Malone Call Firemen, Inc. (Department) – Controls Over Financial Operations (2012M-52)
Released: June 1, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine the internal controls over the Department’s financial operations for the period January 1, 2010, to December 31, 2011.
The Malone Call Firemen, Inc. is a volunteer organization located in the Village of Malone, in Franklin County. The Department is operated in accordance with its Constitution and By-laws. The Executive Committee, which is responsible for the Department’s overall financial management, consists of five Directors, a President, Vice-President, Secretary, Treasurer, Assistant Treasurer, and the outgoing Chief. The Department received approximately $324,000 for providing fire protection services and $19,500 from foreign fire insurance premiums and fundraising activities in 2011. Department disbursements in 2011 totaled approximately $415,000.
- The Committee did not provide adequate oversight of Department financial activities. The Committee has not adopted a code of ethics as required by statute.
- The Treasurer did not submit monthly reports, bank statements, bank reconciliations, or annual financial reports to the Committee during our audit period.
- The Department also did not contract with an IPA to perform an independent audit of its records for the 2007 to 2010 fiscal years. The President stated that the Committee was not aware of this requirement.
- The Committee did not review and approve bills prior to payment and did not require Department officials to submit supporting documentation of all purchases that were made with the Department’s credit cards.
- Adopt a code of ethics, as required by statute.
- Prepare and submit monthly reports accompanied by bank reconciliations and bank statements to the Committee. Prepare and submit an annual financial report of the Department’s financial activities to the Committee at the annual meeting.
- Ensure that an annual audit of the Department’s records is performed by an IPA within 180 days after the close of the fiscal year.
- Approve bills prior to payment and document such approval in the minutes. Ensure that all credit card purchases are supported by adequate documentation prior to approving them for payment.
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