weekly fuel inventory reconciliation report, purchases used should be
based on gallons billed by Dion Oil Company (purchase invoice). A separate comparison
of the purchase invoice to before and after dip readings should also be made. These two
separate analyses should be used together to monitor fuel gains and/or losses.
( Recommendations:
1. The Director of Fleet Management should establish procedures that ensure weekly
reconciliations are consistent and accurate.
i I
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I=_
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1
it
G. Monthly Reconciliation of Fuel Inventory:
Finding(s):
A review of the monthly reconciliation procedures for fuel inventory reveals that monthly
reconciliations are performed by both Fleet Management and the Finance Department.
However, the two reports do not always agree and each department does not use the
information from the other. Fleet Management uses the reconciliation report to monitor
gains/losses, however, such an analysis on a monthly basis is not timely.
Fleet Management prepares the monthly reconciliation report to determine "NET" gain/loss
of all six (6) tanks combined. No investigation is initiated unless the "NET" loss is
- excessive (usually more than 1%). However, since the loss could be due to inaccurate dip
readings, two (2) or more months of excessive "NET" losses can go by before Fleet
Management will investigate the cause. This procedure causes a large time lag before losses
are investigated.
A copy of the monthly reconciliation prepared by the Coordinator/Superintendent is sent to
the Accounting Specialist I in the Finance Department. The Accounting Specialist I
prepares her own reconciliation; one for the three (3) unleaded gasoline tanks and one for
the three (3) diesel tanks. The Accounting Specialist I does not always inform the
Coordinator/Superintendent of discrepancies found between the two reports.
There should be one monthly reconciliation report used by both Fleet Management and the
Finance Department. All losses considered material should be investigated, documented,
and the information should be shared by the two departments.
The monthly reconciliation should not take the place of weekly reconciliations. Weekly
reconciliation analyses provides a more timely basis for investigating and correcting
potential problems.
Recommendations:
1. The Director of Fleet Management and the Finance Director should decide on procedures
(a) which ensure that the two monthly reconciliation reports are identical in information
provided, and (b) describe how information about investigation of discrepancies will be
shared between the two departments.
2. The reconciliation to determine inventory loss should be performed on a pump by pump
basis and weekly.
Auditee's Response(s):
Weekly gasoline reconciliation reports were already performed by staff for each garage.
Once the accounting position has been filled, further documentation can be provided.
18
1
Finance Director's Response(s):
The Finance Director, will plan to meet with the Director of Fleet Management in order
to develop a process and procedure for monitoring pump-by-pump fuel inventory
discrepancies on a timely basis.
i
1
19
H. Fuel Deliveries:
1. Procedures for Monitoring Fuel Deliveries:
Finding(s):
A review of the policies and procedures, interviews with Fleet Management personnel, and
analysis of dip readings taken before and after deliveries reveals inconsistent and
inappropriate procedures for monitoring fuel deliveries. During the period March through
September 1996, we found tanks were not always dipped before and after each delivery
(e.g., Plantation Key fuel site - once for unleaded gasoline and twelve times for diesel, and
Marathon fuel site - once for unleaded gasoline).
The current Fleet Management policy states that tanks are to be dipped before and after each
delivery for unleaded gasoline but not for diesel. The justification is that unleaded gasoline
is purchased by the truck load with the quantity determined at Port Everglades; therefore,
dip readings are necessary to determine that the quantity of fuel delivered is proper. Diesel
is delivered by a metered tanker and the quantity delivered is determined at the county fuel
site; therefore, Fleet Management believes that the tanks do not need to be dipped before
and after each delivery.
On June 21, 1996 new procedures to monitor fuel deliveries were implemented. These
procedures require the mechanics to prepare a reconciliation the day before and the day after
each delivery to recheck the quantity of fuel delivered. This procedure takes more time
from the mechanics and is unnecessary. If the mechanics dip the tanks before and after
each delivery for both unleaded gasoline and diesel and then compare the results to the
weekly reconciliation this would provide evidence of proper deliveries. The information
would also be timely so that management can act on the results when necessary.
Recommendations:
1. The Director of Fleet Management should have a procedure where tanks are dipped
j before and after each delivery for both unleaded gasoline and diesel. The gain/loss from
the delivery should then be compared to the weekly reconciliation to determine if the
delivery was proper.
2. The Director of Fleet Management should establish criteria to determine when a fuel lost
should be investigated. If the loss can be linked to a purchase, the purchase invoice
should be reduced to reflect delivery inconsistencies.
Auditee's Response(s):
1. Garage staff are now required to prepare reconciliation the day before and the day after
each delivery to recheck the quantity of fuel delivered. Dipping tanks before and after
deliveries is not practical due to foaming and unsettling.
2. A section will be added to the Fleet Management Policies and Procedures manual
establishing criteria to determine when a fuel loss should be reduced to reflect delivery
inconsistencies and when a fuel loss should be investigated.
20
I '
2. Frequency of Fuel Deliveries:
Finding(s):
A review of fuel deliveries by site reveals that delivery of diesel fuel, at the Marathon and
Plantation Key fuel sites, are made more often than necessary. Each delivery requires a
mechanic to monitor the delivery process and dip the tanks before and after each delivery.
Then the purchase invoice is reviewed, the computer system is updated, delivery
reconciliations are prepared and reviewed, and the invoice is processed for payment. Fewer
deliveries decrease employees' time spent on fuel activities.
Dion Oil Company delivers fuel when requested by Fleet Management. However, since
diesel is delivered using a metered tanker and quantity delivered is determined at the fuel
site, they also make deliveries whenever they are in the area and have diesel fuel available.
The Marathon fuel site has a 2,000 gallon tank to hold diesel fuel. They average eight (8)
deliveries per month for an average of 633 gallons per delivery and they sell 59,759 gallons
per year for an average of 4,780 gallons per month. They could reduce the number of
deliveries to four (4) per month and still maintain proper inventory levels.
The Plantation Key fuel site has a 3,000 gallon tank to hold diesel fuel. They average four
(4) deliveries per month for an average of 908 gallons per delivery and they dispense 43,332
gallons per year for an average of 3,611 gallons per month. They could reduce the number
of deliveries to two (2) per month and still maintain proper inventory levels.
In October of 1996, Fleet Management verbally informed the Marathon fuel site that
deliveries will be accepted only when requested and fuel will be requested only when
necessary. This is a policy that should be applied to all fuel sites.
