Audits of Local Governments and School Districts
Mohawk Fire District – Board Oversight and Internal Controls Over Cash Disbursements (2012M-86)
Released: September 5, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to examine selected District financial operations for the period January 1, 2010, through December 1, 2011.
The Mohawk Fire District is a district corporation of the State, distinct and separate from the Town of Mohawk and Montgomery County in which it is located. An elected five-member Board of Fire Commissioners governs the District. The District’s revenues for the 2011 fiscal year were approximately $135,000, which were funded primarily with real property taxes.
- The former Treasurer issued three unauthorized checks totaling $1,000 to herself without the Board’s detection. This occurred because the Board failed to establish a sound internal control structure through formal policies and procedures.
- The Board failed to provide the proper oversight of the Treasurer by reviewing her work and completing the required annual audit of the Treasurer’s records and reports.
- The Board did not ensure that all claims had appropriate supporting documentation to indicate that they were for valid District purposes.
- Take immediate action to strengthen the District’s internal control environment and develop, adopt, and implement written policies and procedures to control and monitor District operations.
- Segregate the duties performed by the Treasurer. Ensure that all District bank accounts are reconciled monthly. Perform a proper annual audit of the Treasurer’s records and reports.
- Ensure that all disbursements are adequately supported by claims and other related documentation.
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