WINDSOR, N.Y. — An audit by New York State Comptroller Thomas P. DiNapoli’s office found the Windsor Central School District (CSD) in Broome County did not have adequate internal controls over fuel credit-card purchases and fuel inventory. This resulted in 18,369 gallons of fuel, costing about $38,300, that are not accounted for, the comptroller said. […]
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WINDSOR, N.Y. — An audit by New York State Comptroller Thomas P. DiNapoli’s office found the Windsor Central School District (CSD) in Broome County did not have adequate internal controls over fuel credit-card purchases and fuel inventory. This resulted in 18,369 gallons of fuel, costing about $38,300, that are not accounted for, the comptroller said.
According to the audit, employees used Windsor CSD credit cards to purchase fuel, but the district did not always maintain records to report who used the cards or which district vehicle was fueled. In addition, district officials did not confirm the school district received the fuel it purchased when it was delivered. They also didn’t establish adequate controls to safeguard the diesel fuel stored in a 10,000-gallon storage tank from loss, theft, and leaks.
Windsor CSD has a fleet of 27 buses and other vehicles that use diesel fuel and nine buses and other vehicles that use gasoline, the report stated. The district uses its storage tank as well as fuel credit cards to fill the bus, vehicle, and equipment fuel tanks.
DiNapoli’s report contends the district lacked written policies or procedures to provide reasonable assurance fuel was used for its intended purpose and properly accounted for and recorded. There were inadequate procedures in place to ensure fuel usage, credit-card purchases, and diesel-delivery records were properly maintained, reviewed, and reconciled.
Out of the district’s 26 fuel credit cards with four different vendors, 11 were used during the audit period of July 1, 2020, to April 30, 2022. The cards were not assigned to particular people and often left on an office window or desk at the end of the day. Three cards were canceled and replaced during the audit period because the district could not locate them.
The report showed the fuel dispensed didn’t match fuel used, and more than 2,050 gallons costing about $5,600 were purchased than recorded as used. Another 1,759 gallons costing almost $4,700 were purchased with no way to verify their use. Other issues included fuel credit-card transactions at times or dates that were questionable.
DiNapoli’s report also found issue with the lack of security for the district’s diesel storage tank. While the main switch is turned on in the morning and off at night, the job is not assigned to one specific person and there is no log to record when it’s turned on and off. A mechanic records pump-gauge readings each morning but it was not reconciled to the fuel usage.
During the audit, pump readings indicated 59,158 gallons were pumped, while bus drivers logged 44,598 gallons used. The district could not verify usage for the difference of 14,560 gallons costing about $28,000.
DiNapoli’s office recommended that Windsor CSD develop and adopt policies such as assigning individuals to manage fuel usage and inventories, develop and adopt a fuel credit-card policy, ensure accurate fuel inventory, maintain delivery and usage records, assign the fuel pump shut off and on to a specific person, and adequately secure and protect fuel credit cards from unauthorized use.
In a written response, the Windsor Central School District stated it has implemented policies and procedures to manage fuel usage and inventories, adopted a fuel credit-card policy, adopted policies to better secure the credit cards, implemented a plan to calibrate the diesel tank multiple times throughout the year, installed a key lock for the tank pump, implemented driver logs and log reconciliation, added a camera to monitor the diesel tank, and adopted a policy to take tank readings before and after fuel deliveries.