Our findings are summarized as follows. Without adequate cost data, the state cannot make informed decisions about the cost-effectiveness of agency as compared to contracted transportation services. We concluded that a full resource cost allocation method should be used to calculate agency transportation costs. Under this method, all costs associated with client transportation would be accounted for, regardless of whether they are actually incurred by the agency. At a minimum, the following costs would be included labor, fringe benefits, administrative overhead, capital costs, maintenance, insurance, and gas, oil, and tires.
Agencies use different methods to bill their transportation cost.
The use of different methodologies does not allow a comparison of transportation costs among offices within the same agency or between different agencies. In addition, the rate at which agencies reimburse individuals for the use of personal vehicles varies both among and within agencies. Although some state agencies use staff whose duties do not primarily involve driving to transport clients, the agencies do not know the extent to which staff is used. When agencies do not account for staff time spent driving, transportation costs are not accurate, and a comparison of costs is not possible. The lack of coordinated services may result in higher costs.