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| VMfS I U.S. ENVIRONMENTAL PROTECTION AGENCY
V	OFFICE OF INSPECTOR GENERAL
Spending	Taxpayer
EPA's Fleet Management
Program Needs Improvement
Report No. 15-P-0001
October 6, 2014

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Report Contributors:	Marcia Hirt-Reigeluth
Anthony Grear
Cara Lindsey
Andres Calderon
Gloria Taylor-Upshaw
Michael Davis
Abbreviations
AST	Automotive Statistical Tool
EPA	U.S. Environmental Protection Agency
FAST	Federal Automotive Statistical Tool
FMR	Federal Management Regulation
GAO	Government Accountability Office
GSA	General Services Administration
NEIC	National Enforcement Investigations Center
OARM	Office of Administration and Resources Management
OCEFT	Office of Criminal Enforcement, Forensics and Training
OIG	Office of Inspector General
OMB	Office of Management and Budget
U.S.C.	U.S. Code
FY	Fiscal year
Cover photo: Picture of an EPA fleet vehicle taken during the audit. (EPA OIG photo)
Are you aware of fraud, waste or abuse in an
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Washington, DC 20460
(888) 546-8740
(202) 566-2599 (fax)
OIG Hotline@epa.gov
More information at www.epa.gov/oiq/hotline.html.
EPA Office of Inspector General
1200 Pennsylvania Avenue, NW (241OT)
Washington, DC 20460
(202) 566-2391
www.epa.gov/oig
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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
15-P-0001
October 6, 2014
Why We Did This Review
The U.S. Environmental
Protection Agency (EPA),
Office of Inspector General
(OIG), initiated this audit to
determine whether the EPA's
fleet program is in accordance
with federal fleet requirements
for vehicle operations,
acquisitions and utilization.
Federal agencies are to use
government vehicles to fulfill
their mission. The Federal
Management Regulation sets
forth requirements governing
the economical and efficient
management and control of
motor vehicles that the
government owns, leases
commercially, or leases
through the General Services
Administration fleet.
This report addresses the
following EPA goal or
cross-agency strategy:
• Embracing EPA as a high-
performing organization.
Send all inquiries to our public
affairs office at (202) 566-2391 or
visit www.epa.gov/oia.
The full report is at:
www.epa.gov/oig/reports/2015/
20141006-15-P-0001.pdf
EPA's Fleet Management Program Needs Improvement
What We Found
The EPA's oversight of its fleet
management program needs improvement.
The OIG identified three areas that
reinforce the need for more oversight:
If oversight of the EPA's fleet is
not improved, the $6 million-
per-year program could be
ineffective and inefficient in
supporting the agency's mission
and reporting data to the federal
system, and could place
taxpayer funds at risk.
•	The EPA has not finalized or issued
guidance documentation to manage
the fleet in over 5 years.
•	Fleet managers were not following program requirements and federal
regulations for vehicle emission testing, tracking vehicle usage, and ensuring
operator responsibilities.
•	The EPA lacks documentation to support its approval of law enforcement
vehicles in home-to-work status.
Without adequate oversight of the fleet program, the agency is not ensuring that
the $6 million-per-year program is efficient and effective to perform the agency's
mission, and is placing taxpayer funds at risk.
We also found that the EPA should increase monitoring of data within the
agency's fleet information system, known as the Automotive Statistical Tool
(AST). We identified missing, incomplete or incorrect information in the fleet
system. In addition, user data input from one report or screen in the AST is not
reported consistently in other system reports. The EPA has not developed or
issued an AST manual or a list of procedures to ensure users correctly input
information into the system. The AST-programmed data checks are not effective
in identifying differences in varying system reports. If data in the EPA's fleet
information system is not accurate, the agency is at risk of reporting errors to the
federal information system.
Recommendations and Planned Corrective Actions
The OIG recommended that the Assistant Administrator for Administration and
Resources Management:
•	Finalize and issue the Fleet Management Manual to ensure that fleet
managers operate programs within the agency's policies and procedures.
•	Require fleet managers to perform vehicle emission testing, use a tracking
system for vehicle usage, and require operators to acknowledge
responsibilities.
•	Require fleet managers with law enforcement vehicles to confer with the
Office of Administration and Resources Management to ensure the agency
has an acceptable level of documentation to meet reporting requirements.
•	Develop and issue an AST manual or a list of procedures for users to help
ensure data input is correct in the system.
The agency agreed with our recommendations and provided corrective actions.

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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
THE INSPECTOR GENERAL
October 6, 2014
MEMORANDUM
SUBJECT: EPA's Fleet Management Program Needs Improvement
Report No. 15-P-0001
FROM: Arthur A. Elkins Jr.
TO:
Nanci Gelb, Acting Assistant Administrator
Office of Administration and Resources Management
This is our report on the subject audit conducted by the Office of Inspector General (OIG) of the
U.S. Environmental Protection Agency (EPA). This report contains findings that describe the problems
the OIG has identified and corrective actions the OIG recommends. This report represents the opinion of
the OIG and does not necessarily represent the final EPA position. Final determinations on matters in
this report will be made by EPA managers in accordance with established audit-resolution procedures.
The office responsible for implementing the recommendations is the Office of Administration and
Resources Management's Office of Administration, Facilities Management and Services Division.