Recommendations:
1. The Director of Fleet Management should establish procedures for when and how
deliveries will be requested and only authorized deliveries should be accepted.
Auditee's Response(s):
The Director of Fleet Management will review existing procedures and establish a new
policy for when and how new deliveries are to be requested and accepted.
r
21
I. Cost Savings for Purchase of a Lower Grade of Unleaded Gasoline:
Finding(s):
A comparison of cost of 93 octane, currently purchased by Fleet Management, to 89 and
87 octane reveals the following annual savings: $4,548 to the county and $6,960 to the
sheriff's department if 89 octane is purchased and $11,968 to the county and $18,315 to the
sheriff's department if 87 octane is purchased instead of 93 octane (see Exhibit C).
Fleet Management claims that 93 octane is necessary for high performance vehicles (sheriff
vehicles) and reduces repairs on the county older vehicles. However, most sheriff vehicles
are Ford Crown Victorias and the vehicle manual states that only 87 octane is necessary.
Fleet Management stated that there are verbal agreements with the sheriff's department and
the school board to provide the 93 octane.
Our research of general periodicals found an article on the topic of premium versus regular
gasoline (Consumers' Research Magazine, March 1996). The article stated that only high
compression, high performance vehicles such as Corvettes and Jaguars require the high-
octane fuel. According to the American Automobile Association (AAA), just 5% of cars
on the road require premium. Also, premium fuel may actually cause the user to experience
a decrease in fuel economy since premium blends use alcohol to boost the octane value and
alcohol burns less efficiently than straight gasoline. If a vehicle is experiencing engine
knocking, the vehicle most likely needs a tune-up. Some older vehicles (10 year-old) might
start knocking and require a higher-test gasoline. Overall vehicles should use the octane
recommended by their vehicle manuals.
We also conducted a phone survey of 42 Florida Counties about the octane level they
purchase for their fleet. A summary of the number of counties that purchase a given octane
level and the reason for the octane level selected is shown below. For a more detailed
summary of the results and comments made by the various counties, see Exhibit H.
Octane level purchased:
Only 93 octane 7 (17%)
Only 89 octane 13 (31%)
Only 87 octane 17 (40%)
Both 93 and 89 octane 2 (5%)
Both 93 and 87 octane 2 (5%)
Both 89 and 87 octane 1 (2%)
42
Reason octane level was selected:
Cost savings 22 (52%)
Performance 7 (17%)
Cost savings and performance 13 (31%)
42
22
i I
Fleet Management was unable to produce any evidence to support the benefits of purchasing
93 octane. The option of purchasing two different tanks and pumps to accommodate two
different grades of unleaded gasoline would not be cost effective. Therefore, only one
grade of unleaded gasoline should be purchased.
Recommendations:
1. The County Administrator should have personnel comprehensively and objectively review
the information as to what octane of unleaded gasoline should be purchased for the best
cost/benefit to the County.
Auditee's Response(s):
All vehicles do not run properly on 87 or 89 octane and a tune up is not to fix engine
knocking caused by low octane fuel. With input from the main Purchasing Departments
(Sheriff, Roads, School Board), the Director of Fleet Management will provide
recommendations to the County Administrator and the Director of the Division of Public
Works concerning which octane of unleaded gasoline should be purchased by the County.
j._
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23
J. Testing Fuel for Octane Level and Contaminates:
Finding(s):
One of the audit procedures for this report was a collection of fuel samples from all six
tanks which were then sent to the State of Florida Department of Agriculture and Consumer
Services for analysis. This procedure revealed that the diesel in all three tanks meets the
requirements specified by the Florida Statutes for L.S. Diesel, and all three tanks of
unleaded gasoline meet the requirements specified by the Florida Statutes for 93 octane
gasoline. However, Fleet management had never, prior to this audit, had their fuel tested
to ensure that fuel delivered meets State requirements.
The State Department of Environmental Regulations inspects each fuel site every contract
year. This inspection does not include testing fuel for octane level and contaminates.
Therefore, to ensure that the fuel meets the specific State standards, Fleet Management
- should have their fuel tested on a periodic basis. The Florid Department of Agriculture and
Consumer Services performs this test as requested free of charge.
Recommendations:
1. The Director of Fleet Management should require that all six fuel tanks be tested on a
L periodic basis to ensure that the fuel purchased is the proper octane level and free of -
contaminates.
Auditee's Response(s):
There will be a section added to the Fleet Management Policies and Procedures manual
explaining the requirements for all six fuel tanks to be tested on a periodic basis to
ensure that the fuel purchased is the proper octane and free of contaminants.
24
K. Replacement of Fuel Tanks:
1. Replacement of the Six Tanks at the Fuel Sites:
Finding(s):
Interviews with Fleet Management personnel and a review of Fleet Management's financial
statements and budget reveal no plan for future capital replacements. However, by
December 31, 1998 two unleaded fuel tanks will need to be replaced at an estimated cost
of $145,100. These capital replacements have not been budgeted even though they have
known of these replacements since 1991.
The Depai intent of Environmental Protection (DEP) over the past few years has changed
standards for determining when fuel tanks must be replaced. The Coordinator/
Superintendent has attended several seminars concerning these standards and is currently in
the process of determining which tanks need to be replaced and when they will need to be
replaced. In his memo of October 22, 1996, the Coordinator/Superintendent estimated the
cost to comply with the DEP requirements at $230,800. This cost includes replacement of
two fuel tanks (the unleaded fuel tanks at Key West and Marathon fuel sites) and three
generator fuel tanks. The cost to replace the two fuel tanks is estimated at $145,100. This
cost could be increased to as much as $200,000 if contamination is found while replacing
the existing tanks.
Separate cost analysis should be prepared for the replacement of fuel tanks and generator
fuel tanks. The cost associated with the replacement of the fuel tanks should be paid by the
users of the fuel through an increase charge per gallon. A reserve account can be set up
to hold these funds until they become needed. If these cost are not collected through fuel
sales then the county would have to look for other funding sources.
Recommendations:
1. The County Administrator with the Division Director of Public Works and the Director
of Fleet Management together should plan for the replacement of fuel tanks and decide
the best way to pay for these capital replacements.
Auditee's Response(s):
The administration has been discussing for some time the need to replace fuel tanks
throughout the County. It has always been part of the discussion that the fuel tanks are
part of the garage facilities maintained by the Facilities Maintenance Department. In the
forthcoming fiscal year 1998 budget, it is anticipated that this issue will be addressed.
