Determine whether the Mount Vernon City School District (District) Board and District officials procured natural gas at the most favorable terms and in the best interest of District taxpayers.
The Board and District officials did not procure natural gas in accordance with New York State General Municipal Law (GML), at the most favorable terms or in the best interest of District taxpayers. The Board and District officials:
- Did not monitor the natural gas rates charged by the energy supply company (ESCO) or enter into a written contract with the ESCO for the procurement of natural gas.
- For nearly a decade, paid natural gas rates that were on average two times the benchmark rates.
- May have been able to reduce its natural gas costs by 40 percent or approximately $911,000 during our audit period had competition been sought for the supply of natural gas.
- Procure natural gas in accordance with GML.
- Fully evaluate and compare benchmark rates before entering into a contract for the supply of natural gas.
Except as specified in Appendix B, District officials generally agreed with our recommendations and indicated they have taken corrective action. Appendix C includes our comments on the District’s response.