Full Report (PDF) - Office of the Legislative Auditor

46MOTOR VEmCLE DEPUTY REGISTRARSin the state, yet its cost per transaction is about 38 percent higher than the nexthighest-cost deputy among huge public deputies.Using our higher assumptions for indirect costs and rent, the average cost rangedfrom $2.85 per transaction for lruge single-office deputies to $4.38 for small deputies.These costs are only about 3 to 6 percent higher than the cost based on ourlower assumptions, reflecting the fact that rent and indirect expenses are a relativelysmall proportion of a deputy registrar's total expenses. Based on the higherassumptions, 52 percent (11 out of21) of the small or medium-small public deputieshad a cost of more than $4 per transaction.As Table 3.1 and Figures 3.1 through 3.3 show, larger deputies had lower cost pertransaction than smaller deputies because they processed more transactions perfull-time employee. LaIge single-office deputies processed about 12,200 transactionsper full-time employee, about 77 percent more than the amount for smalldeputies (6,900).On average,larger deputiesprocess moretransactionsper employeethan smallerdeputies.Figure 3.2: Transactions per Full-Time ElTlployeeby Size of Public Deputy, 1992Thousands of Transactions14.---------------------------------------~12+--------------------------10+-----------------8 +---------642oSmall Med Small Med Large Large Multiple OfficeDeputy SizeSource: Office ofthe Legislative Auditor.However, larger deputies also tended to pay higher salaries and benefits, partiallyoffsetting their economies of scale advantage. Large deputies paid $25,800 peremployee, compared with $22,200 for small deputies.Table 3.2 shows the wide range in cost within each size category. Small publicdeputies had costs ranging from $3 to $6 per transaction. The main reason for thisvariation is differences in staffing. For example, one small deputy registrar (about8,000 transactions per year) had a cost of $6 per transaction because two employeesworked full time in the deputy registrar's office. There are other deputies of