Capital Project Procurement and Annual Audit
The Board did not comply with statutory bidding requirements for the firehouse capital project with a cost of approximately $2.5 million. The only documentation of the bids made available to us by District officials were bid forms for the four vendors who were awarded contracts, which were dated two weeks after the bid opening date. No bid documentation was made available from any unsuccessful vendors. Finally, the District's procurement policy did not address the promotion of competition for professional services. Therefore, the Board did not seek competition when procuring legal, financial, and architectural services, totaling more than $195,000, and could not provide us with a contract for the legal or financial services rendered. Allegany Joint Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board has adopted appropriate policies for procurement and investments, but has not adopted a code of ethics. The Treasurer submitted adequately detailed monthly reports to the Board, filed the annual financial report for 2009 with the Office of the State Comptroller in a timely manner, and received an extension to file the 2010 report. However, the Board did not review monthly bank reconciliations prepared by the Treasurer to confirm that they were performed and to determine whether any differences between bank records and District records existed. Further, the Board did not conduct an annual audit of the Treasurer's records, as required. Belfast Fire District[complete audit - pdf]

Board Oversight
The Board did not properly oversee the District's financial operations. The Board failed to adopt policies and procedures as required by law and good business practices. Furthermore, the Board failed to complete the required annual audit of the Treasurer's records and reports, which would have provided them with some assurance that the Treasurer was performing his duties in a satisfactory manner. As a result of the Board's lack of oversight, the Treasurer failed to complete and file an annual report as required by law for the past eight years. Bellona Fire District[complete audit - pdf]

Controls Over Financial Operations
The Board has not adopted purchasing or investment policies or a code of ethics, as required by statute. The Treasurer stated that the Board reviews her records annually, but there is no documentation of the results of this audit in the minutes. The Treasurer also stated that she performs monthly bank reconciliations, but she could not provide any documentation to support this assertion. The Treasurer also does not provide adequate monthly financial reports to the Board. However, she did submit the 2010 annual financial report to the Office of the State Comptroller in a timely manner. Bliss Fire District[complete audit - pdf]

Internal Controls Over Cash Receipts and Disbursements
The former Treasurer appears to have misappropriated Department funds in excess of $5,000. This occurred because the Department had virtually no controls over cash receipts and disbursements. The Board did not effectively segregate the former Treasurer's duties or implement compensating controls. In addition, the Board did not approve claims prior to payment or enforce the use of its "Payment Approval" form. Had they done so, they would have realized that Department funds were being used for non-Department purposes, and possibly prevented it. Bolivar Fire Department Inc.[complete audit - pdf]

Apparent Misappropriation of Funds and Committee Oversight
Because the Company had poor or nonexistent controls over its cash receipts and disbursements the former President/Treasurer was able to control all Company funds. This resulted in 98 checks written to cash, totaling $44,560.57, and endorsed by her with no supporting documentation to determine the purpose of the payments. We also found that five vendors did not receive checks totaling $4,779. The Committee also could not account for at least $700 in cash receipts. In addition, there is no evidence that the revenue generated by various fundraising events were ever deposited in the Company accounts. The former President/Treasurer also opened bank accounts that the Committee was not aware of. Finally, the former President/Treasurer secured a $10,000 line-of-credit and a $7,000 promissory note without the knowledge of the Committee. Bombay Fire Corporation, Incorporated[complete audit - pdf]

