[read complete report – pdf]

Audit Objective

Determine whether the Town of Danby (Town) Board (Board) sought competition when procuring goods and services and audited claims prior to payment.

Key Findings

The Board did not always seek competition when procuring goods and services or ensure all claims were properly audited and approved. When goods and services are not competitively procured, they may not be procured in a cost-effective manner. Also, when claims are not properly audited, the Board’s ability to effectively monitor the Town’s financial operations is diminished.

• Officials did not solicit bids for five commodities totaling $197,266 or obtain the minimum required quotes for purchases totaling $80,360.
• The Board approved unsupported claims totaling $223,781 for payment.
• The Board approved 19 claims twice, resulting in duplicate payments totaling $33,282.
• 44 of 97 credit card purchases, totaling $12,695, reviewed were paid prior to Board audit and 13 purchases totaling $4,936 were never presented to the Board for audit.
• The Board did not monitor the health insurance payments to the former Town Supervisor (Supervisor), resulting in overpayments totaling at least $12,043.

Key Recommendations

• Determine how to appropriately address the former Supervisor’s health insurance payments.
• Properly audit and approve all claims timely.
• Comply with Board policies and statutes requiring competition when procuring goods and services.

Town officials generally agreed with our recommendations and indicated they plan to take corrective action. Appendix B includes our comment on an issue raised in the Town’s response.