Internal Controls Over Financial Operations and the Firehouse Project
The Board actively circumvented State law and a voter approved referendum when constructing a new firehouse. As a result, the taxpayers could pay up to $9.9 million more than necessary for a firehouse that they will not own. The Board also did not ensure that District officials obtained bids for purchases totaling $241,962 from five vendors, or ensure that they used competition, such as requests for proposals (RFPs) to procure professional services totaling $393,654 from seven providers. In addition, District officials did not enter into written agreements with, and there were no Board resolutions for, five of the seven professional providers who were paid a total of $133,903. Nyack Joint Fire District[complete audit - pdf]

Internal Controls Over Cash Receipts and Disbursements
We found that the Department had a very weak control environment. The Board has not established policies and procedures governing the Treasurer's financial activities or for processing claims. The Finance Committee did not audit the Treasurer's records and the Board did not properly audit claims prior to payment to ensure they represent proper Department charges. In addition, internal controls over cash receipts and disbursements were not appropriately designed and were not operating effectively. We found payments that were not supported by invoices and overpayments that resulted from poor oversight over disbursements. We also found that the Treasurer did not maintain adequate and up-to-date cash records (including bank reconciliations), deposit collections in a timely manner and prepare monthly financial reports for the Board. Paul Smiths-Gabriels Volunteer Fire Department, Inc.[complete audit - pdf]

Internal Controls Over Fiscal Operations
The Board needs to improve its oversight of District financial operations and establish appropriate internal controls. The Board did not develop and adopt written cash management policies, procurement and investment policies and procedures, or a comprehensive Code of Ethics, all of which are required by General Municipal Law. For example, the Board did not authorize depositories, signatories and other key authorizations at its re-organizational meetings. The Treasurer also did not maintain proper accounting records and post cash transactions. During 2007 and 2008, the District disbursed a combined total of $485,467 without posting any cash transactions or preparing any periodic and annual reports. Further, the District did not prepare and file the required Federal tax information forms for the 2007 and 2008 fiscal years for the $8,100 the District paid to the Treasurer. Finally, District officials did not adequately secure or restrict access to District assets and records. We found two certificates of deposits (CDs) totaling $72,000 and 12 signed blank checks that were left in the District office unsecured. Pocatello Fire District[complete audit - pdf]

Internal Controls Over Fiscal Operations
The Board did not adopt written policies and procedures over investment and cash management activities. The Board did not implement compensating controls for the lack of segregation of the Treasurer's duties and did not perform the annual audit of the books and records of the Treasurer. The Treasurer has not prepared and submitted the required annual financial report to the Office of the State Comptroller and filed a statement of receipts and expenditures with the Mount Pleasant Town Clerk. Finally, the Treasurer did not properly maintain the District's accounting records. He did not prepare accurate and complete accounting records resulting in an understatement of general ledger cash of about $606,000, and he did not prepare and present proper monthly bank reconciliations to the Board. Scarborough Fire District[complete audit - pdf]