Internal Controls Over Treasurer’s Activities: Mismanagement Allows Theft
The Treasurer misappropriated as much as $500,000 of District funds. This misappropriation of taxpayer funds was able to occur because of an egregious lack of oversight by the Board. Internal controls over the fiscal activities were virtually non-existent. The Treasurer was able to make purchases, pay bills, write checks, and process payroll with no oversight. This created an environment where the Treasurer was able to initiate transactions outside of the normal District business cycle without detection. As a result, the Treasurer made non-District related purchases on the District’s store (credit) accounts and paid for them with District funds, issued checks to herself and her husband that they were not entitled to, and paid herself excessive amounts through payroll that the Board had not approved. Charlton Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board neither ensured that the Treasurer's duties were segregated nor implemented effective compensating controls. Therefore, the Treasurer performed virtually every aspect of cash receipts and disbursement transactions, with only minimal oversight . Additionally, the Treasurer did not perform bank reconciliations properly or in a timely manner, and failed to provide the Board with adequate monthly financial reports. We also found that the Board did not perform a proper audit of claims, resulting in the District paying 62 claims totaling $149,821 prior to the Board's review and approval. Finally, the District inappropriately used debit cards to purchase items, and fraudulent deductions were made from the District's checking account. Chestertown Fire District[complete audit - pdf]

Internal Controls Over Purchasing
Although the District has adopted a comprehensive purchasing policy which supports the bidding requirements and identifies the methods of procurement for purchases below the bidding thresholds, District officials did not develop a procedure for the procurement of professional services. As a result, the District did not seek competition when procuring services from five professional service providers who received payments totaling $205,220. We also found that District officials did not use competitive bidding when making purchases totaling $56,238 or obtain quotes for two purchases totaling $8,855. In addition, District credit card purchases totaling $9,114 did not have adequate supporting documentation. Finally, we identified a conflict of interest with a Commissioner. Coldenham Fire District[complete audit - pdf]

Controls Over Financial Activities
The Board has taken a proactive approach to assessing and improving its internal controls. For example, the Board has adopted appropriate policies for procurement, investment, travel and a code of ethics. In addition, the Treasurer submitted adequately detailed monthly reports to the Board and filed the annual financial reports for 2009 and 2010 with the Office of the State Comptroller in a timely manner. However, the Board did not conduct an annual audit of the Treasurer's records as required by statute. Collins Fire District[complete audit - pdf]

Board Oversight
The Board did not properly oversee the District's financial operations. The Board did not adopt realistic budgets, which resulted in surpluses and the unnecessary levy of taxes. We identified nearly $30,000 in disbursements that were not properly authorized by the Board. The Board did not adequately segregate the Treasurer's duties or establish compensating controls. The Board also failed to complete an annual audit of the Treasurer's records and reports, which would have provided them with some assurance that the Treasurer was performing her duties in a satisfactory manner. Coopers Plains Long Acres Fire District [complete audit - pdf]

Internal Controls Over Selected Financial Operations
Although we did not find any material discrepancies, we did identify opportunities for Department officials to strengthen existing controls to reduce the risk of errors or irregularities. The former Treasurer did not reconcile the Department’s bank accounts in 2010, but the current Treasurer did perform monthly reconciliations in 2011. However, the Trustees did not review these reconciliations to confirm that they were performed and to determine if there were inconsistencies that required further investigation. In addition, Department officials advised us that the Trustees audit claims during a meeting that is held prior to the regular monthly meeting. However, we were unable to confirm that the Trustees audited the claims since no approval is indicated anywhere on the list of approved claims and no minutes were maintained. Corfu Fire Department[complete audit - pdf]

Controls Over Financial Operations
We found that the Board did not provide adequate oversight of the District’s financial activities. The Board did not ensure that the annual financial reports were filed with the Office of the State Comptroller for the last three fiscal years as required by law. Moreover, while at least two Commissioners review and sign every claim, the Board consistently failed to identify problems with charges made to the District’s credit cards that should have been detected if a proper audit of claims had been performed. Corfu Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board has been proactive in establishing policies addressing ethics, procurement and travel. The Board has also initiated a monthly audit of claims and an annual audit of the Treasurer's records. However, we found that the District made a prepayment of $2,079 for the purchase of propane for the year. District officials indicated that the prepayment was made to save money by guaranteeing the price of the fuel. Generally, claims for goods and services should not be approved for payment until the goods or services are received to reduce the risk that District funds could be wasted. Dayton Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
We found that the Board provides adequate oversight of District financial activities. We found that financial activity was properly recorded and supported with appropriate documentation, and that disbursements appeared to be for District purposes. Dewitt Fire District[complete audit - pdf]

