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Audit Objective

Determine whether Town officials have adequate controls over the Town’s fuel inventory.

Key Findings

Town officials did not:

• Adopt adequate policies and implement sufficient procedures to account for the Town’s fuel inventory.
• Monitor fuel use, which resulted in unaccounted-for fuel of 21,806 gallons of gasoline and diesel valued at $49,278.
• Prepare periodic fuel reconciliations.

Key Recommendations

The Superintendent should:

• Ensure fuel pumps are maintained in proper working order and access to pumps is monitored.
• Maintain fuel inventory records that include all fuel use and perform periodic stick-measured readings of the fuel tanks.
• Prepare periodic fuel reconciliations comparing gallons pumped, gallons delivered to stick-measured readings and investigate and resolve discrepancies.

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