Purpose of Audit

The purpose of our audit was to examine the purchasing and safeguarding of vehicle fuel inventories for the period June 1, 2012 through September 13, 2013.

Background

The Village of Allegany is located in Cattaraugus County and has a population of approximately 1,800 residents. The Village Board is the elected legislative body, which comprises the Mayor and four Trustees. The Village’s 2013-14 budget appropriations totaled approximately $1.7 million for the general ($1 million), water ($300,000) and sewer ($400,000) funds.

Key Findings

• Village officials did not seek competition when purchasing vehicle fuel as required by GML and the Village’s procurement policy. Had the Village used State contract vendors, it could have saved approximately $1,100, or four percent on the fuel purchases we reviewed.
• The Board authorized the payment of more than $2,300 in gasoline purchases using fuel credit cards without receipts to document these transactions or identify the purchaser.
• Officials did not maintain diesel fuel inventory records.

Key Recommendations

• Ensure all fuel purchases are made in accordance with its adopted procurement policy.
• Adopt policies and procedures for issuing, using and documenting fuel credit card purchases that include provisions to ensure that all cards are kept in the custody of Village officials and that signed receipts are retained at the time of purchase.
• Ensure that perpetual inventory records are maintained for fuel that track and record the amount of fuel purchased, dispensed and on hand. These records should be reconciled to periodic physical inventories and differences should be promptly investigated and resolved.