Controls Over Credit Cards
The District adopted a credit card policy in April 2011, which requires that receipts for credit card purchases be attached to a type-written claim and submitted to the Board for approval. We traced all 125 credit card purchases that were paid during our scope period to the receipts supporting those purchases. We determined that 17 purchases totaling $5,630, or 25 percent of the total purchases paid prior to the adoption of the new policy, did not have itemized receipts. For example, in May 2010, the District paid for $670 in unreceipted charges for lodging at the Turning Stone Casino and Resort, and paid $1,085 for an unreceipted charge from a public safety equipment supplier. We found that the purchases on claims paid after April 2011 were adequately documented. Eagle Mills Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The District does not have adequate financial policies and procedures. The Board has not adopted purchasing and investment policies or a code of ethics, as required by statute, and also has not developed written policies concerning financial recording and reporting. Further, the Treasurer did not maintain financial records and reports that provided sufficient information for the Board to monitor the budget or evaluate the financial position of the District. Additionally, the Board did not have an adequate claims audit process in place. We also found that the Treasurer did not file the annual financial report for 2009 and 2010 with OSC in a timely manner. Finally, the District did not comply with statutory spending limitations. Eastern Pittstown Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
Although the Board does provide some oversight with respect to the Treasurer function, we identified certain areas in need of improvement. The Board has not established a policy and related procedures to address the District's procurement process, or established a code of ethics, as required. While the Treasurer submits reports to the Board on a monthly basis, the Board does not conduct an annual audit of the Treasurer's financial records, as required. Ellery Center Fire District[complete audit - pdf]

Board Oversight
The Board had not adopted and enforced a written policy governing the proper use of credit cards. As a result, the District paid for credit card charges that served no District purpose or were clearly inappropriate, such as tickets to a Baltimore Orioles game costing $1,196, and purchases of $699 at a local restaurant, including $100 for beer. The District also paid a Commissioner's $1,840 charge for a meal at a Baltimore restaurant without requiring any documentation showing who attended the meal and what was purchased. Further, we found that the Board appointed a Treasurer who did not meet the criteria to perform the duties of a public officer, and that key budget controls in the District were not implemented or were not effective to restrict and monitor budgetary activity. Finally, financial reports such as the annual update document and audited financial statements did not contain correct information. Elmont Fire District[complete audit - pdf]

Controls Over Financial Activities
The District does not have adequate financial policies and procedures. The Board has not adopted purchasing, investment and code of ethics policies, as required by statute. The Board also has not ensured that written procedures concerning financial recording and reporting were developed. We found that the Treasurer submitted monthly financial reports to the Board and filed the required annual financial report for 2009 with the Office of State Comptroller. However, the Board did not conduct an annual audit of the Treasurer's records. While Board resolutions authorize the total amount of claims audited by the Board, they did not identify which specific claims were reviewed and approved. Finally, the Treasurer did not perform monthly bank reconciliations, which should be presented to the Board for review. Fancher-Hulberton-Murray Fire District[complete audit - pdf]

Internal Controls Over Financial Activities
The District does not have adequate financial policies and procedures. The Board has not adopted purchasing, investment and code of ethics policies, as required by statute. The Board also has not ensured that written procedures concerning financial recording and reporting were developed. We found that the Treasurer submitted monthly financial reports to the Board but has not filed the required annual financial report since 2006 with the Office of State Comptroller. The Board does authorize each claim for payment and indicates their approval by affixing their signatures to the claims, and the Board minutes indicate the approval to pay these claims and a check detail report is attached. However, the Board does not conduct an annual audit of the Treasurer's records nor contract with an independent auditor to perform such an audit. Guilford Fire District[complete audit - pdf]

