Department of Veterans Affairs 

Office of Inspector General 

Audit of Veterans Health Administration 

Vehicle Fleet Management 

Report No. 06-03637-191 August 22, 2007

VA Office of Inspector General 

Washington, DC 20420 
To Report Suspected Wrongdoing in VA Programs and Operations 

Call the OIG Hotline – (800) 488-8244 
Audit of Veterans Health Administration Vehicle Fleet Management 

Contents 

Page 

Executive Summary .......................................................................................................i 

Introduction..................................................................................................................... 1 

Purpose ............................................................................................................................... 1 

Background......................................................................................................................... 1 

Scope and Methodology ..................................................................................................... 2 

Results and Conclusions ............................................................................................ 4 

Controls Over Vehicle Utilization Needed To Be Strengthened ....................................... 4 

Physical Security of Fleet Vehicles Needed Improvement ................................................ 8 

Preventive Maintenance Programs Needed To Be Established ......................................... 9 

Oversight of VA Fleet Cards Needed Improvement ........................................................ 11 

Appendixes 

A. Under Secretary for Health Comments....................................................................... 13 

B. Monetary Benefits in Accordance with IG Act Amendments.................................... 18 

C. OIG Contact and Staff Acknowledgments ................................................................. 19 

D. Report Distribution ..................................................................................................... 20 

VA Office of Inspector General 
Audit of Veterans Health Administration Vehicle Fleet Management 

Executive Summary 

Introduction 

The Office of Inspector General (OIG) conducted an audit to evaluate program 

management of the Veterans Health Administration's (VHA) motor vehicle fleet. The 

three audit objectives were to determine if vehicle acquisitions were adequately justified, 

reasonably priced, and properly approved; fleet vehicles were adequately utilized; and 

fleet resources were properly controlled. 

At the end of fiscal year (FY) 2006, VA’s vehicle fleet consisted of 10,991 vehicles with 

an annual cost of about $60.2 million. With over 9,600 vehicles, VHA’s fleet represented 

almost 90 percent of the VA fleet. VA medical centers (VAMCs) are the primary users 

of vehicles in VHA. At VAMCs, fleet managers direct fleet operations and normally 

supervise small transportation sections that are part of VAMC Facilities Management 

Services. VAMCs assign vehicles to central pools, to individual employees, or to VAMC 

services. 

In 2004, the Government Accountability Office (GAO) issued an audit report, Increased 

Attention to Vehicle Fleets Could Result in Savings (GAO-04-664, May 2004), in which 

it concluded that Federal agencies needed to improve fleet management. GAO 

recommended that agencies, including VA, establish clearly defined utilization criteria 

and require fleet managers to use the criteria in conducting periodic fleet assessments. In 

response to the GAO recommendations, VHA issued the Vehicle Fleet Management 

Guidebook in September 2005, which provided guidance to VA fleet managers on 

vehicle acquisition, utilization, fleet cards, and other related issues. In addition, 

beginning in December 2006, VHA required all fleet managers to perform annual 

utilization evaluations. VHA also developed and tested a VA fleet management 

information system to make fleet utilization, maintenance, and accident information 

readily available to VA program managers. 

Results 

VAMCs adequately justified and approved new vehicle procurements, used appropriate 

sources of supply, and paid fair and reasonable prices when acquiring vehicles. 

However, they did not have effective controls over vehicle utilization and fleet resources, 

including physical security of vehicles, preventive maintenance, and use of fleet purchase 

cards. Specifically, the audit identified four issues that required management attention: 

1. VHA needed to strengthen controls over vehicle utilization. Utilization criteria and 

documentation of vehicle use were insufficient for fleet managers to evaluate vehicle 

utilization objectively. VHA also needed to provide better oversight of VAMC fleet 

VA Office of Inspector General i 
Audit of Veterans Health Administration Vehicle Fleet Management 

operations to ensure efficient use of fleet vehicles. Based on our review at 3 VAMCs, 

we determined that 32 (8 percent) of the 390 vehicles on hand in September 2006 

were not needed. Eliminating the 32 vehicles would result in annual cost savings of 

$83,496 in lease costs. 

2. VAMCs needed to improve physical security of fleet vehicles. VAMCs had not 

established controls that ensured accountability and security for vehicles, vehicle 

keys, and fleet cards. At one VAMC, the lack of security controls resulted in the 

undetected loss of a vehicle, which had an estimated value of $5,585. 

3. VAMCs needed to implement more effective vehicle preventive maintenance 

programs to reduce the risk of costly unscheduled repairs, excessive downtime, and 

undetected safety deficiencies. Two of the three VAMCs reviewed did not have 

effective preventive maintenance programs for their VA-owned vehicles. 

4. VAMCs needed to improve oversight of VA fleet cards to prevent misuse. VAMCs 

use fleet cards to purchase fuel and authorized maintenance for VA-owned and 

commercially-leased vehicles. At two VAMCs, VA fleet card program officials did 

not review purchases or reconcile invoices to ensure that drivers used fleet cards to 

purchase only allowable items. 

Implementing the following recommendations will make VA fleet operations more 

efficient and strengthen controls over fleet resources. 

Recommendations 

1. We recommended that the Under Secretary for Health establish specific, mandatory, 

time-based utilization criteria for all VA fleets. 

2. We recommended that the Under Secretary for Health establish controls to ensure that 

fleet managers receive accurate and complete monthly vehicle utilization information 

for all fleet vehicles. 

3. We recommended that the Under Secretary for Health ensure that fleet managers 

identify underutilized vehicles using objective criteria and accurate vehicle use 

information, pool vehicles to fully utilize them whenever feasible, and eliminate 

unneeded fleet vehicles. 

4. We recommended that the Under Secretary for Health ensure that VHA's fleet 

management office effectively monitors fleet utilization at field locations. 

