City’s fleet better placed for success but fuel misuse risk remains

City's fleet better placed for success but fuel misuse risk remains

Published on May 07, 2026

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DENVER - The Department of Transportation & Infrastructure is in a stronger position to oversee the city's fleet of vehicles yet opportunities for improvements remain, according to a follow-up audit report from Denver Auditor Timothy M. O'Brien, CPA. The department fully or partially implemented 11 of 13 recommendations from our original audit of the department's management of the city's fleet.

"I'm pleased to see Transportation & Infrastructure made refinements to ensure taxpayer money is spent better," Auditor O'Brien said. "More work needs to be done, but they're heading in the right direction."

The Department of Transportation & Infrastructure oversees and maintains a fleet of over 2,500 vehicles and pieces of equipment belonging to 43 city agencies.

Vehicle availability

The department implemented our recommendation to optimize vehicle use. It created a procedure that outlines a process for managing the city's fleet, which includes identifying opportunities to better align the city's fleet inventory with its operational needs. And it updated procedures about vehicle replacement criteria.

The department is still developing plans to ensure agencies have access to vehicles at least 95% of the time. In 2025, the average vehicle availability was 85%.

Also, the absence of a formal staffing plan makes it difficult for the city to determine whether it has appropriate staffing to keep the fleet running reliably.

Fuel and stolen parts risks

Transportation & Infrastructure developed a new fuel-use policy, but risks remain.

The department may not detect and correct unusual fuel activity without standardized procedures for reviewing fuel usage. The city still risks former employees accessing the city's fuel because the department did not remove former city employees from the authorized driver list. Our original audit found fuel access codes were improperly shared, but the department has not yet trained staff about how to prevent code sharing.

Vehicle parts remain vulnerable to theft without a full physical security assessment.

Evaluating fleet funding structure

Our original audit found the city ordinance says the city is operating under an internal service fund model, when in practice it is not. The department reviewed its current funding model for managing the city's fleet but will prioritize other operational improvements before determining whether an alternative financial structure would better serve the city.

Other positive updates

The department created policies and procedures for outsourcing work. It has corrected inaccurate data in its software system for tracking maintenance data. And it worked with the city's Technology Services agency to improve the software's functionality.

"I encourage the department to continue making progress about staffing needs and its fleet funding structure, and to ensure no more former employees can access the city's fuel or parts that are at risk of theft," Auditor O'Brien said. "By buttoning up those areas, there's greater confidence in Transportation & Infrastructure's ability to manage the city's fleet and efficiently deliver services to Denver residents and businesses."

We may revisit lingering risks in future audits to see if the city takes corrective action.

AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor

Denver Auditor's Office

201 W. Colfax Ave. #705 Denver, CO 80202
Email: [email protected]
Call: 720-913-5000
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