Performance Audit Report
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PERFORMANCE AUDIT REPORT MINISTRY OF NATIONAL SECURITY MANAGEMENT OF POLICE MOTOR VEHICLES Auditor General of Jamaica Auditor General’s Department 8 Waterloo Road, Kingston 10 Jamaica, W.I. www.auditorgeneral.gov.jm November 2012 Auditor General Department Performance Audit Report - Management of Police Motor Vehicles (2012) 2 Table of Contents AUDITOR GENERAL OVERVIEW ..................................................................................................................... 5 EXECUTIVE SUMMARY ................................................................................................................................... 6 KEY FINDINGS ................................................................................................................................................ 6 RECOMMENDATIONS ....................................................................................................................................... 8 PART ONE ......................................................................................................................................................11 INTRODUCTION .............................................................................................................................................11 BACKGROUND ...............................................................................................................................................11 PART TWO .....................................................................................................................................................14 FLEET MANAGEMENT ...................................................................................................................................14 JCF FLEET MANAGEMENT POLICY IS NOT COMPREHENSIVE ....................................................................................14 JCF IS UNABLE TO ACCURATELY ACCOUNT FOR ITS FLEET .......................................................................................14 JCF’S INVENTORY MANAGEMENT SYSTEM WAS INEFFECTIVE ..................................................................................15 JCF DID NOT MONITOR THE OPERATIONAL EFFICIENCY OF ITS FLEET ........................................................................16 PART THREE ...................................................................................................................................................18 FLEET ACQUISITION ......................................................................................................................................18 LIMITED FUNDING RESTRICTED JCF MOBILITY .....................................................................................................18 ACQUISITION PRACTICES RESULT IN UNECONOMICAL FLEET COMPOSITION ...............................................................19 DONATED MOTOR VEHICLES PLACE ADDITIONAL STRAIN ON JCF RESOURCES .............................................................21 LACK OF FUNDING RESULT IN RETENTION OF AN UNECONOMICAL FLEET ...................................................................22 A CASE FOR REDUCING JCF FUEL CONSUMPTION ................................................................................................22 PART FOUR ....................................................................................................................................................24 UTILISATION OF FLEET ..................................................................................................................................24 ADEQUATE RECORDS WERE NOT MAINTAINED TO MANAGE THE USAGE OF THE FLEET ................................................24 DOCUMENTS SHOW JCF AVERAGES ONE ACCIDENT PER WEEK BETWEEN 2007 TO 2011 ...........................................25 PART FIVE ......................................................................................................................................................26 MANAGEMENT OF THE REPAIR AND MAINTENANCE ACTIVITY ..................................................................26 THERE WAS NO MANUAL GUIDING THE REPAIRS AND MAINTENANCE ACTIVITY .........................................................26 THERE WAS NO ASSURANCE THAT VEHICLES WERE SERVICED ON TIME ......................................................................26 JCF INCURRED COSTS TO REPAIR VEHICLES REPORTED TO HAVE BEEN DISPOSED ........................................................27 JCF HIGHLIGHTED CONCERNS WITH BILLS FOR REPAIRS TO VEHICLES .......................................................................27 FUNDS COLLECTED FROM PERSONS TO REPAIR JCF VEHICLES DAMAGED BY ACCIDENT NOT PROPERLY ACCOUNTED FOR ...29 DEFECTIVE VEHICLES REMAINED