VA Office of Inspector General ii 
Audit of Veterans Health Administration Vehicle Fleet Management 

5. We recommended that the Under Secretary for Health develop and implement 

policies requiring VAMCs to account for fleet vehicles and to secure and regularly 

inventory vehicle keys and fleet cards. 

6. We recommended that the Under Secretary for Health require comprehensive VAMC 

preventive maintenance programs that follow manufacturers' maintenance standards 

for all VA-owned vehicles. 

7. We recommended that the Under Secretary for Health ensure oversight of the VA 

fleet card program at VAMCs and adequate training of approving officials and 

program coordinators. 

Under Secretary for Health Comments 

The Under Secretary for Health agreed with the findings and recommendations of the 

report and provided acceptable implementation plans. (See Appendix A, pages 13–17, 

for the full text of the Under Secretary’s comments.) Furthermore, the Under Secretary 

for Health explained that the VA Assistant Secretary for Management had recently 

assumed oversight of the VA fleet as the VA senior transportation official and that VHA 

will share and coordinate fleet management responsibilities with his office in the future. 

In response to the audit recommendations, the Under Secretary agreed to establish timebased vehicle utilization standards, to ensure that facilities use accurate data when 

evaluating vehicle utilization, and to require fleet managers to pool vehicles when 

feasible and eliminate fleet vehicles that are no longer needed. He also agreed to require 

better accountability and control of fleet vehicles, to ensure facilities have effective 

preventive maintenance programs and to improve oversight of VA fleet card use. We 

will follow up on the implementation of the planned improvement actions. 

 (original signed by:)

BELINDA J. FINN 

Assistant Inspector General 

 for Auditing 

VA Office of Inspector General iii 
Audit of Veterans Health Administration Vehicle Fleet Management 

Introduction 

Purpose 

The purpose of the audit was to determine whether VHA effectively managed its vehicle 

fleet. The three audit objectives were to determine if vehicle acquisitions were 

adequately justified, reasonably priced, and properly approved; fleet vehicles were 

adequately utilized; and fleet resources were properly controlled. 

Background 

At the end of FY 2006, VA’s vehicle fleet consisted of 10,991 vehicles with an annual 

cost of about $60.2 million. The fleet had 7,930 General Services Administration (GSA) 

leased vehicles, 2,978 VA-owned vehicles, and 83 commercially leased vehicles, 

including passenger cars, trucks, ambulances, and buses. These vehicles belonged to 

facilities in all parts of VA, including VHA, the Veterans Benefits Administration 

(VBA), the National Cemetery Administration (NCA), and VA administrative and staff 

offices. Table 1 shows the distribution of fleet vehicles by organization. 

Table 1. Distribution of VA Vehicle Fleet 

VA 

Administration VHA VBA NCA Other Total 

Number of 

Vehicles 9,615 591 631 154 10,991 

Percent of Total 

Vehicles 87.5% 5.4% 5.7% 1.4% 100% 

VHA vehicles represented almost 90 percent of the VA fleet, and VAMCs are the 

primary users of vehicles in VHA. During our audit, VHA's Deputy Under Secretary for 

Health for Operations and Management had oversight responsibility for VA’s vehicle 

fleet, including vehicles at VHA, VBA, NCA, and other VA offices. At VAMCs, fleet 

managers direct fleet operations and normally supervise small transportation sections that 

are part of VAMC Facilities Management Services. VAMCs assign vehicles to central 

pools, to individual employees, or to VAMC services. 

VA obtains its vehicles from five sources: GSA leases, commercial leases, purchases, 

donations from Veterans Service Organizations, or transfers from other Federal agencies. 

As the primary supplier of VA fleet vehicles, GSA manages a worldwide fleet of over 

190,000 vehicles and leases a wide variety of vehicles to Federal agencies. Furthermore, 

GSA is a mandatory source of supply for purchasing new vehicles. GSA also provides 

fleet management program guidance through its Guide to Federal Fleet Management. 

In 2004, the GAO issued audit report Increased Attention to Vehicle Fleets Could Result 

in Savings (GAO-04-664, May 2004), in which it concluded that Federal agencies needed 

VA Office of Inspector General 1 
Audit of Veterans Health Administration Vehicle Fleet Management 

to improve fleet management. GAO recommended that agencies, including VA, establish 

clearly defined utilization criteria and require fleet managers to use the criteria in 

conducting periodic fleet assessments. 

To implement the GAO recommendations, VHA issued the Vehicle Fleet Management 

Guidebook in September 2005, which provided guidance to VA fleet managers on 

vehicle acquisition, utilization, fleet cards, and other related issues. In addition, 

beginning in December 2006, VHA required all fleet managers to perform annual 

utilization evaluations, and by March 2007 all VHA fleet managers had submitted their 

first annual vehicle utilization reviews to the national program office. In 2006, VHA also 

developed and tested a VA fleet management information system, the Comprehensive 

Automobile Reporting System (CARS), to make field activity fleet utilization, 

maintenance, and accident information readily available to VA program managers. 

Scope and Methodology 

Our audit focused on VHA fleet management activities. We did not review fleet 

management in VBA, NCA, or other VA offices because these fleets were much smaller 

and represented less risk than VHA fleets. The audit included onsite visits to the national 

program office in Washington, DC, and three randomly selected VAMCs: the Louis 

Stokes VA Medical Center in Cleveland, the James A. Haley Veterans' Hospital in 

Tampa, and the North Chicago VA Medical Center (referred to as VAMCs Cleveland, 

Tampa, and North Chicago in this report). These sites had a total of 390 leased and 

VA-owned vehicles as of September 2006. 

