Determine whether the Western Regional Off-Track Betting Corporation (Corporation) Board of Directors (Board) provided adequate oversight of take-home vehicles.
The Board did not provide adequate oversight of take-home vehicles. We found:
- All employees that were assigned a take-home vehicle, except for the CEO, maintained mileage logs and reimbursed the Corporation for personal use of its vehicle in a timely manner.
- The CEO did not reimburse the Corporation for his personal use of the Corporation’s vehicle until the internal auditor found he was not adhering to the take-home vehicle policy. The internal auditor estimated the CEO’s personal mileage and found the CEO owed the Corporation $3,484 for the period July 2016 through April 2019. The CEO paid this reimbursement in April 2019.
- The CEO failed to comply with the Board’s take-home vehicle policy, therefore he did not demonstrate appropriate “tone at the top,” which is essential to establish strong internal controls.
- Ensure all employees assigned take-home vehicles complete and file accurate weekly mileage logs as required.
- Ensure all employees assigned a take-home vehicle timely reimburse the Corporation.
Corporation officials generally agreed with our recommendations and indicated they planned to initiate or have already initiated corrective action.