Audits of Local Governments and School Districts
Town of Harrietstown – Adirondack Regional Airport Fuel Inventory and Capital Projects (2011M-201)
Released: January 10, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the Town’s internal controls over fuel inventory, related sales tax reporting, and accounting for capital projects at the Airport for the period January 1, 2009 to December 31, 2010.
The Town of Harrietstown is located in southeastern Franklin County. The Town operates the Adirondack Regional Airport. The Town is governed by a Town Board comprised of the Town Supervisor and four Town council members. The Town’s adopted budget for all funds in 2011 is $4.7 million.
- The Airport could not account for 2,965 gallons of Jet A fuel costing $10,345 and 1,053 gallons of aviation gasoline costing $4,260 for the period January 1, 2010 through March 31, 2011.
- The former Bookkeeper failed to correctly complete the quarterly sales tax returns filed for the period September 2007 through December 2010, resulting in sales tax payments that exceeded the Town’s actual sales tax obligations by approximately $162,000.
- We found no evidence that the Board identified the projects to be undertaken, established authorized amounts, or identified the funding sources for nine projects totaling $3.5 million.
- Ensure that Airport management implements procedures for the daily reconciliations of fuel sales records to a physical inventory of the actual fuel on hand.
- Develop written procedures for the sales tax reporting process and assign someone separate from the preparation to review the returns for accuracy.
- Authorize each capital project by defining the project to be undertaken, establishing a maximum amount to be spent, and identifying the financing sources.
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