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(Y^SS". b-CU • rA l\ : K\33-/x 



UMASS/AMMERST 





Commonwealth of Massachusetts 
House of Representatives 



31c?Dbb DZ73 63^=1 a 



AUG 7 ?98 5 
De POs/fory Copy 




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TO: Representative Thomas W. McGee, Speaker of the House and Honorable Members 
of the General Court 



As Chairman of this Committee, I am pleased to present this report entitled 
Management Review: State Automobile Travel System . 

The Committee believes that the Commonwealth has not developed a compre- 
hensive, centralized management system to insure that the laws governing automobile 
travel by employees on official state business are fairly and uniformly administered 
and that the monies appropriated for this expense are utilized in the most efficient 
manner. 

Several million dollars could be saved annually by the issuance of a compre- 
hensive set of travel regulations requiring more adequate documentation combined 
with more efficient usage of state-owned vehicles. 

Sincerely, 




to. FY? 



r 3, 




Kevin W. Fitzgerald 
Chairman 



SUMMARY OF FINDINGS 

Upon examination of the methods and procedures by which the Common- 
wealth reimburses its employees for travel on official state business, the House Post 
Audit and Oversight Bureau finds the following: 

1. The Commonwealth does not have a uniform policy, set of written 
regulations or rate of reimbursement for privately owned vehicle usage by 
its employees. 

2. The current rate of travel reimbursement for the majority of state 
employees is not comparable to the rates being paid by the Federal 
Government and the other Northeast states. 

3. Annually, over $2.5 million dollars is expended for travel directly by state 
agencies from advance funds, with limited monitoring by the State 
Comptroller. 

4. Hundreds of thousands of dollars could be saved by requiring state 
employees to use available state vehicles instead of private automobiles 
while on official business. 

5. Over two hundred and fifty state employees annually receive more than 
$2,760 for private auto reimbursement. This is more than it costs the 
Commonwealth to operate a state vehicle. 

6. There is no control over the issuance and disbursement of Massachusetts 
Turnpike toll credit cards. There are currently over three thousand cards 
assigned to state agencies with less than one-half that number of vehicles. 

7. Several hundred state employees are currently being reimbursed hundreds 
of thousands of dollars for traveling to and from their daily work 
assignment. 

S-l 



ADMINISTRATIVE RECOMMENDATIONS 

The Secretary for Administration and Finance should: 

Promulgate a comprehensive local travel and transportation policy manual 
in order to uniformly administer the laws governing private travel by 
employees on official state business notwithstanding contrary provisions 
of collective bargaining agreements. 

Discontinue the practice of requiring odometer readings on employee 
travel vouchers in order to receive reimbursement. 
Eliminate the use of all state agency assigned Turnpike toll credit cards. 
Cease the advancing of funds to state agencies for in state travel 
reimbursement. 

Seek disciplinary action against any state employee found to be sub- 
mitting false claims for travel reimbursement. 

Institute a requirement that travel vouchers be submitted within a 
prescribed number of days. 

Develop a prior authorization for travel recording system utilizing a log 
book or a separate form similar to that utilized by the Federal 
Government. 

Amend the "Red Book" and upon expiration renegotiate collective bar- 
gaining agreements in order to more uniformly reimburse all employees 
for parking, tolls and transportation of patients, clients or prisoners. 
Establish a uniform method of reimbursing employees who travel from 
home to a temporary work assignment. 



S-2 






Rescind the provisions of the "Red Book" and collective bargaining 
agreements which grant authority to the Personnel Administrator to 
assign an employee's home as his/her permanent office. 
Re-examine the distribution and daily usage of Motor Vehicle Manage- 
ment Bureau automobiles in order to insure more efficient usage and 
provide for more ready availability. 

Establish regional motor pools in order to make state vehicles more 
readily available. 

Cease the policy of allowing state vehicles to be used for commuting 
purposes. 

Transfer the supervision of private automobile mileage to the Motor 
Vehicle Management Bureau. 

Conduct a case by case review of the estimated 265 employees who 
received more in annual private mileage reimbursement then the state 
pays to run a fleet vehicle in order to determine the need for additional 
state vehicles, or more efficiently use currently available vehicles. 
Should adopt the Federal Government policy of reimbursing its employees 
less per mile if a state vehicle is available for usage. 