Action Required
In accordance with EPA Manual 2750, your office provided acceptable and complete planned corrective
actions in response to OIG recommendations. All recommendations are resolved and no final response to
this report is required.
We will post this report to our website at http://www.epa.gov/oig.

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EPA's Fleet Management Program
Needs Improvement
15-P-0001
	Table of Contents
Chapters
1	Introduction		1
Purpose		1
Background		1
Responsible Office		2
Scope and Methodology		2
2	EPA Needs to Improve Oversight of Its Fleet Management Program		3
EPA's Oversight of Its Fleet Management Program		3
Federal Laws and Regulations Governing the Management and
Monitoring of a Fleet Program		4
EPA Has Not Issued a Fleet Manual That Provides Direction to
Fleet Managers		5
EPA Fleet Managers Did Not Follow Program Requirements		5
EPA Needs to Improve Documentation to Support Home-to-Work
Use of Law Enforcement Vehicles		6
EPA Should Be Consistent in Documenting Emission Testing and
State Inspections		8
Conclusion		9
Recommendations		9
Agency Comments and OIG Evaluation		10
3	EPA Needs to Increase Data Monitoring of Its Fleet Information
System		11
EPA's Automotive Statistical Tool Is Its Fleet Information System		11
Federal Regulations Governing Information System Data Management....	12
The AST Needs a Manual, a List of Procedures and More
Data Checks		12
Conclusion		13
Recommendations		14
Agency Comments and OIG Evaluation		14
Status of Recommendations and Potential Monetary Benefits		15
Appendices
A OARM Response to Draft Report and OIG Comment	 16
B Distribution 	 19

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Chapter 1
Introduction
Purpose
The purpose of this assignment was to help the U.S. Environmental Protection
Agency (EPA) embrace its cross-cutting strategy to be a high-performing
organization. The audit objective of the Office of Inspector General (OIG) was to
determine whether the EPA's fleet program operates in accordance with federal
fleet requirements for vehicle operations, acquisitions and utilization.
Background
Federal agencies are to use government vehicles to fulfill their mission. As part of
our audit, we relied on specific provisions of the Federal Management Regulation
(FMR), Subchapter B, Part 102-34, titled Motor Vehicle Management. This
federal regulation sets forth requirements governing the economical and efficient
management and control of motor vehicles that the government owns, leases
commercially, or leases through the General Services Administration (GSA) fleet.
All executive agencies are required to comply with the provisions of this part. We
reviewed several subparts of this regulation, including Subpart A, General
Provisions, which identifies the motor vehicles that are covered and not covered
by this subpart. Section 102-34.20(d) provides that motor vehicles regularly used
by an agency to perform investigative, law enforcement or intelligence duties are
subject to only Subpart D, and Subpart J of the subchapter.
We also reviewed Subpart D, Official Use of Government Motor Vehicles;
Subpart F, Scheduled Maintenance of Motor Vehicles; and Subpart J, Federal
Fleet Report.
The FMR requires the establishment of a fleet management information system
that identifies and collects accurate inventory, cost and usage data that covers the
vehicle lifecycle. We noted that the Government Accountability Office (GAO)
publication, Standards for Internal Control in the Federal Government
(November 1999), provides that application controls are designed to help ensure
completeness, accuracy, authorization and validity of all transactions during
application processing. An application control is designed to cover the processing
of data within the application software. According to the Office of Management
and Budget (OMB) Circular A-123, "internal control is an integral component of
an organization's management" that provides reasonable assurance that the
organization is achieving the objective of "effectiveness and efficiency of
operations."
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During our audit we also reviewed the Office of Criminal Enforcement, Forensics
and Training (OCEFT) policy, titled Government-Owned Vehicles
(OCEFT-P-006), dated June 30, 2012. This policy sets forth procedures governing
OCEFT's law enforcement vehicles.
As of July 2013, the EPA's fleet was comprised of 1,064 vehicles. This number
includes 119 vehicles acquired in fiscal year (FY) 2013 and 225 vehicles acquired
in FY 2012. The EPA's fleet costs for FY 2013 were $6 million.
Responsible Office
The office responsible for implementing the recommendations in this report is the
Office of Administration and Resources Management's Office of Administration,
Facilities Management and Services Division.
Scope and Methodology
We conducted this audit from June 2013 through July 2014, in accordance with
generally accepted government auditing standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform
the audit to obtain sufficient, appropriate evidence to provide a reasonable basis
for our findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
We reviewed EPA policies and procedures governing the fleet program. We also
interviewed the Agency Fleet Manager, as well as program office, regional and
local fleet managers. The EPA's contractor staff trained our audit team on the
EPA's Automotive Statistical Tool (AST), and the OIG obtained data from the
system to verify with source documentation. We sampled 18 vehicles (7 percent)
of the 236 vehicles located in Atlanta, Georgia; Philadelphia, Pennsylvania; and
the Washington D.C., metro area. We selected our sample based on the location
of the staff and the number of vehicles each staff could review during the
preliminary research period.
For each sample vehicle we reviewed utilization records, fuel and repair costs;
inventoried the vehicle type, license plates, and mileage; and noted any general
observations. We did not increase our sample after preliminary research due to
our finding of the need for increased oversight.
During this audit we also performed an internal review of the OIG fleet. We plan
to address issues identified in a separate report to the Inspector General, which
will be made available to the public on our website at http://www.epa.gov/oig.
