Town of Johnstown - Fuel Inventory (2019M-178)

Issued Date
December 06, 2019

[read complete report - pdf]

Audit Objective

Determine whether Town officials have adequate controls over the Town’s fuel inventory.

Key Findings

Town officials did not:

  • Adopt adequate policies and implement sufficient procedures to account for the Town’s fuel inventory.
  • Monitor fuel use, which resulted in unaccounted-for fuel of 21,806 gallons of gasoline and diesel valued at $49,278.
  • Prepare periodic fuel reconciliations.

Key Recommendations

The Superintendent should:

  • Ensure fuel pumps are maintained in proper working order and access to pumps is monitored.
  • Maintain fuel inventory records that include all fuel use and perform periodic stick-measured readings of the fuel tanks.
  • Prepare periodic fuel reconciliations comparing gallons pumped, gallons delivered to stick-measured readings and investigate and resolve discrepancies.

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