Farmersville Volunteer Fire Department, Inc. – Internal Controls Over Financial Operations (2011M-263)
Released: February 17, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to review the internal controls over the Department’s financial operations for the period January 1, 2010 to October 7, 2011.
The Farmersville Volunteer Fire Department is located in the Town of Farmersville, in Cattaraugus County. The Department’s By-laws require that the Department have a Fire Committee consisting of 14 elected members who are responsible for the Department’s overall financial management. The Department has an elected Treasurer who acts as the chief fiscal officer. In 2010, the Department received approximately $33,000 from fund-raising activities, foreign fire insurance premiums and donations. The Department’s expenses for 2010 were approximately $32,500.
- Although we found that the Treasurer maintained adequate records, the Committee did not provide adequate oversight of Department financial activities. The Treasurer did not submit monthly or annual financial reports to the Committee. While the Treasurer indicated that he provided a verbal report of the finances each month to the Committee, we found no evidence in the minutes that this occurred.
- While the President and Chief indicated that the Committee audited the Treasurer’s records, they did not provide us with any documentation to demonstrate that this had occurred.
- We found no evidence in the minutes or on the bills/vouchers that they were approved by the President and Secretary, or the Committee.
- Prepare and submit monthly and annual financial reports to the Committee.
- Ensure that an annual audit is conducted as required by the By-laws and documented in the Committee minutes.
- Review all bills to ensure they are for appropriate purposes and supported by adequate documentation prior to authorizing payment. Document such authorization in the minutes.
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