25
2. Replacement of Generator Fuel Tanks:
Finding(s):
Interviews with Fleet Management personnel and a review of Fleet Management's financial
statements and budget reveal no plan for the replacement of the generator fuel tanks.
However, by December 31, 1998 three generator fuel tanks will need to be replaced at an
estimated cost of$85,700. These capital replacements have not been budgeted even though
they have known of these replacements since 1991.
The Department of Environmental Protection (DEP) over the past few years has changed
standards for determining when fuel tanks must be replaced. The Coordinator/
Superintendent has attended several seminars concerning these standards and is currently in
the process of determining which generator fuel tanks need to be replaced and when they
will need to be replaced. In his memo of October 22, 1996, the Coordinator/Superintendent
estimated the cost to comply with the DEP requirement at $230,800. This cost includes the
replacement of two fuel tanks (the unleaded fuel tanks at Key West and Marathon fuel sites)
and three generator fuel tanks. The cost to replace the three generator fuel tanks is
estimated at $85,700. This cost could be increased to as much as $200,000 if contamination
is found while replacing the existing tanks.
Separate cost analysis should be prepared for the replacement of generator fuel tanks and
fuel tanks. An in-depth analysis needs to be researched to determine: (a) generator tanks
requiring replacement, (b) how these capital replacements will be paid and, (c) who will be
responsible to ensure that the work is performed. It has been suggested that Fleet
Management will provide all the labor; however, they are an Internal Service Fund and,
therefore, they should be reimbursed for their labor and overhead for this project.
Recommendations:
1. The County Administrator should appoint an appropriate person to address the issues
related to the replacement of generator fuel tanks.
Auditee's Response(s):
The administration has been discussing for some time the need to replace fuel tanks
throughout the County. It has always been part of the discussion that the fuel tanks are
part of the garage facilities maintained by the Facilities Maintenance Department. In the
forthcoming fiscal year 1998 budget, it is anticipated that this issue will be addressed.
26
I_[
VI. Exhibits
EXHIBIT A
Estimated Annual Gallons of Fuel Dispensed Per Fuel Site
UNLEADED GASOLINE - 93 Octane
(27.8%)
(35.9%)
,... - Key West
® Marathon
Im Plantation Key
(36.3%)
DIESEL
(13.4%)
(36.4%) e
mi Key West
Marathon
® Plantation Key 1
(50.2%)
Estimated Annual Gallons Dispensed per Fuel Site:
Unleaded Diesel
Key West 93,609 27.76% 15,928 13.38%
Marathon 122,438 36.31% 59,759 50.21%
Plantation Key 121,178 35.93% 43,332 36.41%
Total 337,225 100.00% 119,019 100.00%
EXHIBIT B - 1
Analysis of the Monthly Internal Fuel Billings
r UNLEADED GASOLINE- 93 Octane
20 ,.v`:
15 :t,n.c i
A is ltll'
0 .a 10
is '' '
Vl H ,
, I
5 ° 7
0 • of _ Z' i eA. F
Dec 1995 Jan 1996 Feb 1996 Mar 1996 Apr 1996 May 1996 June 1996 July 1996
- Total County Agencies ® Sheriff - Fla Hwy Patrol Egi MC School Board m Marine Patrol
Monthly Percent
Unleaded Dec 1995 Jan 1996 Feb 1996 Mar 1996 Apr 1996 May 1996 June 1996 July 1996 Average Used
Public Works $1,000.20 $1,306.50 $1,390.60 $1,439.70 $1,239.70 $1,370.40 $1,285.30 $1,482.20 $1,314.33 4.89%
Fire and Rescue 524.70 675.80 777.50 644.20 567.70 807.60 824.00 705.40 690.86 2.57%
Roads 2,088.60 2,137.70 2,107.60 1,808.20 1,913.50 2,220.80 2,186.10 1,820.20 2,035.34 7.57%
Growth Mgmt&Parks 1,443.40 1,650.60 1,752.70 1,758.40 1,995.00 2,092.30 1,798.10 2,186.80 1,834.66 6.83%
Environmental Mgmt 818.90 841.20 924.40 823.90 1,002.20 1,028.60 767.20 704.80 863.90 3.21%
Other County Agencies 1,750.30 2,249.20 2,384.40 2,683.40 2,349.60 2,417.50 2,017.50 2,183.60 2,254.44 8.39%
Elected Officials 480.60 387.40 578.80 553.50 502.10 669.30 582.80 609.30 545.48 2.03%
Total County Agencies 8,106.70 9,248.40 9,916.00 9,711.30 9,569.80 10,606.50 9,461.00 9,692.30 9,539.00 35.49%
Sheriff 13,286.50 14,529.10 14,074.40 14,969.60 14,443.70 16,680.70 14,197.20 14,607.50 14,598.59 54.31%
Fla Hwy Patrol 1,909.80 1,855.30 1,642.10 1,942.30 1,711.30 2,139.60 2,016.00 1,951.70 1,896.01 7.05%
MC School Board 223.60 557.00 496.20 531.00 622.60 659.60 508.30 356.00 494.29 1.84%
Marine Patrol 0.00 0.00 0.00 0.00 0.00 610.40 817.10 1,380.80 351.04 1.31%
Total $23,526.60 $26,189.80 $26,128.70 $27,154.20 $26,347.40 $30,696.80 $26,999.60 $27,988.30 $26,878.93 100.00%
EXHIBIT B - 2
Analysis of the Monthly Internal Fuel Billings
ri_ ws.• ��.��..M.•. ....• DIESEL_,.„.. �..- .... .�w.u.. .