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Chapter 2
EPA Needs to Improve Oversight of Its Fleet
Management Program
The EPA's oversight of its fleet management program needs improvement. We
identified the following three areas that contribute to the need for more oversight:
•	The EPA has not finalized or issued guidance documentation to
manage the fleet in over 5 years.
•	Fleet managers were not following program requirements and federal
regulations for vehicle emission testing, tracking vehicle usage, and
ensuring operator responsibilities.
•	The EPA lacks documentation to support its approval of law
enforcement vehicles in home-to-work status.
Federal requirements for fleet management provide that agencies are to exercise
economical and efficient management and control of motor vehicles that the
government owns or leases. Also, OMB Circular A-123 provides that internal
control is an integral component of an organization's management that provides
reasonable assurance that the organization is achieving the objective of
effectiveness and efficiency of operations. By not having enough oversight of the
fleet program, the agency is not ensuring that the $6 million-per-year program is
efficient and effective, and is placing taxpayer funds at risk.
EPA's Oversight of Its Fleet Management Program
The EPA's December 2013 draft fleet manual provides that the Assistant
Administrator for the Office of Administration and Resources Management
(OARM) has the responsibility to provide direction for developing and
establishing an effective and efficient fleet management program. Specifically,
the responsibilities include providing guidance on good management practices
based on established policies and procedures; evaluating and reviewing fleet
management operations and processes; and assigning responsibilities to others by
grants of authority, instruction and direction.
The Agency Fleet Manager is responsible for administering and implementing
fleet management guidelines (i.e., the guidelines set forth in the manual) across all
designated vehicle motor pools for EPA regions, offices and programs. The
Agency Fleet Manager has responsibilities for inspecting operations and activities
for compliance with laws and regulations governing the use of government-owned
vehicles; and providing agencywide review of all vehicle acquisitions, operations
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and disposals. Fleet managers at the program office, regional, and local levels1
have numerous responsibilities for all government-owned vehicles and motor
pools within their purview, including daily operations of EPA's motor vehicles.
Federal Laws and Regulations Governing the Management and
Monitoring of a Fleet Program
Several federal laws and regulations address how agencies should manage and
monitor their fleet programs. The FMR, Subchapter B, Personal Property, is the
regulation that governs fleet management. The federal regulation sets forth
requirements governing the economical and efficient management and control of
motor vehicles that the government owns, leases commercially, or leases through
the GSA fleet. Subpart D, Section 102-34.205, provides that vehicle operators
may not use a government vehicle for transportation between a residence and a
place of employment, unless the agency authorizes such use after making a
determination under the U.S. Code using 31 U.S.C. 1344. The agency must keep a
copy of the written authorization within the agency and monitor the use of the
vehicles.
Subpart F, Section 102-34.275, requires that an agency have a scheduled
maintenance program for each motor vehicle owned or leased commercially. The
scheduled maintenance program must meet federal and state emissions and safety
standards, manufacturer warranty requirements, ensure the safe and economical
operating condition of the motor vehicle throughout its life, and ensure that
inspections and servicing occur as recommended by the manufacturer or more
often if local operating conditions require. Section 102-34.280 requires that an
agency perform federally mandated emissions inspections when required by the
relevant state motor vehicle administration or state environmental department.
Subpart J, Section 102-34.335, provides that on an annual basis agencies must
submit to the GSA the information needed to produce the Federal Fleet Report
through the Federal Automotive Statistical Tool (FAST). The FAST is an
Internet-based reporting tool. This section also requires reporting on the following
five categories: inventory, acquisitions, operating costs, miles traveled, and fuel
used. Section 102-34.345 provides that agencies are responsible for developing
and keeping adequate accounting and reporting procedures for government motor
vehicles. These procedures ensure the accurate recording of inventory, costs and
operational data needed to manage and control motor vehicles, and will satisfy
reporting requirements.
1 Heretofore, any references in this report to the plural "fleet managers" pertains to the fleet managers at the program
office, regional and local levels but not the "Agency Fleet Manager."
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OMB Circular A-123, Revised, Section II, states:
Internal control is an integral component of an organization's
management that provides reasonable assurance that the following
objectives are being achieved: effectiveness and efficiency of
operations, reliability of financial reporting, and compliance with
applicable laws and regulations.2 Internal control, in the broadest
sense, includes the plan of organization, methods and procedures
adopted by management to meet its goals. Internal control includes
processes for planning, organizing, directing, controlling, and
reporting on agency operations.
EPA Has Not Issued a Fleet Manual That Provides
Direction to Fleet Managers
The EPA has not finalized the fleet program guidance that details all requirements
for the program and the required procedures for program offices. The EPA's fleet
manual has been in the draft phase for at least 5 years. During the course of our
audit, we were able to identify three draft versions of the manual. One draft was
dated April 2009, another version was provided to us as a July 2012 draft, and the
latest version was provided on December 2013. The Agency Fleet Manager said
he might need to remind fleet managers to read the manual; however, it was not
clear which version of the manual the Agency Fleet Manager expected fleet
managers to use prior to final issuance. A finalized policy is an internal control
that contributes to providing the EPA with reasonable assurance that it is
achieving effective and efficient operations. We believe the EPA must finalize
and issue a fleet manual to ensure that the program has guidelines to support the
agency's $6 million-per-year operating costs for the program.
