Audits of Local Governments and School Districts
Farmingville Fire District – Internal Controls Over Selected Financial Activities and Information Technology (2011M-208)
Released: January 6, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the District’s internal controls over selected financial activities and information technology for the period January 1, 2010 to January 31, 2011.
The Farmingville Fire District is a district corporation of the State, distinct and separate from the Town of Brookhaven in which it is located. An elected five-member Board of Fire Commissioners governs the District and is responsible for the overall financial management of the District. During the 2010 fiscal year, the District’s general fund budget totaled $3.05 million.
- The Board did not ensure that District personnel complied with the District’s procurement policy, GML or the travel policy for credit cards and did not adopt a policy for the use of credit cards for local purchases. As a result, the District failed to solicit competitive bids or quotes for purchases totaling $59,488. In addition, questionable credit card purchases for meals and clothing totaled $2,066.
- The Board awarded a contract totaling $49,500 for the purchase of a racing truck. Despite spending $32,000, the District still had not received the vehicle during our audit. The Board failed to require the vendor to deliver the vehicle prior to payment and has not pursued recovery of District’s payments.
- We also reviewed 11 months of fuel transactions and found on average 300 gallons of gasoline could not be accounted for on a monthly basis thus resulting in approximately $7,700 of fuel unaccounted for.
- The Board has not adopted an acceptable use policy or a disaster recovery plan for its IT system.
- Monitor and enforce compliance with the District’s procurement policy and GML.
- Formally authorize the use of credit cards and adopt a credit card policy that addresses local purchases.
- Recover the money spent for the racing truck purchase.
- Adopt written policies and procedures that require District personnel to create a fuel inventory record, periodically reconcile that record to the fuel use log and physical inventory on hand and follow up on any material differences.
- Formally adopt an acceptable use policy and a disaster recovery plan.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: firstname.lastname@example.org
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236