[read complete report – pdf]

Audit Objective 

Determine whether the Town of Butler (Town) officials adequately safeguarded and accounted for Highway Department (Department) assets. 

Key Findings 

Town officials did not adequately safeguard and account for Department assets. As a result, there is an increased risk that Department assets could be lost, stolen or sold without detection. Specifically: 

• The Highway Superintendent (Superintendent) did not complete an inventory list of highway machinery, tools and equipment or provide one to the Town Board (Board) since 2018. 
• Town officials did not maintain or review adequate fuel records to safeguard and account for the Town’s fuel. We noted at least 278 gallons of unleaded gasoline and diesel fuel, valued at $853 could not be accounted for. However, due to the limited records and lack of proper controls, more fuel may be unaccounted for. 
• The diesel fuel log, maintained by the Superintendent was not accurate and up to date. Because the records are not complete, accurate or reliable, officials cannot determine whether the unaccounted-for diesel fuel was used properly, stolen or caused by a leak in the in-ground storage tank. 

Key Recommendations 

•  Develop, adopt and periodically review written policies and procedures for capital assets and fuel inventory to ensure they are properly accounted for and safeguarded by maintaining detailed records, conducting periodic physical inventories and reconciliations. 
• Maintain a Department inventory that includes all machinery, tools and equipment and prepare periodic fuel reconciliations. 

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