Letter Report on the Department of Correction’s Monitoring of Its Employees Who Use E-ZPass and Parking Permits While Driving City-Owned or Personally-Owned Vehicles on City Business

LETTER REPORT IN BRIEF

This audit determined if the Department of Correction (DOC), a “public safety agency,” is effectively monitoring its employees who use E-ZPasses and parking permits while driving City-owned or personally-owned vehicles on City business in accordance with applicable rules and regulations.

New York City requires that only those employees who exercise reasonable care in operating City- or personally-owned vehicles be allowed to use them to conduct City business.  This requirement is outlined in the City of New York’s “City Vehicle Driver Handbook” (Regulations).  All agency heads, through the Agency Transportation Coordinator (ATC), must ensure that all employees assigned a City-owned vehicle either for full-time use or temporary use are authorized to drive.  It is also the ATC’s responsibility to ensure that these drivers have valid licenses and insurance (if they are driving their personal vehicles).  The driver’s license should be a New York State License unless the employee is exempt from City residency requirements.  If this is the case, then the authorized driver must have a valid license from the state where he/she resides and must have the appropriate classification for the vehicle which he/she is driving on City business. The Regulations further specify that City agencies must establish programs that promote safety along with proper training in the use of motor vehicles.

E-ZPasses should be issued only to authorized drivers, thus allowing said Agency personnel to perform their responsibility in an effective manner.  E-ZPasses are issued by the Metropolitan Transportation Authority/Bridges and Tunnels (MTA).  All E-ZPass usage must be reported to the ATC. Drivers are allowed to use a City-sponsored E-ZPass only when conducting official City business and in connection with the approved use of a City government vehicle.   Subsequently, the driver must fill out a vehicle trip log detailing what the vehicle was used for and why it needed to be used so that accurate agency vehicle trip log books can be maintained.  The MTA sends detailed summary reports on travel to the designated agency E-ZPass representative for review.

Drivers must be aware of their agency’s in-house procedures regarding the use of parking permits, including areas where City government vehicles are permitted to park. Parking permits must be properly displayed to ensure visibility through the windshield.  Permits may only be used for official City business in connection with the assigned City government vehicle and only as described by the parking permit and any other accompanying instructions.

Results

We found that DOC does not effectively monitor the use of E-Z Passes by its authorized drivers in accordance with applicable rules and regulations. We found no issues concerning parking permit usage. The details of this audit are below.

DOC did not maintain a log detailing agency E-ZPass usage as required by City and DOC policies and procedures

When the auditors requested a sample of log sheets to be tested, they were informed in an email dated April 24, 2013, “As you are aware, we are unable to locate in our archives, nearly all of the 2011 trip sheets samples that had been selected by the City Comptroller for review.” Additional inquiries were made to determine the whereabouts of the entire calendar year 2011 detailed logs; we were informed by the DOC representative that DOC’s could account for the parties responsible for using their E-ZPass transponders and their activities.

We reviewed DOC’s Operations Order 18/97 dated December 1997 § III Procedures, B. 3, which states, “Commanding Officers of Facilities and Divisions shall be held accountable for the appropriate utilization of vehicles, and the respective transponders, assigned to their Command(s).”  The order also states, “The Commanding Officer shall be responsible for verifying that all charges incurred are appropriate and return the signed monthly statement to the Transportation Division.”  Therefore, it appears that this additional control is a reiteration of the longstanding Operations order 18/97, which dates back to December 1997.

Despite these policies, DOC still needs to maintain and have available the individual detailed trip sheets/detailed logs for its Commanding Officers’ review and for support of their approvals. Because these logs for calendar year 2011 were unavailable, we are unable to confirm appropriate E-ZPass usage.

In addition, our audit found that several DOC employees/officials appeared to have excessively used their
E-ZPass for non-business use.

According to City Regulations Section 8.1.4 Reimbursement of E-ZPass Charges of the Regulations, “Agencies receive monthly E-ZPass statements.   Drivers   are responsible for reimbursement to the agency for any charges incurred while not performing official City business. Drivers are reminded that abuse of a City sponsored E-ZPass is prohibited and may lead to disciplinary proceedings.”

During the reimbursement period of January 2011 through December 2011, we found that 53 employees had reimbursed DOC for approximately $8,000 in non-business usage (personal).

The audit made the following recommendations that DOC should:

• Maintain log books detailing E-ZPass usage as required by the regulations.

Agency response: The agency agreed with the recommendation.

• Reinforce the policies and procedures detailing E-ZPass usage.

Agency response: The agency agreed with the recommendation.

• Limit the personal use of E-ZPass transponders by monitoring usage more closely.

Agency response: The agency agreed with the recommendation.

• Monitor and limit the personal use of City vehicles and consider recouping the costs of excessive use of City vehicles for non-business purposes.

Agency Response:  Regarding recommendation number 4 DOC’s officials, stated;
“Various agency employees are authorized to take home an agency vehicle for work-related reasons, as outlined in Department Operations Order #14/96, entitled Use of Agency Vehicles. It needs to be emphasized that the Department, integral to law enforcement and the criminal justice system, operates on a continuous basis, 24 hours each day, seven days each week. As a result, there are employees whose duties necessitate use of their agency-assigned vehicles and E-Z Pass transponders to respond to work-related conditions and emergencies in the five boroughs outside of regular business hours. The use of agency-assigned vehicles and E-Z Pass transponders under these conditions is necessary and does not constitute personal use of City property.”

DOC’s officials added, “To further strengthen controls with respect to vehicle usage and in an effort to identify inappropriate or unauthorized personal use of agency vehicles, completed Trip Sheet Logs will be carefully reviewed to identify unauthorized vehicle usage. Particular attention will be given to discrepancies in vehicle mileage, unusual travel locations and usage during off-hours and when it is deemed appropriate, immediate corrective action will be taken. We will also assess the need for any further recoupment of costs.”

Auditor’s Comments:  While we understand that various agency employees are authorized to take home an agency vehicle for work related reasons, this finding does not relate to work related use but instead to personal use of agency vehicles.

City Regulations clearly  state,: “With the exception of elected officials for whom the New York City Police Department has determined that personal security is necessary, as well as certain authorized City government executives, under no circumstances may City Government Vehicles be used for personal or other-than-official City business unless provided for in this Driver Handbook.”

By allowing significant personal usage and reimbursement of E-ZPass, DOC is tacitly indicating to its staff that the E-ZPass can be used for non-business purposes.  However, City’s Regulations clearly states the City’s E-ZPass should be used only when conducting official City business and in connection with the approved use of a City government vehicle. DOC policies and regulations should not be designed to tacitly disregard the City’s Regulations.

• Perform physical inspections (inventory) of its E-ZPasses (unannounced and announced).

Agency response: The agency agreed with the recommendation.