S-3 



TABLE OF CONTENTS 



PAGE 



SUMMARY OF FINDINGS 



ADMINISTRATIVE RECOMMENDATIONS 



FOREWORD 



I. 



RATIONALE FOR STUDY 



H. REIMBURSEMENT FOR PRIVATE AUTOMOBILE TRAVEL 



A. Methods of Payment ..... 

1. Automated Financial Information System (AFIS) 

2. Return of Advance System 

3. Travel Forms and Verification of Demands . 

B. Statutory Authority Over Travel 

1. Authorization to Reimburse for Traveling Expenses 

2. Authorization to Make Rules Which Regulate Travel 

3. Authorization to Negotiate Rules Which Regulate 
Travel for Non-Management Employees 



C. Rate of Reimbursement 



m. MOTOR VEHICLE MANAGEMENT BUREAU . 

A. Motor Pool Operation ..... 

B. Cost Comparison — State Vehicles vs. Private Vehicles 



IV. TURNPIKE CREDIT CARDS, 



V. APPENDICES 



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2 

2 

2 
3 
5 



5 
6 

8 
11 

12 

13 
13 

16 

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FOREWORD 

The House Post Audit and Oversight Bureau was established by Chapter 351, 
Section 282 of the Acts of 1981. The Bureau conducts performance and program 
audits under the direction of the House Committee on Post Audit and Oversight. 

This report is an assessment of the State's Travel Reimbursement program, 
including the reimbursement of privately owned vehicles in the conduct of official 
state business. It is designed to assist administration officials in the establishment and 
implementation of a comprehensive uniform system which will ensure the efficient 
expenditure of millions of tax dollars and usage of the state's motor vehicle fleet. 

Further, the report analyzes the Executive Office for Administration and 
Finance's rules and regulations governing travel, the current system of monitoring 
expenditures for travel, and the cost beneficial utilization of state vehicles. 

We wish to thank the Secretary for Administration and Finance, Frank Keefe, 
and the staffs of the Department of Personnel Administration, Office of Employee 
Relations, the State Comptroller and the Motor Vehicle Management Bureau for the 
assistance they provided during this audit. 

This study was supervised by Mr. Richard M. Sundstrom of the House Post 
Audit and Oversight Bureau. 




Richard F. Tobin, Jr. 
Director 



li 



L RATIONALE FOR STUDY 

In 1975, Governor Michael S. Dukakis established a Management Resources 
Committee consisting of private sector management and professional people whose 
mandate was to assist the Commonwealth in providing more economical and respon- 
sible government operations. To fulfill its mandate, task force members conducted 
reviews of administrative and management functions of various state programs and 
agencies. 

In May of 1976, the Committee issued its report entitled, A Management Plan 
for Massachusetts . It includes a series of findings and recommendations dealing with 
the way in which the Commonwealth manages its fleet of motor vehicles and ways in 
which to reduce expenditures for employee vehicle reimbursements. 

The Task Force projected annual savings of $2.2 million based on a total of 
$4.8 million in employee travel reimbursements during fiscal 1975, if regional motor 
pools were established and certain other management improvements took place. 

Regional motor pools have not been established and no criteria have been 
developed to reduce employee private vehicle reimbursements. Instead of a 40% 
reduction in expenditures since F.Y. 1975, there has actually been an 81% increase. 

Considering the substantial increase in travel reimbursement expenditures 
over the past nine fiscal years, the House Post Audit and Oversight staff (HPAO) 
conducted a performance evaluation of the travel reimbursement system and the 
operation of the Motor Vehicle Management Bureau, as an alternative to privately 
owned vehicle usage. 



A Management Plan for Massachusetts , the Governor's Management Task Force, 
1976, Francis S. Meaney, Chairman, p. 235. 



H. REIMBURSEMENT FOR PRIVATE AUTOMOBILE TRAVEL 

A. Methods of Payment 

In F.Y. 1983, state employees drove their private autos an estimated 43 
million miles on official state business. For use of these vehicles, employees were 
reimbursed $8.7 million dollars. Six million dollars of these payments were processed 
through the state's Automated Financial Information System (AFIS) as prescribed by 
law, while $2.5 million dollars of travel payments were directly disbursed by state 
agencies on what is commonly referred to as the "Return of Advance" system. 

