ALBANY – An audit by the State Comptroller’s Office found that officials of the Mount Vernon City School District did not procure natural gas in accordance with state general municipal law, at the most favorable terms or the best interest of district taxpayers.
It said the board of education and district officials did not monitor the natural gas rates charged by the energy supply company, ESCO, or enter into a written contract with the company for the procurement of natural gas.
The audit also said for nearly a decade, the district paid natural gas rates that were on average two times the benchmark rates, and it may have been able to reduce its natural gas costs by 40 percent or approximately $911,000 during the audit period had competition been sought for the supply of natural gas.
The audit recommended that procure of natural gas be in accordance with general municipal law and that the district should fully evaluate and compare benchmark rates before entering into a contract for the supply of natural gas.