Internal Controls Over Financial Operations and Information Technology
We found that the Treasurer improperly reserved $310,940 of fund balance for encumbrances that did not exist. As a result, the District understated its available fund balance. We also found that the Treasurer often pays claims prior to audit and approval by the Board. Furthermore, the Board did not adopt a purchasing policy and did not always comply with competitive bidding requirements. Finally, District officials have not developed comprehensive IT policies and procedures that provide guidance to District employees on all aspects and appropriate use of IT systems and data. Hampton Bays Fire District[complete audit - pdf]

Internal Controls Over Selected Financial Activities
The Board did not adopt a comprehensive procurement policy that promotes competition and requires the solicitation of competition for professional services. As a result, District officials did not solicit competitive proposals or quotations on a consistent basis. Of the seven professional service contracts tested, the District procured four of the contracts, totaling approximately $582,000, without soliciting competition. Further, the Board has not adopted a comprehensive information technology or computer policy. Finally, the Board authorized financing for constructing the Station 2 firehouse from capital reserve funds at a maximum cost of $3.5 million. However, because the low bid for construction was $3.8 million, and architectural and other costs had increased, the project's total cost increased to $5.1 million. Hicksville Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
Generally, we found that financial activity was properly recorded and disbursements appeared to be for District purposes. The Board has adopted appropriate purchasing, investment and code of ethics policies, as required by statute. We found that the Treasurer submitted monthly financial reports to the Board and filed the required annual financial report for 2010 with the Office of State Comptroller. We noted that abstracts were properly signed by the Board and resolutions authorizing the payment of bills were documented in the minutes. Finally, bank statements were opened and reviewed by one of the commissioners. Holland Fire District[complete audit - pdf]

Controls Over Financial Activity
We found that the Treasurer maintained suitable records to account for financial activities and submitted monthly and annual financial reports to the Board. However, the Board did not provide adequate oversight of Company financial activity. We reviewed all 134 check disbursements totaling $57,001 and found that, generally, financial activity was properly recorded. However, 34 checks totaling $22,211 had no bills or other documentation on file to substantiate that the payments were for appropriate Company purposes. Finally, while the Board requires dual signatures on checks to ensure payments are authorized, we found that 113 checks had just one signature, either the President's or the Treasurer's. Holley Fire Company[complete audit - pdf]

Internal Controls Over Financial Operations
We found that the Board generally provides adequate oversight of District financial activities. However, when we initiated our fieldwork in August 2011, we found that the Treasurer had not filed the 2010 annual financial report with the Office of State Comptroller, and an independent audit of the District's records had not been completed for the 2010 fiscal year. As of October 31, 2011, the District still had not completed these reports. Additionally, while the Board minutes stated that the Board approved claims for payment, the minutes did not include a corresponding list of approved claims and there were no signatures or other evidence of approval included on the claims. We found that the disbursements were supported by adequate documentation and appeared to be for District purposes. Hoosick Falls Joint Fire District[complete audit - pdf]

Internal Controls over the Length of Service Award Program
We found that the Board established points for fire calls that were inconsistent with GML. In addition, the District was providing credit for activities that did not meet GML or District policy qualifications. Further, the Board did not ensure that credits were accurately recorded, and did not certify the points awarded to members for service credits. As a result, members may have received annual service credit to which they were not entitled. Luzerne-Hadley Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board does not provide adequate oversight of the District’s financial operations. The Board failed to adopt financial policies for investments, procurements, cash management, capital planning, budgeting, and claims processing. The Board has not ensured that written procedures concerning financial recording and reporting were developed. The annual budget was not prepared in accordance with Town Law and the Board did not calculate the District’s statutory spending limitation. As a result, the Treasurer’s accounting duties were not properly segregated, the Treasurer failed to complete and file an annual report as required by law for the past three years, and the Board was unaware that the District’s 2010 unreserved, unappropriated fund balance was excessive, being equal to 129 percent of the ensuing year’s appropriations. Montezuma No. 1 Fire District[complete audit - pdf]