1. Automated Financial Information System (AFIS) 

Sections 13 through 21 of Chapter 7 of the General Laws, as most recently 
amended, designates the State Comptroller as the official bookkeeper and accountant 

of the Commonwealth. The Comptroller is required to examine the accounts and 

2 

demands against the Commonwealth . Discretion normally rests with the Comptroller 

on whether affidavits are to be required as proof of an obligation being incurred as 
claimed. In the case of employee travel claims, discretion is not allowed. Section 25 
of Chapter 30 of the General Laws requires that, before allowance for travel expenses 
by the State Comptroller, itemized bills must be submitted, included shall be the dates 
when and the purposes for which such expenses were incurred. (See Appendix A) 

The Comptroller prepares a certificate with the names of the persons, 
specifying the amount payable thereto and the account to which it is chargeable. The 
certificates are transmitted to the Governor, who with the advice and consent of the 
council, issues a warrant to the State Treasurer for the amounts specified as due. 



9 

Section 13, Chapter 7, M.G.L.A. 



The Treasurer having a certified warrant in his possession causes checks to be 
printed and issued to individuals in the amounts due. 

The names and amounts reimbursed for travel are entered into the Auto- 
mated Financial Information System (AFIS) of the Commonwealth. 

HPAO requested and was provided with a consolidated printout of travel 
reimbursements by individual agency with the dollar amounts for F.Y. 1983. HPAO 
was then able to select out for evaluation, employees who received total reimburse- 
ments in excess of $2,760, the annual state vehicle operating cost based on 20,000 
miles. The theory being that employees receiving reimbursements in excess of $2,760 
should probably be assigned a state vehicle. 

AFIS if utilized, could allow the Commonwealth to more efficiently and 
economically assign its state vehicles or uncover duplicate payments to employees. 
However, it is not presently used for any management purposes. 

2. Return of Advance System 

Section 23 of Chapter 29 of the General Laws, as amended, authorizes the 
Treasurer to advance funds to any state officer who has the authority to expend money 
on behalf of the Commonwealth, subject to rules and regulations prescribed by the 
State Comptroller. 

The Return of Advance System was developed by the Comptroller to speed 
payments to vendors by allowing a state agency to pay vendors directly before 
processing the invoices through the Comptroller's Office. Of the $8.7 million spent for 
travel in F.Y. 1983, over $2.5 million in travel invoices were processed in this manner 
bypassing AFIS. The inability to electronically retrieve information on approximately 
one-third of the expenditures renders management control of travel virtually 
impossible. 



3 



Rules and regulations for the Return of Advance System appear in the 
Comptroller's Accounting Manual. Travel advances are authorized subject to prior 
written approval for out-of-state travel for all state employees. Advances for in-state 
travel can only be granted to members of special commissions, committees or 
subcommittees with prior written approval based on a majority vote of said body or 
with the written approval of the presiding officer or officers of the appropriate 
legislative branches. There is no Comptroller's regulation authorizing in-state travel 
advances to the officer of any spending agency. 

The Advance System essentially operates as follows. An amount of money is 
requested to be advanced from the State Treasurer to a particular agency utilizing a 
Request for Advance Form CD-5. The Comptroller warrants the request for payment, 
and posts the amount to the credit of the spending agency on the records of the State 
Treasurer. The Treasurer deposits state funds in several banks. As an offset to 
interest earned by the Commonwealth on these deposits, the banks allow the agencies 
with advances to write checks to their employees. 

These expenditures are then accounted for by the agency on a "Return of 
Advance" document form CD-21 and sent to the Comptroller's Division. Attached to 
Form CD-21 are the separate travel invoices Form CD-18 for each individual to whom 
an expenditure was made. However, the "Return of Advance" Form CD-21 is the only 
document which is processed through the Automated Financial Information System. 
The vendor identification number used on these forms is a "dummy" which translates 
on the Master Vendor File as simply "Return of Advance". This method of payment does 
not allow retrieval of travel expense information for management purposes. The State 
is thus incapable of summarizing travel reimbursements by individuals as a guide to 
more efficient use of state-owned vehicles. 



