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PROCESS FOR FUEL ISSUED FROM HIGHWAY DEPARTMENT RESERVE DIESEL FUEL TANK: In response to the OSC audit, Hamburg Highway Department officials developed a Fuel Inventory Log check- list to clearly define, document and ensure that all on-site fuel inventory purchases are inspected and recon- ciled and all reporting requirements are met. We developed a detailed checklist to document and maintain perpetual fuel inventory records for the reserve fuel tank at the Hamburg Highway Department location where none previously existed. This log and review process will ensure fuel volumes are transferred correctly and that fuel operations are recorded and calculated properly. On-site fuel inventory reconciliation procedures have been developed and are being implemented within the Department to ensure proper fuel valuation and detect any errors or inconsistencies. These improvements have been made to Department fuel inventory systems in order to better detect potential fraud or abuse, and to obtain accurate odometer readings and complete fuel transaction details. Department policy now requires that all employees must use manual log for all fuel dispensed from the De- partment fuel tank on-site. Fuel Inventory Log Data includes employee identification numbers, quantity of fuel issued, employee name, vehicle or equipment ID, and mileage odometer reading. - Employees manually records the vehicle or equipment ID into Fuel Inventory Log. - Employee manually inputs vehicle odometer readings. - Pump electronically tracks fuel issued, but this is recorded manually in the Fuel Inventory Log. - Fuel Inventory Logs will be reviewed and reconciled on a monthly basis to ensure reasonableness - first by the Deputy Highway Superintendent who then turns over logs to the Senior Accounting Clerk who will reconcile fuel usage with fuel purchased. Any variances in fuel inventory will be recorded and brought to the attention of the Highway Superintendent. To prevent loss or diversion of vehicle fuel, the tanks will be stick measured on a monthly basis and immedi- ately prior to and after fuel deliveries to verify delivery and comparison of gallons pumped to measured tank levels. Fuel purchases should be compared to total fuel dispensed. In addition, the tanks should be physically secured and inspected monthly for leaks to ensure they are in good working order. ______________________________________________________________________________________ HIGHWAY DEPARTMENT FUEL USAGE REPORTS FOR FUEL PURCHASED FROM OUTSIDE VENDOR: New improvements to Highway Department system controls will help to more easily: - Detect potential fraud or abuse. - Verify accuracy of vendor fuel billings - Track internal transaction details to compare with fuel vendor to verify invoices to agreement terms. - Track daily OPIS prices to verify vendor invoices to contract terms. Fuel operations policies and tracking documentation protocols for collecting and reporting fuel volumes have been modified and are being implemented within the Highway Department to improve system controls in order to detect potential fraud or abuse. The Department has developed and fully implemented an internal process for recording and monitoring fuel purchases made from outside fuel vendors. Of f ic e of t he New York State Comptroller 13