Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
JUNE 15, 2023
Subject
SUBJECT: AUDIT OF CONTROLS OVER METRO NON-REVENUE VEHICLES (PHASE II)
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE Office of the Inspector General (OIG) Final Report on Controls Over Metro Non-Revenue Vehicles - Phase II.
Issue
ISSUE
The Office of the Inspector General (OIG) audited Metro's internal controls over non-revenue vehicles (NRVs). This audit was conducted to assist Metro to improve its internal control over non-revenue vehicles to deter fraud, waste, and abuse and in support of Metro's core business goal to provide responsive, accountable, and trustworthy governance within the Metro organization.
The overall objective of this project is to determine whether internal controls over Metro non-revenue vehicles (NRVs) are adequate and effective.
Because there are many control areas related to Metro NRVs, staff separated this audit into two phases. Phase I focused on controls on NRVs acquisition, retirement or disposal, 24-hour assigned vehicles, department pool vehicles, General Services pool vehicles, and IRS reporting of non-cash taxable benefits. The audit for Phase I was released on March 9, 2023 (Report Number 2023-AUD-04) and resulted in 29 recommendations.
This report covers Phase II of the audit, which focused on determining if NRV drivers complied with the ExpressLanes usage policy and observed vehicle, traffic, and parking codes, as required in GEN 16 - General Management Policy on NRVs. Staff also verified if controls in handling and reporting NRV accidents are in place and adequate. The audit for Phase II resulted in 31 recommendations.
Background
BACKGROUND
Los Angeles County Metropolitan Transportation Agency (Metro) provides non-revenue passenger vehicles for employees' use to carry out Metro business. Non-revenue vehicles (NRVs) are assigned in pools at various Metro locations or assigned...
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