To determine if vehicle acquisitions were adequately justified, reasonably priced, and 

properly approved, we examined procurement actions for all vehicles purchased or leased 

at the three VAMCs during FY 2006. To evaluate the need and the approval process for 

those procurements, we interviewed vehicle users, reviewed procurement justifications, 

and determined whether any comparable vehicles on hand were underutilized. We also 

interviewed VAMC procurement staff and reviewed purchase records to determine 

whether VAMCs used preferred sources to procure new vehicles, such as the GSA lease 

program, and to determine whether they paid fair and reasonable prices. 

To determine if the three VAMCs had more fleet vehicles than they needed, we evaluated 

FY 2006 utilization of all vehicles on hand as of September 2006. We compared the total 

miles each vehicle was driven during FY 2006 with Federal minimum mileage standards. 

We also reviewed vehicle logs, interviewed fleet managers and drivers, and considered 

driver workload information. For each VAMC service and location, we determined the 

number and type of vehicles required by analyzing the nature and frequency of each 

vehicle's use. Next, we compared those requirements to the number of suitable vehicles 

at the location and identified vehicles that the VAMCs could return or reassign without 

negatively impacting services to veterans. We then assessed whether vehicle logs 

VA Office of Inspector General 2 
Audit of Veterans Health Administration Vehicle Fleet Management 

provided sufficient information for fleet managers to accurately evaluate vehicle 

utilization, the criteria they used, and the results of their initial annual utilization reviews.

To assess physical security of vehicles, we examined the controls in place at each VAMC 

motor pool during our onsite visits. We also evaluated security of vehicles assigned to 

specific VAMC locations during the period September–October 2006, using a 

nonstatistical sample of 50 assigned vehicles. In selecting our sample, we chose vehicles 

from as many services and locations at the three VAMCs as feasible to obtain a broad 

view of vehicle control practices. 

To evaluate preventive maintenance, we reviewed scheduled maintenance programs for 

all VA-owned vehicles at the three VAMCs. We determined if the programs ensured that 

VAMCs performed preventive maintenance when required and whether the maintenance 

performed during FY 2006 complied with manufacturer recommendations for servicing, 

inspection, and warranty validation. 

To review VAMC controls over VA fleet card use, we interviewed fleet card program 

officials and analyzed FY 2006 fleet card purchases at VAMCs Cleveland and Tampa. 

Our review did not include VAMC North Chicago because it used an on-station fuel 

pump for its VA-owned vehicles and did not require VA fleet cards. 

During the audit, we relied extensively on computer-processed data to determine vehicles 

on hand as of September 2006 and miles driven in FY 2006. To assess the reliability of 

this data, we confirmed the accuracy of vehicle inventory information obtained from 

GSA's Fleet Management System and fleet manager vehicle listings using vehicle 

assignment and utilization records and interviews with vehicle drivers and their 

supervisors. We tested the mileage reported by the fleet managers using vehicle logs and 

invoices that contained independent odometer readings. Based on these tests and 

assessments, we concluded the data were sufficiently reliable to meet the audit objectives. 

We performed the audit from September 2006 to March 2007. Our assessment of 

internal controls focused on those controls related to our audit objectives. We conducted 

the audit in accordance with generally accepted government auditing standards. 

VA Office of Inspector General 3 
Audit of Veterans Health Administration Vehicle Fleet Management 

Results and Conclusions 

Controls Over Vehicle Utilization Needed To Be Strengthened 

Finding 

VAMCs Cleveland, Tampa, and North Chicago did not need 32 (8 percent) of the 

390 vehicles on hand in September 2006. The VAMCs should have returned 14 of the 

32 vehicles to GSA because they could have met their transportation needs by using other 

vehicles from the same services or from VAMC central vehicle pools. The VAMCs 

could have returned 18 additional vehicles if they had moved 72 vehicles assigned to 

individual employees or services into vehicle pools or required greater sharing of those 

vehicles. Eliminating the 32 vehicles would result in annual cost savings of $83,496 in 

lease costs. 

The following examples illustrate some fleet vehicles that the VAMCs did not need. 

VAMC Cleveland. The VAMC had assigned two GSA leased vehicles to 

the Office of Resolution Management (ORM). ORM drove 1 vehicle only 

16 times during the previous 11 months and the other vehicle only twice in 

the 3 months since that office had received it. Because ORM needed a 

vehicle only occasionally and vehicles from the VAMC's central vehicle 

pool were available, the VAMC could have returned both vehicles to GSA. 

VAMC Tampa. The VAMC had assigned two vehicles, a sedan and a 

cargo van, to a community based outpatient clinic (CBOC). CBOC 

employees used the sedan about 12 days per month, driving 4,202 miles in 

FY 2006. CBOC maintenance staff used the cargo van primarily for 

hauling light supplies and drove it only 862 miles in FY 2006. By 

replacing both vehicles with a minivan, the clinic could have met its 

transportation needs and eliminated the second vehicle. 

Four factors contributed to vehicle underutilization, as discussed below. 

VHA Did Not Establish Specific Secondary Utilization Criteria. VHA had not 

established specific utilization criteria for vehicles that did not meet GSA minimum 

mileage standards, which VA had adopted. The Federal Management Regulation (FMR) 

provides minimum vehicle utilization mileage standards and recommends that agencies 

consider other objective factors, such as days used and mission, in evaluating utilization 

of vehicles not meeting the mileage standards. In response to the GAO audit 

recommendation that Federal agencies establish clearly defined vehicle utilization criteria 

based on the missions of their vehicles, VHA's Vehicle Fleet Management Guidebook

VA Office of Inspector General 4 
Audit of Veterans Health Administration Vehicle Fleet Management 

includes Federal fleet vehicle minimum annual mileage standards and requires facilities 

to establish secondary utilization criteria for vehicles that do not meet mileage standards. 

