High Number of Underutilized Vehicles
Using an annual threshold of 5,000 km or 125 engine hours, we identified 230 vehicles in 2018 from 15 City divisions and one corporation that were underutilized. This represents 18 per cent of the fleet’s light duty vehicles, up from 15 per cent in 2017. The City paid $10 million to purchase these vehicles. Six divisions and one corporation, in particular, had a large percentage and number of underutilized vehicles.
High Amount of km Reimbursements
The City reimburses staff who use their personal vehicles for work. We found that the divisions and the corporation with large numbers of underutilized vehicles also paid a substantial amount in km reimbursements. In 2018, the six divisions and one corporation paid $1.5 million in km reimbursements; 92 staff were reimbursed for over 5,000 km, averaging $3,600 each.
Stronger Corporate Oversight Required
The issue of underutilized vehicles is not new; in fact, it has been raised by the Auditor General on multiple occasions since 2004. Our observations indicate that the issue persists today.
Over the past several years, Fleet Services has taken steps to analyze and identify underutilized vehicles, and share them with the operating divisions. However, the final decision of what to do with these vehicles has always remained within each division.
There is a need for stronger corporate oversight to ensure the most cost-effective fleet options are used across the City, and to maximize the use of car-sharing and pooling options, where feasible.