Without any official agency policy in place, fleet managers are not using specific
processes to manage and monitor use of vehicles. By not making it a priority to
finalize and issue a fleet manual, the EPA is not able to enforce program policies
and procedures and is placing the fleet program in jeopardy. In April 2014, the
agency said it recognizes that the manual needs be finalized, and in July 2014, the
EPA provided the OIG with a final draft that is currently going through a
clearance process before being published as an official EPA manual.
EPA Fleet Managers Did Not Follow Program Requirements
The EPA's fleet managers were not following program requirements specific to
performing vehicle emission testing, tracking vehicle usage, and ensuring vehicle
operators were aware of responsibilities.
2 Internal control standards and the definition of internal control are based on the GAO's Standards for Internal
Control in the Federal Government, November 1999 (referred to as the "Green Book").
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For our sampled vehicles, fleet managers were not able to provide supporting
documentation to verify emission testing for vehicles. In addition, managers do
not consistently use a tracking system to record the use of vehicles. We found that
fleet managers used different processes to obtain vehicle information. Some
sampled vehicles did not have utilization logs, or the logs were incomplete and
vehicle operators had not acknowledged their responsibilities.
The Agency Fleet Manager said his office relies on fleet managers to enforce
established federal requirements and the requirements in the draft manual. Also,
workshops are held, and quarterly newsletters are issued, to keep key personnel
informed about fleet requirements. The Agency Fleet Manager noted that some
fleet managers do not have supervisory authority over all the fleet managers in
their area. He stated that for some fleet managers, implementing the program is a
collateral function of their primary duties. Further, due to the lack of travel funds,
the Agency Fleet Manager said his office is unable to perform site visits. We
believe that the EPA should determine if its investment in the fleet program
warrants implementing a process to ensure fleet managers are enforcing program
requirements.
By not ensuring that vehicles have supporting documentation for emission testing,
the EPA's fleet may be at risk of not meeting state emission standards. Also, the
EPA increases the chance that the unauthorized use of vehicles could go
undetected by not utilizing a tracking system. Lastly, without vehicle operators
having the required knowledge about their responsibilities, the agency has no
means of holding vehicle operators accountable for implementing federal
requirements while operating the vehicle.
In an effort to address local fleet managers not consistently complying with
guidance provided in the fleet manual, the EPA plans to issue a memorandum to
remind personnel about fleet management oversight duties and to outline new
fleet management measures. In addition, the EPA noted that in order to provide
better oversight, the agency plans to incorporate random monthly checks of
vehicle utilization reports to determine appropriate vehicle tracking, and to
incorporate random monthly checks of vehicle operator responsibility forms to
determine appropriate fleet operations.
EPA Needs to Improve Documentation to Support Home-to-Work Use
of Law Enforcement Vehicles
OCEFT Policy P-006, Government-Owned Vehicles, allows government-owned
or leased vehicles to be used for official purposes only. The policy prohibits the
mingling of personal business with official business while using a government
vehicle, except for defined, permitted personal or incidental uses as allowed in the
policy. The policy also addresses the various appropriate uses and procedures for
the management of vehicles owned or leased by the government. Section 3.2(a)
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13 states that special agents and protective service detail employees, as authorized
by the Administrator, can use government-owned vehicles to commute directly
from their residences to their duty stations and from their duty stations to their
residences at any time.
The FMR, Subpart D, Section 102-34.205, provides that an agency can authorize
the use of government vehicles between a residence and a place of employment
(home-to-work), after the agency makes such a determination under 31 U.S.C.
1344, maintains a copy of the written authorization within the agency, and
monitors the use of these motor vehicles. Also, 31 U.S.C. 1344 (a)(2)(B) provides
that transportation between the residence of an officer or employee and various
locations (i.e., transportation viewed as essential for the safe and efficient
performance of intelligence, counterintelligence, protective services, or criminal
law enforcement duties) is transportation for an official purpose when approved in
writing by the head of the federal agency.
We requested the EPA's written authorization for law enforcement vehicles'
home-to-work usage. The EPA provided documentation supporting the agency
head's approval in an April 29, 1988, memorandum from the Administrator
authorizing the use of vehicles between home and work for occupational series
GS-1811 criminal investigators appointed through the National Enforcement
Investigations Center (NEIC), Office of Criminal Investigations. The agency also
provided an authorization through a May 31, 2005, memorandum for occupational
series GS-1801 operations support specialists. However, OCEFT's Criminal
Investigation Division was not mentioned in the documentation.
OCEFT explained that in the early 1990s, the NEIC reorganized and criminal
investigators were generally assigned within OCEFT's Criminal Investigation
Division. OCEFT stated its opinion that the authorizations from 1988 and 2005
permitted home-to-work use by criminal investigators and protective service
personnel. However, OCEPT agreed that the authorizations needed to be updated
to include the current organizational information and GS-1810 personnel assigned
to the protective service detail. Therefore, OCEFT needs to update in writing its
Administrator's approval for home-to-work usage and it must maintain the written
authorization, as required by 31 U.S.C. 1344 (a)(2)(B), and update OCEFT
internal policy accordingly.
Additionally, OCEFT should have documentation to monitor vehicle usage.
