Audits of Local Governments and School Districts
Big Flats Volunteer Fire Company, Inc. – Internal Controls Over Financial Operations (2012M-145)
Released: October 19, 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, 2010, to April 30, 2012.
Background
The Big Flats Volunteer Fire Company, Inc. is a not-for-profit organization located in the Town of Big Flats in Chemung County. The officers of the Company consist of a President, Vice-President, Secretary, Treasurer, Sergeant at Arms and five Directors; all Officers are elected by the membership. The Company's operating revenue totaled $97,000 for the 2011 fiscal year.
Key Findings
- Although it appears that the Treasurer maintained appropriate financial records, we found that the Officers, Directors and membership did not provide adequate oversight of Company financial activities. While the Treasurer submitted monthly and annual financial reports to the Company members, the membership do not audit bills prior to approval for payment or review reconciled bank statements to determine that reported cash was accurate.
- The Directors did not audit the Treasurer's records, as required.
Key Recommendations
- Thoroughly review all claims prior to payment and ensure that the claims are supported by adequate documentation. Assign a member to review the Treasurer's bank reconciliations.
- Perform an annual audit of the Treasurer's records.
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