27 pages

English

PERFORMANCE AUDIT

Novig - Office Of Council Services , City And County Of Honolulu

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27 pages

English

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PERFORMANCE AUDITOf the City’s Motor Vehicle, Licensing andPermit Functions 1999PERFORMANCE AUDITOf the City’s Motor Vehicle, Licensing andPermit FunctionsJune 1999Report 1999-2P E R F O R M A N C E A U D I TH I G H L I G H T SJune 1999CCwhat driver license services are available where.Establish an information program to clearly communicate to the publicregistration renewal system a top priority.Make correction of the Y2K problem in the automated motor vehicleOther recommendations: to be needed to protect public health and safety.statutes and ordinances to determine if regulation of the activity continuesworkload more evenly throughout the year, and review business licensestaggering taxicab business license expiration dates so as to distribute thevehicle transactions as a premium service available at a higher fee, considerpersonnel allocations, consider treating same-day service for multipleRecommendations: Determine the causes of the backlogs and reviewcustomer delays and inadequate permit enforcement.Inadequate or misallocated personnel result in excessive backlogs,reinstitute quarterly error reports on transactions processed.official, complete, and codified manual of policies and procedures, andRecommendations: Establish a formal training program, develop anin customer service.Recommendationsquality controls have resulted in a high rate of staff errors and delaysFindings andInadequate staff training, lack of official policy ...

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Publié par	Novig
Nombre de lectures	12
Langue	English

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PERFORMANCE AUDIT Of the Citys Motor Vehicle, Licensing and Permit Functions

1999

PERFORMANCE AUDIT Of the Citys Motor Vehicle, Licensing and Permit Functions

Report 1999-2 June 1999

P E R F O R M A N C E A U D I T H I G H G T S L I H June 1999 City Motor Vehicle, Licensing and Permit Functions

Introduction

Findings and Recommendations

The Division of Motor Vehicle, Licensing and Permits (“Division) became part of the newly-created Department of Customer Services on July 1, 1998. The Division processes a high volume of license and permit-related transactions. It also has regular and extensive contact with the public, so customer service is an important aspect of its work. The objectives of this in-house audit by the Office of Council Services were to assess the adequacy of the management policies and procedures pertaining to the City’s motor vehicle, licensing and permit functions, and to develop recommendations to address any weaknesses identified.

Inadequate staff training, lack of official policy guidelines, and weak quality controls have resulted in a high rate of staff errors and delays in customer service. Recommendations: Establish a formal training program, develop an official, complete, and codified manual of policies and procedures, and reinstitute quarterly error reports on transactions processed. Inadequate or misallocated personnel result in excessive backlogs, customer delays and inadequate permit enforcement. Recommendations: Determine the causes of the backlogs and review personnel allocations, consider treating same-day service for multiple vehicle transactions as a premium service available at a higher fee, consider staggering taxicab business license expiration dates so as to distribute the workload more evenly throughout the year, and review business license statutes and ordinances to determine if regulation of the activity continues to be needed to protect public health and safety. Other recommendations: CMake correction of the Y2K problem in the automated motor vehicle registration renewal system a top priority. CEstablish an information program to clearly communicate to the public what driver license services are available where.

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Agency Response

CConsider initiating a periodic review of the written driver license test, such as every ten years.

CReview proper procedure for reconciling the cash register with staff.

CConsider establishing a policy of minimizing the amount of cash and checks held overnight at satellites and driver license offices.

CRenew efforts for legislation to allow escheat of unclaimed security deposits to the City, which now total over $50,000.

The Department also stated that the State Department of Transportation, not the counties, is responsible for updating the driver license test. OCS contends that updating the driver license test would require a cooperative effort by the state and the counties and recommend that the Division take a more proactive role on this issue.

However, regarding our recommendation that it consider an alternative to its existing quota on same-day processing of multiple vehicle transactions by car dealers, the Department disagreed. OCS stands by our suggestion that the service be priced as a premium service since processing multiple vehicles on the same day the paperwork is submitted is clearly more burdensome for the City to provide and more valuable to the customer than processing one vehicle by mail.

