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092433 1 (1972-02-04)

handle is hein.gao/gaobacwiq0001 and id is 1 raw text is: 4./ C 7- C ~k-c0 ~ UNITED STATES GENERAL ACCOUNTING OFFICE INTERNATIONAL DIVISION FAR EAST BRANCH 1833 KALAKAUA AVENUE HONOLULu, HAWAII 96815 FEB 4 17 Dear Mr. Ambassador: Vt The General Accounting Office has recently completed a survey of vehicle operations and maintenance activities of several United States agencies in the Philippines. We found that overall these activities were generally well-managed. However, we did note several problem areas which we believe merit further management consideration. These include: charges for personal transportation which were insufficient to recover operational costs; cost variances between agencies in securing third- party liability insurance; differing vehicle replacement criteria in use among the five agencies involved; several excess vehicles in the Agency for International Development bus fleet; understatement of actual costs in the Annual Motor Vehicle Report; and variance among agencies in securing maintenance and repair services. These matters are discussed in more detail below. SCOPE OF SURVEY Our survey, which was conducted during November and December 1971, covered the management of motor vehicles used by the American Embassy, U.S. Agency for International Development, U.S. Information Service, Peace Corps, and the Veterans Administration. Procurement and maintenance functions for the Department of State and related agencies in the Manila area are not consolidated. The five agencies included in our survey had a total of 164 vehicles in the Manila area. The estimated direct and indirect cost to operate and maintain the vehicles during fiscal year 1971 was about $238,000. CHARGES FOR TRANSPORTATION SERVICE Transportation service is provided for Mission personnel and is administered by the U.S. Agency for International Development. We found that the monthly charge of 3 dollars per person for staff pickup is not sufficient to recover estimated operational costs for the buses and station wagons utilized for this purpose. The total charge for transportation service for 1971 was $2,448 while the estimated cost for providing the service was about $6,672. The 3-dollar rate was established five or six years ago and present personnel are not aware of the basis for the rate. The Deputy Executive Officer, U.S. Agency for International Development, informed us that the General Services Office will review the cost of providing the staff pickup service. o043a jc IL I -

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