[read complete report - pdf]

Audit Objective

Determine whether Town officials designed appropriate internal controls over fuel inventory to adequately safeguard Town assets.

Key Findings

• We found that 733 out of 840 (87 percent) fuel usage documents were not completed or kept up to date by Highway Department personnel.
• Of the 43,632 gallons of fuel (gasoline and diesel) used, valued at $93,324, Town officials were only able to account for 12,571 gallons (29 percent), valued at $23,325.
• The fuel access keys were not kept locked or in a controlled environment. Nine of the 26 fuel keys were unsecured inside the vehicles assigned.

Key Recommendations

• Ensure accurate fuel delivery and inventory records are maintained and periodic fuel inventory reconciliations are performed, documented and reviewed.
• Implement policies and procedures for tracking fuel usage to ensure fuel is used for Town purposes.
• Ensure fuel keys are kept locked in a secure environment.

Town officials agreed with our findings and recommendations and indicated they plan to take corrective action.