Section 3.2(g) of OCEFT Policy P-006 provides that "[government-owned
vehicle] operators must submit required reports to management and provide
information to track use and expenses and ensure the efficient and proper use of
the government vehicle fleet." We requested home-to-work support for three law
enforcement vehicles in our sample. The law enforcement program office stated
that home-to-work vehicles used by criminal investigators are authorized for the
safe and efficient performance of criminal law enforcement and protective service
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duties under 31 U.S.C. § 1344(a)(2)(B); therefore, the law enforcement program
is not required to fill out the forms.
We acknowledge that the agency has no required forms for law enforcement
vehicles; however, in accordance with the FMR, Subpart D, Section 102-34.205,
the agency should monitor vehicles used for transportation between a residence
and a place of employment.
Because federal regulations state that agencies should monitor vehicles in
home-to-work status, we believe that, at a minimum, OCEFT should ensure that
an updated written authorization is on file and confer with the EPA to ensure that
the agency has an acceptable level of documentation needed to meet its
monitoring requirements. Having documentation would ensure that the agency
has accurate records needed to manage and control the use of vehicles. The EPA's
lack of monitoring and supporting documentation increases the risk that the
unauthorized use of the vehicles could go undetected.
In March 2014, OCEFT said it is committed to updating and correcting the
authorization for home-to-work use of vehicles by criminal investigators and
protective service personnel. Also, OCEFT and the Agency Fleet Manager said
they are working on acceptable documentation for monitoring, in order to ensure
balance with investigative requirements.
EPA Should Be Consistent in Documenting Emission Testing and
State Inspections
OCEFT Policy P-006 states that the maintenance, care and storage of
government-owned vehicles requires EPA employees operating fleet motor
vehicles to comply with federal policy and program rules for maintenance. The
program rules are designed to ensure the proper use, care, safety, and efficiency of
vehicles. The policy also states that preventive maintenance is the routine
scheduled maintenance of motor vehicles, including the inspection of motor
vehicles. Federal agencies must perform federally mandated emissions
inspections when required by the relevant state motor vehicle administration.
During our review of law enforcement vehicles, we noted that for our sample of
three vehicles, emissions testing was not due for one vehicle, and another vehicle
had the required testing and state inspection. The third vehicle did not have the
testing, and the fleet manager could not provide a copy verifying the vehicle is
registered with the state.
We believe that the EPA should be consistent in performing maintenance and
emission testing on its leased vehicles throughout the agency. In March 2014,
OCEFT stated that "[w]hile fleet managers are following federal regulations for
vehicle maintenance, utilization, and operator responsibilities, the adherence to
those requirements could be more clearly documented within EPA's systems...."
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Conclusion
The EPA needs to improve its oversight to ensure that fleet managers implement
controls to protect the agency's fleet in accordance with federal requirements. If
the agency does not finalize and issue a fleet manual—and fleet managers are not
following vehicle maintenance, utilization and operator responsibilities—the EPA
is placing its $6 million-per-year fleet program in jeopardy of not being effective
in accomplishing its mission, and is placing taxpayer funds at risk. The EPA has
stated its plans to improve oversight of the fleet program by issuing a fleet
manual, performing monthly usage and operator responsibility checks, and
working with program offices with law enforcement vehicles on home-to work
documentation. Should the EPA implement these actions, its oversight would
improve the fleet program.
Recommendations
We recommend that the Assistant Administrator for Administration and
Resources Management:
1.	Finalize and issue the Fleet Management Manual to ensure that fleet
managers operate their programs within the EPA's policies and
procedures.
2.	Develop a scheduled maintenance program for each vehicle that is
owned or leased commercially by the agency. The program should
include vehicle emission testing as required by federal and state
policies.
3.	Require fleet managers to use a tracking system for vehicle usage and
require vehicle operators to acknowledge their responsibilities as
required by program requirements, and support FMR, Subpart J,
Section 102-34.345 for operational data.
4.	Require OCEFT to obtain the Administrator's approval in writing for
home-to-work usage by OCEFT's Criminal Investigation Division,
and maintain the approval as required by 31 U.S.C. 1344 (a)(2)(B), so
that the approval includes current organizational information and
personnel assigned to the protective service detail. Also, require
OCEFT to update its internal policy accordingly.
5.	Require fleet managers with law enforcement vehicles to confer with
OARM on vehicle monitoring and make any needed changes, to
ensure it has an acceptable level of documentation needed for the
agency to meet its requirement to monitor vehicles, as stated in FMR,
Subpart D, Section 102-34.205.
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Agency Comments and OIG Evaluation
Comments received from the Assistant Administrator for Administration and
Resources Management agreed with Recommendations 1 through 5. The agency's
responses and corrective action plans are found in Appendix A.
We agree with the agency's responses to all recommendations. All
recommendations are resolved and require no final response to this report.
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Chapter 3
EPA Needs to Increase Data Monitoring
of Its Fleet Information System
The EPA should increase the monitoring of data within the agency's fleet
information system or the AST. We identified missing, incomplete or incorrect
information in the fleet system. In addition, user data input from one report or
screen in the AST is not reported consistently in other system reports. The EPA
has not developed or issued an AST manual or a list of procedures to ensure that
users correctly input information into the system. The AST-programmed data
checks are not effective in identifying differences in varying system reports.
