Audit Objective 

Determine whether the Oakfield-Alabama Central School District (District) officials complied with New York State General Municipal Law (GML) and District policy when procuring goods and services. 

Key Findings 

District officials did not always comply with GML Section 103 and Section 104-b or the District’s procurement policy and supplemental procedures (Policy) when procuring goods and services. Of the 62 purchases totaling $4.9 million that were tested, District officials did not have evidence that goods and services totaling $930,806 were competitively procured. Officials did not: 

• Verify that three purchases totaling $167,619 met the “piggybacking” prerequisites and did not obtain competitive bids for a $54,235 public works contract, as required. 
• Obtain competitive pricing for 26 purchases and public works contracts totaling $107,441. 
• Request proposals within the last five years for six professional service and insurance coverage purchases totaling $601,511. 

As a result, there is an increased risk that goods and services were not obtained at a favorable cost. For example, for three purchases totaling $14,146, officials may have saved $4,055 or 29 percent had officials competitively procured the goods. Officials also paid $8,641 for software it did not need because they did not cancel the software license renewal timely. 

Recommendations 

The audit report includes nine recommendations which, if implemented, will improve the District’s procurement practices. District officials generally agreed with our findings and recommendations and indicated that they have initiated corrective action. Appendix B includes our comment on an issue raised in the District’s response.