PARKED FOR PROLONGED PERIODS AT JCF’S GARAGES ..............................................30 JCF DID NOT FULLY ACCOUNT FOR THE PARTS SCRAPPED FROM ITS VEHICLES ............................................................30 JCF FAILED TO IMPLEMENT MEASURES TO SAFE-GUARD ITS ASSETS ........................................................................33 JCF’S MACHINE AND EQUIPMENT NON-FUNCTIONAL ............................................................................................34 APPENDICES ..................................................................................................................................................37 APPENDIX 1 VEHICLES ACQUIRED NOT IDENTIFIED ON JCF MASTER INVENTORY ........................................................37 APPENDIX 2 DUPLICATES ON MASTER INVENTORY................................................................................................38 APPENDIX 4 VARIANCES IN STOCK COUNT ..........................................................................................................44 Auditor General Department Performance Audit Report - Management of Police Motor Vehicles (2012) 3 APPENDIX 5 STATUS OF DONATED VEHICLES .......................................................................................................45 APPENDIX 6 VEHICLES NOT SERVICED ON TIME ....................................................................................................46 APPENDIX 7 VEHICLES REPAIRED AFTER BEING DISPOSED ......................................................................................47 APPENDIX 8 VEHICLES DISPOSED WITHIN 2-12 MONTHS AFTER BEING REPAIRED .....................................................48 APPENDIX 9 PAYMENTS MADE TO A JCF GARAGE TO REPAIR VEHICLES INVOLVED IN ACCIDENT ....................................49 Auditor General Department Performance Audit Report - Management of Police Motor Vehicles (2012) 4 Aud~tor General Overvi,ew The Jamaica Constabulary Force (JCF) is the principal law enforcement organisation in Jam aica, that has the responsibility for the maintenance of law and ordel', the prevention and detection of crime, the protection of life and property, the investigation of alleged crime and the enforcement of all criminal laws, JCF's stated vision is "to become a high quality, professional and service-oriented organisation that is valucd and trusted by all the citizens of Jamaica." Further, JCF by its Value Sta tement is "committed to the quality of its service delivery and the satisfaction of its internal and external ClIstomers." Howeve l' , the provision of quality se l'vices is hi ghly dependent on JCF maintaining an 'effici ent fleet of motor vehicles, I co mmissioned a perfOl'm ance audit of th e management of JCF motor vehicles to determine th e effici ency and effec ti ve ness of its fleet manJge ment processes, JCF faced fin anciJ I challenges to obtJin the requ il'ed fl eet to enabl e the effici ent ~lnd effective execution of its m and ate, Th ey however, fail ed to implement appropri ate sys tems to ensure proper utili sa tion of their limited res ources to obtain max irTlu lll va lu e, Weak oversight of the repa ir Jnd m aintenance ac ti vity and control over new and use d parts I' es ulted in inefficiencies ilnd may facilitate irreg ul arities. Further, th e retention of an Jged fl ee t prevented GOJ froll) earni ng SignificJnt fu el co nst lillption sav ings, which cou ld have bee n use d to offse t costs associated wi th the Jcquisition of new vehicles. The operati ona l weaknesses hi ghlighted in thi s I'eport, irnpair JCF' s ilbility to ensure the deli very of reli ab le 1i1,w enforcem ent se rvices to th e people of JJlllaica, Incilided in thi s rr'port ;:lI'e eight rrcomlllenci ,ltion5, which, if illlplem ented, shoulci help to <;trl' ngth en JCF' s fl ee t lll:1nage lllent and inventory capabi lities " nd illlpr'ove effici ency and govern ance. I wish to ex prE'ss my sin ce re thanks to tlw IVlini sli'y of NJtional Sec urity il nd JilmaiCil Co nst<lbu lar'y For'c e for the coo peration and as sistance given to Illy staff, during th e audi'c ~ J\'~l ; ~ f '0.: ', ~ \. Pam ~ I ;- M-on;:OeEIii~~ -FCCA:-F CA, CI SA Auditor General Auditor General Department Performance Audit Report - Management of Police Motor Vehicles (2012) EXECUTIVE SUMMARY The Jamaica Constabulary Force (JCF), established in 1867, is an arm of the Ministry of National Security (MNS). It is the principal law enforcement organisation in Jamaica and has responsibility for the maintenance of law and order, the prevention and detection of crime, the protection of life and property, the investigation of alleged crime and the enforcement of all criminal laws. We sought to determine whether JCF is managing its fleet to ensure the achievement of its mandate;