East Meadow Fire District – Internal Controls Over Selected Financial Operations (2011M-277)
Released: March 30, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the District's internal controls over selected financial operations for the period January 1, 2009 to October 31, 2010.
The East Meadow Fire District is located in the Town of Hempstead in Nassau County. The District is governed by an elected five-member Board of Commissioners. During the 2009 fiscal year, the District's general fund expenditures totaled approximately $6.5 million, and totaled $5.3 million in 2010.
- The District did not enforce compliance with its credit card guidelines and purchasing policy. District officials paid credit card claims without original receipts to substantiate the charges, did not obtain adequate quotes in accordance with the District's purchasing policy, and did not solicit competition in the procurement of professional service providers.
- The District has not assigned an individual independent of the Business Office to be the system administrator, which increases the risk that inappropriate financial transactions could be made without detection or correction.
- Although the software has an audit trail capability which can produce reports to monitor user access, it was not turned on.
- Develop procedures to monitor credit card usage and enforce compliance with the purchasing policy and credit card guidelines and amend the purchasing policy to require District officials to solicit competition before awarding contracts for professional service.
- Assign an individual independent of any Business Office functions to be the system administrator.
- Ensure that the audit trail function is turned on for all users, and routinely review audit logs and exception reports to monitor user activity.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: email@example.com
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236