Federal requirements for fleet management require agencies to establish a fleet
management information system that identifies and collects accurate inventory,
cost, and usage data that covers the vehicle lifecycle.
The GAO's Standards for Internal Control in the Federal Government provides
that application controls are designed to help ensure the completeness, accuracy,
authorization and validity of all transactions during application processing. If data
in the EPA's fleet information system is not accurate, the agency is at risk of
reporting errors to the federal information system.
EPA's Automotive Statistical Tool Is Its Fleet Information System
According to the draft version of the Fleet Management Manual, as of
December 2013, the AST is the electronic means for the agency to collect and
report vehicle data. The AST is a secure website that can be accessed by
authorized EPA employees and contractors. All data on a vehicle's registration,
identification, maintenance, fuel consumption, organizational alignment and
ownership must be maintained in the AST. Fleet managers are responsible for
ensuring the timely and accurate submission of vehicle data. The Agency Fleet
Manager submits the EPA's overall vehicle data annually to the Department of
Energy and to the GSA via the FAST database.
The EPA stated that the AST has some data checks for entry and certification.
The data checks include:
•	Checks on the Master Record.
•	"Environmental Compliance Dashboard," which identifies potential data
issues concerning mileage and fuel consumption.
•	"Verify Data Integrity" tool, which identifies data issues such as duplicate
vehicle identification numbers, high acquisition costs, high lease costs,
high maintenance costs, unreasonable fuel costs, and a miles-per-gallon
variance.
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The EPA said fleet managers and headquarters have roles in correcting data found
in the Verify Data Integrity tool. The EPA noted that with respect to the tool
itself, the tool is provided to allow fleet managers to quality check their data
periodically throughout the fiscal year; if errors are found, the system will allow
them to correct the errors within their access rights. The tool also allows
headquarters to perform a quality check on end-of-the-year data; if errors are
found, headquarters either contacts the fleet manager to make the corrections or
headquarters itself makes the corrections. At a minimum, the data integrity tool is
used to check for errors prior to the annual submission of the data to the FAST.
Federal Regulations Governing Information System
Data Management
Federal regulations addressing information system data management for fleets are
addressed in the FMR, Subchapter B, Subpart J, Section 102-34.340, which
provides that a fleet management information system is required at the agency
level to identify and collect accurate inventory, cost and usage data that covers the
vehicle lifecycle. In addition, the system should provide the information necessary
to satisfy reporting requirements and data required for the FAST. The GAO's
Standards for Internal Control in the Federal Government provides that
application controls are designed to help ensure the completeness, accuracy,
authorization and validity of all transactions during application processing.
Controls should be installed where an application interfaces with other systems, in
order to ensure that all inputs are received and valid, and outputs are correct and
properly distributed.
The AST Needs a Manual, a List of Procedures and More
Data Checks
The EPA should increase data monitoring of the agency's fleet information
system known as the AST. We identified missing, incomplete or incorrect
information in the fleet system. In addition, reports are not consistently showing
user data input throughout the system.
Our audit found fleet managers either did not input fuel and maintenance receipts
correctly or did not have receipts to record in the system. One program office
recorded incorrect operating locations for its fleet due to the lack of knowledge
that the system would allow the correct location. Once we pointed out to the
agency that the system is not limited to specific locations, the program office
subsequently corrected the addresses for its vehicles in the AST to show the
actual operating location of its vehicles. Lastly, the EPA included a commercially
leased vehicle in the AST, but the vehicle was a subcontractor-owned vehicle for
which the EPA tracked vehicle expenses in the AST.
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The EPA has not developed or issued an AST manual or a list of procedures to
define data elements to identify required corrections or verifications of data by
system users. Users told us that they received on-the-job training from a mentor,
and that experience with the AST has been gained by hands-on use. We believe
that if users had a manual or a list of procedures to refer to in order to enforce the
system's data-input requirements, users could have identified corrections for these
issues.
When our audit team received formal training on the AST, we found that user
data input from one report or screen in the AST is not consistent with other
system reports. For one vehicle, we found that the "FY 2013 Fuel Usage/Cost
History" screen showed odometer readings that ranged from 3,839 miles to 5,601
miles when fuel purchases were made throughout the fiscal year. When we
reviewed the same vehicle on another AST screen titled "Flex Fuel Consumed
Drilldown," the vehicle's minimum and maximum odometer readings were both
5,601 miles. The EPA's trainer noted that the AST's Verify Data Integrity tool
should have identified the error. To date, the agency has not been able to explain
what caused the error. We believe that the AST's data checks are not effective in
identifying mistakes in data from detailed vehicle records for summary reports.
In April 2014, the EPA stated that by July 2014 it plans to develop and distribute
an AST user manual for guidance on system navigation and use. Additionally, the
agency said that by August 2014 it would hold a live walk-through webinar to
help users understand the system and its capabilities. The EPA said it will review
the AST and develop additional quality controls for data, as needed, in order to
better manage the EPA's fleet data.
Conclusion
The EPA needs more data monitoring of its fleet information system to ensure
that users make corrections to inaccurate information and data checks are
effective in identifying errors. If the EPA does not develop and issue an AST
manual or a list of procedures, and the agency does not increase its data checks in
the information system, inaccurate data and reports in the AST may lead to
incorrect decision-making regarding the EPA's fleet. Also, the EPA increases the
risk that the information system will have inaccurate information reported in its
annual submission to the FAST. The agency said it plans to issue an AST manual,
help users with system training, and develop additional quality controls as needed.
