Purpose of Audit

The purpose of our audit was to examine the District’s procurement of professional services and maintenance of fuel inventories for the period January 1, 2012 through April 30, 2013.

Background

The Town of Hempstead Sanitary District No. 6 is a special district that provides refuse and recycling pickup services to 32,000 homes in Elmont, Franklin Square, North Valley Stream, Garden City South, Lakeview, South Floral Park, West Hempstead and a portion of Malverne in Nassau County. The District is independent and governed by an elected six-member Board of Commissioners. The District’s budgeted appropriations for the 2013 fiscal year were $27,514,724.

Key Findings

• The Board-adopted procurement policy does not require the use of competitive methods for professional services.
• District officials paid three professional service providers a total of $44,775 even though there were no written contracts or detailed Board resolutions for these professionals to establish the services to be provided or the basis for compensation.
• The Board did not develop policies and procedures to achieve adequate safeguards of the District’s fuel inventories, such as the maintenance of accurate and timely fuel delivery and usage records.

Key Recommendations

• Consider revising the District’s procurement policy to ensure it provides guidance for procuring professional services through a competitive process.
• Enter into written contracts or pass detailed Board resolutions for all individuals and firms that provide professional services to the District. These contracts or resolutions should clearly stipulate the services to be provided and the basis for compensation.
• Adopt policies and procedures to safeguard the District’s fuel inventories, such as for the maintenance of accurate and timely fuel delivery and usage records, and for the security and appropriate use of the override keys.