10
rr;
S
r 1
1 6
A a m ! j
6 .0
F
I>_0 p
9 i & Viz,
,l
Dec 1995 Jan 1996 Feb 1996 Mar 1996 Apr 1996 May 1996 June 1996 July 1996
ow Total County Agencies rim Sheriff ® Fla Hwy Patrol ® MC School Board ® Marine Patrol a
Monthly Percent
Diesel Dec 1995 Jan 1996 Feb 1996 Mar 1996 - Apr 1996 May 1996 June 1996 July 1996 Average Used
Public Works $0.00 $0.00 $0.00 $0.00 $0.00 $14.80 $0.00 $0.00 $1.85 0.02%
Fire and Rescue 1,059.50 1,312.00 1,366.60 1,333.50 1,221.80 1,195.40 843.50 1,182.20 1,189.31 11.31%
Roads 3,409.00 5,269.90 4,516.00 4,438.70 4,197.00 3,253.30 3,864.20 4,558.10 4,188.28 39.82%
Growth Mgmt&Parks 0.00 11.50 2.60 4.70 7.40 0.00 18.20 0.00 5.55 0.05%
Environmental Mgmt 1,895.30 1,894.20 1,850.30 2,348.90 1,944.00 2,070.60 1,757.70 1,914.80 1,959.48 18.63%
Other County Agencies 172.30 215.00 239.80 229.90 244.70 293.00 235.90 226.00 232.08 2.21%
Elected Officials 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
Total County Agencies 6,536.10 8,702.60 7,975.30 8,355.70 7,614.90 6,827.10 6,719.50 7,881.10 7,576.54 72.03%
Sheriff 0.00 14.10 23.00 20.60 30.60 30.30 19.90 12.50 18.88 0.18%
Fla Hwy Patrol 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00%
MC School Board 2,146.90 3,784.70 3,218.90 3,586.10 2,841.00 3,908.20 2,270.30 1,444.60 2,900.09 27.57%
Marine Patrol 0.00 0.00 0.00 0.00 0.00 11.40 0.00 170.80 22.78 0.22%
Total $8,683.00 $12,501.40 $11,217.20 $11,962.40 $10,486.50 $10,777.00 $9,009.70 $9,509.00 $10,518.28 100.00%
EXHIBIT C
Comparison of Cost of 87, 89, and 93 Octane
and Cost Savings for Purchase of Lower Octane Fuel
Estimated Savings Per Gallon:
Estimated savings if 89 octane is purchase in place of 93 octane: $0.038
Estimated savings if 87 octane is purchase in place of 89 octane: 0.062
Estimated savings if 87 octane is purchase in place of 93 octane: $0.100
Allocation of Savings to County Fuel Site Users:
Estimated
Percent Annual Estimated Annual Savings
Used (1) Gallons $0.038 $0.062 $0.100
County Agencies 35.49% 119,681 $4,548 $7,420 $11,968
Sheriff 54.31% 183,147 6,960 11,355 18,315
Fla Hwy Patrol 7.05% 23,774 903 1,474 2,377
MC School Board 1.84% 6,205 236 385 621
Marine Patrol 1.31% 4,418 168 274 442
Total 100.00% 337,225 (2) $12,815 $20,908 $33,723
(1) Estimated percent of total gallons used as determined in Exhibit B.
1 (2) Estimated annual gallons as determined in Exhibit A.
EXHIBIT D
Comparison of Fleet Management Fuel Sites Verses Key West Fuel Stations
For Charges of Unleaded Gasoline - 93 Octane
I
Month Average Price Per Grade(1) Cost of 93 to Overhead Total Cost to Difference
87 89 93 County(2) Charge County Users
Dec-95 1.229 1.370 1.429 0.924 0.160 1.084 (0.345)
Jan-96 1.236 1.380 1.436 0.944 0.160 1.104 (0.332)
Feb-96 1.273 1.390 1.410 0.956 0.160 1.116 (0.294)
Mar-96 1.293 1.410 1.479 1.029 0.160 1.189 (0.290)
Apr-96 1.349 1.465 1.549 1.111 0.160 1.271 (0.278)
May-96 1.349 1.475 1.549 1.108 0.160 1.268 (0.281)
Jun-96 1.356 1.485 1.556 1.042 0.160 1.202 (0.354)
Jul-96 1.343 1.485 1.556 1.061 0.160 1.221 (0.335)
Average Cost 1.304 1.433 1.496 1.022 0.160 1.182 (0.314)
Estimated Annual Savings:
I
Gallons used per year (3) 337,225
County savings per gallon x 0.314
Est. Annual County Savings $105,889
Allocation of Savings to County Fuel Site Users:
I
Estimated
Percent Annual
Used (4) Savings
County Agencies 35.49% $37,580
Sheriff 54.31% 57,508
Fla Hwy Patrol 7.05% 7,465
MC School Board 1.84% 1,948
Marine Patrol 1.31% 1,387
Total 100.00% $105,888
(1) Average price is based on the average of four fuel stations all located in Key West.
- (2) Price is based on the average cost charge by Dion Oil Company.
(3) Estimated annual gallons as determined in Exhibit A.
(4) Estimated percent of total gallons used as determined in Exhibit B.
