[read complete report – pdf] 
 

Audit Objective 

Determine whether Village of Penn Yan (Village) officials ensured Water Treatment Plant (WTP) procurements were made in accordance with Village policy and in the best interest of ratepayers. 

Key Findings 

Village officials did not ensure the Chief Water Operator procured all goods and services in accordance with Village policy. As a result, there is an increased risk that the Village paid more than necessary for goods and services or made purchases that were not in the best interest of ratepayers. For example, of the 195 WTP purchases totaling approximately $1.15 million that we reviewed: 

• Competition was not sought for 89 purchases totaling approximately $95,000.
• Six of the 10 sole source purchases totaling approximately $30,000 lacked documentation to support the goods and services procured were only available from legitimate “sole source” providers.
• Three water-tight and air-conditioned enclosure purchases were not in the best interest of ratepayers and resulted in $32,000 of unusable parts. 

Key Recommendations 

• Seek competition for the procurement of all WTP goods and services not subject to competitive bidding.
• Request that the Village engineer inspect locations and measurements prior to procuring goods requiring installation in Village facilities to ensure that the items can be used as intended.

Village officials generally agreed with our recommendations and indicated they will take corrective action.