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30.10 Motor Pool Vehicles

30.10 Motor Pool Vehicles, Chancellor's Office Business Policies & Procedures

Purpose:

To establish policies and procedures associated with Motor Pool vehicles. Since personal use of a state-owned vehicle is prohibited, internal documentation is essential. These procedures cover three categories of state-owned vehicle use:

  • Vehicles checked out on an "as-needed" basis,
  • Vehicles permanently assigned to a department, and
  • Vehicles permanently assigned to an individual.

The procedures associated with each category of state vehicle use have been developed in order to:

  • demonstrate that the vehicle has been used only for official business purposes,
  • provide necessary documentation for the amounts billed for mileage use, and
  • when assigned to an individual, accomplish appropriate tax reporting.

Policy:

State-owned vehicles may be used for official OUS business only in accordance with the following procedures.

Procedures for Vehicles Checked Out on an "As-Needed" Basis:

  1. The purpose of the use is recorded at the time arrangements for check out are made.
  2. Business Processing Staff sends a copy of the invoice or journal voucher to the Department Head or Department Approver for use in verifying charges for checked out vehicles when approving the invoice or journal voucher for payment.
  3. To process the the payment, see invoicing procedures or journal voucher procedures.

Procedures for Vehicles Permanently Assigned to a Department:

  1. A Vehicle Usage Log is kept in the vehicle. All vehicle use will be recorded in the log and will include the information shown on the Vehicle Usage Log provided as part of these procedures.
  2. Business Processing Staff sends a copy of the invoice or journal voucher to the Department Head or Department Approver. The Department Head or Department Approver should review the charges for reasonableness compared to the Vehicle Usage Log; due to timing differences in billing and the recording of mileage, the mileage charges should approximate the log.
  3. To process the the payment, see invoicing procedures or journal voucher procedures.
  4. The department should retain the vehicle usage log for audit purposes.

Procedures for Vehicles Permanently Assigned to an Individual:

  1. When it is determined to be in the best business interest of the Chancellor's Office to permanently assign a vehicle to an individual, the assignment will be documented in writing and kept in the employee's personnel file. The documentation will include:
    • The Chancellor's approval of the vehicle assignment, and
    • An acknowledgement by the employee to:
      • comply with applicable Motor Pool policies,
      • maintain a usage log, and
      • understand the usage is subject to tax requirements of IRS regulations.

    See the sample vehicle assignment memo for an example of this documentation.

  2. Human Resources will communicate to the Director of Budget and Business Services that a vehicle has been permanently assigned to an employee.
  3. The Director of Budget and Business Services will communicate to the employee the requirements for reporting use of the vehicle for commuting to and from home since this is a taxable fringe benefit to the employee.
    1. By the 10th of each month, the Employee completes a Commuting Use of a State-Owned Vehicle form, indicating the dates of usage for commuting one way or round trip (if applicable). The form should be completed every month even if there has been no commuting during that month.
    2. The Employee signs the completed form and routes it to Business Services Payroll Manager for processing in the payroll (for the purpose of recording the taxable fringe benefit).
    3. Business Services Staff processes the fringe benefit in payroll and files the Commuting Use of a State-Owned Vehicle form in the payroll archive files.
    4. If the commuting form is not submitted by the 10th of the month, the full cost of the vehicle for that month (e.g., base charge, mileage, and/or gas) will be treated as a taxable fringe benefit in the next month's payroll.
  4. A Vehicle Usage Log is kept in the vehicle. All vehicle use will be recorded in the log and will include the information shown on the Vehicle Usage Log provided as part of these procedures.
  5. Business Processing Staff sends a copy of the invoice or journal voucher to the Department Head or Department Approver. The Department Head or Department Approver should review the charges for reasonableness compared to the Vehicle Usage Log; due to timing differences in billing and the recording of mileage, the mileage charges should approximate the log.
  6. To process the the payment, see invoicing procedures or journal voucher procedures.
  7. The department should retain the vehicle usage log for audit purposes.

Authoritative References:

Forms:

Examples:

Last Updated: 06/30/08