INTERNAL AUDIT REPORT FLEET COMMERCIAL VEHICLE
APPENDIX "A" - REPORT # CAO-A-1303
INTERNAL AUDIT REPORT FLEET ? COMMERCIAL VEHICLE OPERATOR'S REGISTRATION (CVOR)
Final
March 14, 2013
Prepared by:
Loretta Alonzo, Internal Auditor, City of Guelph
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Table of Contents
BACKGROUND SUMMARY ................................................................................ 3 REVIEW OBJECTIVES...................................................................................... 3 SCOPE .......................................................................................................... 3 AUDIT TEAM.................................................................................................. 4 METHODOLOGY ............................................................................................. 4 STATISTICS .................................................................................................. 5 CURRENT ENVIRONMENT ................................................................................ 7 ORGANIZATION CHARTS............................................................................... 10 STAKEHOLDER INTERVIEWS ......................................................................... 13 BENCHMARKING .......................................................................................... 15 KEY FINDINGS AND RECOMMENDATIONS ....................................................... 21 CONCLUSIONS ............................................................................................ 29 NEXT STEPS ................................................................................................ 29
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BACKGROUND SUMMARY
On September 4, 2012 the City of Guelph received a written warning notification from the Ministry of Transportation (MTO) advising that its Commercial Vehicle Operator's Registration (CVOR) safety violation rate had reached 38.6%, which is in excess of the "satisfactory" threshold of 35% or under.
In order to be compliant with the Ontario Ministry of Transportation regulations, all operators of commercial motor vehicles weighing more than 4500 kg. must obtain and annually renew a Commercial Vehicle Operator's Registration certificate.
This information was brought forward in a report (#OT111248) to the Operations, Transit and Emergency Services standing committee on November 19, 2012. Subsequent media coverage and staff responses raised further questions from Council, senior management and the public as to the level of compliance and internal controls currently in place with respect to these issues.
On November 26, the Chief Administrative Officer requested that Internal Audit conduct a review of internal controls and practices related to Fleet and management of the CVOR and report back by January 15, 2013.
REVIEW OBJECTIVES
Evaluate the internal controls related to management of the CVOR and Fleet Determine current level of compliance with MTO and CVOR legislated requirements Identify best practices in Fleet and CVOR management in the municipal sector Identify deficiencies in existing practices and provide recommendations to address same Ascertain whether the existing organization structure is effectively meeting its objectives Provide benchmarking and performance analysis
SCOPE
CVOR-related practices, documentation and reporting General Fleet and CVOR administrative processes, management practices MTO ? CVOR compliance with legislated requirements Fleet and CVOR policy review Driver training, coaching, and disciplinary practices Accident / incident reporting practices Records retention compliance
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Out of Scope Fleet maintenance ? effectiveness, efficiency, compliance Acquisition and disposal of assets Financial analysis and verification
AUDIT TEAM
Loretta Alonzo, Internal Auditor Brenda Boisvert, Corporate Manager, Strategic Planning and Corporate Initiatives Suzanne Holder, Administrative Assistant
METHODOLOGY
The following research and analysis was undertaken for this audit:
Internal document review o Vehicle inspection records o Vehicle defect reporting documents o Accident ? incident reports o Existing policies, standard operating procedures o Driver training materials o Memos, notices, department communications o CVOR abstract - collisions, convictions, inspections records o Job descriptions o Organization charts o Employee files ? coaching, training, disciplinary letters o Record retention bylaw
External literature review o Driver handbooks and training materials o Fleet policies o MTO - CVOR website o Municipal comparator websites o Municipal comparator CVOR abstracts
Benchmarking ? Municipal comparators o Other practices - Fleet policy ? CVOR management o Phone interviews
Staff-Stakeholder interviews
Field ? Site visits
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STATISTICS
The City of Guelph operates a Fleet of 338 vehicles distributed as follows:
Department Waste Water Water Works Public Works Solid Waste Recreation & Parks Building Corporate Services Bylaw PlanningEngineering Transit Pool Vehicles Total
Non-CVOR Vehicles 7 26 26 13
CVOR Vehicles 3
14 41 21
8
18
17
5 4
7 6 39 158
83 180
Fire and ambulance fleets are exempt in the Corporate CVOR rating.
The City's CVOR performance history has been well within the satisfactory range established by MTO for more than 10 years. Records indicate that the rating has been stable between 20% to 30% for many years:
May 2005 Feb 2012 Nov 2012
30.4% 24.3% 36.26
This "safety violation rate" is a threshold established by MTO which ranks commercial Fleet operators based on a number of factors including:
Annual number of kilometers driven by the entire Fleet Number of vehicle collisions Number of driver convictions MTO vehicle inspections ? on or off road
The CVOR record is a two-year rolling "scorecard" whereby violations which incur points against the CVOR will remain cumulative for a two-year period, after which time they will drop off the record.
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