EXIIIBIT E-1
Weekly Analysis of Gallons of Unleaded Gasoline - 93 Octane by Fuel Site
"KEY WEST" FUEL SITE "MARATHON" FUEL SITE "PLANTATION KEY" FUEL SITE
For the Purchases Fuel Dispensed Weekly Fuel Purchases Fuel Dispensed Weekly Fuel Purchases Fuel Dispensed Weekly Fuel
Week Per Per Per Gain/Loss Per Per Per Gain/Loss _ Per Per Per Gain/Loss
Beginning Invoice Dipstick Pumps Gallons Percent Invoice Dipstick Pumps Gallons Percent Invoice Dipstick Pumps Gallons Percent
01-Mar-96 4,501 - 2,117 2,103 (14) -0.67% 4,400 2,299 2,317 18 0.78% 4,500 2,493 2,436 (57) -2.34%
08-Mar-96 0 1,701 1,711 10 • 0.58% 0 2,311 2,289 (22) -0.96% 0 2,123 2,073 (50) -2.41%
15-Mar-96 4,500 1,815 1,816 1 0.06% 4,500 2,524 2,425 (99) -4.08% 4,500 2,032 1,963 (69) -3.49%
22-Mar-96 0 1,680 1,678 (2) -0.12% 0 2,188 2,207 19 0.86% 0 2,237 2,250 13 0.57%
29-Mar-96 0 1,483 1,320 (163) -12.35% 4,500 1,772 1,813 41 2.26% 4,500 1,787 1,826 39 2.15%
04-Apr-96 4,500 1,672 1,836 164 8.93% 0 2,341 2,327 (14) -0.60% 0 2,528 2,444 (84) -3.43%
12-Apr-96 0 1,713 1,685 (28) -1.66% 4,499 2,483 2,448 (35) -1.43% 4,503 2,236 2,281 45 1.97%
19-Apr-96 4,500 1,735 1,751 16 0.91% 0 2,368 2,365 (3) -0.13% 0 2,252 2,233 (19) -0.85%
26-Apr-96 0 1,638 1,627 (11) -0.68% 4,500 2,440 2,427 (13) -0.54% 4,500 2,227 2,241 14 0.62%
03-May-96 0 2,229 2,196 (33) -1.50% 0 2,605 2,633 28 1.06% 0 2,388 2,404 16 0.67%
10-Mayr96 4,500 1,900 1,957 57 2.91% 4,501 2,507 2,459 (48) -1.95% 4,487 2,447 2,475 28 1.14%
17-May-96 0 1,909 1,878 (31) -1.65% 0 2,458 2,472 14 0.57% 0 2,676 2,616 (60) -2.31%
24-May-96 4,499 1,577 1,615 38 2.35% 4,500 2,228 2,228 0 0.00% 4,500 2,375 2,413 38 1.57%
31-May-96 0 1,999 1,995 (4) -0.20% 0 2,326 2,311 (15) -0.65% 0 2,472 2,468 (4) -0.16%
07-Jun-96 0 1,877 1,844 (33) -1.79% 4,300 2,641 2,633 (8) -0.30% 4,201 2,088 2,099 11 0.52%
14-Jun-96 4,501 1,658 1,707 49 2.87% 0 2,552 2,536 (16) -0.63% 0 1,998 1,939 (59) -3.04%
21-Jun-96 0 1,770 1,743 (27) -1.55% 4,501 2,280 2,319 39 1.68% 4,505 2,455 2,473 18 0.73%
28-Jun-96 0- 1,540 1,501 (39) -2.60% 0 2,065 2,048 (17) -0.83% 0 2,193 2,149 (44) -2.05%
05-Jul-96 5,900 1,745 1,826 81 4.44% 5,301 2,441 2,407 (34) -1.41% 5,601 2,329 2,407 78 3.24%
12-Jul-96 0 1,681 1,683 2 0.12% 0 2,496 2,474 (22) -0.89% 0 2,033 1,975 (58) -2.94%
19-Jul-96 3,500 1,766 1,802 36 2.00% 4,500 2,240 2,258 18 0.80% 4,503. 2,065 2,094 29 1.38%
26-Jul-96 0 1,760 1,715 (45) -2.62% 0 2,659 2,632 (27) -1.03% 0 2,214 2,176 (38) -1.75%
• 02-Aug-96 0 1,862 1,821 (41) -2.25% 4,500 . 2,278 2,319 41 1.77% 0 2,355 2,360 5 0.2.1%
09-Aug-96 4,501 1,733 1,785 52 2.91% 0 2,257 2,215 (42) -1.90% 4,501 2,258 2,277 19 0.85%
16-Aug-96 0 1,800 1,774 (26) -1.47% 4,499 2,277 2,305 28 1.21% 4,501 2,119 2,161 42 1.93%
23-Aug-96 4,499 2,229 2,139 (90) -4.21% 0 2,635 2,566 (69) -2.69% . 0 2,636 2,640 4 0.15%
30-Aug-96 0 1,807 1,796 (11) -0.61% 4,401 2,064 2,127 63 2.96% 4,501 3,224 3,223 (1) -0.03%
06-Sep-96 4,400 1,801 1,818 17 0.94% 4,501 2,479 2,495 16 0.64% 2,902 2,482 2,442 (40) -1.64%
13-Sep-96 0 2,363 2,353 (10) -0.42% 0 2,181 2,175 (6) -0.28% 0 2,823 2,788 (35) -1.26%
20-Sep-96 0 1,403 1,382 (21) -1.52% 0 2,246 2,214 (32) -1.45% 4,401 2,363 2,392 29 1.21%
Total 54.301 53.963 43,857 11061 -0.20% 67,903 70,641 70,444 an. -0.28% 71,106 69,908 69,719 (189) -0.27%
Monthly
Average Z,8.6s 7 816 Z._0 (15) -0.20% 9,835 10,7'1'7 10.203 (29) -0.28% 10,299 10.126 10.098 (27) -0.27%
Estimated
Annual 94,380 93,793 93,609 (184) -0.20% 118,02,2 122,781 122,438 (342) -0.28% 123,589 121.507 121,178 (329), -0.27%
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EXHIBIT F-3
Comparison of Gallons of Diesel Purchased to Dip Readings
.
Key West (2,000 gallon tank)
Purchases Purchases Per Purchase
Delivery ' Per Per Dip Gain/(Loss)
Date Invoice Readings Gal %
12-Mar-96 1,439 1,389 (50) -3.47%
16-Apr-96 1,494 1,494 0 0.00%
15-May-96 1,300 1,286 (14) -1.08%
18-Jun-96 1,495 1,458 (37) -2.47%
09-Jul-96 800 788 (12) -1.50%
13-Aug-96 1,512 1,500 (12) -0.79%
12-Sep-96 1,210 1,196 (14) -1.16%
Total 9,250 9,111 (139) -1.50%
Average Per
Delivery 1,321 1,302 (20)
Plantation Key (3,000 gallon tank
Purchases Purchases Per Purchase
Delivery Per Per Dip Gain/(Loss)
Date Invoice Readings Gal %
13-Mar-96 1,560 1,561 1 0.06%
27-Mar-96 1,509 1,478 (31) -2.05%
01-Apr-96 1,578 1,566 (12) -0.76%
08-Apr-96 554 558 4 0.72%
17-Apr-96 931 925 (6) -0.64%
26-Apr-96 1,280 1,303 23 1.80%
30-Apr-96 169 164 (5) -2.96%
09-May-96 1,000 982 (18) -1.80%
14-May-96 546 526 (20) -3.66%
20-May-96 1,440 1,421 (19) -1.32%
31-May-96 1,438 1,411 (27) -1.88%
06-Jun-96 770 777 7 0.91%
11-Jun-96 770 789 19 2.47%
19-Jun-96 775 773 (2) -0.26%
24-Jun-96 353 272 (81) -22.95%
02-Jul-96 1,001 no before and after reading
08-Jul-96 606 no before and after reading
16-Jul-96 1,004 no before and after reading
24-Jul-96 600 no before and after reading
08-Aug-96 885 no before and after reading
- 13-Aug-96 772 no before and after reading •
14-Aug-96 700 no before and after reading
23-Aug-96 656 no before and after reading
27-Aug-96 630 no before and after reading
30-Aug-96 881 891 101 1.14%
10-Sep-96 959 no before and after reading
