Purpose of Audit

The purpose of our audit was to evaluate the Town’s procurement practices for the period January 1, 2012, to March 1, 2013.

Background

The Town of New Baltimore is located in Greene County and has a population of approximately 3,370. The Town is governed by an elected Town Board comprised of a Town Supervisor and four Board members. For the 2013 fiscal year, the Town’s budgeted appropriations were approximately $1.68 million.

Key Findings

The Board did not ensure that Town officials followed statutory bidding requirements or the Town’s procurement policy.

• We identified approximately $301,000 in purchases that were not properly bid as required by law, and approximately $94,000 in purchases that did not have quotes as required by Town policy. Town officials stated that items were purchased through State or County contract but they did not confirm that they received the appropriate contract pricing and did not have documentation to that effect. Our comparisons of items and prices against State and County contracts indicated that the purchases were not made through OGS or County contract.
• The required prior Board approvals of purchases exceeding policy thresholds were not obtained.

Key Recommendations

• Ensure compliance with GML and the Town's adopted procurement policy by properly soliciting bids and obtaining quotes as required, and maintaining adequate documentation. Ensure all purchases made under OGS or County contracts are properly documented and adhere to contract guidelines.
• Ensure that Board approval prior to purchase, when required, is obtained and properly documented in compliance with Town policy.