The document discusses conducting a fleet audit, including analyzing the current fleet, objectives of the audit, methodology, and desired outcomes. A fleet audit involves analyzing all fleet processes, resources, and needs. It assesses compliance with policies and procedures. The audit objectives are to evaluate management controls, compliance, information accuracy, and cost effectiveness. The methodology includes interviewing staff, inventory assessment, policy review, and cost analysis. Desired outcomes are governance, control, cost effectiveness, right-sized fleet, and trained staff.

1. FLEET ANALYSIS AND AUDIT
LECTURE 2
ProFleet Consulting (Pty) Ltd
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2. ANALYSIS OF CURRENT FLEET
 How to conduct fleet audit
 Scope of the audit
 What are the objectives
 Record management
 Reporting
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3. FLEET AUDIT
 Fleet audit is the process where you analyze all your fleet processes, resources,
current and future needs
 A fleet audit measures the compliance of fleet operations against the
organization’s processes and procedures
 The fleet manager, internal auditors or external consultants together with other
stakeholders have to conduct the audit at least twice a year
 The audit analyses and assess the effectiveness of the organization’s fleet
management controls and processes
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4. Objectives of the fleet audit
 To assess the adequacy of the management control framework, risk
management strategies and practices related to fleet management and
processes relating to planning, controlling, organizing and managing the fleet
assets
 To assess the organization’s compliance to policies, procedures and best
standards related to fleet management
 To review and assess the accuracy of information and records available to
management, and how the information is used for reporting and decision
making
 To determine if the organization is running a cost effective fleet operation
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5. Methodology of conducting the audit
 Interview of the fleet management staff
 Assessing the size and shape of fleet (Inventory)
 Reviewing the fleet policies and procedures
 Assessment of the system generated reports
 Physical assessment of third party vendor’s premises, transactions and service
history
 Conducting cost analysis by checking invoices, receipts, contracts and system
reports
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6. Starting the audit
 The fleet manager has to start with checking and conducting a count of all the fleet
resources, verifying against existing records
 Assessment of where the resources are, how they are distributed, what they are used for
and by whom.
 All information regarding to vehicles, such as model, year, type, value etc. should be
recorded
 There should be a detailed checklist that must be used for carrying out the analysis
 The findings, issues identified and recommendations must be published at the end of
the audit, and the results availed to management to assist in decision making
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7. What to review in the audit
 Record number of assets, operational use and suitability
 Review fleet safety program
 Review fleet policy
 Assess vehicle monitoring procedures
 Review vehicle defects report
 Analyze fuel and costs
 Review vehicle selection, procurement and financing
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8.  Assess drivers
 Inspect insurance arrangements
 Assess staff training needs
 Review third party service providers
 Assess fleet and asset security
 Review and assess vehicle and equipment inventory
 Review audit findings and assess previous audit recommendations
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9. Desired outcomes of the audit
 Governance
 Control
 Cost effective operations
 Right sizing of fleet
 Well trained staff
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10. SUMMARY
What you have learnt so far
 Fleet audit should be done every six months
 Findings of previous audits are key to current audit
 The objectives of the audit is to right size the fleet, check the effectiveness of the
policies and the processes and to make recommendations
 Qualified experts in the areas of fleet administration and audit should lead the
audit process
 Recommendations and findings of the audit should be made available to
management
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