Fleet Must Straighten Up or Lose Funding

Mar 02, 2010

Here’s an update on the Arizona fleet we recently talked about during an embezzlement scandal.  It seems that the best way to change bad business behavior is with one’s wallet.

Southeastern Arizona Behavioral Health Services (SEABHS) must make some changes or it risks losing a $35 million contract with the Community Partnership of Southern Arizona (CPSA), according to Nogales International.

Neal Cash, president of CPSA, had concerns in December about an investigation by the Arizona Attorney General into embezzlement allegations; former agency CEO Dana Johnson’s alleged borrowing and never repaying $150,000; and spending on vehicles and auditing fees, among other items.

Cash said a letter was subsequently sent because CPSA feels SEABHS has not followed requirements in the contract between the two agencies. Since 2006, tax documents show CPSA has given SEABHS between $29 million and $35 million a year, reported Nogales.

For the company’s vehicle fleet, Cash said SEABHS will now be required to submit a plan to review current expenses and reduce unnecessary expenses. Last year, SEABHS spent $500,000 on auditing fees and $650,000 to maintain and manage a 119-car vehicle fleet, Nogales reported.

The CPSA order means the issue will no longer be ignored.

“SEABHS must update its policies and procedures to ensure appropriate use of company vehicles for SEABHS business and personal use by staff driving vehicles home and back to their assigned work sites,” Cash said. “SEABHS must appropriately report the monetary value for staff’s personal use of a company vehicle on the employee’s W-2 in accordance with IRS regulations.”

Photo courtesy of Photos8.com under the Creative Commons License