The city of Denver's attempt to oversee an oversized and seldom-used fleet of vehicles has resulted in wasted taxpayer dollars and elevated risks for fuel and parts theft, according to a recent audit from Denver Auditor Timothy M. O'Brien. This analysis, having surfaced multiple inefficiencies, shines a light on complexities within Denver's fleet management system and indicates systemic vulnerabilities to illicit activities, as reported by the Denver Auditor's Office.
Alarmingly, the audit revealed that despite the department's efforts, Fleet Management does not have the authority to size the fleet appropriately since the vehicles are owned by other agencies, struggling to manage over 2,500 vehicles for 43 city agencies. This struggle is compounded by the fact that Fleet Management lacks adequate mechanisms to secure the vehicles and key assets such as fuel, with some stations allowing former city employees to access and potentially misappropriate resources. As Auditor O'Brien says, "Too many older vehicles sitting idle costs taxpayers’ money."
In a deeper dive into fuel management, the audit found notable discrepancies, including abnormal transactions and codes being shared among employees, leaving the municipality susceptible to fuel theft. A cross-reference of the city’s list of authorized drivers showcased a concerning finding around 25% of the 7,180 listed drivers were no longer employed by the city, with 104 fuel transactions linked back to nine of these former workers. This opens questions about existing oversight and transaction tracking within the city's systems.
The management and tracking of vehicle parts also surfaced as a significant issue, with parts not being correctly allocated to work orders which makes their tracking difficult. The Auditor's Office report notes that there are an unknown number of stockroom keys in circulation, signifying that parts storage could be accessed by unauthorized persons, highlighting a glaring oversight in safeguarding critical inventory.
One of the more pressing concerns, as outlined by the audit, is the city's fleet size and utilization rates. With a goal for a 95% use rate, it was disheartening to find that 22% of the city's vehicles are driven less than 100 miles per month, pointing to a question of necessity versus availability. Furthermore, the fleet's age is of concern, with 36% of city vehicles exceeding their recommended lifecycle and failing to meet the city's replacement benchmarks.
To address these challenges, Denver's Fleet Management's hands are tied by a lack of authority to sell or dispose of vehicles, leaving the decision to the city agencies that own them. This is complicated further by a 2015 funding structure shift which removed direct financial impact from those agencies, thereby reducing their incentive to practice fiscally responsible vehicle management. Internal service funds, which are industry-standard according to findings from similar-sized municipalities, remain underused in favor of the city's General Fund.
The audit report concludes with an agreement from the Department of Transportation & Infrastructure to all 13 recommendations for improvements, signaling a potential path forward for enhanced operational practices and governance. It now rests in the hands of city administrators and managers to heed the audit's call and take steps to rectify these identified deficiencies, thereby reinforcing transparency, accountability, and fiscal propriety within Denver's city vehicle management.
