Audits of Local Governments and School Districts
Town of Woodstock – Financial Activities and Information Technology (2012M-84)
Released: August 17, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to review the Town's processes for selected financial activities, and internal controls over information technology (IT) for the period January 1, 2010, through July 26, 2011.
The Town of Woodstock is located in northern Ulster County. The Town is governed by a Town Board, which comprises four elected members and an elected Supervisor. The Town budgeted $6 million for total operating expenditures for fiscal year 2010.
- The Town did not always use competitive methods when purchasing goods and services. We tested six purchases amounting to $252,611 that required competitive bidding and found that five purchases totaling approximately $164,000 had not been competitively bid.
- Eight purchases totaling $85,550 that required quotations contained no evidence that quotes were secured for the items purchased.
- The Town paid five professional service vendors $111,670 without using competitive methods such as a request for proposal process.
- The Town did not comply with the New York State Workers' Compensation Law. We selected a sample of 15 vendors who were paid a total of $385,739 and found that Town officials did not have proof of insurance for any of the 15 vendors.
- Town officials have not established adequate internal controls to effectively safeguard the Town's computer system and data.
- Require adherence to the requirements set forth in its procurement policy with regard to competitive bidding.
- Amend the procurement policy to include a standard form for documenting quotations received.
- Consider amending the procurement policy to require competition when procuring professional services.
- Obtain proof of insurance from all vendors the Town is currently doing business with.
- Properly secure the server by physically restricting access to it, adopt procedures to monitor use of its computer systems, ensure that all computers have up-to-date virus protection, develop data backup procedures, develop and adopt a formal written disaster recovery plan, adopt an information breach notification policy and enter into a service level agreement with the IT vendor.
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