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Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of Orangeville – Highway Procurement (2012M-09)


Released: April 13, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the Town’s process for purchasing highway materials and equipment during the period January 1, 2010, through December 22, 2011.

Background

The Town of Orangeville is located in Wyoming County. The Town is governed by an elected Board, comprised of four council members and the Town Supervisor. For the 2011 fiscal year, the Town’s budgeted expenditures were approximately $207,000 for the general fund and $728,000 for the highway fund.

Key Findings

  • The Board, prior to March 2011, did not adopt a written purchasing policy as required by GML. After adopting a policy in March 2011, the Board and Highway Superintendent did not follow the policy. The Town did not properly bid three equipment purchases totaling over $437,000 and diesel fuel totaling more than $66,000. The Town also purchased materials totaling $67,000, not subject to competitive bidding requirements, without obtaining price quotes.
  • The Board did not adequately monitor highway department purchasing practices during its audit of claims. As a result, the Town purchased $146,000 of road materials that it did not appear to need at the time purchased. Furthermore, the Town could have saved more than $20,000 by using highway employees and equipment to haul these materials.

Key Recommendations

  • Ensure strict adherence to its procurement policy and the bidding requirements of GML and regularly monitor for compliance during its audit of claims.
  • Initiate all stone and gravel deliveries to ensure that only necessary and appropriate amounts of road materials are purchased, and when feasible have highway employees haul these materials using Town trucks.

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