Audit Guidance

State University of New York
Office of the University Auditor
Audit Guidance
Campus Vehicles, Fuel Inventory and Usage, and Gasoline Credit Cards
February 1, 2010

This guidance is being provided to help ensure campuses have adequate controls over Campus Vehicles, Fuel Inventory and Usage, and Gasoline Credit Cards. The guidance was developed based on our recently conducted audits.

Management of Campus Vehicles

• Written Policies and Procedures – Campuses should develop a comprehensive vehicle management policy. These policies and procedures should address vehicle acquisition, assignment and use, disposal, and recordkeeping requirements. The policy should also address allowable usage, replacement criteria, minimum use criteria, assignment of vehicles, vehicle acquisition, maintenance, fuel efficiency maximization, risk management, and fraud prevention. Finally, the policy should clearly state the following:
  
  • Operation of State vehicles must be in full compliance with all New York State laws;
  • All eligible drivers must be employees of New York State or other authorized personnel, and have a valid driver's license;
  • Smoking in State vehicles is prohibited;
  •  Driving under the influence of drugs or alcohol is prohibited;
  •  Possession or use of alcohol, illegal drugs, or other intoxicating substances in the vehicle is strictly forbidden; and
  • Use of cellular phones without a hands-free cellular adaptor is prohibited.
• Motor Vehicle Inventory – Campuses are required to record and document the acquisition and disposal of vehicles. Campuses should maintain detailed asset records that include a description of the asset, the make, model, serial number, date of purchase, original cost, and physical location. When inventory records are maintained by the Facilities Department, the Campus should periodically review and reconcile the facilities inventory listing to the Property Control System (PCS) to ensure that both inventory listings are complete and accurate.
• Motor Vehicle Service Records – Campuses should maintain service records for each vehicle. The records should include recommended maintenance and service intervals, active service and repair records and costs, and mileage logs. Computer software that records and maintains the service records for each vehicle could facilitate the record keeping.
• Motor Vehicle Mileage Logs – Campuses should maintain mileage logs for each vehicle to help ensure they are used for business related purposes, identify vehicles that are underutilized, and assist with the maintenance schedule. Mileage logs should be reviewed and approved on a monthly basis by an appropriate supervisor.
• Driver Qualifications – Campuses should have policies and procedures to verify operators of campus vehicles have and maintain a valid driver’s license and, where applicable, have the appropriate specialized driver’s license to operate certain vehicles such as buses, vans, and trucks. Campuses should participate in the New York State Department of Motor Vehicles License Event Notification (LENS) program, which allows a campus to verify driver’s license information and to be notified of any motor vehicle convictions and changes to an employee’s license.
• Physical Security of Motor Vehicles and Vehicle Keys – Campuses should ensure the physical security of vehicles and keys to help prevent unauthorized and inappropriate use of campus vehicles. Vehicle keys should be kept locked in a secure location when vehicles are not in use.

Fuel Inventory and Usage

• Written Policies and Procedures – Campuses should develop policies and procedures for fuel inventories and usage to prevent mishandling and safeguard against loss. These policies and procedures should prescribe general responsibilities for the fuel management system, fuel reconciliation and inventory records, and physical security and inspection of Campus fuel tanks. The policies and procedures should clearly state that personal use of campus fuel is prohibited.
• Fuel Management System - Campuses should maintain detail records of fuel usage to help ensure that gasoline is only used for an appropriate business purposes. Campuses should utilize a computerized fuel management system that restricts access to fuel pumps by requiring the use of a plastic key and electronically capturing pertinent information such as the vehicle being fueled, odometer reading, and number of gallons of gasoline pumped. The information captured should be used to analyze fuel usage.
• Fuel Inventory Reconciliation - Campuses should periodically reconcile fuel on hand to fuel inventory records, beginning balances, invoices (purchases), and actual usage to ensure that all fuel purchases and usage are properly recorded.
• Physical Security and Inspection of Fuel Tanks - Campuses should ensure gasoline storage tanks are properly safeguarded to prevent misuse. Safeguards over fuel tanks include physical barriers, lighting, location, video surveillance, patrols by University Police, presence of employees during business and non-business hours, and restricting authorization to certain campus personnel through the use of cards or keys. Campuses should also address any inspection requirements.

Gasoline Credit Cards

• Use of Credit Cards - Campuses should consider utilizing gasoline credit cards available under State contract for purchasing gasoline off-campus for official State business. Campuses using the card can earn a three percent discount and purchase gasoline at a reduced tax rate.
• Controls Over Credit Cards - Campuses utilizing gasoline credit cards must establish strong internal controls over the use of the cards to prevent misuse. These controls include establishing written policies and procedures, safeguarding cards, and reviewing usage and monthly gasoline credit card statements.
• Exception Reports - Campuses should also utilize the exception reports available on the gasoline credit card statements. These exception reports include purchasing over a certain number of gallons during one fueling, non-fuel purchases, and multiple fueling on the same day with the same card.

For additional information, please contact the Office of the University Auditor at 518-320-1533 or University.Audit@sysadm.suny.edu

Sources of Information

NYS DOB D-750
http://www.budget.ny.gov/guide/bprm/d/d750.html

NYS DOB D-1110
http://www.budget.ny.gov/guide/bprm/bulletins/d-1110.html

University Property Control Systems Manual
http://www.suny.edu/sunypp/documents.cfm?doc_id=601

NYS DMV License Event Notification Services (LENS)
http://www.nysdmv.com/LENS/default.html