Although VHA provides a list of optional criteria (such as days used) and consideration 

factors (such as mission), it does not specify the criteria VAMCs should use. As a result, 

only one of the three VAMCs we reviewed had established any secondary utilization 

criteria. VAMC Tampa had adopted a minimum use standard of 15 working days per 

month in addition to VA's minimum mileage criteria. The other two VAMCs had no 

other standards to assess the utilization of vehicles that did not meet Federal minimum 

mileage levels. 

Vehicle Use Documentation Was Not Complete. VAMC fleet managers did not have 

sufficient information to accurately evaluate vehicle utilization for many vehicles because 

assigned drivers often did not provide the required vehicle use information and 

supervisors did not ensure that drivers complied. VAMCs require drivers of assigned 

vehicles to complete vehicle logs each day they use their vehicles and to provide the logs 

to their fleet managers monthly. Although the format of the vehicle log varied by 

facility, required log information included the destinations visited and miles driven. For 

vehicles dispatched daily from VAMC central vehicle pools, similar information was 

required using daily trip tickets. Our review of monthly vehicle logs and trip tickets for 

FY 2006 concluded that documentation for 249 (64 percent) of the 390 vehicles was not 

complete enough for fleet managers to adequately evaluate vehicle utilization. Without 

reasonably complete and accurate information on the total miles driven and the frequency 

of vehicle use, fleet managers could not accurately assess vehicle utilization. 

Although the three VAMCs required drivers to document vehicle use, the fleet managers 

stated they were often unable to obtain vehicle logs when the drivers did not submit them. 

Fleet managers at the three VAMCs stated they thought they did not have sufficient 

authority to enforce compliance by other VAMC managers. 

Furthermore, although fleet managers at the VAMCs were responsible for 390 vehicles, 

they controlled only 66 vehicles directly in central vehicle pools. The VAMCs had 

assigned the other 324 vehicles to other individuals and VAMC services. For example, 

VAMC Cleveland had permanently assigned 179 (84 percent) of its 213 vehicles to 

individuals or VAMC services located at 18 different sites. Because of the large number 

of widely dispersed vehicles, fleet managers must rely on the supervisors of assigned 

drivers to ensure they receive complete vehicle log information. However, supervisors 

verified vehicle log information for only 8 (16 percent) of the 50 vehicles in our sample. 

Utilization Reviews Were Generally Not Effective. VHA's Vehicle Fleet Management 

Guidebook established a requirement for annual vehicle utilization reviews by all VA 

fleet managers. In December 2006, fleet managers performed VA-wide utilization 

reviews for the first time. VHA required fleet managers to submit the total miles driven 

and days used for each vehicle; to determine whether to retain, rotate, or dispose of each 

VA Office of Inspector General 5 
Audit of Veterans Health Administration Vehicle Fleet Management 

vehicle not meeting utilization standards; and to provide written justifications for 

retaining vehicles that did not meet Federal mileage standards. 

We analyzed the utilization reviews submitted by VAMCs Cleveland, Tampa, and North 

Chicago and compared the results of their reviews to our analyses of vehicle utilization. 

Of the three utilization review submissions, only VAMC Tampa identified vehicles that 

were not justified and described actions needed to improve vehicle utilization. 

• VAMC North Chicago planned to make no changes to the composition of its fleet. 

The VAMC based its justification of vehicles that did not meet VA minimum mileage 

standards on the number of days it used them. Yet the VAMC had no time-based 

utilization standard (such as minimum usage of 15 days per month) and determined 

that all vehicles were justified, regardless of the number of days used. In addition, 

vehicle logs did not support the numbers of days used reported in the VAMC's 

utilization review. 

• VAMC Cleveland planned to dispose of 2 unserviceable VA-owned vehicles and to 

rotate 31 other vehicles. It based its evaluation of vehicle utilization on vehicle 

mileage and justified vehicles not meeting mileage standards as exempted from 

utilization standards because of their missions. 

• VAMC Tampa identified 2 VA-owned vehicles that were no longer usable and 

determined it could not justify 44 other vehicles assigned to individuals. The fleet 

manager planned to move the 44 assigned vehicles to the central vehicle pool to 

gather more accurate vehicle use information, to improve vehicle utilization through 

pooling, and to reduce the overall size of the fleet after a suitable period of monitoring 

vehicle use in this new configuration. 

All three fleet managers stated that their reviews considered whether to move 

underutilized vehicles assigned to individuals or services to VAMC central vehicle pools 

for greater efficiency. However, they did not evaluate whether they could manage 

underutilized vehicles assigned to specific services at offsite locations more efficiently by 

increased sharing. This is particularly important at CBOCs and other offsite locations 

having vehicles assigned to multiple services. 

Insufficient Staff Limited VHA's Fleet Utilization Oversight. Although VHA has 

made significant progress in managing fleet vehicles in the past 2 years by issuing the 

Vehicle Fleet Management Guidebook, developing CARS, and requiring annual 

utilization reviews, VHA's Fleet Management Office did not have sufficient staff to 

effectively oversee fleet management at the facility level. During our audit, the office 

consisted of a single position that had been vacant since March 2006. Since then, other 

Office of Health Care Engineering staff members have managed the fleet program in 

addition to performing their regular duties. 

VA Office of Inspector General 6 
Audit of Veterans Health Administration Vehicle Fleet Management 

To ensure VAMCs manage their fleets efficiently, VHA program management staff must 

evaluate VAMC vehicle utilization, identify any significant problems, and ensure that 

VAMCs take corrective actions. Although the December 2006 utilization review 

provided basic fleet utilization information for all VAMC vehicles to VHA's fleet 

program office, that information was not always accurate. Furthermore, fleet managers 

did not adequately support their justifications for retaining vehicles that did not meet VA 

minimum mileage standards. The problems we identified at the three VAMCs in vehicle 

utilization documentation and evaluation indicate that VHA needs a strong monitoring 

program. VHA fleet management staff expects CARS to make VAMC vehicle utilization 

information available to them routinely in the future. However, without an effective 

monitoring program that includes extensive data validation, VHA will have no assurance 

the information entered into CARS is reliable. 

