A-87920, APRIL 7, 1938, 17 COMP. GEN. 825

A-87920, APRIL 7, 1938, 17 COMP. GEN. 825

VEHICLES - MOTOR - PASSENGER-CARRYING - REPAIR LIMITATIONS - AUDIT DATA THE INFORMATION TO BE FURNISHED THE GENERAL ACCOUNTING OFFICE TO ENABLE A DETERMINATION, IN THE AUDIT OF VOUCHERS, THAT THE STATUTORY LIMITATION ON EXPENDITURES FOR REPAIRS TO ANY MOTOR-PROPELLED PASSENGER CARRYING VEHICLE IS NOT EXCEEDED, MAY BE SET FORTH IN CERTIFIED COST SCHEDULES, TO ACCOMPANY EACH SET OF ACCOUNTS FORWARDED FOR AUDIT, IF SUCH SCHEDULES SHOW THE TOTAL COST AS TO EACH VEHICLE IDENTIFIED BY BUREAU NUMBER FROM THE BEGINNING OF THE FISCAL YEAR INVOLVED UP TO THE END OF THE PERIOD COVERED BY THE FISCAL OFFICER'S ACCOUNT AS SUBMITTED, BUT EACH VOUCHER, COVERING REPAIRS, SHOULD CONTAIN A CERTIFICATE THAT THE AMOUNT THEREOF TOGETHER WITH ALL PREVIOUS EXPENDITURES FOR THE MAINTENANCE AND REPAIR (EXCLUSIVE OF GARAGE RENT, PAY OF OPERATORS, TIRES, FUEL AND LUBRICANTS) OF THE CAR (IDENTIFIED BY NUMBER) SINCE THE BEGINNING OF THE FISCAL YEAR, DOES NOT EXCEED (AMOUNT TO BE STATED); AND WHERE THE AMOUNT SO STATED EXCEEDS $175, THERE SHOULD BE SHOWN, ALSO, THE MARKET PRICE OF A NEW VEHICLE OF THE SAME MAKE AND CLASS. 17 COMP. GEN. 285, AMPLIFIED.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF AGRICULTURE, APRIL 7, 1938:

YOUR LETTER OF MARCH 16, 1938, IS AS FOLLOWS:

REFERENCE IS MADE TO OUR LETTER OF SEPTEMBER 10, 1937, WHICH RAISED CERTAIN QUESTIONS REGARDING THE REPORTING OF THE COST OF REPAIRS OF AUTOMOBILES, AND TO YOUR DECISION A87920 DATED SEPTEMBER 27, 1937. (17 COMP. GEN. 285.)

AFTER A FURTHER CAREFUL STUDY OF THIS ENTIRE QUESTION, AND CONSIDERATION OF THE ADDITIONAL CLERICAL WORK INVOLVED BOTH IN THE FIELD AND IN WASHINGTON IN INDICATING ON EACH VOUCHER THE AGGREGATE AMOUNT PREVIOUSLY EXPENDED FOR REPAIRS, AND REFERENCE TO ALL PREVIOUS VOUCHERS AND OTHER DATA NECESSARY TO IDENTIFY PRIOR EXPENDITURES AS REQUESTED IN YOUR ANSWER TO QUESTION NO. 6, THE FOLLOWING IS SUBMITTED FOR YOUR CONSIDERATION.

I HAVE FELT THAT IT IS THE ADMINISTRATIVE RESPONSIBILITY OF THE CHIEF OF EACH BUREAU TO SEE THAT MAINTENANCE AND REPAIRS OF AUTOMOBILES ARE KEPT WITHIN THE STATUTORY LIMITATION. IN ORDER TO DETERMINE THIS ADMINISTRATIVELY, EACH BUREAU HAS SET UP SOME FORM OF REPORT WHICH ENABLES IT TO KEEP WITHIN THE LIMITATION. THE DETAIL TO WHICH THE OPERATING COSTS ARE MAINTAINED VARIES AMONG THE BUREAUS; HOWEVER, SUFFICIENT DATA ARE MAINTAINED IN EVERY BUREAU.

THERE IS ENCLOSED HEREWITH A COST REPORT MAINTAINED BY THE BUREAU OF PUBLIC ROADS. IN THIS PARTICULAR BUREAU THE MAJORITY OF THE REPAIR WORK TO CARS OPERATED IN THE WESTERN DISTRICTS IS DONE IN EQUIPMENT DEPOTS MAINTAINED BY THE BUREAU. IN ORDER TO HAVE CURRENT COST DATA AND CONTROL OF VEHICLE OPERATIONS, COST REPORTS ARE BUILT UP FROM DAILY AND MONTHLY STATEMENTS REPORTING THE COSTS AT THE TIME THEY ARE INCURRED, RATHER THAN AT THE TIME PAYMENTS ARE MADE. A MONTHLY REPORT IS SUBMITTED BY EACH DISTRICT TO THE WASHINGTON OFFICE OF THE BUREAU, WHERE ACCUMULATIVE TOTALS ARE CURRENTLY CHECKED FOR THE DETERMINATION OF THE EFFICIENCY OF OPERATION AND AS A GUIDE IN THE REPLACEMENT OF AUTOMOBILES. CARS ARE GENERALLY TURNED IN BETWEEN 55,000 AND 65,000 MILES, OR WHEN THE RISING COST OF MAINTENANCE INDICATES THAT IT IS MORE ECONOMICAL TO TRADE THE EQUIPMENT IN THAN TO CONTINUE ITS OPERATIONS.

