Audits of Local Governments and School Districts
Village of South Blooming Grove – Internal Controls Over Financial Operations (2011M-271)
Released: April 20, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to determine if professional services for water and sewer operations and maintenance (O&M) were obtained using competition for the period January 1, 2010 through August 4, 2011.
Background
The Village of South Blooming Grove is located in the Town of Blooming Grove in Orange County and has a population of approximately 2,800. The Village is governed by a Board of Trustees comprising the Mayor and four elected Trustees who all serve two-year terms. The Village's budgeted appropriations for the 2010-11 fiscal year were $2.2 million, which included $870,000 for capital projects.
Prior to the formation of the Village in 2006, the Town of Blooming Grove provided and managed water and sewer services for the current Village residents. The Village, upon its formation, assumed the responsibility of providing these services to about 1,000 households.
Key Finding
- The Village's purchasing policy does not require the use of competition when procuring professional services. Therefore, Village officials did not use competitive methods to obtain services for water and sewer O&M. Instead, the Village continued to use the vendor that provides services to the Town of Blooming Grove. The Village pays the vendor approximately $250,000 per year.
Key Recommendation
- Update the procurement policy and ensure that procedures are developed to guide Village personnel in the procurement of professional services. This process should include the appropriate use of competition in a timely manner.
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