Highligts 23-105 - Arizona Auditor General Performance Audit Highlights

Sep 20, 2026

Uploaded by Theodore

Performance audit highlights for Arizona Auditor General evaluate how the Arizona Department of Transportation, Motor Vehicle Division oversees third parties that issue vehicle titles, driver licenses, and identification (ID) cards. Results show oversight failures that increase public safety risks, including unsafe driving, vehicle and identity theft, fraud, and terrorism. Key findings cite unauthorized issuances, inadequate documentation across reviewed transactions, and monitoring gaps against prior 2015 recommendations. Recommendations focus on written monitoring policies and aligning third-party quality assurance with MVD employee standards.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

AccessFree to download

Audit purpose

Scope and objective

Key findings

Public safety risks from unauthorized issuances

Documentation gaps in reviewed transactions

Monitoring and oversight weaknesses

Key recommendations

Written policies for qualified authorization checks

Aligning third-party quality assurance with MVD standards

Report Highlights Arizona Auditor General Making a positive difference Arizona Department of Transportation Motor Vehicle Division’s (MVD) Oversight of Third Parties MVD failed to ensure authorized third-party companies consistently issued vehicle titles, driver licenses, and identification cards only to qualified and/ or authorized individuals/entities, increasing public safety risks such as unsafe drivers, vehicle and identify theft, fraud, and terrorism Audit purpose To determine whether MVD effectively oversaw third parties to ensure they issued vehicle titles, driver licenses, and identification (ID) cards only to qualified and authorized individuals/entities. Key findings • Issuing vehicle titles, driver licenses, and ID cards to unqualified or unauthorized individuals/entities can put public safety and welfare at risk. For example: ○ Unqualified drivers who receive driver licenses may pose safety risks on public roadways. ○ Unauthorized and/or fraudulent vehicle title transfers increase the risk of vehicle theft. ○ Fraudulently obtained ID documents may facilitate fraud, identity theft, terrorism, and other crime. • Statute authorizes Department to contract with private companies (third parties) to provide some MVD services at retail locations throughout the State; Department is required and the contract allows for MVD to oversee third parties to ensure they provide these services to qualified and/or authorized individuals/entities, and MVD requires third parties to self-review their transactions and correct identified errors within 7 days. • Third parties lacked documentation confirming individuals/entities were qualified and/or authorized to obtain a vehicle title, driver license, or ID card for 25 of 130 transactions we reviewed; some third parties inaccurately reported to MVD these transactions were error free when they were not, and others had identified but not timely corrected the errors. • MVD has not sustained monitoring and oversight processes consistent with our previous recommendations made in 2015 to hold third parties accountable for identifying and timely correcting erroneous transactions or held third parties to the same quality assurance standards as MVD employees who provide similar services. Key recommendations MVD should: • Ensure third parties issue vehicle titles, driver licenses, and ID cards only to qualified and/or authorized individuals/ entities by developing and implementing written policies and procedures for monitoring and overseeing third parties, including to ensure they identify and timely correct errors that can put public safety at risk. • Modify and implement its third-party quality assurance process to more closely align with its quality assurance process for MVD employees. See Performance Audit Report 23-105, August 2023, [at www.azauditor.gov](at www.azauditor.gov).

FAQs

What did the audit aim to determine about the Motor Vehicle Division’s third-party oversight?

To assess whether MVD effectively oversaw third parties to ensure they issued vehicle titles, driver licenses, and ID cards only to qualified and authorized individuals or entities.

What key risks were identified from third parties issuing documents improperly?

Improper issuance to unqualified or unauthorized individuals/entities can endanger public safety and welfare, including unsafe drivers, vehicle theft, fraud, identity theft, and terrorism-related risks.

What were the main issues found with third parties and MVD monitoring?

Third parties lacked documentation for certain transactions and some reports to MVD were inaccurate or errors were not corrected within required timeframes; MVD also did not sustain monitoring and oversight consistent with earlier 2015 recommendations.

Sep 20, 2026

Uploaded by Theodore