By Hank Russell
A recent audit from the New York State Comptroller’s Office found that a local fire district procured services from numerous vendors in the amount of more than $200,000 that did not go out to bid.
During the audit period of January 1, 2024 to December 31, 2024, the Eastport Fire District’s board of fire commissioners did not use a competitive method such as issuing requests for proposal (RFPs) or obtaining quotes from competitors to procure professional services and insurance coverage from 10 vendors totaling $203,097, according to the audit.
Among the services that they did not seek competitive quotes were commercial and life insurance; worker’s compensation; medical, financial advisement and information technology services; management of the Length of Service Award Program; accounting and legal services; and grant writing.
“When officials do not seek competition for professional services, they lack assurance that services are procured in the most economical way, in the best interests of the taxpayers,” the audit stated.
In addition, the audit found that the district paid 20 vendors for goods and services totaling $96,955, without obtaining quotes as required by district policy. “As a result, the district may not have received the best price for the goods and services it purchased,” the auditors wrote.
The auditors were told that they reached out to other insurance providers for quotes, but it was not documented. Officials could not explain why the form was not used but agreed that it would be a good practice to start using it.
The treasurer stated the district has used the same attorney for years because the attorney is familiar with the District and his fees are reasonable. As a result, they have used the same attorney for about 20 years.
After completing the audit, the comptroller’s office made the following recommendations:
- Update the Policy to provide additional guidance to officials for soliciting competition for professional services and insurance coverage, such as using an RFP process or obtaining quotes.
- Use the form that is attached to the Policy to document quotes obtained, or the reason for exemption from competition.
- Obtain competitive quotes in accordance with the Policy.
In a letter to the comptroller’s office, Eastport Fire District Board Chairman Edward Schneyer said the board agrees with the audit’s findings and will implement a Corrective Action Plan to adhere to the recommendations “effective immediately.”