State comptroller faults Otselic Valley

Aug. 2—The state Comptroller's office recently audited the Otselic Valley Central School District and found it did not use a competitive process for some of its purchases not subject to competitive bidding.

Auditors looked at purchases from July 1, 2020 through June 30, 2021. Auditors found the "district officials did not always seek competition to procure goods and services not subject to competitive bidding."

It found the following:

"—Out of nine purchases under the competitive bidding threshold reviewed totaling $109,671 and two professional service contracts totaling $35,038, officials did not seek competition for a transportation efficiency study ($32,500), purchases of ice melt ($10,845) and information technology equipment ($8,512), or for the school District's attorney that was paid $21,038 during our audit period.

—District officials may have saved $13,781 on fuel costs had they been able to use State contracts.

—Procurement policies and procedures were inadequate and did not help ensure officials sought competition for goods and services."

Auditors recommended the district do the following:

"—Update the procurement policy and related procedures to include detailed guidance for procuring goods and services not subject to competitive bidding requirements.

—Periodically compare prices for goods and services to State contracts and contracts bid by other governments."

According to the audit, the board of education is tasked with developing procedures for buying goods or services that aren't subject to competitive bidding thresholds. The policy also requires employees to use a request for proposal process to obtain proposals at least once every five years. However, the district's procedures didn't explain how to procure professional services or other goods and services that don't meet competitive bidding thresholds requirements, the audit said.

Auditors looked at the amount the district paid for fuel oil, diesel and unleaded fuel during the time period, which totaled $144,165. According to the audit, if the district used the state contracts for fuel purchases, it would have saved the district "$13,781, or 10%." In order for the district to get the state contracted price, it has to "file the necessary fuel requirements with OGS before OGS awards its State contracts for fuel," the audit said. District officials said they did not know the state contract price was lower than the BOCES bid, and they went through BOCES to get a stable price, the audit said.

During the audit period, the board hired a new superintendent and accepted the resignation of the business official and appointed the treasurer as the district's purchasing agent.

In a letter to the comptroller's office, Superintendent Georgia Gonzalez said the district is working on a corrective action plan, which includes a new procurement policy.