13-Sep-96 765 no before and after reading
24-Sep-96 296 264 (32) -10.81%
30-Sep-96 1,898 no before and after reading
Total 26,326 15,661 (189) -0.72%
Average Per
Delivery 908 921 (11)
I ,
i I
EXHIBIT F-4 •
Comparison of Gallons of Diesel Purchased to Dip Readings
Marathon (2,000 gallon tank)
Purchases Purchases Per Purchase
Delivery Per Per Dip Gain/(Loss)
Date 'Invoice Readings Gal %
06-Mar-96 966 • 957 (9) -0.93%
08-Mar-96 775 691 (84) -10.84%
12-Mar-96 597 598 1 0.17%
15-Mar-96 775 772 (3) -0.39%
16-Mar-96 776 758 (18) -2.32%
22-Mar-96 1,000 968 (32) -3.20%
26-Mar-96 959 910 (49) -5.11%
01-Apr-96 1,237 1,165 (72) -5.82%
10-Apr-96 1,517 1,499 (18). -1.19%
13-Apr-96 1,084 977 (107) -9.87%
20-Apr-96 708 710 2 0.28%
24-Apr-96 1,162 1,077 8 -7.31%
26-Apr-96 747 728 19 -2.54
03-May-96 ' 708 653 55 -7.77%
07-May-96 1,100 1,080 20) -1.82%
10-May-96 870 801 (69) -7.93%
14-May-96 615 611 (4) -0.65%
17-May-96 500 497 (3) -0.60%
21-May-96 558 554 (4) -0.72%
24-May-96 655 631 (24) -3.66%
28-May-96 325 308 (17) -5.23%
31-May-96 847 810 (37) -4.37%
04-Jun-96 181 171 (10) -5.52%
07-Jun-96 1,000 988 (12) -1.20%
11-Jun-96 485 455 (30) - .19%
14-Jun-96 885 868 (17) -1.92%
19-Jun-96 514 497 (17) -3.31%
21-Jun-96 440 429 (11) -2.50%
25-Jun-96 200 197 (3) -1.50%
28-Jun-96 440 429 (11) -2.50%
02-Jul-96 270 260 (10) -3.70%
05-Jul-96 304 294 (10) -3.29%
09-Jul-96 725 725 0 0.00%
12-Jul-96 800 779 (21) -2.63%
16-Jul-96 625 592 (33) -5.28%
19-Jul-96 625 611 14) -2.24%
23-1u1-96 250 234 16) -6.40%
26-Jul-96 548 533 15) -2.74
30-Jul-96 355 343 (12) -3.38%
06-Aug-96 553 530 (23) -4.16%
09-Aug-96 330 314 (16) -4.85%
13-Aug-96 280 268 (12) -4.29%
16-Aug-96 330 314 (16) -4.85%
20-Aug-96 235 222 (13) -5.53%
23-Aug-96 400 383
27-Aug-96 647 607 (17)40 -6.18%
30-Aug-96 615 589 (26) -4.23%
03-Sep-96 291 268 (23) -7.90%
06-Sep-96 767 732 (35) -4.56%
10-Sep-96 414 375 (39) -9.42%
13-Sep-96 431 409 (22) -5.10%
17-Sep-96 646 607 (39) -6.04%
20-Sep-96 620 607 (13) -2.10%
24-Sep-96 611 597 (14) -2.29%
27-Sep-96 510 496 (14) -2.75%
Total 34,808 33,478 (1,330) -3.82%
Average Per
Delivery 633 609 (24)
EXHIBIT G
PHONE SURVEY OF FLORIDA COUNTIES
Octane Level at County Fuel Sites
•
County Octane Level Co.Fuels Sheriff Use Grade For Comments
92/93 89 87 Yes No Cost Savings Performance
Alachua x x x Notes manufacturers recommend reg.unleaded
Bay x x x Changed from 93 octane to save$40,000 per yr.
Brevard x x x x Changed from 87&93 to 89 for all,saving money
Broward x x x Use 87 with cleansing properties
Calhoun x x x Sheriff vehicles only,no county internal cars
Charlotte x x x Only"pursuit"vehicles use 93 octane
1 Citrus x x x x Prefer midgrade,same results as high but cheaper
Clay x x x x Changed from 93 with no complaints
FAFM*recommends low to mid for 5 yr.old cars
Collier x x x Use midgrade to help clean fuel injectors
Columbia x x x x Changed from 87 to 89 for sheriff vehicles
Dade x x x Only motorcycles use 93,over 8000 vehicles in fleet
DeSoto x x x Use midgrade and do not fuel sheriff
Dixie x x x Use low grade for all users
Changed from 89 to 87 with no complaints,except sheriff
Duval x x x vehicles who get 93 at commercial stations
Escambia x x x x x Only police use high grade
Flagler x x x x x Rotate grades purchased each month to mix
Highly recommends 93,says 87 was not worth
Gadsden x x x cost savings due to poor performance
Hendry x x x Changed to high octane for better performance
Hernando x x x x Operator chooses the level on which vehicle runs best
Highlands x x x Recommends 93 for better performance on all vehicles
Hillsborough x x x Have always used low grade
Holmes x x x Purchase midgrade fuel from service stations
Indian River x x x Believe tune up&plug lives extended through prem.fuel
Jackson x x x x x County uses midgrade,the 93 is for sheriff vehicles
Lake x x x Changed from 89 to 87,do not fuel sheriff
Lee x x x x Changed from 87 to 89 due to complaints of poor perf.
Changed from 93(to save$)to 87,received complaints
Leon x x x x with 87 so changed to 89 with no complaints
Levy x x x Purchase 93 for county only,sheriff buys off the street
Manatee x x x x x Converting to 89 in 3 yrs.,93 for sheriff&pursuit only
Nassau x x x No problems with low grade
Okaloosa x x x Purchase least expensive unleaded fuel via bid
Changed from 87 to 89 for sheriff vehicles,purchase 89
Orange x x x x as long as cost is$.02 above 87,if over then get 87
Osceola x x x No problems with low grade,do not fuel sheriff
Palm Beach x x x Recommends 87,any higher is wasting money
Pasco x x x No problems with low grade
Pinellas x x x No problems with low grade,do not fuel sheriff
Polk x x x Use 87 for internal and 15 other agencies,no problems
Sarasota x x x Converting to 87,75%of sheriff vehicles use propane
' Seminole x x x Purchase midgrade,better performance for price
St.John's x x x Purchase high,old fleet vehicles&sheriff run better
St.Lucie x x x x Purchase midgrade,better performance for price
Sumter x x x x Purchase midgrade,better performance for price
Total 11 16 20 34 8 35 20 *Florida Association of Fleet Managers
EXHIBIT H-1
Fuel Key Request Form
.
