Purpose of Audit

The purpose of our audit was to assess the internal controls over the District’s financial operations and other financial related activities for the period January 1, 2012, to March 31, 2013.

Background

The Hicksville Water District is located in the Towns of Oyster Bay and Hempstead, in Nassau County. The District provides water to about 48,000 customers each year. A three-member elected Board of Commissioners, consisting of a Chairman, a Treasurer, and a Secretary. General fund budgeted expenditures for 2013 totaled $10 million.

Key Findings

• District officials did not obtain quotes for goods and services purchased from three of 13 vendors, totaling $42,421. These three vendors were engaged to provide maintenance for the District’s vehicles, upgrade the security system, and service the air-conditioning and heating system.
• The remaining 10 vendors in our sample included five purchases made under a State or County contract, and five vendors in which the District took adequate measures to solicit quotations. While the District’s policy requires that a copy of the written quotes be attached to the payment voucher or purchase order, no quotes were attached to the payment voucher or purchase order in our sample. Further, when purchases were made from State or County contracts, they were not documented on the claims packages submitted for payment. We therefore question whether Board members are ensuring compliance with their own purchasing policy when approving the claims vouchers for payment.

Key Recommendations

• Adhere to the procurement policy’s requirements when procuring goods and services to ensure that taxpayer dollars are expended in the most economical manner.
• During the audit of claims, monitor compliance with the procurement policy and ensure that the required number of competitive quotations are obtained. Attach sufficient documentation to each claim to support purchasing decisions.