The New York State Comptroller’s Office issued a report Dec. 30 following an audit of records from Jan. 2-21 through June 2022.
The board did not ensure that goods and services were procured in accordance with the procurement policy and that all claims were approved prior to payment.
Downsville Fire Commissioners approved payment for 18 purchases, totaling $58,117 (11%), that did not comply with the fire district’s procurement policy; the purchases either lacked evidence of required quotes or competition was not sought. As a result, taxpayers do not have assurance that goods and services are purchased in the most economical manner, the comptroller’s office said in its findings.
Seven claims and 44 debit card transactions, totaling $8,346, were paid prior to commissioners’ audit and approval, which could result in the district making improper or inappropriate payments.
The procurement policy requires two verbal quotes for purchases between $251 and $2,999, two written quotes for purchases between $3,000 and $4,999 and three written quotes for purchases between $5,000 and $19,000.
The comptroller’s audit found that none of the purchases during the audit period complied with the procurement policy, as there was no documentation that officials obtained the required number of quotes. The purchases were for fuel oil, propane, vehicle repair, legal services, printers, a folding cart, a rock salt spreader and painting and roofing materials. The commissioner, chairperson and treasurer reported to the comptroller, according to the report, that they checked prices for the printers, folding cart and rock salt spreader, but did not keep any documentation to support those quotes. They also stated that due to the rural location of the fire district, they have difficulty finding vendors, so once they find one that they are satisfied with they continue to use them. However, the comptroller’s office identified instances where alternate vendors were available but were not reviewed when comparing quotes for purchases.
The audit also found that seven of 75 invoices were paid prior to commissioners’ approval to avoid late payment fees.
The comptrollers also found the use of a debit card circumvents internal controls and increases the risk that inappropriate purchases could be paid for by the district.
According to the report, commissioners agreed with the comptroller’s recommendations to ensure compliance with the procurement policy by making certain the procurement policy is clearly documented; that all claims are audited and approved prior to payment and that debit card use is discontinued.
Commissioners submitted their corrective action plan in August 2022, confirming steps taken to comply with the state’s recommendation.
The audit can be reviewed in its entirety by clicking here.