FLEET MANAGEMENT SERVICES
FUEL KEY(S) REQUEST
REQUESTING EMPLOYEE'S NAME:
•
DIVISION: DEPARTMENT:.
}__ PHONE NUMBER: DATE:
NEW PERSONNEL INFORMATION
AUTHORIZED EMPLOYEE'S NAME:
Last First Initial
WORK LOCATION:
KEY WEST • MARATHON PLANTATION KEY
NEW VEHICLE INFORMATION
COUNTY UNIT NUMBER:
( DEPARTMENT TO BE BILLED:
ACCOUNT NO. KEYS TO BE CHARGED TO:
ACCOUNT NO. FUEL TO BE CHARGED TO:
FUEL TYPE REQUIRED: GASOLINE DIESEL
ii •
DEPT.HEAD SIGNATURE DATE:
Fb18 Form 6.9.11,95
I
I I ,
EXHIBIT H-2
Daily Fuel Dip Readings (All Fuel Sites)
i
DAILY FUEL READINGS (Key West)
DATE Time GAS(in.) #1 Pump #2 Pump Diesel(in.) #3 Pump
•
•
DIESEL FUEL DELIVERIES
DATE TIME TRUCK METER DIP START PUMP METER i INVOICE INIT.
START END INCHES GALLONS GALLONS
UNLEADED GASOLINE DELIVERIES 1
DATE TIME •START DIP END DIP CALCULATE) INVOICE I INIT.
INCHES GALLONS I INCHESIGALLONS GALLONS GALLONS
•
- •
FMS Form 7a,)0/22/96
•EXHIBIT H-3
Weekly Reconciliation Report (Marathon and Plantation Key Fuel Sites)
•
WEEKLY.FUEL RECONCILIATION REPORT(Marathon & PK)_
DATE: TO
(LAST FRIDAY,0800 TO THIS FRIDAY, 0800)
GASOLINE TANK
DIPSTICK READINGS METER READINGS
LAST FRIDAY GAS LAST FRIDAYS
DIPSTICK READING Inches = Gallons METER READING Gallons
CURRENT GAS CURRENT MINUS
DIPSTICK READING Inches = Gallons METER READING Gallons
DIFFERENCE Gallons
GAS DELIVERED
IN PAST WEEK Gallons
TOTAL GAS USED TOTAL GAS USED
(Add"DIFFERENCE" and "GAS (Subtract last
- DELIVERED") Gallons Friday's meter Gallons
reading from current)
TOTAL GAIN/LOSS GALLONS
(Difference between TOTAL GAS USED from dipstick readings and meter readings)
•
DIESEL FUEL TANK
DIPSTICK READINGS METER READINGS
LAST FRIDAY DIESEL LAST FRIDAYS
DIPSTICK READING Inches = Gallons METER READING Gallons
CURRENT DIESEL CURRENT MINUS
DIPSTICK READING Inches = Gallons METER READING Gallons
DIFFERENCE Gallons
DIESEL DELIVERED
IN PAST WEEK Gallons
TOTAL DIESEL USED TOTAL DIESEL USED
(Add"DIFFERENCE"and (Subtract last
"DIESEL DELIVERED") Gallons Friday's meter Gallons
reading from current)
TOTAL GAIN/LOSS GALLONS
(Difference between TOTAL DIESEL USED from dipstick readings and meter readings)
MS Form I7a 9.'13.9$
WEEKLY FUEL RECONCILIATION REPORT(Key West)
DATE: TO -
(LAST FRIDAY, 0800 TO THIS FRIDAY,0800) '
GASOUNE TANK '
DIPSTICK READINGS PUMP 1 METER READINGS PUMP 2 METER READINGS
LAST FRIDAY GAS LAST FRIDAYS LAST FRIDAY'S
DIPSTICK READING Inches= Gallons METER READING Gallons METER READING Gallons
CURRENT GAS CURRENT CURRENT 4
- DIPSTICK READING Inches= Gallons METER READING . Gallons METER READING Gallons a
DIFFERENCE Gallons TOTAL GAS USED PUMP 1 TOTAL GAS USED PUMP 2 `c
(Subtract last (Subtract last 4
GAS DELIVERED Fridayr'smeter Gallons Friday'smeter Gallons C
IN PAST WEEK Gallons reading from current) reading from current) • A
TOTAL GAS USED TOTAL GAS USED -
PT til
(Add Difference and Gas Add Pump 1 Total C
' delivered) Gallons to Pump 2 Total Gallons a
XI
el) MI
i Imo
TOTAL GAIN/LOSS GALLONS „,o
(Difference between total gallons used from dipstick readings and meter readings)
x
A DIESEL FUEL TANK te'' ,' ,
tc
DIPSTICK READINGS METER READINGS
LAST FRIDAY DIESEL LAST FRIDAYS y
DIPSTICK READING Inches= Gallons METER READING Gallons -
CURRENT DIESEL CURRENT CD
DIPSTICK READING Inches= Gallons METER READING Gallons
-.
DIFFERENCE Gallons m
DIESEL DELIVERED
IN PAST WEEK Gallons
TOTAL DIESEL USED TOTAL DIESEL USED
(Add"Difference"and"Diesel (Subtract last
Delivered") Gallons Friday's meter Gallons
reading from current)
'TOTAL GAIN/LOSS GALLONS
(Difference between total gallons used from dipstick readings and meter readings) Fla rum 17 •+
VII. Auditee Responses
- r
•
Fiji r ,BOARD OF COUNTY COMMISSIONERS
' _..- n ^�r� MAYOR Keith Douglass, District 4
' O U N TY o M O N RO E �, -.. Itf!' Mayor Pro tern Jack London, District 2
KEY WEST FLORIDA 33040 ..•j` .,ir.. �' Shirley Freeman, District 3
(305)294.4641 ...4 . r . .n `�'•
zr ei• /..41. �' � Wilhelmina Harvey, District I
"" 1•:ti Mary Kay Reich, District 5
ijOr I
t' :.
r— s. II Y�YJJf�.t. �s.• ��
•
, 1 .