Board Oversight
The Board did not carry out its responsibility of overseeing the District's financial affairs. For example, Board has not adopted a policy for electronic banking and the written agreement with the bank for wire transfers does not include the necessary security measures. Consequently, no written approval is required to make wire transfers, and there is no independent confirmation for wire transfers made by the Treasurer. Furthermore, Board members are not bonded even though they are signatories on the District's checks and can handle transactions at the bank. We also found that the Board does not enforce the procurement policy for goods and services that are not subject to competitive bidding. New Castle Fire District No. 1[complete audit - pdf]

Internal Controls Over Financial Operations
District officials did not properly segregate the Superintendent's duties or have mitigating controls in place. As a result, the Superintendent processed cash disbursements, prepared bank reconciliation, wire transfers, and employee time entries without Board oversight. The Board did not obtain the necessary number of quotes when procuring goods and services for five purchases under the bidding threshold totaling $15,911. Additionally, the District did not use competitive proposals to obtain services from eight professionals paid a cumulative total of $146,886. We also found that District officials incurred travel related expenses which exceeded recommended reimbursement rates established by the United States General Services Administration (GSA) rates by $9,885. North Bellmore Fire District[complete audit - pdf]

Controls Over Financial Operations
The Treasurer does not maintain adequate financial records and has not filed an annual financial report with the Office of the State Comptroller since 2003. The Treasurer does not provide the Board with periodic written financial reports, and the Board's annual audit of the Treasurer's records is inadequate. In 2007 the District invested $15,000 with a local insurance agent and received a promissory note stating the money would be returned in one year with 8 percent interest. GML does not authorize investments of this nature. At the end of our audit fieldwork, the moneys had not been returned to the District and District officials had not followed up with the insurance agent regarding this investment. Generally, we found that financial activity was properly recorded in the Treasurer's checkbook register and supported, and that disbursements appeared to be for proper District purposes. However, the District could not provide supporting documentation for six disbursements totaling $1,448. North Brookfield Fire District[complete audit - pdf]

Financing and Procurement of a New Fire Truck
The Board followed GML and the District's procurement policy for the purchase of the new fire truck. The District advertised for public bid in its official newspaper. The Board received two bids from reputable vendors in October 2009. Although the Board did not award the bid to the lowest bidder, it documented its justifications for its decision. The Board stated that it made its decision following the apparatus committee's in-depth comparison of the two bids. However, the Board, in its attempt to reduce the cost of the new truck, actually incurred additional costs of $6,321 when purchasing this truck. Of the total amount to be paid, $412,932 was to be withdrawn from the capital reserve account. This withdrawal required an early liquidation of the CDs, which resulted in an early withdrawal penalty of $6,321. The Board took this action without determining whether it was legally permitted to make an advance payment for goods not received and inspected. North Castle South Fire District No. 1[complete audit - pdf]

Internal Controls Over Financial Operations
We found that the Board generally provides adequate oversight of District financial activities. The Treasurer provides monthly reports to the Board and filed the required annual financial report for 2009 with the Office of the State Comptroller in a timely manner. The Board retained a public accounting firm to perform an annual audit of the District's financial records for 2009, as required by statute. North Evans Fire District[complete audit - pdf]

Financial Operations
The Board does not provide appropriate oversight over the Treasurer's records. The Board does not conduct an annual audit of the Treasurer's records and does not review claims or payments made by the Treasurer. While the Treasurer submits a periodic financial report to the Board, meetings occur only a few times during the year. We also found that the Treasurer did not perform monthly bank reconciliations. North Java Fire District[complete audit - pdf]

Internal Controls Over Financial Activities
Controls over the Company’s financial activity were nonexistent, the Board exercised no oversight of the Treasurer’s duties, the Board did not audit bills or approve payments as defined in the Company by-laws, and charge card usage was not monitored or restricted. The Treasurer did not maintain even the most basic accounting records. As a result, we found that the Company could not substantiate 193 disbursements totaling $67,744 in fiscal year 2010 and there was no documentation to indicate the purpose of $15,662 in payments to related parties in 2009 and 2010. Olcott Fire Company, Inc.[complete audit - pdf]

