Purpose of Audit

The purpose of our audit was to evaluate internal controls over the purchase of fuel for the period January 1, 2012, through June 14, 2013.

Background

The Town of Grand Island is located in Erie County and has a population of approximately 20,400 residents. The Town is governed by a five-member elected Board comprised of a Supervisor and four Council members. For the 2013 fiscal year, budgeted appropriations totaled approximately $20.2 million.

Key Findings

• The Board did not establish procedures to help ensure that fuel was dispensed only into Town vehicles and equipment by authorized employees. There were no procedures in place to regularly monitor fuel transactions for reasonableness and ensure that only authorized employees were provided with a user ID.
• The Town paid $4,991 for fuel that was obtained by a former employee and used for other than Town purposes.

Key Recommendations

• Require regular monitoring of fuel transactions to ensure they are appropriate Town purchases. Require that user ID’s only be assigned to employees with a routine need to obtain fuel for the purpose of conducting their Town duties. Each employee should use their own ID when pumping fuel.
• Seek restitution from the former employee for fuel purchases used for other than Town purposes.