Audit Objective 

Determine whether the Town of Wilson (Town) officials properly procured, monitored and accounted for diesel and gasoline fuel. 

Key Findings 

Town officials did not properly procure, monitor or account for fuel. Specifically, the Highway Superintendent (Superintendent) and Town Board (Board) did not provide adequate oversight of fuel, including procuring fuel in compliance with competitive bidding requirements and the Town’s procurement policy, controlling fuel access, safeguarding fuel inventory, monitoring fuel usage, maintaining perpetual inventory records, performing inventory reconciliations or establishing clear written guidance. Town officials: 

• Procured diesel and gasoline fuel totaling $117,720 without competition.
• Did not secure access to the fuel pumps or maintain records for fuel usage or inventory. For example, during the audit we observed that anyone could access and pump fuel from the Town’s fuel tanks without a key fob or other control to ensure only Town employees used the fuel for Town business. Because officials did not establish controls to safeguard the Town’s fuel, Town officials cannot ensure that almost $118,000 in fuel purchases during our audit period were used solely for Town purposes.
• Did not have a method for allocating fuel purchases to the operating and special district funds. As a result, certain taxpayers were charged for fuel in an inequitable manner. 

Recommendations 

The audit report includes 13 recommendations that, if implemented, will improve the Town’s fuel procurement, monitoring and accounting practices. 

Town officials agreed with our recommendations and indicated they have initiated corrective action.