South Wilson Volunteer Fire Company – Internal Controls Over Financial Operations (2011M-264)
Released: March 7, 2012 -- [read complete report - pdf]
Purpose of Audit
The purpose of our audit was to review the internal controls over the Company’s financial operations for the period January 1, 2010 to October 20, 2011.
Background
The South Wilson Volunteer Fire Company is located in the Town of Wilson, in Niagara County. The Board of Directors consists of the President, Vice-President, Secretary, Treasurer, Chief and four elected directors, and is responsible for the Company’s overall financial management. Company expenditures for the 2010 fiscal year totaled $187,289, while revenues totaled $248,082.
Key Findings
- The Board did not provide adequate oversight of Company financial activity. For example, the Board has never obtained an annual independent audit as required by General Municipal Law, and there is no evidence that the Board reviewed and approved bills prior to payment.
- The Treasurer has never completed and filed Form 990 with the Internal Revenue Service, and the Board did not require that he/she do so.
Key Recommendations
- Ensure that an annual independent audit is conducted in accordance with statute. Approve bills prior to payment and document such approval in the minutes.
- Ensure that the Treasurer properly completes and files IRS Form 990.
Local Government and School Accountability Contact Information:
Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236