Audit Objective 

Determine whether Holland Patent Central School District (District) officials safeguarded and accounted for fuel inventory.

Key Findings 

District officials did not adequately manage and monitor fuel access and usage or account for fuel inventory. As a result, seven enabled fuel user accounts were not needed and authorized transportation department employees completed 117 usage transactions during our test period by sharing Personal Identification Numbers (PINs) and/ or vehicle fobs to fuel buses. This reduces accountability and increases the risk that fuel could be stolen or misused without detection. Officials did not: 

• Develop written procedures to help ensure fuel inventories were adequately managed. 
• Review fuel usage reports to monitor user access and vehicle fuel use for reasonableness. 
• Maintain perpetual fuel inventory records and periodically reconcile the records with the amount of fuel in the tanks. 

Key Recommendations 

• Establish a control system that safeguards the District’s fuel from loss and misuse. 
• Periodically review fuel usage reports and maintain and reconcile fuel inventory records. 

District officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.