Second Follow-up Fleet Management Audit

In keeping with generally accepted government auditing standards and Auditor’s Office policy, as authorized by Utah Code, we have a responsibility to monitor and follow up on audit recommendations to ensure county agencies address audit findings through appropriate corrective action and to aid us in planning future audits.

This letter serves as the final follow-up audit report for Salt Lake County Fleet Management. The original audit report was issued in June 2022, followed by a preliminary follow-up report in February 2023. The original audit report identified 12 findings with 30 recommendations. In the preliminary follow-up, Fleet Management had fully implemented 15 of the 30 recommendations, 5 were closed due to management actions, 8 were in progress, and 2 were not implemented.

In this final follow-up, 4 findings and 8 recommendations remained to be tested. Fleet Management has fully implemented 7 of the 8 recommendations, and 1 recommendation was NOT IMPLEMENTED. Overall, Fleet Management has fully implemented 22 of the 30 recommendations, 5 were closed, and 3 were not implemented.

Fleet Management has made significant progress by implementing most of the recommendations, particularly in areas such as authorization for employee fuel card use, policies and procedures for adding and removing users from fuel systems, and administration of fuel cards for disposed vehicles. However, it is a matter of concern that the recommendation related to the segregation of duties in the administration of fuel cards was not implemented. This is a high-risk area that poses a threat to the integrity of the fuel card system and, by extension, to the financial stability of Fleet Management.

This is our final follow-up audit, and no further follow-up work will be performed by our office. The onus is now on management and those charged with governance to implement the remaining recommendation and mitigate the associated risks.

We performed this audit in accordance with Generally Accepted Government Auditing Standards (GAGAS).  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 appreciate the cooperation and assistance provided by all county stakeholders during this audit. Please review the enclosed audit report for detailed findings and recommendations, and feel free to contact me at 385-468-7200 with any questions.