3, Travel Forms & Verification of Demands 

It is the responsibility of the State Comptroller to design the necessary forms 
to insure a proper system of accounting for the expenditure of state funds. 

The Comptroller has prescribed and issued Travel Expense Voucher Form CD- 
18 (See Appendix B). The Comptroller has not prepared or required a form to prove 
travel was authorized prior to a claim for reimbursement being submitted, similar to 
the Federal System. The result is that over 100,000 travel vouchers totalling $8.7 
million dollars are processed through the Comptroller's Office annually without 
adequate proof the trip/trips were authorized to be taken. 

B. Statutory Authority Over Travel 

1. Authorization to Reimburse for Traveling Expenses 

Section 25 of Chapter 30 of the Massachusetts General Laws, as most 
recently amended, allows officers or members of departments whose duties require 
them to travel to locations other than to and from the offices provided for them by 
the Commonwealth, to be reimbursed their actual reasonable expenses incurred in the 
performance of such duties, if such expenses are authorized by law to be paid by the 
Commonwealth. 

This section further requires that before allowance for such expenses by the 
State Comptroller itemized bills must be submitted including the dates and purpose for 
which such expenses were incurred. 

Additionally, the Secretary for Administration and Finance is directed to 
establish a maximum rate of reimbursement payable to state employees covered under 
a collective bargaining agreement as provided for by Chapter 150E of the General 
Laws, the so called "Public Employees Collective Bargaining Law." 



2. Authorization to Make Rules Which Regulate Travel 

Section 28 of Chapter 7 of the Massachusetts General Laws, as most recently 
amended, authorizes the Personnel Administrator, subject to the approval of the 
Secretary for Administration and Finance and the Governor, to promulgate rules which 
regulate travel and meals for persons traveling within or without the Commonwealth. 
The Department of Personnel has issued rules and regulations, commonly referred to 
as the "Red Book", which includes travel provisions. 

At the present time, the "Red Book" provisions governing the use of privately 
owned automobiles on official state business pertain to 4,300 managerial, confidential 
and Executive Branch employees excluded from a collective bargaining unit under the 
provisions of Chapter 150E, M.G.L.A. 

The "Red Book" regulations governing reimbursement for use of privately 
owned automobiles appears as follows: 

* In every case the means of transportation which is least expensive to 
the Commonwealth and which is in the interest of economy, with proper 
consideration to the circumstances, should be used; railroads or buses 
being preferred to transportation by plane, taxi or privately-owned 
automobile. Commutation and reduced rate round trip tickets should be 
used when possible. 

* Transportation of any kind between the home and the office furnished 
by the state (official headquarters) is not reimbursable, as provided by 
statute (Chapter 30, section 25, M.G.L.A.). 

* For purpose of computing travel allowances of every person subject to 
these rules and regulations, the appointing authority shall assign such 
person to a permanent office, maintained by such authority, and such 



6 



assignment shall be approved by the Personnel Administrator. Such 
travel allowance shall be computed from and to said permanent office. 
In all instances where the appointing authority assigns the person's 
home as his permanent office, approval therefore must be given by the 
Personnel Administrator before such assignment becomes valid. 
If a person subject to these rules and regulations travels from his home 
to a temporary assignment rather than to his permanently assigned 
office, transportation expenses shall be allowed either for the distance 
from his home to place of temporary assignment, or from his perma- 
nently assigned office to place of temporary assignment, whichever is 
nearer. The designation of the permanently assigned office for 
purposes of this rule by the appointing authority with the approval of 
the Administrator shall be final unless appeal is requested within 10 
days in accordance with Rule G— 2. 

When use of a person's private car is necessary and has been authorized 
by the department, the approved mileage rate will be allowed. This 
approved rate covers all charges, including garage, parking and toll 
charges, etc. For each trip the city or town visited must be reported. 
If several addresses are visited within a city or town, state the number 
visited and mileage covered. 

Private automobile mileage reimbursement shall be payable only to one 
of two or more employees traveling together in the same vehicle. 