Internal Controls Over Financial Operations
We identified opportunities for the Board to improve its oversight of District financial activities. We found that the Treasurer did not present written monthly (or periodic) financial reports to the Board. The Treasurer verbally reports financial activity to the Board at its bi-monthly meeting, but without written reports, the Board and other interested parties cannot adequately monitor the District's financial activity. The Board also did not review monthly bank reconciliations prepared by the Treasurer. In addition, the Board does not perform a proper audit of all claims. Finally, the Board did not conduct an annual audit of the Treasurer's records, as required. Pavilion Fire District[complete audit - pdf]

Council Oversight of Rural Contract Disbursements
Although the Department received rural contract revenues of $95,625 from June 1, 2008 to May 5, 2011, the Council did not adopt policies or procedures for their use. As a result, there was no assurance that the same standards were applied for all members for expenses incurred such as travel, training, meals, groceries and retirement gifts, which totaled $44,400. In addition, the Council did not audit and approve any claim prior to or after payment, or report on the financial affairs of the Department to its membership. As a result, funds totaling $71,171 have been disbursed without proper itemization or documentation, for items such as for credit card and travel expenses totaling $19,725, and there is an increased risk that Department funds will be subject to theft and abuse. Penn Yan Fire Department[complete audit - pdf]

Internal Controls Over Financial Operations
In 2009 and 2010, the District improperly paid more than $16,000 to certain commissioners whom the Board appointed to paid positions in violation of its code of ethics and/or statute. During the same period, the District paid more than $8,000 in travel expenses that included excessive mileage reimbursement and per diem expenses that exceeded GSA rates. These problems occurred because the Board circumvented and/or disregarded policies, control procedures and statutes. As a result, certain commissioners were enriched at District expense. We also found that the District failed to distribute more than $17,000 in foreign fire tax moneys that it received over an eight-year period, as required by law. Pine Hill Fire District #5[complete audit - pdf]

Internal Controls Over Financial Operations
We found that the Board generally provides adequate oversight of District financial activities. However, we found no evidence in the minutes that the Board adopted a code of ethics, as required. District officials provided us with a code of ethics document, which was the model code of ethics available on the State Comptroller's web site. However, in addition to there being no indication that the Board had adopted this model as its code of ethics, the document did not even include the District's name in the space provided in the model. The District also needs to improve controls over fire hall rental revenues. Ransomville Fire District[complete audit - pdf]

Board Oversight
The Board has failed to perform some of its key oversight responsibilities by allowing the District's annual financial report to go unfiled for four consecutive years and also by not auditing the Treasurer's year-end financial records for the previous two years. While it is the Treasurer's responsibility to file the annual financial report with OSC, it is the Board's responsibility to ensure the duties of the Treasurer are properly performed. The Board also did not adopt an investment or procurement policy as required by law. Rose Fire District No. 1[complete audit - pdf]

Controls Over Financial Activity
We found that District controls are adequate to ensure that financial activity is properly recorded and reported and that District moneys are safeguarded. Rushford Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board has not established a policy or related procedures to address the investment of District funds, the District's procurement process or established a code of ethics as required. In addition, the Board has not completed their fiscal oversight training as required per Town Law. Furthermore, the Board failed to conduct the required annual audit of the Treasurer's records and reports, which would have provided them with some assurance that the Treasurer was performing his duties in a satisfactory manner. Also, the Treasurer has not filed an annual report as required by law since 2006. Both the Board and Treasurer erroneously believed that they did not need to file an annual report because the District's revenues did not exceed $200,000. Schodack Center Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board has not adopted purchasing or investment policies or a code of ethics, as required by statute, and has not developed written procedures concerning financial recording and reporting. Although the Treasurer was maintaining accurate cash balances for the District's saving accounts, she did not maintain an accurate running cash balance for the District's checking account. Therefore, the Treasurer was not able to reconcile cash to the monthly bank statement balance. In addition, while the Treasurer did submit monthly financial reports to the Board, she has not filed the District's required annual financial report with OSC since 2006. Finally, the Board does not conduct an annual audit of the Treasurer's records or contract with an independent auditor to perform such an audit to ensure that District funds were used for legitimate District purposes. South New Berlin Fire District[complete audit - pdf]

