A new report finds that nearly 20% of cars owned by the State of Nebraska may be a waste of tax dollars.

The report also cautions that some tax money tied to the state’s 5,000 cars and 3,000 tractors, trucks, and motorcycles may have been misspent.

According to the latest audit by Nebraska State Auditor Mike Foley 1,000 state owned passenger vehicles are driven less than 6,000 miles a year. Foley says, “A vehicle used only a handful of days per month may be a vehicle the State does not need to own, insure and maintain.”

Mike Foley, Nebraska State Auditor

Foley’s audit follows an investigation by Nebraska Watchdog that examined luxury cars driven by top administrators at the University of Nebraska (NU). Those cars, including a 2009 Porsche, are provided through the University of Nebraska Foundation. Although the luxury cars are not paid for with tax dollars critics claim the money would be better spent in the classroom.

Foley’s investigation did not find any luxury cars bought by the state with tax dollars, but he is critical of the University’s bookkeeping and maintenance records.

According to the audit NU owns 715 passenger cars, but Foley found that according to the University’s records there were only 670 cars. At the same time the audit discovered 11 cars the University no longer owns were still on NU’s books.

The audit, done between July 1, 2007 and June 30, 2008, goes on to note that of the University’s four campuses only the University of Nebraska-Lincoln had written policies for vehicle maintenance and usage. Foley complains that, “Without proper vehicle records, there is an increased risk of loss or misuse of State funds and equipment.”

The University has issued a statement saying among other things, “The University will re-emphasize to employees that usage logs on passenger vehicles must be maintained.”

Other findings in the audit:

• As of June 30, 2008 the purchase price of all State owned vehicles was $219 million.
• Only six of 26 agencies that owned cars and trucks maintained a computerized system to track vehicle expenses.
• Foley’s office recommends the State consider obtaining a computerized fleet system to track those expenses.

Editor’s note: to read the Nebraksa State Auditor’s full report click here. To read and watch Nebraska Watchdog’s exclusive investigation of luxury cars at the University of Nebraska click here.  

Reported by Joe Jordan, joe@nebraskawatchdog.org