Mileage over-reporting is a common problem that businesses have faced for years. If they rely on an employee or independent contractor to provide an accurate representation of the miles they drove on the job, that’s an easy way to exploit the company.
It’s not just private enterprises that are susceptible, even the federal government has this issue with elected officials. Just last month, Representative Aaron Schock resigned after questions arouse about mileage expenses.
Illinois Rep. Aaron Schock billed the federal government and his campaign for logging roughly 170,000 miles on his personal car from January 2010 through July 2014. But when he sold that Chevrolet Tahoe in July 2014, it had roughly 80,000 miles on the odometer. In other words, he was reimbursed for 90,000 miles more than his car was driven.
The mileage reimbursement rate, according to the IRS, was 50 cents per mile in 2010 and up to 56 per mile in 2014. Even at the most conservative estimate, that’s $45,000 of excess reimbursement. And that doesn’t even include the fact that surely some of the miles on his personal vehicle were for personal trips.
The only reason he was caught was because eventually the Tahoe was sold and there was finally some documentation. Members of a political website followed up on the paper trail and obtained public documents under Illinois open records laws . But that was only after the vehicle was sold and this had been going on for years.
GPS Tracking would have discovered the issue much earlier on. Reports and alerts generated from GPS Tracking would have determined very quickly if there was a discrepancy between the Representative’s logs and his actual mileage. With the right device and solution, the mileage could have even automatically been recorded.
For more information on how GPS Tracking can help your organization with mileage accuracy, call 1-800-446-1991.