Digest Of A Performance Audit Of The Division Of Motor Vehicles Instructions printable pdf download

Digest Of A Performance Audit Of The Division Of Motor Vehicles Instructions

Digest of

A Performance Audit of the

Division of Motor Vehicles

The Tax Commission’s Division of Motor Vehicles (DMV) has

improved its efficiency over the last ten years. But, while it has made

improvements, the DMV can better portray the cost of collecting

revenues from vehicle transaction fees for the fee beneficiaries or

recipients.

DMV is responsible for fee collections that support a number of state

and county operations. Its centralized organizational structure was

legislatively set to increase collection efficiency. The division’s workload

has increased dramatically in the last decade with annual transactions

rising from 1.71 million in 1992 to 2.44 million in 2003. The division

now collects about $325 million in revenue a year.

Process-based Cost Identification

Is Appropriate

DMV’s operational costs are appropriately identified by a process-

based allocation. In such an allocation system, the user share of cost is

directly tied to the operational time and effort associated with that

user—not with the amount of fees collected. Additionally, this process-

based allocation includes all related Tax Commission direct costs that

support the division’s collection operation.

Under the process-based allocation system developed by the Office of

the Legislative Auditor General (OLAG), 53.7 percent of DMV’s

workload is devoted to collecting fees for the Utah Department of

Transportation (UDOT). Thus, 53.7 percent of the Tax Commission’s

motor vehicle fee collection costs would be allocated to UDOT under this

system. OLAG’s process-based allocation system also assigns costs to ten

other beneficiaries of Tax Commission’s collection efforts.

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Office of the Utah Legislative Auditor General

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Digest Of A Performance Audit Of The Division Of Motor Vehicles Instructions