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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Bloomingburg Fire Company #1 – Disbursements (2013M-83)


Released: June 28, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the internal controls over the Company’s disbursements for the period April 1, 2011, to February 22, 2013.

Background

The Bloomingburg Fire Company #1 is a volunteer organization located in the Village of Bloomingburg in Sullivan County. The Company officers consist of a President, Vice-President, Secretary, and Treasurer. The President is the chief executive officer of the Company, and the Treasurer is the chief fiscal officer. From April 1, 2011 to January 31, 2013, the Company received approximately $119,000 in revenue, including $19,900 in foreign fire insurance premiums. For the same period, the Company made 149 check disbursements totaling $81,400 and 157 debit card transactions totaling $32,200.

Key Findings

  • The President did not ensure disbursements were made for proper company purposes. The President allowed the Treasurer to pay bills without evidence of Company approval for the majority of the transactions we tested. Seventy-six payments totaling $27,600 of the 100 disbursements we tested had no evidence of Company approval.
  • Nine of the 40 checks totaling $8,700 and 20 of the 60 debit card transactions totaling $7,500 had no documentation available to identify the purposes of the payments.

Key Recommendations

  • Only pay bills after being ordered to do so by the Company.
  • Only approve bills based on adequate documentation that allows the Company members to verify that they are legitimate Company expenditures. Consider using credit cards in place of debit cards.

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