[read complete report - pdf]

Audit Objective

Determine whether the Village of Clayton (Village) Board of Trustees (Board) properly audited claims prior to payment and ensured written quotes were obtained for purchases and public works contracts.

Key Findings

The Board did not properly audit claims prior to payment or ensure written quotes were obtained as required.

• The Board reviewed abstracts (listings of claims) but generally did not review the claims before approving payments.
• Health insurance claims totaling $495,104 were not approved for payment by the Board, and claims totaling $52,000 to the local Chamber of Commerce did not include receipts as required.
• Of the purchases totaling $239,411 from 34 vendors we examined, Village officials purchased goods and services totaling $141,269 from 27 vendors without obtaining written quotes or retaining supporting documentation of their solicitation efforts or justifications for not seeking competition, as required.
• The Village’s procurement policy did not comply with New York State General Municipal Law (GML).

Key Recommendations

• Ensure all claims are presented to and approved by the Board before payments are approved.
• Update procurement policy to comply with GML and comply with the revised policy.

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