Audits of Local Governments and School Districts
Champion Volunteer Fire Company, Inc. – Internal Controls Over Financial Operations (2012M-105)
Released: August 10, 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 February 29, 2012.
The Champion Volunteer Fire Company, Inc. is located in the Town Champion, in Jefferson County. The Company is operated in accordance with its by-laws, and is governed by a five-member Board of Directors, including the Board President. During the 2011 fiscal year, the Company had receipts totaling $73,700. Disbursements during 2011 totaled $64,500.
- The Board needs to improve its oversight of Company financial activities. The Treasurer submits monthly reports to the Board containing all cash balances and a list of all moneys received and paid during the month. However, the Treasurer does not perform monthly bank reconciliations. Although bank statements and canceled checks are made available to the Board at monthly meetings, the Board does not review them.
- The Treasurer does not prepare an annual report and the Board does not perform an annual audit as required. The Treasurer also does not prepare and file an annual report of foreign fire insurance with OSC or Form 990 with IRS. The Treasurer stated that she was not aware she was required to file these reports.
- As of the time of our fieldwork, in March 2012, the Company had not provided the Town with financial reports, established an internal audit committee to audit the Treasurer's records, or engaged a person or firm to conduct an annual audit.
- Prepare monthly bank reconciliations and submit them to the Board for review.
- Prepare annual financial reports and submit them to the Board. Ensure that the Treasurer prepares and files the annual report of foreign fire insurance funds activity with OSC and Form 990 with IRS.
- Provide the Town with financial reports. Establish an internal audit committee to periodically audit the Company records and engage a person or firm to conduct an annual audit.
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Address: Office of the State Comptroller, Division of Local Government and School Accountability
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