Audits

On July 10, 2008, we issued our report on Use of Income Derived from the Commercial Driver’s License Information System for Modernization. This audit was performed in response to a requirement in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. The objectives of our audit were to: (1) determine how net income should be used under the CDLIS modernization grant, (2) identify total revenue derived from CDLIS user fees, the amount of related expenses AAMVA incurred, and net income, and (3) determine how the net income was used. Our audit found that under the regulation governing Federal grants for modernizing CDLIS, program income derived from CDLIS revenue and fees during the grant project period must be used for operating and modernizing the system. We made recommendations for FMCSA to amend its 1988 operating agreement with AAMVA to ensure that program income derived from CDLIS revenue and fees during the grant project period is used for operating and modernizing the system, that provisions are made for states to pay for future CDLIS enhancements, and that AAMVA accounts for and reports to FMCSA the amount and use of program income from CDLIS. On June 9, 2008, after we issued our draft report, FMCSA entered into a new Cooperative Agreement with AAMVA to reflect the current programs, systems, and organizational changes that occurred since the 1988 operating agreement was ratified. The new Cooperative Agreement appears to address our recommendations.