Texas State Auditor's Office - Summary of Report 23-020

A Performance Audit

An Audit Report on Motor Vehicle Crime Prevention at the Department of Motor Vehicles

March 2023

Overview

Background

Audit Objectives

The Motor Vehicle Crime Prevention Authority (Authority) at the Department of Motor Vehicles (Department) had processes in place to ensure that it awarded, administered, and monitored grants in accordance with applicable requirements. However, it should strengthen certain administration and monitoring processes to ensure that grantees use grant funds properly and that reimbursements are supported, reasonable, and allowable. Additionally, it should develop policies and procedures for its Grant Management and Tracking System. The Authority had processes in place to ensure that it complied with certain statutory requirements for financial management, including limitations on administrative expenses.

The Department implemented controls to help prevent fraud and criminal activity related to the production and use of temporary vehicle tags. However, it should limit access to current employees and limit administrative roles to appropriate personnel in the webDEALER system.

LOW

Grant Award Process

The Authority established adequate processes for reviewing applications and awarding grants.

Jump to Chapter 1-A

MEDIUM

Grant Administration and Monitoring

The Authority’s grant administration and monitoring processes did not always ensure that grantees used grant funds properly and reimbursements were supported, reasonable, and allowable.

Jump to Chapter 1-B

LOW

Compliance with Statutory Requirements

The Authority complied with certain statutory requirements for financial management.

Jump to Chapter 1-C

HIGH

The Authority’s Information Technology System

The Authority did not have information technology policies and procedures to ensure that Grant Management and Tracking System user access management, change management, or reviews of backup data recovery reports are performed effectively.

Jump to Chapter 2

LOW

Temporary Vehicle Tags

The Department implemented certain actions related to recommendations from a June 2022 internal audit of its licensing and monitoring process for temporary vehicle tags. Implementation of additional controls recommended in the internal audit report is ongoing.

Jump to Chapter 3-A

MEDIUM

Access to the Department’s Information Technology Systems

The Department established adequate access controls in eLICENSING and Active Directory; however, it did not always limit access to current employees and limit administrative roles to appropriate personnel in the webDEALER system.

Jump to Chapter 3-B

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