Purpose of Audit

The purpose of our audit was to evaluate the District’s controls over fuel inventory for the period July 1, 2015 through December 31, 2016.

Background

The North Shore Central School District is located in the Town of Oyster Bay in Nassau County. The District, which operates five schools with approximately 2,650 students, is governed by an elected seven-member Board of Education. Budgeted appropriations for the 2016-17 fiscal year totaled approximately $99.5 million.

Key Findings

• The department maintained manual inventory records that included the date, stick reading in inches, gallons of fuel in the tank (physical inventory), and a running analog meter showing gallons dispensed to date. Starting in March 2016, the department also began using an electronic fuel monitoring system that tracks the actual gallons dispensed.
• The department did not maintain a book inventory and reconcile it to the physical inventory for each type of fuel.
• Since employees did not record the meter reading showing the total gallons dispensed to date, officials do not have sufficient information to ensure that the log is complete and accurate.

Key Recommendations

• Ensure electronic or manual book inventory records of fuel are maintained, including the beginning inventory, and fuel purchased, delivered, dispensed and on hand.
• Ensure that the fuel supplies are periodically measured and reconciled to book inventory records. Any differences should be promptly investigated and resolved.
• Require employees in the facilities department to maintain a running record of gallons dispensed on the fuel log. Reconcile the fuel log to inventory records. Any differences should be promptly investigated and resolved.