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Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of Caneadea – Internal Controls Over Procurement (2012M-133)


Released: November 23, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the internal controls over procurement for the period January 1, 2011, through May 31, 2012.

Background

The Town of Caneadea is located in Allegany County and has a population of approximately 2,500. The Town is governed by an elected Town Board comprised of a Town Supervisor and four Council members. Highway purchases made during the audit period totaled $552,600.

Key Findings

  • The Board did not ensure that Town officials followed the Town's procurement policy or statutory bidding requirements. Had the Town sought competition for commodities it purchased that exceeded Town and State bidding thresholds during our audit period, it could have saved over $9,700. Town officials also awarded professional service contracts for legal services and municipal insurance without the benefit of competition.
  • There was no indication that the Board evaluated its procurement policy since its adoption nearly 20 years ago, in 1993.

Key Recommendations

  • Monitor compliance with General Municipal Law (GML) and the Town's adopted procurement policy to ensure that officers and employees follow requirements when procuring goods and services and to ensure that goods and services are obtained when needed at the expected quality and most competitive price.
  • Review the procurement policy annually, update it as necessary, and communicate the policy to department heads.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236