Fuel Management

Audit Recommends Town of Lyonsdale Improve Fuel Control

September 27, 2013

An audit of the Town of Lyonsdale, N.Y., conducted by the Office of the New York State Comptroller, suggested that the Town could improve its fuel control. An analysis of a sample of fuel purchases and usage showed that the Town was unable to account for 2,510 gallons of fuel, valued at approximately $8,440.

According to the report, the Town has two above-ground fuel storage tanks at its highway facility — one for gasoline and one for diesel. Between January 2011 and September 2012, the Town purchased approximately 19,900 gallons of diesel and 3,400 gallons of gasoline.

The audit states that the highway superintendent and staff manually record dispensed fuel in fuel usage logs, but that the method in which this is done does not detect fuel loss. In addition, auditors said that staff relies on fuel gauges to monitor how much remaining fuel is in each tank, but this only shows quarter-tank increments. Therefore, these readings are unreliable for reconciliation purposes.

The final recommendation was for the highway superintendent to maintain inventory records that state the beginning inventory and gallons of fuel purchased, dispensed, and on hand. The superintendent should also periodically reconcile physical inventory and investigate any differences.

In a written letter to the Office of the State Comptroller, Town officials said they agreed with the findings and would correct the findings in the audit.

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