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Audit Objective

Determine whether Town of Owasco (Town) officials adequately oversaw highway purchasing, planning and interfund charges.

Key Findings

Town officials did not adequately oversee highway purchasing, planning and interfund charges.

• We found 596 highway claims totaling $349,824 that did not have an approved purchase order (PO) request (requisition); 599 claims totaling $356,815 did not have an approved PO; and 234 claims totaling $96,900 did not have documentation to support a business purpose.
• Town officials did not competitively bid vehicle and equipment repairs or a vehicle purchase.
• The Town Board (Board) and Highway Superintendent (Superintendent) did not agree, in writing, to expenditures for highway repair and improvement.
• The Superintendent did not maintain an adequate equipment inventory or ensure highway employees’ time worked was accurately accounted for.

Key Recommendations

• Ensure the procurement policy (policy) and statutes and procedures are complied with and that claims are appropriately approved and supported.
• Ensure written agreements make the intentions of the Town and related parties clear and that employees’ time worked is recorded in the proper funds, districts and/or accounts.

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