Canajoharie Central School District – Fuel Purchasing (2021M-170)

Issued Date
January 07, 2022

[read complete report - pdf]

Audit Objective

Determine whether Canajoharie Central School District (District) officials adequately managed fuel purchases and audited fuel claims.

Key Findings

District officials did not adequately manage fuel purchases by seeking competition and did not audit fuel claims, as required.

  • The District could have reduced its fuel expenditures by at least $10,929, including $8,669 in unnecessary fees, if fuel was purchased through the Office of General Services (OGS) fuel card services contract during the audit period.
  • The Board did not audit or ensure the monthly fuel claims were audited, as required. As a result, the District was unaware its fuel card vendor began to assess a high-credit risk fee in March 2019. While the District paid high-credit risk fees totaling $1,321 for May and June 2021, the District’s incomplete records prevented us from determining the total amount of high-credit risk fees paid.

Key Recommendations

  • Solicit bids as required and in accordance with the purchasing policy.
  • Thoroughly audit claims to ensure they reconcile to fuel receipts and do not include taxes and unnecessary fees.
  • Determine total high-credit risk fees paid and request reimbursement.

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