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Ohio Department of Natural Resources Performance Audit Interim Report Part One: Fleet Management
Columbus – Operating by data-driven fleet management standards could generate financial gains of more than $1 million for the Ohio Department of Natural Resources (ODNR), according to an interim report released today by Auditor of State Dave Yost.
“The numbers prove up the truth of the matter,” Auditor Yost said. “A fleet must be managed by stringent, data-driven standards in order to remain economical. I applaud ODNR for its quick implementation of recommended changes and believe it could soon maintain an unrivaled fleet.”
“We appreciate the time and expertise the Auditor’s Office has brought to this matter, as we are always striving to better serve Ohioans and save taxpayer dollars,” said ODNR Director James Zehringer. “ODNR has already initiated some of the recommendations, and we look forward to the continued cooperation in identifying ways to better streamline processes and operate more efficiently.”
ODNR manages a massive, statewide fleet of 1,600 vehicles. Each of the agency’s divisions (Parks, Wildlife, Forestry, etc.) maintains its own fleet, but works with the Office of General Services, Fleet Management to develop annual fleet plans. Additionally, a central office passenger pool fleet is available for any division to use.
The total financial gains of this report include $911,777 identified as ongoing annual savings and $109,706 identified as one-time savings. Recommendations with potential financial gains include:
Fleet Management lacks a consistently executed, enterprise fleet cycling strategy. Implementing fleet cycling standards that recognize a six year and/or 90,000 mile vehicle lifecycle could save ODNR $683,565 per year in reduced operating costs and increased salvage values.
Data-Driven Efficiency Opportunities
Auditors analyzed idle vehicles within the fleet and determined that ODNR could avoid or delay the purchase of seven vehicles and save $156,222 per year through reassignment. Auditors also determined that three idle vehicles awaiting repair could be salvaged for $16,601 and the Parks Division could reduce its patrol fleet by 34 vehicles, saving $86,298 in the first year and $44,579 each year after.
Passenger Pool Fleet Consolidation
Divisions currently maintain separate passenger pool fleets at the central office, resulting in a larger than necessary supply of vehicles. In fact, of the 48 vehicles analyzed, the most checked out during one day in 2013 was 33. Consolidating these vehicles into a single passenger pool fleet would allow the department to eliminate 20 vehicles, generating $51,386 in one-time revenue and $27,411 in reduced annual expenses.
Today’s interim report is the first section released from an agency-wide performance audit of the Ohio Department of Natural Resources. A full copy of this interim report may be accessed online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,800 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.