Audits of Local Governments and School Districts
Town of Granger – Fuel Procurement and Inventory Controls (2011M-295)
Released: April 25, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the procurement and safeguarding of fuel inventories for the period January 1, 2010 through November 24, 2011.
The Town of Granger is located in Allegany County. The Town Board, which is an elected legislative body, consists of the Town Supervisor and four Council members. The Town's 2011 budgeted expenditures total approximately $500,000 for the general and highway funds.
- Town officials have not purchased fuel in the most economical manner possible. We found that, had the Town used State contract awarded vendors, it could have saved approximately $2,300, or 3 percent for the fuel purchases we reviewed. The Town did not realize these savings because, although the Board adopted a procurement policy, the Board did not ensure that the Highway Superintendent adhered to its requirements when purchasing fuel.
- The Highway Superintendent did not adequately safeguard the Town's fuel inventory, which increases the risk that fuel could be used for non-Town purposes.
- Ensure that competitive bids are solicited for fuel purchases, or use State or county contracts for these purchases.
- Maintain perpetual inventory records that identify the quantities of fuel purchased, dispensed, and on hand. These records should be reconciled to periodic physical inventories and any differences should be promptly investigated and resolved.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: email@example.com
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236