Board Oversight
The Board needs to improve its oversight of District operations. Instead of requiring the use of competition when procuring professional services, the Board's procurement process allows the Board to determine whether or not to use a competitive process. Consequently, the District made payments to five vendors totaling $328,359 without the benefit of competition. Further, the District failed to prepare and file the Annual Update Document with the Office of the State Comptroller for 2006, 2007, 2008, and 2009. Also, the District selected a certified public accounting firm for its independent external audit in 2008, but an audit had not been completed as of the end of our field work in April 2011. Furthermore, the Board neither adopted a policy for electronic banking nor entered into a written agreement containing the necessary security measures with the bank for electronic transfers. Finally, the District maintained an excessive number of bank accounts. South Spring Valley Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board has taken a proactive approach to assessing and improving its internal controls by implementing procedures to provide additional oversight and better segregate duties. The Board also retained a public accounting firm to perform an annual audit of the District's financial records, as required by statute. The Board has adopted appropriate policies for procurement, investment, capital assets, technology use and a code of ethics. Finally, the Treasurer submitted adequately detailed monthly reports to the Board and filed the annual financial reports for 2009 and 2010 with the Office of the State Comptroller in a timely manner. South Wales Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
We found that the Board failed to adopt financial policies to cover all the District's operations, such as investments, information technology, cash management, capital planning, budgeting, and claims processing. We also found that the Board was unaware the District's 2010 unreserved, unappropriated fund balance was excessive, being equal to 68 percent of the ensuing year's appropriations. The Board had not properly segregated the Treasurer-Secretary's accounting duties and the Board did not have sufficient compensating controls in place. The District's annual financial reports for the years 2008 to 2010 were not complete and filed as required by law. Finally, the Board did not audit the Treasurer-Secretary's books and records. Springwater Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
The Board is not providing adequate fiscal oversight. It has not adopted purchasing, investment and code of ethics policies, as required by statute. The Board holds meetings quarterly, or as needed, but the Secretary does not maintain adequate minutes to document these proceedings. Board members stated that they review the Treasurer's records annually but do not document the results of this audit in the minutes. The Board also does not document its review of the bank reconciliations performed by the Treasurer. In addition, the Treasurer does not provide monthly or periodic financial reports to the Board. Varysburg Fire District[complete audit - pdf]

Internal Controls Over Financial Operations
We found that the Board generally provides adequate oversight of District financial activities. The Board has been proactive in adopting policies addressing ethics, procurement, travel, credit card and vehicle use. The Treasurer provides the Board with monthly financial reports including cash balances and budget to actual reports, and has filed the annual financial report in a timely manner. The Board also has contracted for an annual independent audit of District financial operations each year, as required. Generally, we found that the Board conducted a thorough audit of claims. The transactions were properly recorded in the accounting records, and they appeared to be for District purposes. West Sand Lake Fire District[complete audit - pdf]

Apparent Misappropriation of Funds
We identified $137,866 that appears to have been misappropriated during the last eight years. Of this amount, $115,402 was paid to the Treasurer's wife and the remaining $22,464 was paid to the Treasurer. The Board used Treasurer Reports to approve payments, rather than properly auditing and approving individual claims prior to payment. The Board also did not review bank statements, canceled checks/images, check sequence integrity, or the amounts paid to verify the payments were made as authorized. This lack of oversight enabled the Treasurer to submit inaccurate reports to the Board to conceal the apparent misappropriations. West Seneca Fire District #1[complete audit - pdf]