South Carolina General Assembly Legislative Audit Coon
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S. C. STA MAR 3 0 1978 STATE DOCUMENTS South Carolina General Assembly ] Legislative Audit Coonell PRCXJRAM 1\'ID (f£AATl(lt'\L 1£'/IB~ (F TI-E AmJISITHlL lfE A'ID M~ fF S:W.l CAIU.INA STATE-aiD MJTOR \fill Cl£S r'MCH 30J 1978 1HE STATE OF SOUlli CAROLINA GENERAL ASSEMBLY LEGISLATIVE AUDIT CDUNCIL PROGRAM AND OPERATIONAL REVIEW OF mE A~UISITION, USE AND MANAGIMENT OF SOUIH CAROLINA STATE-OWNED MJTOR VFIUCLES TABLE OF CONTENTS Page INI'RODUCTI ON • 1 BACKGROUND • • • . • . • 3 CEAPI'ER I - MAJOR FINDING AND REPORT SUMMARY • 7 <JIAPTER II - ASSIGNMENT AND USE OF STATE MJI'OR VEHICLES. • • • 15 CliAPTER III - A~UISITION AND REPLACEMENT OF STATE MJI'OR VH'II CI.,ES • • • • • • • • • • • • • • • • • • • • • • • 35 CRAPTER IV - IJENTIFICATION OF STATE-OWNED VEHICLES. • • • 45 rnAPTER V - MAINTENANCE SYSTEM AND GASOLINE PURGI.ASES. • • 55 CHAPTER VI - VEHICLE LIABILITY INSURANCE • • • • • • • • 65 APPENDICES APPENDIX I - RESULTS OF THE LEGISLATIVE AUDIT COUNCIL'S SURVEY OF STATES' MJrOR VH:IICLE PRACTICES • • • • • 75 APPENDIX II - ESTIMATED COST OF TRAVEL IN STATE VEHICLES FOR FY' 76- 77. • • • • • . • • • • . • • . • • • . • • • 79 APPENDIX III - ANALYSIS OF SAVINGS IF FLEET MIX GIANGED. • 80 APPENDIX IV - ESTIMATED POV REIMBURSEMENTS FOR FY 76-77. • 82 APPENDIX V - BREAK-EVEN ANALYSIS COMPARING THE NUMBER OF MILES DRIVEN IN STATE VEHICLES WITII PAYING POV REIMBURSEMENT •• 85 APPENDIX VI - STATE AGENCY GASOLINE CONSUMPTION FOR FY' 76-77. 87 APPENDIX VII - LEGISLATIVE AUDIT COUNCIL SURVEY OF AGENCY MJI'OR VEHICLE PRACTICES • • • • • • • 89 ANNOTATED BIBLIOGRAPHY • 93 AGENCY COlVMENI'S • • • • • • • • • • 9 7 IN1RODUCTION - SCOPE AND MEnDDS In February 1977 the General Assembly directed the Legislative Audit Council to evaluate thoroughly the State's management of its motor vehicle. fleet. In a study designed to pinpoint needed improve ments in this area the Council considered the following components of a motor vehicle management system: acquisition, assignment, misuse/ abuse, maintenance, disposal, central motor pool, credit cards, gaso line purchases, insurance, identification and registration. To provide an initial information base for the study, 106 State agencies completed a Council survey on their motor vehicle management practices. A dozen agencies, controlling ninety-three percent of the State motor vehicle fleet, then received a more detailed review through visits by Council staff. These agencies were: ._ Clemson University Department of Corrections Department of Education Department of Health and Environmental Control Department of Highways and Public Transportation Department of Mental Health Department of Mental Retardation Division of General Services Forestry Commission State Law Enforcement Division University of South Carolina Wildlife and Marine Resources Department At the selected agencies Council staff visited maintenance shops and motor pools and interviewed motor pool managers, mechanics, and agency administrative personnel (including accounting, data processing, pur chasing, insurance and safety personnel). Staff members also analyzed management reports and cost allocation systems, ~ampled vouchers for gasoline purchases and evaluated agency motor vehicle policies. The Council then examined the role of the Division of Motor Vehicle Management (DMWNQ in the State's overall handling of its motor vehicle fleet. This evaluation included interviews with IMVM staff and State agency personnel plus a review of the MOtor Vehicle Management Manual and IMVM files, personnel qualifications and monthly inventory printouts. Finally, the Council analyzed motor vehicle-related support ser- vices offered by General Services such as purchasing, disposal, motor pool and insurance. For additional infonnation the Council received survey responses from thirty-one states regarding their motor vehicle policies and fleet management programs. The survey results appear in Appendix I. -2- BACKGROUND The State of South Carolina owns and operates over 16,000 motor vehicles. During FY 76-77, according to Legislative Audit Council estimates, the State spent over $21 million for employees to travel JOOre than 175 million miles in these vehicles (see Appendix II) . In addition, based on Fiscal Accountability Act reports for FY 76-77, the State paid its employees an estimated $6 million for travel in privately-owned vehicles (POVs). At the current POV reimbursement rate of 14 cents per mile, this personal vehicle''travel would equal mre than 4 7 million miles. The State motor vehicle fleet includes approximately 4,000 passenger vehicles (autOJOObiles, station wagons, vans and jeeps) , 6,000 school buses operated by Department of Education, 6,000 special purpose vehicles and