3. Authorization to Negotiate Rules which Regulate Travel for Non- 
Management Employees 

The Massachusetts Collective Bargaining Law, Chapter 150E of the 
General Laws as added by Chapter 1078 of the Acts of 1973 authorizes the reaching of 
collective bargaining agreements on cost items such as employee expenses between 
state employees and the Commonwealth. For purposes of collective bargaining at the 
state level, all employees of the Executive or Judicial branch with certain exceptions 
are entitled to be represented by an employee organization for bargaining purposes. 
Exceptions from Collective Bargaining Statute in addition to managerial and confiden- 
tial employees include elected officials, appointed officials, members of any board or 
commission, representatives of any public employer, including the heads, directors and 
executive and administrative officers of departments and agencies of any public 
employer, and other managerial employees or confidential employees, and members of 
the militia or national guard and employees of the Labor Relations Commission, and 
officers and employees within the departments of the State Secretary, State 
Treasurer, State Auditor and Attorney General. 

Table I which follows represents all state employees for purposes of 
showing the controlling authority for promulgating travel expense regulations. 



TABLE I 






Promulgator of Rules Number 


of Employees 
4,100 


Rules Source 

4 Bargaining Agreements 


Chief Administrative Justice 


Office of Employee Relations 


48,900 


10 


Bargaining Agreements 


Board of Regents of Higher Education 


11,000 


25 


Bargaining Agreements 


State Lottery Commission 


460 


1 


Bargaining Agreement 


Department of Personnel Administration 


4,300 




"Red" Book 


Legislature 


1,100 




Same as "Red" Book 


Constitutional Officers 


1,100 




Same as "Red" Book 


Total 


70,960 







Judicial Employees 

The private mileage reimbursement provisions contained in the four judicial 
collective bargaining agreements representing 4,100 judicial employees differ from the 
"Red Book" provisions in the following three key areas: 

1. Exact toll costs and parking costs (not to include parking tickets) shall 
be paid when essential and not a normal expense to the employees at 
their regularly assigned work location. 

2. When private vehicles are authorized to transport prisoners, the 
employee will be reimbursed at the currently effective mileage rate 
plus an additional six cents per mile for the distance travelled with a 
prisoner(s) in the vehicle. 

3. Reimbursement to a temporary work location shall be for the distance 
in excess of the round trip mileage from home to the temporary work 
location over the round trip mileage from home to the regular work 
location. The "Red Book" allows expenses from the home to temporary 
assignment or from permanent office to temporary assignment which- 
ever is nearer. 

Board of Higher Education Employees 

Designees of the Board of Regents of Higher Education currently negotiate 
twenty-five (25) collective bargaining agreements with 11,000 Board of Higher 
Education employees. 

The provisions of the agreements dealing with authorized reimbursement for 
private automobile usage on official state business are basically identical to the "Red 
Book" provisions with the following exceptions: 



1. Higher Education has no requirement that an employee should use the 
least expensive means of transportation with consideration to the 
circumstances. 

2. Higher Education does not preclude reimbursement for two or more 
employees traveling together in the same vehicle. 

Office of Employee Relations Bargaining Unit Employees 

The Office of Employee Relations within the Executive Office for Adminis- 
tration and Finance currently negotiates ten (10) collective bargaining agreements 
with associations and unions representing approximately 50,000 non- managerial state 
employees. 

The provisions of the agreements dealing with authorized reimbursement for 
private automobile usage on official state business are identical in language to the 
Higher Education agreements. 

The only deviation is the provision in the Unit 8 agreement that Welfare 
employees submit their reimbursement vouchers within a 2 month period in order to 
insure prompt payment. 

State Lottery Commission Employees 

Designees of the State Lottery Commission currently negotiate one (1) 
collective bargaining agreement with the 460 lottery employees. 

The provision of the agreement dealing with authorized reimbursement for 
private automobile usage on official state business is nearly identical in language to 
the Higher Education agreements as appearing above with one exception. 

The Lottery Commission currently reimburses its employees at the rate of 
twenty cents (20<t) per mile and actual tolls paid. 



10 



C. Rate of Reimbursement 

HPAO believes that in addition to the administrative weaknesses of the 
private automobile reimbursement system, the disparity in the rates of reimbursement 
between different employee groups contribute significantly to poor employee morale 
and results in inflated travel claims. 