Conclusion 

To determine if the number of vehicles on hand correspond to VAMC transportation 

needs, fleet managers should periodically assess vehicle utilization using objective 

criteria and adequate vehicle use information. They should also review vehicle 

assignments to identify cases where consolidations could reduce the number of vehicles 

needed. For underutilized vehicles that VAMCs will retain, the fleet managers should 

provide specific justifications to VHA. Oversight by VHA fleet management office is 

essential to ensure that VAMC fleet managers evaluate vehicle utilization objectively, 

control vehicle assignments, and eliminate unneeded vehicles. 

 

Recommendations 

1. We recommended that the Under Secretary for Health establish specific, mandatory, 

time-based utilization criteria for all VA fleets. 

2. We recommended that the Under Secretary for Health establish controls to ensure that 

fleet managers receive accurate and complete monthly vehicle utilization information 

for all fleet vehicles. 

3. We recommended that the Under Secretary for Health ensure that fleet managers 

identify underutilized vehicles using objective criteria and accurate vehicle use 

information, pool vehicles to fully utilize them whenever feasible, and eliminate 

unneeded fleet vehicles. 

4. We recommended that the Under Secretary for Health ensure that VHA's fleet 

management office effectively monitors fleet utilization at field locations. 

VA Office of Inspector General 7 
Audit of Veterans Health Administration Vehicle Fleet Management 

The Under Secretary for Health agreed with our finding and recommendations and 

planned to take corrective action by December 31, 2007. The Under Secretary agreed to 

establish time-based vehicle utilization standards and to ensure that facilities use accurate 

data when evaluating vehicle utilization. He also agreed to require fleet managers to pool 

vehicles when feasible and eliminate fleet vehicles that are no longer needed. His 

planned actions also included analyzing utilization reviews to identify systemic 

weaknesses and conducting field site inspections to assess vehicle utilization. We 

consider these planned actions acceptable and we will follow up on their implementation. 

Physical Security of Fleet Vehicles Needed Improvement 

Finding 

VAMCs did not properly safeguard vehicles or establish adequate vehicle security 

controls, which resulted in the undetected loss of a vehicle at one VAMC. GSA's Guide 

to Federal Fleet Management states that the fleet manager is accountable for all fleet 

vehicles and should establish procedures to monitor and control use of vehicles at all 

times. It also requires vehicle users to lock stored vehicles and secure vehicle keys and 

corresponding fleet cards in locked safes or cabinets. The following examples illustrate 

the need for better physical security controls for fleet vehicles. 

VAMC Cleveland. As a result of our audit, the fleet manager reported a 

GSA sedan missing from the VAMC's central vehicle pool in 

February 2007. The vehicle's last reported use was in September 2006. 

Because the fleet manager was not monitoring the vehicle's use and did not 

require routine physical inventories of vehicles or vehicle keys, it could 

have been missing since that time without his knowledge. The estimated 

value of the vehicle was $5,585. 

VAMC Tampa. The VAMC did not secure keys and fleet cards for 

12 vehicles in its central vehicle pool. When transportation staff dispatched 

vehicles each day, they placed the vehicle keys and fleet cards on a wall 

next to the admissions waiting area of the main hospital. Drivers then took 

them without notifying transportation staff and returned them when 

finished. Because the VAMC kept the keys and fleet cards for the vehicles 

in an open area and did not designate VAMC staff to control them, any 

employee, patient, or visitor who passed by could have easily taken them. 

Physical security of fleet vehicles assigned to other VAMC services also needed 

improvement. For 50 vehicles assigned to 39 different services and locations from all 

3 VAMCs, the responsible services reported having consolidated key control and 

conducting routine inventories of vehicle keys for only 14 (28 percent) of the 50 vehicles. 

VA Office of Inspector General 8 
Audit of Veterans Health Administration Vehicle Fleet Management 

The assigned drivers reported that vehicle keys were locked up when not in use for only 

32 (64 percent) of the 50 vehicles. 

The primary cause of these problems was that neither VHA nor the VAMCs had 

developed standard procedures for accounting for vehicles and vehicle keys. None of the 

three VAMCs had policies for accounting for fleet vehicles or physical control of vehicle 

keys and fleet cards. Although VHA's Vehicle Fleet Management Guidebook requires 

fleet cards to be secured, it does not specify control measures to account for and 

safeguard vehicles and vehicle keys. 

Conclusion 

The loss of a vehicle that went undetected for over 4 months demonstrates the need for 

more effective vehicle accountability and security controls for fleet vehicles. To 

minimize the risk of vehicle theft or misuse without prompt discovery, managers should 

routinely account for vehicles and vehicle keys. Keeping all vehicle keys at vehicle 

control points, securing them when not in use, and inventorying them each day will 

significantly reduce the risk of vehicles being lost, stolen, or misused. 

Recommendation 

5. We recommended that the Under Secretary for Health develop and implement 

policies requiring VAMCs to account for fleet vehicles and to secure and regularly 

inventory vehicle keys and fleet cards. 

The Under Secretary for Health agreed with our finding and recommendation and 

reported that by December 31, 2007, VHA will develop and implement policies that 

require vehicle accountability and security of vehicle keys and fleet cards at field 

activities. We consider the action plan acceptable and will follow up on its 

implementation. 

