Summary

This operational audit of the Department of Highway Safety and Motor Vehicles focused on the administration and management of tangible personal property.  Our audit also included a follow-up on selected prior audit findings and covered the period July 2006 through February 2008 and selected actions through May 2008.  The audit disclosed deficiencies in the Department’s oversight of tangible personal property as described below: 

Detailed Tangible Personal Property Records

Finding No. 1:        Detailed property records were not always complete, included out-of-date information, and contained information that was not always consistent with supporting documentation. 

Annual Physical Inventory

Finding No. 2:       The Department did not always reconcile physical inventory results to the detailed property records, make adjustments to the detailed property records as necessary, and maintain all required documentation for accountability of tangible personal property. 

Surplus and Disposition of Tangible Personal Property

Finding No. 3:       The authorization to dispose of tangible personal property and the required related disposition information were not always documented. 

Disposition of Excess Motor Vehicles and Aircraft

Finding No. 4:       The Department did not always make requests for disposal of replaced motor vehicles and aircraft within the required time frame.

Tangible Personal Property Coding and Acquisitions

Finding No. 5:       Acquisitions of tangible personal property and improvements to real property were not always appropriately recorded in Department accounting, budgetary, and detailed property records. 

The Executive Director's response is included in its entirety at the end of this report as Exhibit B.