Should the EPA implement these actions, information system monitoring would
be an improvement for the fleet program.
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Recommendations
We recommend that the Assistant Administrator for Administration and
Resources Management:
6.	Develop and issue an AST manual or a list of procedures for AST
users to follow, in order to help ensure that users input correct data
into the system. At a minimum, require training for all fleet managers
and new users.
7.	Perform data checks of the AST system in order to reveal mistakes in
extracting data from vehicle records for summary reports, and to make
corrections to the data as necessary.
Agency Comments and OIG Evaluation
Comments received from the Assistant Administrator for Administration and
Resources Management agreed with Recommendations 6 and 7. The agency's
responses and corrective action plans are found in Appendix A.
We agree with the agency's responses to all recommendations. All
recommendations are resolved and require no final response to this report.
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Status of Recommendations and
Potential Monetary Benefits
RECOMMENDATIONS
POTENTIAL MONETARY BENEFITS (in
$000s)
Rec. Page
No. No.
Subject
Status1
Action Official
Planned
Completion
Date
Claimed
Amount
Agreed-To Amount
14
14
Finalize and issue the Fleet Management
Manual to ensure that fleet managers operate
their programs within the EPA's policies and
procedures.
Develop a scheduled maintenance program for
each vehicle that is owned or leased
commercially by the agency. The program
should include vehicle emission testing as
required by federal and state policies.
Require fleet managers to use a tracking
system for vehicle usage and require vehicle
operators to acknowledge their responsibilities
as required by program requirements, and
support FMR, Subpart J, Section 102-34.345
for operational data.
Require OCEFT to obtain the Administrator's
approval in writing for home-to-work usage by
OCEFT's Criminal Investigation Division, and
maintain the approval as required by 31 U.S.C.
1344 (a)(2)(B), so that the approval includes
current organizational information and
personnel assigned to the protective service
detail. Also, require OCEFT to update its
internal policy accordingly.
Require fleet managers with law enforcement
vehicles to confer with OARM on vehicle
monitoring and make any needed changes, to
ensure it has an acceptable level of
documentation needed for the agency to meet
its requirement to monitor vehicles, as stated in
FMR, Subpart D, Section 102-34.205.
Develop and issue an AST manual or a list of
procedures for AST users to follow, in order to
help ensure that users input correct data into
the system. At a minimum, require training for
all fleet managers and new users.
Perform data checks of the AST system in order
to reveal mistakes in extracting data from
vehicle records for summary reports, and to
make corrections to the data as necessary.
Assistant Administrator for
Administration and
Resources Management
Assistant Administrator for
Administration and
Resources Management
Assistant Administrator for
Administration and
Resources Management
Assistant Administrator for
Administration and
Resources Management
Assistant Administrator for
Administration and
Resources Management
Assistant Administrator for
Administration and
Resources Management
Assistant Administrator for
Administration and
Resources Management
12/1/14
8/14/15
8/14/15
1/1/15
1/1/15
11/1/14
11/1/14
0 = Recommendation is open with agreed-to corrective actions pending.
C = Recommendation is closed with all agreed-to actions completed.
U = Recommendation is unresolved with resolution efforts in progress.
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Appendix A
OARM Response to Draft Report
and OIG Comment


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D C. 20460
AUG 1 4 m
OFFICE OF
ADMINISTRATION
AND RESOURCES
MANAGEMENT
MEMORANDUM
SUBJECT: Response to Office of Inspector General Draft Audit Report No. OA-FY 13-0333
EPA '$ Fleet Management Program Needs Improvement, dated July 14,2014
FROM; Jp^jeraig E. Hooks, Assistant Administrator
TO:	Kevin Christensen, Acting Assistant Inspector Mgpcral
Office of Audit
Thank you for the opportunity to review your draft report. The Office of Administration and
Resources Management agrees with the audit findings, and for all recommendations we have
provided corrective actions and completion dates in Attachment 1.
If you have any questions regarding our response, please contact Yvette Jackson, Deputy
Director, Facilities Management and Services Division, at (202) 564-2030.
Attachment
cc: Nanci Gelb
John Showman
Lynnann Hitchens
Brandon McDowell
Vaughn Noga
Tami Franklin
Steve Blankenship
Stacey Dey-Foy
Yvette Jackson
Marcia Hirt-Reigeluth
Gloria Taylor-Upshaw
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Office of Administration and Resources Management
Response to Draft Report Recommendations
and
Corrective Action Plan
OIG Recommendation 1: Finalize and issue the Fleet Management Manual to ensure that fleet
managers operate their programs within the EPA's policies and procedures.
OARM concurs with this recommendation. OARM has completed a final, OGC-approved draft Fleet
Management Manual and is preparing the document for submittal via the Agency Directives Clearance Review
Process.
Estimated completion date: December 1, 2014.
OIG Recommendation 2: Develop a scheduled maintenance program for each vehicle that is
owned or leased commercially by the agency. The program should include vehicle emission
testing as required by federal and state policies.