Preventive Maintenance Programs Needed To Be Established 

Finding 

VAMCs Cleveland and Tampa did not consistently perform required preventive 

maintenance for VA-owned vehicles. Without adequate preventive maintenance, 

VAMCs are at increased risk of costly unscheduled repairs, excessive downtime, and 

warranty invalidation. More importantly, they also risk not detecting safety-related 

defects that may cause accidents or injuries to VAMC staff or patients. The FMR 

requires VA to establish a scheduled maintenance program for each Government-owned 

vehicle. The program must ensure that inspections and services occur as recommended 

VA Office of Inspector General 9 
Audit of Veterans Health Administration Vehicle Fleet Management 

by the vehicle’s manufacturer. GSA's Guide to Federal Fleet Management and VHA's 

Vehicle Fleet Management Guidebook also include these requirements. 

During FY 2006, the VAMCs did not perform adequate preventive maintenance for 

43 (73 percent) of their 59 VA-owned vehicles. Services not consistently performed 

included oil and filter changes, tire rotations, transmission fluid checks and accessory 

drive belt inspections. Of the 43 vehicles that were not properly maintained, 30 were 

used for patient transport and 13 were used for operational support. The VAMCs were 

not completing periodic maintenance tasks and inspections in accordance with 

manufacturer recommendations, as illustrated in the following example. 

VAMC Cleveland. A new passenger van, donated to transport patients, 

received its first preventive maintenance at 20,665 miles. Since the 

manufacturer recommends that users change engine oil and filters every 

5,000 miles, the VAMC should have obtained these services four times. 

When the vehicle arrived at the maintenance facility for its first service, the 

engine oil level was low. Not changing engine oil and filters when 

necessary can result in premature engine wear and damage. 

The primary cause for not performing preventive maintenance was that the VAMCs had 

not developed comprehensive maintenance programs. Although VAMC Cleveland had a 

vehicle repair history for each VA-owned vehicle, the VAMC fleet manager had not 

created preventive maintenance schedules to ensure all VA-owned vehicles received 

preventive maintenance at the appropriate intervals. VAMC Tampa fleet management 

staff had created an oil change log; however, they did not enforce compliance with the 

log and did not prepare any other preventive maintenance schedules. 

A second cause of this problem was the use of incorrect standards to determine 

maintenance intervals. Even though VHA's Vehicle Fleet Management Guidebook

specified that fleet managers should base preventive maintenance schedules on the 

manufacturers' recommendations, drivers and fleet managers used other sources to 

establish vehicle maintenance intervals. For example, several drivers used standards 

established by local repair shops, while others used their driving experience to create 

their own standards. 

Conclusion 

VAMCs needed to strengthen their preventive maintenance programs to reduce the risk 

of costly unscheduled repairs, excessive downtime, warranty invalidation, and undetected 

safety defects that could contribute to accidents. VAMCs should establish preventive 

maintenance programs for all VA-owned vehicles, base preventive maintenance intervals 

on manufacturers' recommendations, and monitor compliance. 

VA Office of Inspector General 10 
Audit of Veterans Health Administration Vehicle Fleet Management 

Recommendation 

6. We recommended that the Under Secretary for Health require comprehensive VAMC 

preventive maintenance programs that follow manufacturers' maintenance standards 

for all VA-owned vehicles. 

The Under Secretary for Health agreed with our finding and recommendation. His 

implementation plan included ensuring that field activities establish individual vehicle 

preventive maintenance schedules based on manufacturers' recommendations and GSA 

maintenance guidelines by December 31, 2007. We consider the action plan acceptable 

and will follow up on its implementation. 

Oversight of VA Fleet Cards Needed Improvement 

Finding 

VAMCs needed to improve oversight of VA fleet card programs to ensure controls over 

fleet card purchases were effective. VA's fleet cards may be used to purchase fuel and 

authorized maintenance for VA-owned and commercially-leased vehicles. 

VA Handbook 4080, Government Purchase Card Procedures, and the draft VA Fleet 

Card Procedures Guide, issued in August 2005, require VAMC fleet card program 

officials to review and certify purchases as legitimate expenditures and promptly 

reconcile fleet card invoices with supporting purchase receipts. However, at VAMCs 

Cleveland and Tampa, the two VAMCs in our review that used VA fleet cards, the 

approving officials were not reviewing fleet card purchases, and fleet managers were not 

reconciling monthly invoices. 

Reviews of purchases and monthly reconciliations of billing statements are two important 

internal control measures for purchase card programs. By reviewing information on fleet 

card purchase receipts, such as the dates and amounts of the purchases, vehicle license 

numbers, vendor names and addresses, and the products purchased, approving officials 

and fleet managers can ensure that fleet card charges are valid and accurate before they 

are certified for payment. Because the VAMCs had not implemented these program 

controls, they had no assurance that fleet card purchases were authorized or that 

payments made to the fleet card credit companies were correct. 

These problems occurred because fleet managers administered the fleet card program 

without VAMC oversight. The draft VA Fleet Card Procedures Guide specifies the 

duties of facility approving officials, program coordinators, billing offices, and fleet 

managers. Approving officials at both VAMCs stated they did not know it was necessary 

to review fleet card purchases before certifying monthly invoices. Both VAMC program 

coordinators were unaware of the requirement to review each fleet card account annually. 

VA Office of Inspector General 11 
Audit of Veterans Health Administration Vehicle Fleet Management 

Furthermore, Fiscal Service managers were not familiar with the requirement for facility 

billing offices to audit fleet card payments. 

Conclusion 

VAMCs needed to strengthen controls over fleet card purchases. To ensure that drivers 

use VA fleet cards to buy only allowable items for VA-owned vehicles, fleet managers 

should obtain purchase receipts and reconcile fleet card invoices, approving officials 

should review purchases, and VAMCs should provide effective oversight. 

Recommendation 

7. We recommended that the Under Secretary for Health ensure oversight of the VA 

fleet card program at VAMCs and adequate training of approving officials and 

program coordinators. 

