fleet

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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