Table II compares the rate of reimbursement for private automobile usage by 
state employees in New York, New Jersey and five New England states, as well as the 
reimbursement rate for federal employees with the various Massachusetts rates: 



TABLE H 



COMPARISON OF 



CURRENT REIMBURSEMENT RATES 





Reimbursement Rate 






State 
Maine 


Per Mile 


Parking 
Yes 


Tolls 
Yes 


22 


Vermont 


22 


Yes 


Yes 


New York 


23 


Yes 


Yes 


New Jersey 


18 


Yes 


Yes 


Connecticut 


20 


Yes 


No 


Rhode Island 


20 


Yes 


Yes 


New Hampshire 


25 


Yes 


Yes 


Federal Government 


20.5 


Yes 


Yes 


Massachusetts 








4,300 Judicial 


20 & 6$ for prisoners 


No 


Yes 


50,000 OER 


20 


No 


No 


11,000 Higher Education 


20 


No 


No 


4,300 Red Book 


20 


No 


No 


2,200 Non-Red Book 


20 


Yes 


Yes 


460 Lottery 


20 


No 


Yes 



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m. MOTOR VEHICLE MANAGEMENT BUREAU 

The Motor Vehicle Management Bureau (MVMB), within the Executive Office 
for Administration and Finance, was created with the intent of centralizing the 
management of the state-owned motor vehicle fleet, in order to benefit from fleet 
purchasing of vehicles, bulk purchasing of fuel and centralized approval of 
maintenance. 

Although MVMB purports to have management control over a fleet of 
vehicles estimated to total 8,130, (812 vehicles assigned to Higher Education not 
included), in actuality, direct control is exercised over only 1,777 general passenger 
vehicles, truck/ vans, police cars and other equipment, all but 70 of which are rented or 
leased to various agencies at a cost rate on a long term basis. 

The MVMB has made substantial improvements in the policies, procedures and 
methods by which the Commonwealth owns and operates its own fleet of vehicles. 
These measures include: the maintenance of accurate equipment inventories; main- 
tenance of the certificates of title file; positive control of commercial oil company 
credit cards; reduction of unnecessary domicile travel activities with state vehicles; 
volume purchasing of equipment at the lowest competitive discount prices; investi- 
gating and responding to vehicle misuse/abuse complaints; monitoring the inter-agency 
bulk fuel program; operation of the inter-agency motor pool; purchasing vehicles 
designed to be energy/fuel efficient to the greatest reasonable degree; negotiating and 
awarding annual competitive bid contracts to ensure national discount price levels for 
the maintenance and repairing of certain vehicles; investigation and filing claims for 
certain accidents and the enforcement of other management policies, regulations and 
programs which contribute to effective management. 



12 



A. Motor Pool Operation 

The MVMB operates only one daily rental motor pool of 70 automobiles out of 
the Saltonstall State Office Building Garage. This limited number of vehicles does not 
meet a fraction of the daily needs of state personnel located in the City of Boston. 
There are no motor pools located in any other area of the state to meet the needs of 
personnel located in the various regions who do not have access to a state vehicle. As 
an alternative to regional motor pools, MVMB could develop a system whereby an 
employee of one agency may use a state vehicle assigned to another agency. For 
example, the Department of Social Services (DSS) has several thousand employees, 
primarily social workers, located in regional and area offices throughout the state. The 
Department has one vehicle assigned to it by MVMB. In the last fiscal year, DSS 
employees were reimbursed almost $1.5 million for private automobile mileage at a 
rate of 20<fc per mile. MVMB has determined that it costs 14$ per mile to run a fleet 
vehicle an average of 20,000 miles per year (Appendix C). If state vehicles were 
available to meet the total needs of DSS employees $450,000 could have been saved in 
the last fiscal year. 

B. Cost Comparison — State Vehicles vs. Private Vehicles 

The MVMB has determined that it costs $2,760 to drive an average state 
vehicle 20,000 miles in a year. While it costs the state $4,000 to reimburse an 
employee for driving 20,000 miles in his or her own car. Therefore, it financially 
benefits the Commonwealth to have a system which can identify employees driving a 
considerable amount of miles per year (over 20,000) and if possible assign a state 
vehicle to them. 

The Return of Advance system does not lend itself to identifying high volume 
driving employees. As such, HPAO found it was necessary to submit written requests 
to agencies paying travel costs out of advance funds in order to identify those 



13 



employees who received over the $2,760 threshold. It took as long as six weeks to 

receive the requested information due to the lack of an automated information 

retrieval system at the agency level. 

