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Audit Objective

Determine whether Town of Palermo (Town) officials used competitive methods when procuring goods and services and properly accounted for and monitored diesel and gasoline fuel.

Key Findings

Town officials did not always use competitive methods when procuring goods and services or properly account for and monitor diesel and gasoline fuel. Town officials:

• Purchased $299,298 in goods and services that should have been competitively procured however $101,121 was purchased without competition.
• Overpaid a vendor by almost $2,500.
  • Invoices were not compared to contract terms.
• Were not familiar with all of the Town’s procurement policy requirements and have not reviewed and approved it since 2002.
  • The policy is outdated, does not provide adequate guidance or comply with New York State General Municipal Law (GML).

Key Recommendations

• Review and update the procurement policy and use competitive methods when procuring goods and services, including professional services.
• Ensure payments for purchases using State or county contracts agree with contract pricing.
• Periodically reconcile gallons of fuel on hand to records showing the beginning inventory and gallons delivered, dispensed and on hand.

Town officials agreed with our findings and indicated they would implement corrective action.