Town of Barton - Highway Asset Accountability and Procurement (2019M-8)

Issued Date
April 19, 2019

[read complete report - pdf]

Audit Objective

Determine whether Town officials have adequate controls in the Highway Department to safeguard assets.

Determine whether Town officials used a competitive process to procure highway goods and services.

Key Findings

Town officials did not:

  • Adequately safeguard highway assets, including scrap metal, which may have resulted in at least $1,700 in scrap metal proceeds being used for inappropriate expenditures.
  • Monitor highway fuel use, resulting in 531 gallons of gasoline totaling over $1,100 that could not be accounted for.
  • Competitively procure goods and services, including motor oil and tires, resulting in potential overpayments of $4,500.

Key Recommendations

The Superintendent should:

  • Maintain an inventory list for non-insurable assets, report to the Board when assets are sold and ensure all scrap metal is adequately secured and sales proceeds are recorded and accounted for.
  • Compare fuel purchases to amounts logged and provide periodic reconciliations to the Board.

The Board should:

  • Establish adequate controls over highway assets, scrap metal and fuel.
  • Ensure Town officials procure goods and services in conformance with policies and statute.

Town officials generally agreed with our recommendations and indicated they have planned to initiate corrective action.