Hi-Tech: A Most compelling Argument

HI-TECH DATA SYSTEMS, INC.
9190 Brocks Gap Rd,
Fulks Run, VA
22830
1-800-HITECH-0
email: fuelnet@htdsys.com

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A Most Compelling Argument

We recently found a page on the Internet which is a press release from the city of Philadelphia. It is such a classic illustration of the requirement for accountability in fueling networks and the time and expense normally required to implement such accountability, that we have excerpted it here for your information.

We hope you find it interesting reading.

PHILADELPHIA, PA - City Controller Jonathan A. Saidel today released the following three fiscal year 1995 audits: Office of Fleet Management, Division of Aviation , Board of Revision of Taxes.

During fiscal year 1995, the City of Philadelphia, through its Office of Fleet Management (OFM), pumped 6.4 million gallons of fuel into the almost 6,000 vehicles in its fleet. Total cost of fuel for this period was $4.2 million. "Our audit tested whether effective controls are in place to safeguard our fuel against waste, loss, and misuse. Unfortunately, what we found were significant weaknesses in all facets of the current system, leaving a strong possibility that theft and abuse could routinely occur without detection," reports Controller Saidel.

Among the Controller's findings: OFM has discontinued its analysis of daily transaction reports. These reports provide vital information enabling management to see which employees and vehicles receive fuel, the date, time and location, the number of gallons pumped, and the odometer reading of the vehicle. Without reviewing these reports, management has no way to detect irregularities. For instance, the Controller's Office reviewed a sample report for April 1996 and identified questionable transactions such as one vehicle appearing to be fueled 5 times in 33 minutes and receiving over 74 gallons of gasoline. Controls over the issuance and possession of vehicle and employee cards necessary to receive fuel have also broken down.

Almost 1,400 cards were matched to employees shown as being on inactive payroll status. Until recently, fuel cards reported lost or stolen were not removed from the system and could still be used to obtain fuel. In visiting and conducting surveillance at some of the City's fuel sites, the Controller's staff noted that some fuel site attendants showed little concern for completion of Fuel Issue Logs which record usage at locations with manual pumps. On one such visit, the site attendant simply said that the Log was on top of the pump and that it should be completed. No verification was attempted by the attendant to verify the accuracy of any information entered, or even to determine if the person receiving gas was, in fact, authorized to do so. At another fuel site, individuals passed vehicle and employee cards through the card reader and pumped gasoline into a private vehicle and filled a gas container in the vehicles trunk. As part of the audit tests, a Controller's Office investigator was also able to fill his own private vehicle with the City's gasoline without being questioned.

"Fleet Management has advised me that a new, state-of-the-art system will be in place within the next 12 to 18 months to automatically monitor usage and increase accountability," Saidel stated. "This audit demonstrates the glaring need for such a system.. However, because of the large number of dollars at risk and the current flaws uncovered in this audit, I call on Fleet Management to take immediate action to implement my five major recommendations. We cannot wait until the new system become operational."

The audit of the Division of Aviation is critical of the Division's computerized maintenance management system (CMMS). In the past seven years, $539,000 has been invested in this system yet it is still not fully operational. Additionally, the audit notes that operating losses at Northeast Philadelphia Airport were cut by 17% in fiscal 1995 from those of the previous year. However, the cumulative deficit for this facility over the last nine years is $23.8 million. Saidel promises a detailed review of Aviation's efforts to improve the Northeast Airport's profitability in future audits.

email: fuelnet@htdsys.com

9190 Brock's Gap Rd.
Fulks Run, VA 22830
1-800-HITECH-0
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Home | Who Are Our Clients | Client Services
Why Choose Hi-Tech Data | About Hi-Tech Data Systems, Inc.
How to Automate Without a Budget
A Most Compelling Argument | Accolades