OARM concurs with this recommendation. OARM will continue to reiterate fleet managers' responsibilities for
ensuringthat all vehicles have a scheduled maintenance program and have proper emissions inspections
completed. OARM will continue to educate and reinforce this requirement via annual trainings, quarterly
newsletters, and quarterly conference calls. OARM will conduct periodic random documentation reviews/audits
to ensure that fleet managers and vehicle operators are properly fulfilling their fleet duties. Additionally, OARM
will investigate the possibility of automating maintenance/emissions reminders and certifications so that they
can be tracked within the Agency's fleet database, the Automotive Statistical Tool (AST).
Estimated completion date: On-going activity. August 14, 2015.
OIG Recommendation 3: Require fleet managers to use a tracking system for vehicle usage and
require vehicle operators to acknowledge their responsibilities as required by program
requirements and to support the FMR, Subpart J, Section 102-34.345 for operational data.
OARM concurs with this recommendation. EPA already mandates that all vehicle trips be logged using EPA
Form 4920-3, Daily Vehicle Utilization Report (DVUR) and entered into EPA's AST database. EPA also requires
that all vehicle operators sign EPA Form 4920-20, Motor Vehicle Operator Responsibilities (MVOR) which
outlines accountability when using a government vehicle. The DVUR and MVOR documentation requirements
are outlined in the Fleet Management Manual.
OARM will continue to educate fleet managers on documentation requirements in order to implement these
forms into their fleet operations. As such, OARM will conduct periodic random documentation reviews/audits to
ensure that fleet managers and vehicle operators are properly fulfilling their fleet duties. These reviews/audits
will continue until such time that OARM can reasonably determine that implementation of the forms has been
completed.
Estimated completion date: On-going activity. August 14, 2015.
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OIG Recommendation 4: Require OCEFT to obtain an update to the Administrator's approval in
writing for home-to-work usage and maintain as required by 31 U.S.C. 1344 (a)(2)(B), so that the
approval includes current organizational information and GS 1810personnel assigned to the
protective service detail. Also, require the OCEFT to update its internal policy accordingly.
OARM concurs with this recommendation. OARM will continue to coordinate with OCEFT officials in order to
develop a home-to-work authorization for law enforcement (LE) vehicles. OARM will provide support and
guidance to OCEFT, as needed.
Estimated completion date: January 1, 2015.
OIG Recommendation 5: Require fleet managers with law enforcement vehicles to confer with
the OARM on vehicle monitoring and make any needed changes, to ensure it has an acceptable
level of documentation needed for the agency to meet its reporting requirement to monitor
vehicles as required by the FMR, Subpart D, Section 102-34.205; and to ensure the accurate
recording of inventory, costs and operational data needed to manage and control vehicle usage
as required by Subpart J, Section 102-34.345.
OARM concurs with this recommendation. Most vehicle operators are required to complete EPA Form 4920-
3, Daily Vehicle Utilization Report (DVUR). While not required, OARM will work with OCEFT to develop vehicle
logs that provide needed information without compromising officer safety or the integrity of investigations. We
will periodically perform random reviews of documentation and operational data in AST to ensure accuracy and
compliance with these requirements.
Estimated completion date: January 1, 2015.
OIG Recommendation 6: Develop and issue an AST manual or a list of procedures for AST users
to follow, in order to help ensure users input correct data into the system. At a minimum, require
training for all fleet managers and new users.
OARM concurs with this recommendation. OARM has already developed the AST User Manual and distributed
the manual on July 30, 2014. OARM will also develop a training regimen for AST users and conduct training
sessions to ensure that data is accurately entered into AST.
Estimated completion date: November 1, 2014, for training sessions.
OIG Recommendation 7: Perform data checks of the AST system in order to reveal mistakes in
extracting data from vehicle records for summary reports, and to make corrections to the data as
necessary.
OARM concurs with this recommendation. OARM plans to conduct a review of the system to identify
inconsistencies and data gaps and implement necessary solutions within AST. Subject to the results of this
review, actionable items will be addressed accordingly.
Estimated completion date: November 1, 2014, for AST review; resulting updates will be ongoing with a
timeline dependent on project scope.
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Distribution
Appendix B
Office of the Administrator
Assistant Administrator for Administration and Resources Management
Assistant Administrator for Enforcement and Compliance Assurance
Agency Follow-Up Official (the CFO)
Agency Follow-Up Coordinator
General Counsel
Associate Administrator for Congressional and Intergovernmental Affairs
Associate Administrator for Public Affairs
Principal Deputy Assistant Administrator, Office of Administration and Resources Management
Director, Office of Acquisition Management, Office of Administration and
Resources Management
Director, Office of Administration, Office of Administration and Resources Management
Director, Office of Policy and Resource Management, Office of Administration and
Resources Management
Director, Facilities Management and Services Division, Office of Administration, Office of
Administration and Resources Management
Director, Office of Criminal Enforcement, Forensics and Training, Office of Enforcement and
Compliance Assurance
Deputy Director, Office of Acquisition Management, Office of Administration and
Resources Management
Deputy Director, Office of Policy and Resource Management, Office of Administration and
Resources Management
Deputy Director, Facilities Management and Services Division, Office of Administration, Office
of Administration and Resources Management
Audit Follow-Up Coordinator, Office of Administration and Resources Management
Audit Follow-Up Coordinator, Office of Acquisition Management, Office of Administration and
Resources Management
Audit Follow-Up Coordinator, Office of Enforcement and Compliance Assurance
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