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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Eagle Matt Lee Fire Company Number One Inc. – Financial Operations (2012M-213)


Released: January 11, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate internal controls over the Company’s financial operations for the period April 1, 2011, to June 13, 2012.

Background

The Eagle Matt Lee Fire Company is a volunteer organization located in the Village of Ballston Spa, in Saratoga County. The Board of Directors, which is responsible for the Company’s overall general and financial affairs, consists of the President, Vice-President, recording secretary, financial secretary, Treasurer, Captain, immediate Past-President, and the Directors. For the year ended March 31, 2012, the Company received approximately $45,000 in revenue including $20,800 in foreign fire insurance premiums, and disbursed approximately $49,000.

Key Findings

  • The Board has not adopted written financial policies and procedures nor has a code of ethics been adopted as required by statute.
  • Check registers are not maintained to track bank deposits, withdrawals, or cash balances. Furthermore, revenue and expenditure ledgers are not maintained, bank reconciliations are not performed, and the bank statements are not reviewed by anyone other than the Treasurer.
  • There is no record that Audit Committee audited and approved the bills for payment, as the warrant listing the bills to be paid was unsigned.
  • Adequate internal controls have not been established over fundraising activities.

Key Recommendations

  • Adopt financial policies to assist in safeguarding Company assets and adopt a code of ethics, as required by statute.
  • Maintain complete records including revenue and expenditure ledgers and check registers that include deposits, other withdrawals or credits, and a running balance. Perform bank reconciliations of all bank accounts monthly and someone other than the Treasurer review the bank statements.
  • After auditing the bills, generate a signed warrant addressed to the Treasurer that specifies the bills approved for payment and ordering them to be paid.
  • Ensure that cash reports and supporting duplicate receipts be maintained for fund raising activities.

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