Research revealed that in F.Y. 1983 a total of 260 employees received over 

$2,760 in travel reimbursements, 110 of these employees having received their 

reimbursements out of advance funds. 

The lack of available data on the reimburseable travel of individual 

employees or state agencies precludes the MVMB from more cost efficiently assigning 

vehicles or justifying an increase in the size of the state motor pool. 

HPAO would conservatively estimate that over $1.5 million dollars could be 

saved by doubling the size of the motor pool and more efficiently utilizing the 

vehicles. 

The following cases demonstrate the savings which could be achieved by more 

efficient assignment of state cars: 

Case #1 An employee of the Department of Public Welfare drove by private 
auto an estimated 32,820 miles at a cost to the Commonwealth of $6,564. If 
he had driven a state vehicle the same number of miles, it would have cost 
the Commonwealth $4,594.00, a savings of $1,970.00. 

Case #2 An employee of the Department of Public Works drove his private 
auto an estimated 27,605 miles at a cost to the Commonwealth of $5,521.00. 
If he had driven a state vehicle the same number of miles it would have cost 
the Commonwealth $3,894, a savings of $1,657.00. 

Case #3 An employee of the Bureau of Accounts in the Department of 
Revenue, drove his private auto an estimated 25,570 miles at a cost to the 
Commonwealth of $5,114. If he had driven a state vehicle the same number 
of miles, it would have cost the Commonwealth $3,579.00, asavingsof $1,535.00. 



14 



These three state employees drove a total of 85,995 miles in F.Y. 1983, at a 
cost to the Commonwealth of $17,199. If state vehicles were utilized for all 85,995 
miles, the Commonwealth could have saved $5,162. 



15 



IV. TURNPIKE CREDIT CARDS 

The Management Bureau, within the Executive Office for Administration, 
with no other responsibility over state vehicles or private automobile mileage 
reimbursement, has been designated as the approving authority for Massachusetts 
Turnpike credit cards. 

Based on information provided by the Turnpike Authority, a total of 3,062 
credit cards have been issued to state agencies, boards, bureaus, commissions, etc. 

No regulation exists to control the use, assignment or disposition of these 
cards nor does there appear to be any correlation between the number of credit cards 
and the number of vehicles assigned to an agency. For example, the State Department 
of Public Welfare has 20 vehicles assigned and 126 credit cards; the Registry of Motor 
Vehicles has 45 vehicles and 94 credit cards; the Attorney General has 11 vehicles and 
56 credit cards. 

A record of monthly payments from July 1982 through June 1983 revealed 
$113,528 in payments for credit card charges. It is impossible to tell if any of these 
payments were made for tolls incurred by privately owned vehicles. 

The Federal Government does not authorize turnpike credit cards for its 
vehicles. Employees must pay the tolls and seek reimbursement. 



16 



APPENDIX A 



CHAPTER 30, SECTION 25, M.G.L.A. 

State officers, and members of departments receiving a salary or its 
equivalent, who are provided with offices by the commonwealth and whose duties 
require regular attendance at such offices, shall not be allowed or paid by the 
commonwealth any expenses in the nature of traveling or living expenses. Such 
officers or members of departments whose duties require them to travel elsewhere 
than to and from the office provided for them by the commonwealth, and unpaid state 
officers or members of departments, and those whose duties do not require daily 
attendance and who receive compensation by the day, shall be allowed their actual 
reasonable expenses incurred in the performance of such duties, if such expenses are 
authorized by law to be paid by the commonwealth. Bills for such expenses shall be 
itemized and the dates when, and the purposes for which, such expenses were incurred 
shall be stated before their allowance by the comptroller. 

In the case of allowable expenses incurred in the operation of private motor 
vehicles used in the performance of official duties, the maximum reimbursement shall 
not exceed a maximum established by the commissioner of administration. Said 
maximum shall be equivalent to the maximum reimbursement payable to state 
employees who are covered under a collective bargaining agreement for which an 
appropriation has been made by the general court. Said commissioner shall adjust said 
maximum, if such adjustment is required on July first of each year and shall file a 
notice of such adjustment with the house and senate committees on ways and means at 
least ninety days prior to said date. 



