Audit Objective
Did the East Norwich Volunteer Fire Company Number 1 (Company) officials adequately monitor fuel inventory for loss, waste or misuse?
Audit Period
January 1, 2023 - November 30, 2024
Understanding the Audit Area
Commonly used commodities such as fuel are frequent targets for theft, waste and misuse. By limiting access, requiring documentation and reviewing fuel records, opportunities for loss, waste and misuse are reduced. A periodic reconciliation of purchases, fuel use, and fuel balances obtained by measuring fuel tanks will determine whether significant amounts of fuel are unaccounted for. If not properly managed, unauthorized access to fuel could occur and remain undetected.
During the audit period, the Company purchased 11,819 gallons of fuel (gasoline (gas) and diesel) totaling $34,708.
Audit Summary
Company officials did not adequately monitor fuel inventory for loss, waste and misuse. Because no one accurately recorded the gallons of fuel delivered or used, monitored and reviewed fuel documents in a timely manner, or performed periodic fuel inventory reconciliations, Company officials have no assurance that fuel was used for proper Company purposes. As a result, 2,936 gallons of fuel, costing $7,603, were not accounted for. Specifically, officials did not:
- Verify the accuracy of fuel purchased. We determined officials purchased 11,819 gallons of fuel, but only recorded fuel purchased totaling 10,691 gallons during the audit period, a discrepancy of 1,128 gallons.
- Ensure that records were complete and accurate. We determined drivers dispensed fuel 441 times during the audit period, but they incorrectly documented vehicle identification (ID) numbers 16 times. In addition, drivers incorrectly documented or did not document their driver ID numbers 33 times, and incorrectly documented odometer readings or did not document the readings 235 times. This information is needed to effectively monitor fuel.
- Reconcile fuel records to ensure that fuel was accounted for.
Had the Board-designated Trustee (Trustee), responsible for overseeing the fuel records ensured that the information maintained for the purchase and use of fuel was complete and accurate, discrepancies could have been identified in a timely manner, allowing for prompt corrective action to be taken.
The report includes four recommendations that, if implemented, will improve the Company’s control over fuel inventory. Company officials generally agreed with our findings and indicated they plan to initiate corrective action.
We conducted this audit pursuant to Article V, Section 1 of the State Constitution and the Office of the New York State Comptroller’s (OSC) authority as set forth in Article 3 of the New York State General Municipal Law. Our methodology and standards are included in Appendix C.
The Board has the responsibility to initiate corrective action. We encourage the Board to prepare a written corrective action plan (CAP) that addresses the recommendations in this report and forward it to our office within 90 days. For more information on preparing and filing your CAP, please refer to our brochure, Responding to an OSC Audit Report, which you received with the draft audit report. We encourage the Board to make the CAP available for public review.