After a state audit identified two cases of employees commuting with fleet vehicles, the State of North Carolina announced plans to install telematics and review vehicle assignments.

The North Carolina Office of the State Auditor performed an investigation of the Department of Motor Vehicles (DMV) after receiving a tip that a DMV employee used his fleet vehicle for unauthorized commuting.

The report concluded that the employee, a DMV inspector, did use his vehicle for commuting, which racked up $85,000 over three years. During the scope of the investigation, the Auditor’s Office identified another DMV employee who gained a $5,616 personal benefit in unauthorized commuting with a state vehicle.

The Auditor’s Office recommended that all vehicle assignments be reviewed to identify more potential commuting violations; that the Department of Transportation (DOT) and Department of Administration's Division of Motor Fleet Management review vehicle authorization forms and applications more closely; and that the DOT require repayment of benefits or an amendment to W-2 forms to reflect the taxable fringe benefit derived from the private use of a state vehicle.

In response to the audit, the North Carolina DOT agreed with the recommendations and noted that the Division of Motor Fleet Management is installing telematics systems in state-owned vehicles to enable greater oversight in monitoring vehicle usage. Installing telematics is expected to correct fleet utilization, improve safety and liability concerns, and increase accountability, among other benefits. The agency hopes to have all vehicles equipped with telematics by the end of the current fiscal year.

Click here to read the full audit.