Friday, Dec. 5, 2003 | 11:10 a.m.
CARSON CITY -- The Taxicab Authority, which regulates the industry in Clark County, has been lax in controlling its revenue and that has increased "the risk that errors or misuse could occur and go undetected," a legislative audit said Thursday.
The authority didn't keep adequate track of the medallions required for each cab and that may have allowed some owners to put extra vehicles on the street. There was no verification of citations issued to drivers and a lack of controls in handling the fines imposed.
The authority permitted employees to cash personal checks -- which is against regulations -- and it used money set aside for undercover investigations for other unauthorized purposes.
Sen. Ray Rawson, R-Las Vegas, chairman of the Legislative Audit Committee that accepted the report, said it was important that the authority collect all the revenue it was entitled to.
Legislative Auditor Paul Townsend said Yvette Moore, new administrator of the Taxicab Authority, was enthusiastic about shoring up the deficiencies in collecting and handling revenue.
Kenneth Mangum, administrative services officer for the authority, said Moore comes from private industry and the prior administrators all had law enforcement backgrounds. He told the legislative committee that Moore is giving accounting procedures a higher priority.
Moore has put an immediate stop to allowing employees to cash personal checks at the authority.
The audit said the authority "lacks controls over obtaining accurate information to help effectively regulate the taxicab industry in Clark County and manage the authority's programs."
Each company must purchase a medallion for $100 a year for each taxi on the street. These are like a license plate and allow the company to operate the vehicle. When the company loses a medallion, the authority gives a replacement for $10.
Deputy Legislative Auditor Mike Noel said his examination found that there were 1,561 medallions issued to 16 taxicab companies in July 2001. If the medallions are reported lost, he said the authority does not know if they are found.
This would give owners, who find their lost medallions, a chance to put extra taxis on the street and an unfair advantage over other companies. Noel said the average revenue per medallion was about $152,000 in 2002.
For each trip by a taxicab in Las Vegas, 15 cents goes to support the taxicab authority. But the audit said the authority does not have accurate information on whether the agency is receiving the correct amount.
The companies paid more than $3.1 million in trip charges to the authority during fiscal 2002 on 21 million taxicab trips. But the authority does little to verify the numbers.
There are discrepancies on the number of citations issued to drivers, the examination said. The authority lacks documentation to ensure the correct fines are paid.
Noel said the management of the authority allows a fine to be reduced 50 percent if the driver pays the penalty without requesting a hearing. But the audit said that the fines were reduced anywhere from 33 to 83 percent. "For example, we found original fine amounts established at $75 were reduced by as little as $35 and as much as $55."
The audit said the $1,000 petty cash fund set aside for undercover investigation was used for staples, nuts, bolts, fabric for tablecloths and a printer.
Assemblywoman Sheila Leslie, D-Reno, said this was a "pretty significant" problem that is occurring not only in the Taxicab Authority but also in other agencies. She said the Legislature is going to take a close look at these funds in the future.
Auditor Townsend said the risks skyrocket when these funds are authorized and there is little oversight.
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