Purpose of Audit

The purpose of our audit was to evaluate the Board’s oversight of fuel delivered to the transportation contractors’ facilities for the period July 1, 2013 through May 22, 2015.

Background

The Niagara Falls City School District is located in Niagara County. The District, which operates 11 schools with approximately 7,100 students, is governed by an elected nine-member Board of Education. Budgeted appropriations for the 2014-15 fiscal year totaled approximately $126.4 million.

Key Findings

• The main transportation contractor did not reimburse the District for all fuel used for non-District purposes.
• District officials permitted the contractor to control the entire fuel accountability process.

Key Recommendations

• Ensure that fuel purchased by the District is used solely for District purposes and seek reimbursement from the contractor for excess fuel use for the period July 1, 2013 through March 31, 2015; ensure that future transportation contracts do not include provisions which allow contractors to use fuel purchased by the District for non-District purposes.
• Establish adequate controls over the District’s fuel supplies, monitor the contractor’s activities and periodically review the contractor’s fuel usage records to ensure that fuel is used appropriately and is accounted for.