Motor Vehicle Administration
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1 Motor Vehicle Administration Audit Report Dated November 30, 2004 Presentation to Maryland General Assembly House Appropriations Committee Transportation and the Environment Subcommittee Peter J. Klemans Brian S. Tanen Karen J. Howes February 24, 2005
2 Overview General Purpose MVA has jurisdiction over a variety of activities, such as registration and titling, related to the ownership and operation of motor vehicles. Operations - Maintains a headquarters location in Anne Arundel County and 23 branch offices throughout the State. Annual Revenues - Collected $1.15 billion during fiscal year 2004 primarily consisting of motor vehicle excise taxes and registration fees. Motor Vehicle Administration Page 1
3 Audit Results Latest audit report includes 22 findings. Only 2 of 8 audit findings from the preceding report were repeated in this report. Motor Vehicle Administration Page 2
4 Key Audit Issues Driver Licensing License Suspensions and Revocations Vehicle Titling and Registration Motor Vehicle Administration Page 3
5 Driver Licensing Driver licenses and related transactions were not subject to proper controls. License transactions were not reviewed and approved by supervisory personnel. Supervisory personnel routinely processed licensing transactions. As a result of their system capabilities, they could issue improper driver s licenses that would not be readily detected. Surrendered driver licenses (e.g., during license renewal) were not properly accounted for. Motor Vehicle Administration Page 4
6 Driver Licensing (continued) Office of Legislative Audits MVA lacked procedures to ensure the accuracy of its licensed driver database. 2,800 driving records contained social security numbers (SSN s) also recorded on other driving records. Certain SSN s recorded on the database were incorrectly denoted by MVA s new driver licensing system as verified with SSA s database. Motor Vehicle Administration Page 5
7 Driver Licensing (continued) Office of Legislative Audits Certain SSN s provided by license applicants were not recorded onto the database, decreasing the utility of these records (for example, effective child support enforcement). Motor Vehicle Administration Page 6
8 License Suspensions and Revocations License suspension and revocation decisions were not reviewed and approved by supervisory personnel. MVA lacked procedures to help ensure that hearings of related appeals were conducted in a timely manner. As of March 2004, approximately 600 suspension and revocation decisions had been awaiting appeal hearings for 180 to 641 days, during which time licensees retained their driving privileges. Motor Vehicle Administration Page 7
9 Vehicle Titling and Registration Controls over certain vehicle titling and registration transactions were inadequate. Certain vehicles reported as stolen by law enforcement agencies were not recorded on MVA s titling and registration system, increasing the potential that they could be improperly titled or registered. Over-the-counter titling and registration transactions were not reviewed and approved by supervisory personnel. Motor Vehicle Administration Page 8
10 Other Audit Findings Office of Legislative Audits MVA generally waited 120 days to suspend registrations of vehicles for which insurance has terminated or lapsed. Traffic citation forms distributed to law enforcement agencies were not accounted for; consequently, any motorists that had not been adjudicated could not be identified. MVA did not ensure that waivers of Vehicle Emissions Inspection fees (including late fees) were proper and that it received all fees due. Motor Vehicle Administration Page 9
11 Conclusion MVA should strengthen controls over Driver licenses and certain related transactions License suspension and revocation decisions Certain vehicle titling and registration transactions. MVA should resolve the other audit report findings. Motor Vehicle Administration Page 10
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