WHILE, AS PREVIOUSLY STATED, THE REPORTS OF THE OTHER BUREAUS MAY NOT GO INTO AS MUCH DETAIL AS THIS PARTICULAR ONE, INFORMATION AS TO MAINTENANCE COSTS IS AVAILABLE IN EVERY INSTANCE. IN ORDER TO GIVE YOUR OFFICE SPECIFIC EVIDENCE OF COMPLIANCE WITH THE STATUTORY PROVISIONS OF THE LAW, AND AT THE SAME TIME ELIMINATE THE ADDITIONAL CLERICAL WORK WHICH WOULD BE NECESSARY IN SHOWING THE DATA REQUESTED ON EACH INDIVIDUAL VOUCHER, IT IS PROPOSED THAT WE FURNISH YOU A PERIODIC REPORT SIMILAR TO THE ONE ATTACHED, WHICH WILL SHOW THE INDIVIDUAL PIECES OF EQUIPMENT AND THE COST OF MAINTENANCE EXPENSE FOR EACH VEHICLE.

YOUR WILL OBSERVE IN THE ENCLOSED REPORT THAT THE AVERAGE COST OF REPAIRS FOR THE FISCAL YEAR 1937 AMOUNTED TO $69.78 PER CAR, AND THAT THE AVERAGE OPERATING COST, INCLUDING DEPRECIATION, AMOUNTED TO 3.4 CENTS PER MILE. THE TOTAL COST AS SHOWN IN THE TOTAL COST COLUMN OF THE REPORT IS THE COST TO THE BUREAU LESS DISCOUNTS. ON THE SUMMARY SHEET IS SHOWN THE RETAIL COST OF REPRESENTATIVE CARS AT DESTINATION WHICH IS THE FIGURE USED IN CHECKING THE LIMITATION.

IF THERE ARE ANY QUESTIONS AS TO THE TYPE OF REPORT BY BUREAUS OR FOR THE DEPARTMENT AS A WHOLE WHICH WOULD MEET YOUR REQUIREMENTS BETTER THAN THE ONE SUBMITTED, WE SHOULD BE GLAD TO DISCUSS THIS MATTER IN DETAIL.

IT IS RESPECTFULLY REQUESTED THAT YOU APPROVE THE SUBMISSION OF SUCH A REPORT IN LIEU OF THE ITEMIZATION ON EACH VOUCHER.

THE SAMPLE COST SCHEDULE FORWARDED WITH YOUR SUBMISSION LISTS THE OPERATING AND MAINTENANCE COSTS UNDER THEIR RESPECTIVE HEADS, INCLUDING THE COST OF SHOP REPAIRS, BUT DOES NOT IDENTIFY THE PREVIOUS VOUCHERS UPON WHICH SUCH COSTS WERE PAID. HOWEVER, SINCE IT NOW APPEARS THAT MUCH OF THE REPAIR WORK IS DONE IN THE SHOPS OF THE DEPARTMENT, A REFERENCE TO THE VOUCHERS ON WHICH PAYMENTS ARE MADE FOR REPAIR WORK DONE ELSEWHERE WOULD NOT BE SUFFICIENT TO ENABLE A DETERMINATION AS TO THE AMOUNT OF ALL PREVIOUS EXPENDITURES ON THE CARS INVOLVED. ACCORDINGLY, THE INFORMATION TO BE FURNISHED THIS OFFICE MAY BE SET FORTH IN DULY CERTIFIED COST SCHEDULES SIMILAR TO THAT SUBMITTED BY YOU, PROVIDED SUCH SCHEDULES SHOW THE TOTAL COST AS TO EACH PASSENGER CARRYING VEHICLE IDENTIFIED BY BUREAU NUMBER FROM THE BEGINNING OF THE FISCAL YEAR INVOLVED UP TO THE END OF THE PERIOD COVERED BY THE FISCAL OFFICER'S ACCOUNT AS SUBMITTED TO THIS OFFICE, SUCH A SCHEDULE TO ACCOMPANY EACH SET OF ACCOUNTS FORWARDED TO THIS OFFICE FOR AUDIT. ALSO, EACH VOUCHER ON WHICH PAYMENT IS MADE FOR REPAIRS SHOULD CONTAIN A CERTIFICATE TO THE EFFECT THAT THE AMOUNT OF THE VOUCHER, TOGETHER WITH ALL PREVIOUS EXPENDITURES FOR THE MAINTENANCE AND REPAIR (EXCLUSIVE OF GARAGE RENT, PAY OF OPERATORS, TIRES, FUEL, AND LUBRICANTS) OF THE CAR (IDENTIFIED BY NUMBER) SINCE THE BEGINNING OF THE FISCAL YEAR, DOES NOT EXCEED (AMOUNT TO BE STATED); AND WHERE THE AMOUNT SO STATED EXCEEDS $175 THERE SHOULD BE SHOWN, ALSO, THE MARKET PRICE OF A NEW VEHICLE OF THE SAME MAKE AND CLASS.