Audits of Local Governments and School Districts
Owasco Fire Department – Internal Controls Over Financial Activity (2012M-118)
Released: September 7, 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 April 30, 2012.
The Department is a volunteer organization located in the Town of Owasco in Cayuga County. The Department is affiliated with the Owasco Fire District and provides fire protection services to the Town. The Department is governed by the President and a five-member Board of Directors. Expenditures for the 2011 fiscal year totaled $92,300.
- The Board does not provide adequate oversight of Department financial activities. Although the Treasurer maintained appropriate financial records, she did not provide monthly or annual financial reports to the Board and did not prepare formal bank reconciliations.
- While the Treasurer did provide the Board with a list of claims and bank balances, the Board does not audit individual claims and there are no formal policies or procedures over the audit of claims.
- The Board did not complete a thorough audit of the Treasurer's records as required by its by-laws.
- Prepare and submit monthly and annual financial reports to the Board. Perform bank reconciliations and present these reconciliations and the related bank statements to the Board for review.
- Review all bills prior to payment to ensure they are for appropriate purposes and are supported by adequate documentation.
- Ensure that an annual audit of the Treasurer's books and records is performed and documented.
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