18 



APPENDIX B 



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THE COMMONWEALTH OF MASSACHUSETTS 

EXECUTIVE OFFICE FOI ADMINISTRATION AND FINANCE 

£ TRAVEL EXPENSE VOUCHER 

I 

NOTE: Prepare rovchar on typewriter or print in ink. 
No federal toaes will be allowed. 



NiMI or mn.OTii 

John Sample 



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NUMIIR 



ITATI CAM MO. 



20 Providence Street. Boston. MA 


02116 


(Office 


Location) 






18 


01 


80 


official MCAoouAaTg.ua 

Same as Above 


MOMg Aoonua 

1 Rehabilitation Way. Boston. MA 02111 




DESCRIPTION 
Ittmii* by day and explaia fully, including cities 
and towns visited. When listing phvstely-owncd cir 
mileage, report under "Remarks" the n<mn. if sny. 
of sll other employees transported, together with 
the city or town and addresses between which they 
are transported'. 


PRIVATE 
Auto Mileage 


FARES 


HOTEL 


: 1 . 

MEALS 


OTHER 

TKAVEL 

EXPENSES 


TOTAL 


DATE 


Miles 


Amount 


Breakfast 


Lunch 


Supper 


EXPENSES 




See attached 






















detailed ..description 


89 


12.4c 














12.46 














































































*-*5 




















,o 


K\ Vs 


















r 


^rAv-v 


\\ \m 


















wi 


^\ww 


\y> 


















f^l 


ft\!u u 




















MV- 
































































































































































































TOTALS J^j 39 


12.46 














12.46 


Totals by Object Code No. $ ^ 454 


12.46 




XXX 


XXX 


XXX 


XXX 

, 


4SI 



RECEIVED PAYMENT 



DATE PAID 



TOTAL AMOUNT RECEIVED 



(This space is to be used only when payment is mad* by Spending Agency) 



CHECK NO 




I hereby certify under penalty of perjury that the above 
amounts as itemized are true and correct, were incurred by me 
during necessary travel in the service of the Commonwealth, 
and conform fully with the Travel Rules and Regulations. 

s.gned(, J^L^ ^JaaatlhJjL^ 

Yf^ ^ TRAVELER ^^^ 



FOR ACENCY USE ONLT 



20 



APPENDIX C 



STATE CAR FIVE YEAR LIFE CYCLE COST PER MILE 

1978 Concord l c ?3 C:t£t::r. 

Cost of car $ 3,989 $ 6,590 

less trade 108 662 



Fuel (100,000 miles) 



Maintenance/Repairs - 26% .0213 

Percentage of total 



at 18 MPG 


5,555 gals 


at $1.10 


at 2 2 MPG 


4,545 gals. 


at $1.20 


26% 


19% 


$100,000 


20,000,000 


miles 


$300,000 


30,000,000 


miles 



.0611 



Space factor 32,430 sq. ft. 

at $8.88 .0143 



3,881 5,928 

current value 750 
est. value (1988) 1,650 



3,131 4,278 

Depreciation cost per mile 
(Five years - 100,000 miles) .0313 .0427 



.0545 



M/R and fuel costs. 19% .0127 

Administration cost 

20,000,000 

.0050 



.0100 



32,430 sq. ft. 

at $10.21 .0110 



.1330 .1309 

(round off to .1400) 

Parking and toll charges and traffic violation cost penalties are 
not included. These costs relate directly to the user. 



22 




House Post Audit 
and Oversight 



HOUSE POST AUDIT AND OVERSIGHT COMMITTEE 



Rep. Kevin W. Fitzgerald, Chairman 



Rep. Royal L. Boiling, Jr., Vice Chairman 

Rep. Gregory W. Sullivan 

Rep. Denis Lawrence 

Rep. Alfred A. Minahan, Jr. 

Rep. Bruce N. Freeman 



Rep. Michael J. Rea, Jr. 
Rep. William R. Keating 
Rep. Michael W. Morrissey 
Rep. Theodore C. Speliotis 
Rep. Mary Jane McKenna 



HOUSE POST AUDIT BUREAU 



Richard F. Tobin, Jr. 
Director