The Under Secretary for Health agreed with our finding and recommendation and 

reported that the Healthcare Engineering Office will discuss the duties of fleet card 

managers, approving officials, and program coordinators with field leadership. In 

addition, Healthcare Engineering Office staff will assess compliance with fleet card 

program requirements through discussions with fleet managers and site visits, as 

appropriate. The target date for completing these actions is December 31, 2007. We 

consider these planned actions acceptable and will follow up on their implementation. 

VA Office of Inspector General 12 
Audit of Veterans Health Administration Vehicle Fleet Management 

Appendix A 

Under Secretary for Health Comments 

VA Office of Inspector General 13 

Department of 

Veterans Affairs Memorandum

Date: July 18, 2007 

From: Under Secretary for Health (10) 

Subj: OIG Draft Report. Audit of Veterans Health Administration Vehicle Fleet 

Management, Project No. 2006-03637-R8-0231 (WebCIMS 383350) 

To: Assistant Inspector General for Audit (52A)

1. I have reviewed the draft report and concur with the recommendations. 

Proper vehicle fleet management is an important issue for the Veterans Health 

Administration (VHA) considering that VHA vehicles represent almost 90 

percent of the entire VA fleet. In addition, since our fleet includes ambulances 

and passenger vehicles that directly enable veterans and family members to 

access necessary medical care, I consider proper fleet management an important 

responsibility in carrying out our mission. As such, I was pleased with your 

finding that the VA sites adequately justified and approved new vehicle 

procurements, used appropriate sources of supply, and paid fair and reasonable 

prices when purchasing vehicles. Conversely, I was concerned with your 

finding that VHA lacks certain effective controls over fleet utilization and fleet 

resources. I appreciate your recommendations to help rectify any weaknesses in 

our current management program. 

2. With regard to the context of the draft report, it is important to clarify one 

point. During the period under review, the report is correct in stating that VHA's 

Deputy Under Secretary for Health for Operations and Management had 

oversight responsibility for VA's vehicle fleet, including vehicles at VHA, the 

Veterans Benefits Administration, the National Cemetery Administration, and 

other VA offices. Since then, however, the VA Assistant Secretary for 

Management has taken over responsibility as the VA Senior Transportation 

Official in response to a Federal mandate that an agency's senior energy, 

environmental, and transportation officials must be comprised in one agency 

position. As such, VHA will share and coordinate all future vehicle fleet 

management responsibilities with the Office of the Assistant Secretary for 

Management. 

3. Attached is VHA's complete plan for corrective action, which provides a 

summary of specific initiatives that appropriately addresses identified issues in 

the report. Thank you for the opportunity to review the draft report. 
Audit of Veterans Health Administration Vehicle Fleet Management 

VA Office of Inspector General 14 

Page 2 

 OIG Draft Report. Audit of Veterans Health Administration Vehicle Fleet 

Management, Project No. 2006-03637-R8-0231 (WebCIMS 383350) 

4. If you have any questions, please contact Margaret M. Seleski, Director, 

Management Review Service (10B5) at (202) 565-7638. 

cc: Assistant Secretary for Management (004) 

Attachment 
Audit of Veterans Health Administration Vehicle Fleet Management 

VA Office of Inspector General 15 

Under Secretary for Health's 

Comments to Office of Inspector General’s Report 

Recommendations/ Status Completion Date 

Actions 

We recommend that the Under Secretary for Health: 

Recommendation 1: Establish specific, mandatory, time-based utilization 

criteria for all VA fleets. 

Concur 

VHA's Office of the Deputy Under Secretary for Health for Operations and 

Management (DUSHOM) Healthcare Engineering Office (10NB) plans to 

establish specific and mandatory minimum utilization standards for vehicle 

retention based on the number of days and times vehicles are used. After 

establishing these standards, the DUSHOM will widely distribute the standards 

to all VHA sites, provide education to the field, and monitor how fleet managers 

apply those criteria during subsequent utilization reviews. 

 Planned 12/31/07 

Recommendation 2: Establish controls to ensure that fleet managers receive 

accurate and complete monthly vehicle utilization information for all fleet 

vehicles. 

Concur 

VHA's Office of the Deputy Under Secretary for Health for Operations and 

Management (DUSHOM) Healthcare Engineering Office (10NB) began 

requiring annual fleet utilization reviews in December 2006. In the future, fleet 

managers will input vehicle utilization data into VA's fleet management 

information system, the Comprehensive Automobile Reporting System (CARS). 

In order to effectively evaluate fleet utilization, users must populate CARS with 

timely, complete, and accurate data. To ensure that fleet utilization review 

information is reliable, the DUSHOM will require facility directors to ensure 

that supervisors of vehicle users provide fleet managers with accurate and 

complete vehicle log information each month. DUSHOM will also require fleet 

managers to review vehicle logs and dispatches for completeness and accuracy 

each month and to retain vehicle logs for audit purposes. 10NB will assess the 

accuracy of CARS input through discussions with fleet managers and site visits, 

when appropriate. 

 Planned 12/31/07 
Audit of Veterans Health Administration Vehicle Fleet Management 

VA Office of Inspector General 16 

Recommendation 3: Ensure that fleet managers identify underutilized 

vehicles using objective criteria and accurate vehicle use information, pool 

vehicles to fully utilize them whenever feasible, and eliminate unneeded 

fleet vehicles. 

Concur 

VHA's Office of the Deputy Under Secretary for Health for Operations and 

Management (DUSHOM) Healthcare Engineering Office (10NB) will establish 

specific and mandatory utilization criteria for days and number of times of 

vehicle use and will assess whether utilization data is accurate and reliable. 

