State auditors say the Motor Vehicle Division failed to make sure contractors did their work correctly and it caused public danger.
The MVD hires retail stores to issue vehicle titles, drivers licenses and identification cards.
State auditors say the MVD did not make sure that contractors consistently gave those critical records to people allowed to have them, which raised the risk of vehicle theft, fraud and terrorism.
MVD contractors are supposed to check their work and correct errors within a week.
But the state agency has reportedly not kept up with monitoring methods recommended years ago.
The director of the Department of Transportation agreed with the audit outcome and promised to carry out all recommendations.
