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NYS Comptroller

THOMAS P. DiNAPOLI

Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Village of Arcade – Internal Controls Over Purchasing (2013M-37)


Released: May 3, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the internal controls over purchasing for the period June 1, 2010, through January 14, 2013.

Background

The Village of Arcade is located in Wyoming County and has a population of approximately 2,100 residents. The Village is governed by an elected five-member Board consisting of the Mayor and four Trustees. The Village’s 2012-13 budget totals $3.2 million.

Key Findings

  • The Board did not establish procedures to ensure that the correct prices were obtained when purchasing goods through New York State Office of General Services contracts. The Board did not verify that the Village received State contract pricing for nine purchases and overpaid approximately $5,500 for four of these purchases.
  • The Board did not ensure that Village officials followed the Village’s procurement policy or statutory bidding requirements. Village officials purchased three loaders totaling $271,491 without soliciting competitive bids.

Key Recommendations

  • Establish procedures to ensure that Village officials verify that the price charged by a vendor awarded a State contract is correct by comparing relevant list prices, reduced by contract discounts, with a detailed breakdown of charges by the vendor. Recover any overpayments the Village made to State contract vendors.
  • Ensure that Village officials comply with the Village’s procurement policy and General Municipal Law by requiring competitive bids when purchasing goods and commodities that exceed $20,000 annually.

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