Internal Audit has released a new report covering the effectiveness of controls and processes established to manage bulk fuel inventory including ordering & delivery, employee access, billing, and safety & environmental regulation compliance.
The City of Denton purchases and distributes bulk fuel products to departments for economy. Access to fuel has historically been loosely controlled, increasing risk of inappropriate usage. Additionally, user odometer reading entry and billing practices impede transaction monitoring. Fuel stations generally have appropriate onsite security and safety equipment; however, additional oversight of fuel deliveries and invoice review procedures would reduce risk of paying for fuel not received. Implemented fuel monitoring system facilitates tank level tracking; however, this system could be better utilized. Compliance with some regulations is unclear. Detailed findings can be seen in the Audit of Fleet Services Operations: Fuel Management (PDF) report.