Fayetteville audit committee flags record-retention gaps in surplus-auction process, reviews inventory and 2025 audit plan

Aaron, the city’s lead internal auditor, told the Fayetteville Audit Committee that recent internal reviews found generally sound controls but inconsistent documentation in the city’s surplus-property auctions and recommended consolidating related policies and clarifying record-retention requirements.

The recommendation came during an audit update in which Aaron said the city has used the GovDeals online auction platform since about 2010 and “we’ve generated $9,000,000 in extra funds for that.” He told the committee that 162 auctions in 2023 produced about $998,000 and that purchasing’s segregation-of-duties approach (separate creation, review and approval steps) appears effective, but the supporting documents retained for each sale vary by department and by asset type.

Why it matters: inconsistent retention of screenshots, payment confirmations, seller certificates, inspection forms and bills of sale can impede post-sale checks and make it harder to demonstrate compliance with grant restrictions or to detect improper votes, conflicts or fraud. Aaron recommended reviewing three separate policies (fixed assets, vehicle sales and auction procedures) and consolidating guidance about what to keep in each file.

Auction rules and fraud risk

Committee members raised…