Ventura County Grand Jury • 2002-2003 • Agency Response

which recovered through vehicle rental are are charges Variable costs

Published: May 08, 2003 4 pages
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Note: Missing finding numbers detected: F5, F10

Findings and Recommendations 12 findings

F1 Page 1
The Fleet Services Deparfn~ent activity based costing model that uses an associates the costs ofproviding to parficularc/ass ofvehicle. services a Concur.
Related Recommendations (1)
R1
Page 3
Modifycosling model that fuelrates not included. so are The recommendationwill be implemented subject to necessary approvals. We will submit letterto the Auditor-Controllefs office by Augsut 8, 2003, a requesting permission to alter the variable rates by excluding fuel costs from the calcuiation. This will allow Fleet Services to charge departments for the actual fuel costs. Implementation date, if approved, will be retroactive to July 1,2003. R2. Estab/ish a credit cardsystem charged directlyfo the using agency forfuel costs. The recommended action is already in place. Fleet Services currently administers a commercial Oeet credit card fueling program. Commercial I I August 1,2003 Fleet Maintenance for County Vehicles I cards offered to departments if fueling at County stations not are is a feasible solution. The Voyager fuel card program has been in place for more than 5 years, and departments are directly charged for the fuel purchased through this program.
F2 Page 1
Costs either cYixed costs" which recovered through vehicle rental are are charges Variable costs" which recovered through vehicle or are mileagelusage charges. Concur.
Related Recommendations (1)
R2
Page 3
Estab/ish a credit cardsystem charged directlyfo the using agency forfuel costs. The recommended action is already in place. Fleet Services currently administers a commercial Oeet credit card fueling program. Commercial I I August 1,2003 Fleet Maintenance for County Vehicles I cards offered to departments if fueling at County stations not are is a feasible solution. The Voyager fuel card program has been in place for more than 5 years, and departments are directly charged for the fuel purchased through this program. R-3.Use information gathered from Camarillo vendor maintenanci data fo compare with GSA maintenance data. I The recommendationwill be implemented by September 15, 2003. R-4.Compare rates and downtimes with other counties that private use vendors. The recommendationwill be implemented by October 13, 2003. II Should you have additional questions regarding this response, please contact I Rebecca Arnold, Deputy Director, at 648-9205 Tony Patton, Fleet Services or Manager, at 388-4570. Sin e l'ci / ygl- PAUL W. RUFFIN Director Attachment c:RebeccaArnold, GSAAdministrative Services Tony M. Patton, GSA Fleet Services
F3 Page 1
Fixed costs include replacement charge (depreciation). GSA and County a overhead and indirect expenses are shown in Table 1. These costs are noi attributable to functional ofactivity. a area Concur in part. Depreciation is not fee charged for future replacement. a Depreciation is the distribution of the cost of a tangible asset, less salvage value, the estimated useful life of the unit. Therefore, depreciation is over charged cost ofdoing business. as a @ FleetMaintenance for Couniy Vehicles
Related Recommendations (1)
R3
Page 4
Use information gathered from Camarillo vendor maintenanci data fo compare with GSA maintenance data. I The recommendationwill be implemented
F4 Page 2
Variable costs direct function of vehicle and consistofoperating are a use and maintenance costs. I Concur. F-S. To develop variable costs, each budgeted expenditure account is separated into functional areas ofactivity, e.g., labor, parts, fires, fueI, etc. Activity totals then allocated to vehicle classes, based ratio of are on a historicalclass operating costs. Concur.
Related Recommendations (1)
R4
Page 4
Compare rates and downtimes with other counties that private use vendors. The recommendationwill be implemented by October 13, 2003. II Should you have additional questions regarding this response, please contact I Rebecca Arnold, Deputy Director, at 648-9205 Tony Patton, Fleet Services or Manager, at 388-4570. Sin e l'ci / ygl- PAUL W. RUFFIN Director Attachment c:RebeccaArnold, GSAAdministrative Services Tony M. Patton, GSA Fleet Services
F6 Page 2
When activity allocations completed, total direct costs by vehicfe class are i summarized. The total cost is divided by estimated mileage, 5-year I are a average, to derive a permile charge to users. Concur.
No recommendations for this finding
F7 Page 2
Sheriffs Department officials stated that rates charged by GSA higher are than private vendors would charge. Concur in part. While believe the Sheriffs Department made the we statement, we disagree with the accuracy ofthe statement. GSA rates are developed by vehicle type, and the statement fails to take into account instances where the rates charged by GSA less than those charged by are private vendor. Rates only aspect of estimating total charges by a are one GSA or a private vendor. The more meaningful comparison is not the individual rates but rather total estimated charges rates multiplied by consumption. See comments in response to FJnding-#9 regarding GSA's total charges comparison to those of private vendors. in
No recommendations for this finding
F8 Page 2
Estimated rates supplied by prospective vendors may be 15% to 45% lowerthan GSA, depending upon vehicle class. Concur in part. As mentioned in the response to Finding #7, there are instances in which the rates charged by GSA lower than those are charged by private vendor. The meaningful comparison is total a more estimated charges.
No recommendations for this finding
F9 Page 2
GSA is in the process of issuing a Request for Proposal (RFP) to prospective vendors forfleetmaintenance. Concur in part. The RFP process has been completed. The Sheriff's Department requested "cost per mile" proposals, and only one other FleetMaintenance forCounty Vehicles I I I I I I vendor provided pricing on that basis. The RFP process determined that the GSA charges less than approximately equal to private vendor are or charges. I I F-lO. A rough estimate of the portion of direct cost affributed to fuel consumption is 20%. Concur
No recommendations for this finding
F11 Page 3
Fvel mtes not current since they based estimates, which are are on are a I yearold. I I Concu r.
No recommendations for this finding
F12 Page 3
Maintenance is performedat severaltaciliies throughoutthe County. Concur
No recommendations for this finding
F13 Page 3
The inconvenience of centra/ heavy maintenance location is problem a a forsome due to distances from certain Countylocations. users Concur.
No recommendations for this finding
F14 Page 3
San Bernardino, Kern and Los Angeles Counties (partially) private use vendors forfleetmaintenance. Concu r. Recom ndations: me
No recommendations for this finding