Audit Objective 

Determine whether the Town of Saugerties (Town) Board (Board) properly audited claims and authorized credit card purchases.

Key Findings 

The Board did not properly audit claims or authorize credit card purchases. We reviewed 50 claims totaling $2.1 million and 50 credit card purchases totaling $28,815. We determined that the Board did not conduct a thorough and deliberate audit of any claims before payment or authorize all credit card purchases. As a result: 

• 15 purchases totaling $91,979 did not comply with the Town’s purchasing policy. For example, Town officials paid a contractor $46,500 to clear debris for the highway department without bid or documentation that it was an exempt source.
• 36 credit card purchases totaling $10,868 were not properly authorized. For example, an unauthorized individual used the Town Supervisor’s (Supervisor) credit card to make an unauthorized purchase, totaling $383 without the Supervisor’s knowledge. The equipment was shipped to the Town’s former video supply contractor. The Supervisor and we were unable to verify if the Town received this purchase due to lack of supporting documentation.
• The Supervisor used a Town credit card to pay for lunch to celebrate an employee’s birthday. This is not an appropriate use of taxpayer money. 

Key Recommendations 

• Obtain training to understand the claims auditing process and Board duties.
• Perform a thorough and deliberate audit of claims and credit card purchases.