, I 4
III II
MEMORANDUM
TO: Danny Kolhage
Clerk of the .Court
FROM: James L. Roberts
County Administrator
SUBJECT: Response to Preliminary Audit Report/Fleet
Management Fuel Activities
_I .
DATE: February 20, 1997
I ;
The Administration has reviewed the audit report
' '1 identified above and prepared responses . Below are the
responses to Section V with the various subsections identi-
fied.
A. Fleet Management Policies and Procedures Manual
The Public Works Director is presently reviewing
- the draft version of the Fleet Management Poli-
cies and Procedures manual and will present it to
the Administrator in the near future. It had
been hoped by this time that a designated County
position would be filled to assist these mat-
ters . That has taken longer than anticipated.
I ! ' However, the Administration is working toward the
completion of the policies .
II B. Incomplete Policies and Procedures
I • There will be a section added to the Fleet Manage-
I , ment Policies and Procedures manual explaining
the monthly fuel billing process, monitoring the
fuel purchases and monitoring the fuel invento-
ry. The filling of the established accounting
position will be of great assistance.
,
•
I
I
C. Segregation of Duties for Fuel Activities
i There will be a section added to the Fleet Manage-
i__H ment Policies and Procedures manual establishing
County wide policies and procedures for authoriza-
-- tion of fuel keys and for external review of the
monthly internal fuel bill reports . Action is
presently being taken to divide past/current
administrative responsibilities performed by the
II Coordinator/Superintendent . The master key log
'! form has been changed to include a column for the
driver ' s signature and shall be added to the
ri Fleet Management Policies and Procedures manual .
ii
D. County Agencies Review of the Monthly Internal
Fuel Billing Report
There will be a section to the Fleet Management
Policies and Procedures manual mandating that
monthly fuel billing reports are properly re-
viewed by Fleet Management liaisons . Fleet Man-
agement will provide individual assistance to the
Fleet Management liaisons regarding monthly bill-
! ing reports as well as other fleet related issues
- on an as needed basis . Fleet Management will
provide a memo to the Fleet Management liaison in
an effort to provide additional useful informa-
tion into monthly fuel reports .
E . Procedures for Returning Fuel Keys When Employees
Leave County Employment
1 . There will be a section added to the Fleet
Management Policies and Procedures manual
requiring Fleet Management liaisons to ad-
vise Fleet Management of separated employees
with fuel keys so their fuel keys can be
locked out of electronic fuel system.
2 . The manual already states that the Personnel
section will provide a list of departed
employees so this can be implemented.
3 . The Fleet Management Policies and Procedures
manual will reflect that monthly list of
personnel fuel keys are properly reviewed by
Fleet Management liaison.
4 . Appropriate training will be provided to all
Fleet Management liaisons as well as period-
! is update training as needed.
F. Weekly Reconciliation of Fuel Inventory
1 . Fuel reconciliation procedures have already
been established and are now being document-
ed weekly for all gasoline purchases .
2 . There will be a section added to the Fleet
Management Policies and Procedures manual
identifying these procedures . Already there
have been corrections to the inconsistencies
on the weekly gasoline reconciliation proce-
dures . Purchases are now based on gallons
delivered per purchase invoice. After the
• filling of the new accountant position,
these procedures will be refined even fur-
ther.
G. Monthly Reconciliation of Fuel Inventory
Weekly gasoline reconciliation reports were al-
ready performed by staff from each garage . Once
the accounting position has been filled, further
documentation can be provided.
H. Fuel Deliveries
1 . Garage staff are now required to prepare
reconciliation the day before and the day
after each delivery to recheck the quantity
of fuel delivered. Dipping tanks before and
after deliveries is not practical due to
foaming and unsettling.
2 . A section will be added to the Fleet Manage-
ment Policies and Procedures manual estab-
lishing criteria to determine when a fuel
loss should be reduced to reflect delivery
inconsistencies and when a fuel loss should
be investigated.
Frequency of Fuel Deliveries
The Director of Fleet Management will review
existing procedures and establish a new policy
for when and how new deliveries are to be request-
ed and accepted.
1 ,
I �
i I
I . Cost Savings for Purchase of a Lower Grade of
Unleaded Gasoline
All vehicles do not run properly on 87 or 89
octane and a tune up is not to fix engine knock-
ing caused by low octane fuel . With input from
the main Purchasing Departments ( Sheriff, Roads ,
! i School Board) , the Director of Fleet Management
will provide recommendations to the County Admin-
istrator and the Director of the Division of
Public Works concerning which octane of unleaded
gasoline should be purchased by the County.
J. Testing Fuel for Octane Level and Contaminants
There will be a section added to the Fleet Manage-
- ment Policies and Procedures manual explaining
the requirements for all six fuel tanks to be
tested on a periodic basis to ensure that the
fuel purchased is the proper octane and free of
contaminants .
K. Replacement of Fuel Tanks
The administration has been discussing for some
time the need to replace fuel tanks throughout
the County. It has always been part of the dis-
cussion that the fuel tanks are part of the ga-
rage facilities maintained by the Facilities
Maintenance Department. In the forthcoming fis-
cal year 1998 budget, it is anticipated that this
issue will be addressed.
The above is true also for fuel tanks that sup-
port the generators throughout the County.
If additional information is required in response to
the draft audit, please let me know and it will be supplied .
County Administrator
cc: Jim Hendrick
bGOUNTy
.0µy
a r.
fo; I r,••
. ti.
-
.713annp IL. 1oU 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
MEMORANDUM
TO: Danny L. Kolhage
Clerk of the Circuit Court
FROM: Sandra Carlile [�C/
Finance Director -
SUBJECT: Response to Item G in Audit Findings
DATE: February 26, 1997
This memorandum is in response to Item G under Audit Findings in the Audit Report of
Monroe County Fleet Management Fuel Activities prepared by the Internal Audit
Department.
"G. Monthly Reconciliation of Fuel Inventory:"
Auditee's Response:
I, the Finance Director, will plan to meet with the Director of Fleet Management in
order to develop a process and procedure for monitoring pump-by-pump fuel inventory
discrepancies on a timely basis.