Table of Contents

I. Introduction A. Objectives B. Scope C. Methodology II. Background A. Origins B. Current Agency Profile III. Findings and Recommendations Finding Number One: Inadequate staff training, lack of official policy guidelines, and weak quality controls have resulted in a high rate of staff errors and delays in customer service. Finding Number Two: Inadequate or misallocated personnel result in excessive backlogs in processing motor vehicle transactions, customer delays and inadequate permit enforcement. Finding Number Three: The Y2K problem in the automated motor vehicle registration renewal system needs to be resolved. Finding Number Four: The types of driver license services which are available at the Satellite City Halls vary, and the public is not adequately informed as to which services are available at which locations.

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Finding Number Five: The driver license test needs to be updated. Finding Number Six: Cash handling and security can be improved. IV. Agency Response

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I. Introduction

This audit of the City’s motor vehicle, licensing and permit functions was initiated by the Office of Council Services’ (OCS) Audit Section as part of its ongoing program to audit various City programs and services on a rotating basis. These functions were selected because of the frequency of public contact with operations, the large amount of revenues handled, the large variety of licenses and permits administered, the decentralized operations, the recent adoption of licensing technology, and because the limited scope of the audit made it suitable for an in-house audit.

A. Objectives The objectives of this audit were to assess the adequacy of the management policies and procedures pertaining to the City’s motor vehicle, licensing and permit functions, and to develop recommendations to address any weaknesses identified.

B. Scope In this audit, the following functions pertaining to motor vehicles, licensing and permits were reviewed: (1) Motor vehicle registration; (2) Motor vehicle control (i.e. reconstructed vehicle laws, motor vehicle safety

inspection, and abandoned and derelict vehicle programs); (3) Motor vehicle driver licensing; (4) Motor vehicle financial responsibility (i.e. regaining the right to drive after a serious accident without insurance); and (5) Other licenses and permits (i.e., bicycle-/moped licenses, business licenses and park permits). We also observed operations at the central offices and selected branch offices of the Division of Motor Vehicle, Licensing and Permits, Department of Customer Services. Fieldwork for this audit was conducted from October 1998 through March 1999. C. Methodology Documents such as agency reports and forms were reviewed, procedures were observed, and interviews conducted. Based on this information, the following were identified: (1) objectives of the functions; (2) risks inherent to the functions that might interfere with meeting the objectives; (3) policies and procedures established to address those risks, and; (4) areas where risks were not ad-dressed or where policies and procedures did not reasonably protect against the risks.

II. Background

A. Origins In the State of Hawaii, state law (Hawaii Revised Statutes, Chapters 249 and 286) authorizes the counties to register motor vehicles, collect state and county vehicle weight taxes, and issue state driver’s licenses and vehicle license plates. County responsibility for motor vehicle registration and driver licensing began in the Territory of Hawaii with the 1937 enactment of the Uniform Motor Vehicle Operator’s and Chauffeur’s License Act. Under the Act and current statutes, the state and the counties are jointly responsible for the motor vehicle registration and driver licensing functions in Hawaii. This arrangement is an anomaly in the United States. Typically, these functions are a state responsibility.1 B. Current Agency Profile 1. Organization Prior to the Mayor’s reorganization on July 1, 1998, the agency in charge of motor vehicles, licensing and permits was part of the Department of Finance. With the reorganization, the Division of Motor Vehicle, Licensing and Permits (“Division) is part of the newly-created Department of Customer Services (see Exhibit I). 1only one other local jurisdiction in theWe know of country which administers both motor vehicle registration and driver licensing laws, King County in the State of Washington, a county much larger than Honolulu in population. In the State of Colorado, the counties are responsible for motor vehicle registration, but the state government issues driver licenses.

The Division is organized into two branches: (1) motor vehicles, including motor vehicle registration and control; and (2) licensing and permits, including driver licensing, business licenses and park permits.

2. Budget In fiscal year 1998, the Division recorded expenditures of $8,585,322 compared to license and permit revenues of $40,375,519.

3. Activities The Division processes a high volume of license and permit-related transactions. In fiscal year 1998, 705,087 in-state motor vehicles and trailers, and 4,585 out-of-state vehicles were registered. Also issued that year were 22,669 duplicate certificates of title, 16,811 replacement license plates, 24,913 replacement license plate emblems, 32,882 new driver licenses, 42,064 learner permits, 24,789 duplicate licenses, 1,931 taxicab certificates, 2 pedicab certificates, and 1,900 business licenses. The Division processed 165,423 motor vehicle ownership transfers and 111,492 driver license renewals. With the reorganization, the Division also became responsible for issuing park permits, formerly a function of the Department of Parks and Recreation.