[read complete report – pdf]

Audit Objective

Determine whether the Town of Marathon (Town) Board (Board) properly audited claims prior to payment.

Key Findings

The Board was not properly auditing claims prior to approving them for payment. As a result, the risk is increased that claims could have been paid for inappropriate purposes.

In our sample of 100 claims totaling $203,349:

• 68 claims totaling $116,411 were not audited by the Board as required.
• 50 claims totaling $120,992 did not have appropriate support such as a voucher, itemized receipt or invoice.
• 15 claims totaling $40,352 were approved without evidence of compliance with competitive bidding requirements or the Town’s procurement policy.
• Town officials may have saved $7,559 in fuel costs if they had been able to use the New York State Office of General Services contract pricing option.

Key Recommendations

• Audit all claims submitted for payment as required.
• Ensure all claims have appropriate itemized supporting documentation.
• Comply with competitive bidding and Town policy quote requirements.

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