Through utilization reviews, 10NB will analyze vehicle utilization throughout 

the system. 10NB will require fleet managers to provide specific explanations 

of why vehicles that do not meet utilization standards are needed and whether 

they can be pooled. If a vehicle under review does not meet utilization 

standards and is not otherwise justified, it must be removed from the fleet. 

 Planned 12/31/07 

Recommendation 4: Ensure that VHA's fleet management office effectively 

monitors fleet utilization at field locations. 

Concur 

VHA's Office of the Deputy Under Secretary for Health for Operations and 

Management (DUSHOM) Healthcare Engineering Office (10NB) plans to 

implement a quarterly review process of centrally collated data from the 

Comprehensive Automobile Reporting System (CARS) and monthly site 

utilization review data. Through this in-depth process, 10NB will attempt to 

identify trends and weaknesses throughout the system. In addition to the 

quarterly reviews, 10NB will conduct field audits to oversee vehicle fleet 

utilization. 

 Planned 12/31/07 

Recommendation 5: Develop and implement policies requiring VAMCs to 

account for fleet vehicles and to secure and regularly inventory vehicle keys 

and fleet cards. 

Concur 

VHA's Office of the Deputy Under Secretary for Health for Operations and 

Management (DUSHOM) Healthcare Engineering Office (10NB) plans to 

ensure that specific policies requiring medical centers to account for fleet 

vehicles and to secure and regularly inventory vehicle keys and fleet cards will 

be added to the next revision of the Vehicle Fleet Management Guidebook. In 

the meantime, 10NB will share findings and recommendations from the OIG's 

report at the National Engineering conference call in July 2007, and reiterate 

proper vehicle security and inventory principles. 

. 

 Planned 12/31/07 
Audit of Veterans Health Administration Vehicle Fleet Management 

VA Office of Inspector General 17 

Recommendation 6: Require comprehensive VAMC preventive 

maintenance programs that follow manufacturers' maintenance standards 

for all VA-owned vehicles. 

Concur 

The requirement for comprehensive preventive maintenance programs that 

follow manufacturers' maintenance standards for all VA-owned vehicles is 

already prescribed in Vehicle Fleet Management Guidebook, Section 2.7, 

"Maintenance," which states "Vehicles will be maintained in accordance with 

manufacturer's recommendations and GSA maintenance guidelines...The 

maintenance schedule, performance and cost of each required task will be 

documented on a per vehicle basis. The documentation will be maintained and 

retrievable upon request at the local Field Office level." Accordingly, VA 

considers the lack of proper preventative maintenance a matter of execution. 

VHA's Office of the Deputy Under Secretary for Health for Operations and 

Management (DUSHOM) Healthcare Engineering Office (10NB) will reinforce 

this requirement through an announcement on the National Engineering 

conference call in July 2007. 10NB will assess compliance with the preventive 

maintenance requirements through discussions with fleet managers and site 

visits, when appropriate. 

 

 Planned 12/31/07 

Recommendation 7: Ensure oversight of the VA fleet card program at 

VAMCs and adequate training of approving officials and program 

coordinators. 

Concur 

Guidelines and responsibilities for the fleet card program are prescribed in 

Vehicle Fleet Management Guidebook, Section 7. VHA considers the lack of 

proper certification and reconciliation of fleet card purchases a matter of 

execution. VHA's Office of the Deputy Under Secretary for Health for 

Operations and Management (DUSHOM) Healthcare Engineering Office 

(10NB) will reinforce the requirements for Fleet Managers to reconcile monthly 

invoices with fleet card receipts and for Approving Officials to review and 

properly certify fleet card purchases through an announcement on the National 

Engineering conference call in July 2007. 10NB will also prepare 

announcements for upcoming conference calls with field leadership discussing 

the duties of fleet card program approving officials and program coordinators. 

10NB will assess compliance with fleet card program requirements through 

discussions with fleet managers and site visits, when appropriate. 

 Planned 12/31/07 
Audit of Veterans Health Administration Vehicle Fleet Management 

Appendix B 

Monetary Benefits in Accordance 

with IG Act Amendments 

Recommendations Explanation of Benefits

Better Use 

of Funds

1–4 Strengthening controls over utilization of fleet 

vehicles would reduce GSA lease costs for 

vehicles that are not needed. 

$83,496 

5 Improving controls over vehicle accountability 

and security would save VA the cost of lost or 

stolen vehicles. 

$5,585 

Total $89,081 

VA Office of Inspector General 18 
Audit of Veterans Health Administration Vehicle Fleet Management 

Appendix C 

OIG Contact and Staff Acknowledgments 

OIG Contact Claire McDonald, 206-220-6654 

Acknowledgments Ron Stucky 

Barry Johnson 

Karen Chambers 

Angie Fodor 

Maria Foisey 

Orlando Velasquez 

VA Office of Inspector General 19 
Audit of Veterans Health Administration Vehicle Fleet Management 

Appendix D 

Report Distribution 

VA Distribution

Office of the Secretary 

Veterans Health Administration 

Veterans Benefits Administration 

National Cemetery Administration 

Assistant Secretaries 

Office of General Counsel 

Non-VA Distribution

House Committee on Veterans’ Affairs 

House Appropriations Subcommittee on Military Construction, Veterans Affairs, 

and Related Agencies 

House Committee on Oversight and Government Reform 

Senate Committee on Veterans’ Affairs 

Senate Appropriations Subcommittee on Military Construction, Veterans Affairs, 

and Related Agencies 

Senate Committee on Homeland Security and Governmental Affairs 

National Veterans Service Organizations 

Government Accountability Office 

Office of Management and Budget 

This report will be available in the near future on the OIG’s Web site at 

http://www.va.gov/oig/publications/reports-list.asp. This report will remain on the OIG Web site 

for at least 2 fiscal years after it is issued. 

VA Office of Inspector General 20