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California State Auditor Report Number : 2015-506

Follow-Up—California Department of Motor Vehicles
It Still Has Not Ensured It Charges and Advertises Fees for Some Special Interest License Plates Consistent With State Law

Response to the Audit

CALIFORNIA STATE TRANSPORTATION AGENCY

Edmund G. Brown Jr.
Governor

Brian P. Kelly
Secretary

915 Capitol Mall, Suite 3508
Sacramento, CA 95814
916-323-5400
www.calsta.ca.gov

July 14, 2015

Elaine M. Howle, CPA
California State Auditor's Office
621 Capitol Mall, Suite 1200
Sacramento, CA 95814

Dear Ms. Howle:

Attached please find a response from the California Department of Motor Vehicles (Department) to your draft audit report Follow-Up -California Department of Motor Vehicles: It Still Has Not Ensured It Charges and Advertises Fees for Some Special Interest License Plates Consistent with State Law (#2015-506). Thank you for allowing the Department and the California State Transportation Agency (Agency) the opportunity to respond to the report.

We appreciate your acknowledgement that the Department has updated its automated systems to reflect current administrative service fees, and your identification of opportunities for improvement and remedial action in other areas. As indicated in its response, the Department concurs with the findings and recommendation noted in the report, and plans to implement corrective action to specifically address the recommendation.

If you need additional information regarding the Department's response, please do not hesitate to contact Michael Tritz, Agency Deputy Secretary for Audits and Performance Improvement, at (916) 324-7517.

Sincerely,

BRIAN P. KELLY
Secretary

Attachment
cc: Jean Shiomoto, Director, California Department of Motor Vehicles






CALIFORNIA STATE TRANSPORTATION AGENCY

OFFICE OF THE DIRECTOR
DEPARTMENT OF MOTOR VEHICLES
P.O. BOX 932328
SACRAMENTO, CA 94232-3280

July 13, 2015

Brian P. Kelly, Secretary
California State Transportation Agency
915 Capital Mall, Suite 3508
Sacramento, CA 95814

Dear Secretary Kelly:

The Department of Motor Vehicles (DMV) thanks the California State Auditor (State Auditor) for the opportunity to respond to its draft report Follow-Up- California Department of Motor Vehicles: It Still Has Not Ensured It Charges and Advertises Fees for Some Special Interest License Plates Consistent with State Law, issued on July 10, 2015.

In April 2013, the State Auditor released the report Special Interest License Plate Funds: The State Has Foregone Certain Revenues Related to Special Interest License Plates and Some Expenditures Were Unallowable or Unsupported. As a follow-up, the State Auditor conducted a review to evaluate OMV's corrective actions for three recommendations from the 2013 report.

The State Auditor determined that OMV has updated its automated systems to reflect current administrative service fees, but has not consistently ensured that it charges or advertises the correct fees for some special plates.

We agree with the recommendation and are pleased to report that we plan to implement corrective action by March 31, 2016. The State Auditor's recommendation and DMV's response (in bold) are as follows:

Recommendation:

1. To ensure it charges fees for special plates that are consistent with state law, Motor Vehicles should begin charging the correct fee for two special plates by March 31, 2016.

Response:
DMV concurs with this recommendation.

DMV will update its systems to begin charging the correct fee for transfers of the Olympic Training Center plate and converting an Environmental License Plate to a personalized Collegiate plate.

Planned completion date: March 31, 2016.

We appreciate the opportunity to provide a response on our plans to implement the State Auditor's recommendation. If you have questions or concerns, please contact Bernard Soriano, Acting Audits Chief, at (916) 657-7626.

Sincerely,

JEAN SHIOMOTO
Director




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