Audits of Local Governments and School Districts
Bethany Volunteer Fire Company, Inc. – Internal Controls Over Financial Operations (2012M-183)
Released: October 17, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the internal controls over the Company’s financial operations for the period January 1, 2011 to June 30, 2012.
Background
The Bethany Volunteer Fire Company is located in the Town of Bethany, in Genesee County. The officers of the Company consist of a President, Vice President, Treasurer, Secretary, Special Funds Secretary, Chief, First Assistant Chief, Second Assistant Chief, and six Directors, all of whom are elected from the Company’s active or contributory membership. The Board of Directors is responsible for the Company’s overall financial management. The Company’s budget totaled $102,150 for the April 1, 2011 to March 31, 2012 fiscal year.
Key Findings
- The Board has failed to establish a system of internal controls consisting of policies and procedures that ensure transactions are properly authorized and recorded.
- The Board contracted for an audit of the 2008-09 Treasurer’s records in June 2010, but has not yet obtained the results. Moreover, the Board failed to perform an audit of the Treasurer’s records for the fiscal years 2009-10, 2010-11 and 2011-12.
Key Recommendations
- Prepare and maintain complete and accurate records, including the preparation of monthly bank reconciliations.
- Audit the Treasurer’s records at least annually, as authorized in the by-laws.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236