various kinds of trucks. During FY 76-77 State agencies purchased a total of 21,924,346 gallons of gasoline to operate these vehicles. At the end of FY 76-77 the automobile fleet profile excluding law enforcement vehicles consisted of 5% full size, (e.g. Chrysler Newport), 41% standard (e.g. Plymouth Gran Fury), 47% intermediate or midsize (e.g. Pontiac Lemans), 6%.compact (e.g . .AM: Hornet), 1% subcompact (e.g. Ford Pinto). The following table, based on the Comcil 's agency survey and the Division of Mltor Vehicle Management's Jme 1977 inventory, estimates the number of vehicles operated by each agency as of June 30, 1977. -3- TABLE 1 INVENTORY OF STATE-OWNED M)TQR VEHICLES AS OF JUNE 30, 1977 Ntmlber of Ntmlber of Agency Vehicles Agency Vehicles Adjutant General 2 John De La Howe School 14 Division of Administration 3 Juvenile Placement &Aftercare 1 Aeronautics Commission 28 Labor Department 1 Department of Agriculture 39 · Lan.der College · 17 Alcoholic Beverage Control Conun~. 37 State Law Enforcement Division 193 CoiiUll. on Alcohol & Drug Abuse 2 State Library 5 Dept. of Archives & History 8 Lieutenant.Governor's Office 1 Attorney General 1 Board of Medical Examiners 2 State Auditor 3 Medical University 40 CoiiUllission for the Blind 7 Department of Mental Health 251 Citadel, The 52 Dept. of Mental Retardation 187 Civil Air Patrol 47 Div. of Mbtor Vehicle Management 31 Clemson University 574 Board of Nursing 1 College of Charleston 33 Opportunity School 9 Comptroller General 2 Parks, Recreation & Tourism 127 Department of Corrections 293 Patriots Point Dev. Authority 1 Criminal Justice Academy 11 Personnel Division 3 Dairy CoiiUllission 1 Ports Authority 63 School for the Deaf & Blind 37 Public Railways Cammission 6 State Development Board 17 Research &Statistical Services 1 Disaster Preparedness Agency 6 Residential Home Builders 1 Office of Economic Opportunity 1 Retirement Division 1 Department of Education 7 ,078* . Second Injury Fund 1 Educational Television Network 35 Secretary of State 1 Election Commission 1 Department of Social Services 25 Employment Security Conunission 6 State College 47 Engineering Examiners Board 1 Tax Cammission 4 Forestry Commission 437 Board for Tech. & Comp. Education 77 Francis Marion College 22 Treasurer's Office 1 Division of General Services 313 University of South Carolina 270 Governor's Office 1 Vocational Rehabilitation Dept. 64 Dept. of Health &Envir. Control 249 Wildlife &Marine Resources Dept. 430 Higher Education CoiiUllission 2 Winthrop College 48 Dept. of Highways & Public Trans. 4,816 Workmen's Compensation Fund 1 Human Affairs Cammission 1 Department of Youth Services 117 Industrial Commission 6 TOTAL VEHICLES 16,214 *Includes 6539 school buses. -4- Policies and practices regarding State motor vehicle management have been studied many times during the past. fifteen years. In 1963 the Budget and Control Board adopted regulations governing the purchase and use of passenger vehicles, amending them a year later. Following a 1964 study of motor vehicle management practices initiated by Governor Russell and a 1968 Budget and Control Board report initiated by the Legislature, the Governor's Management Review Conmission issued a 1972 report covering management of the State fleet. A review of State-owned vehicle management followed in 1973. Finally, upon request by the Budget and Control Board, a special panel tmder the auspices of the Cotmeil of State Govermnents reviewed problem areas relevant to the management of State-owned and operated motor vehicles and issued a report in 1975. The Division of Motor Vehicle Management (I:MVM) was created in 1975 by the Budget and Control Board in response to the panel's reconmendations. DMVM.reports directly to the Budget and Control Board and is specifically charged with the responsibility to ''prepare, pramllgate, monitor and enforce such motor vehicle regulations as approved by the Budget and Control Board and .to provide active motor vehicle fleet management.'' The primary source of regul~tions pertaining to State-owned motor vehicles is the Motor Vehicle Management Manual approved by the Budget and Control Board. These regulations do not have the force of law and much reliance is placed on agency directors for enforcement of the rules. Legislation regarding State-owned motor vehicles has been limited. Section 131 of the 1978-79 General Appropriation Act states that "no State-owned automobile shall be acquired by any agency of the State -5- without prior approval of the State Budget and Control Board." Section 56-3-780 of the 1976 Code of Laws provides for permanent State Government license plates to be supplied for all buses, trucks, motorcycles, trailers, semi-trailers, and pole trailers operated by the State. All other State vehicles· are required to be registered annually.