Birdsall Fire Company, Inc. – Internal Controls Over Financial Operations (2011M-251)
Released: February 17, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to review the internal controls over the Company’s financial operations for the period January 1, 2010 to September 30, 2011.
Background
The Birdsall Fire Company is a volunteer organization located in the Town of Birdsall, in Allegany County. The Company is governed by a Board of Directors consisting of the President, Vice-president, secretary, Treasurer, and three Directors, with each Company member having the authority to provide input for decision making and voting. During the 2010 fiscal year the Company had deposits totaling approximately $31,800, primarily from fund-raising and donations ($19,400), and a contract with the Town to provide fire protection ($12,000). Disbursements during 2010 totaled approximately $35,300.
Key Findings
- We found that the Board did not provide adequate oversight of Company financial activity. The President did not appoint an audit committee and there was no indication in the minutes that an audit was conducted of the Treasurer’s records.
- The minutes did not indicate what bills the Board approved for payment and we found no evidence that the bills were reviewed or signed by the President and Secretary, as required.
Key Recommendations
- Appoint an audit committee to audit the Treasurer’s records and report the audit results in the minutes.
- Review all bills for payment, ensuring they are properly documented, and signify their approval for payment by signing them.
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